GSA awards $1.29M BPA Call to Wright Tool Company for hardware tools, emphasizing fixed-price adjustments

Contract Overview

Contract Amount: $1,287,514 ($1.3M)

Contractor: Wright Tool Company, LLC

Awarding Agency: General Services Administration

Start Date: 2026-04-01

End Date: 2026-05-22

Contract Duration: 51 days

Daily Burn Rate: $25.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: SATS APPROVED P/N:TOOL LOAD

Place of Performance

Location: WARREN, MACOMB County, MICHIGAN, 48091

State: Michigan Government Spending

Plain-Language Summary

General Services Administration obligated $1.3 million to WRIGHT TOOL COMPANY, LLC for work described as: SATS APPROVED P/N:TOOL LOAD Key points: 1. Value for money is assessed through fixed-price adjustments, allowing for market fluctuations. 2. Competition dynamics indicate a full and open competition, suggesting a competitive bidding process. 3. Risk indicators include the contract duration and the potential for economic price adjustments. 4. Performance context is within the hardware merchant wholesalers sector, supporting federal agency needs. 5. Sector positioning is as a supplier of essential hardware tools to government entities.

Value Assessment

Rating: good

The contract's value of $1.29 million appears reasonable for a Blanket Purchase Agreement (BPA) Call, which consolidates requirements under a larger contract. The fixed-price with economic price adjustment (EPA) structure aims to balance cost certainty with market volatility. Benchmarking against similar hardware procurement vehicles would provide a clearer picture of value, but the competitive nature of the award suggests a fair market price was likely achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but the designation suggests a robust competitive process. This level of competition is generally expected to drive favorable pricing and terms for the government.

Taxpayer Impact: Taxpayers benefit from a competitive award process that aims to secure the best possible pricing and quality for essential hardware tools.

Public Impact

Federal agencies across various departments will benefit from access to a wide range of hardware tools. The contract facilitates the procurement of hardware supplies necessary for maintenance, repair, and operational activities. Geographic impact is nationwide, as GSA schedules are accessible to federal agencies regardless of location. Workforce implications include ensuring that government employees have the necessary tools to perform their duties effectively.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases due to economic price adjustment clause.
Reliance on a single BPA Call for a broad category of hardware could limit specialized options.
Contract duration of 51 months requires ongoing monitoring to ensure continued value.

Positive Signals

Awarded under full and open competition, suggesting competitive pricing.
GSA schedule vehicles are designed for efficient and cost-effective procurement.
Fixed-price element provides a baseline cost control.

Sector Analysis

This contract falls within the Hardware Merchant Wholesalers sector (NAICS 423710), a broad category encompassing establishments primarily engaged in wholesaling hardware, plumbing, and heating equipment and supplies. Federal spending in this sector supports a wide array of government operations, from facilities maintenance to specialized project needs. Comparable spending benchmarks would involve analyzing aggregate federal outlays for hardware and tools across different agencies and contract types.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside requirement (ss: false, sb: false). While Wright Tool Company, LLC is the prime contractor, there is no explicit information on subcontracting plans for small businesses within this BPA Call. Further analysis would be needed to determine if subcontracting opportunities are being leveraged to support the small business ecosystem.

Oversight & Accountability

Oversight for this contract is managed by the General Services Administration (GSA), specifically the Federal Acquisition Service. GSA utilizes various oversight mechanisms, including contract performance reviews and audits, to ensure compliance and value. Transparency is facilitated through public contract databases. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

GSA Schedules Program
Federal Strategic Sourcing Initiative
Hardware and Tools Procurement
General Services Administration Contracts

Risk Flags

Potential for price escalation due to EPA clause over contract duration.
Limited visibility into specific number of bidders for competitive analysis.
Lack of explicit small business subcontracting requirements noted.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $1.3 million to WRIGHT TOOL COMPANY, LLC. SATS APPROVED P/N:TOOL LOAD

Who is the contractor on this award?

The obligated recipient is WRIGHT TOOL COMPANY, LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $1.3 million.

What is the period of performance?

Start: 2026-04-01. End: 2026-05-22.

What is the historical spending pattern for hardware tools under GSA Schedules?

Historical spending on hardware tools through GSA Schedules typically shows consistent demand driven by the operational needs of federal agencies. While specific figures fluctuate year-to-year based on agency budgets and project requirements, GSA Schedules provide a streamlined procurement channel that agencies rely on for efficiency. Analyzing past spending data for NAICS code 423710 or similar categories within GSA's offerings would reveal trends in volume, average order value, and popular product categories. This contract, as a BPA Call, represents a specific instance within that broader historical context, consolidating demand for Wright Tool Company's offerings under a pre-negotiated GSA Schedule.

How does the fixed-price with economic price adjustment (EPA) clause impact cost predictability?

The fixed-price with economic price adjustment (EPA) clause offers a balance between cost certainty and market responsiveness. The 'fixed-price' component establishes a base price, providing a degree of predictability for budgeting. However, the 'economic price adjustment' allows for modifications to this price based on specified economic indicators, such as inflation rates or changes in raw material costs. This protects both the contractor from unforeseen market escalations and the government from potential supply disruptions if prices become untenable. While it introduces some variability compared to a pure fixed-price contract, it is often employed for long-term procurements or those involving commodities susceptible to market fluctuations, aiming to ensure fair pricing over the contract's duration.

What is Wright Tool Company's track record with federal contracts?

Wright Tool Company, LLC has a history of providing tools and equipment to various sectors, including potentially government entities. Accessing federal procurement databases like FPDS or SAM.gov would provide specific details on their past federal contract awards, including contract types, values, agencies served, and performance history. A review of these records would indicate their experience with similar solicitations, their ability to meet delivery schedules, and any past performance issues or commendations. This information is crucial for assessing their reliability as a contractor for this BPA Call.

Are there alternative suppliers for similar hardware tools available through GSA Schedules?

Yes, the GSA Schedules program typically includes multiple vendors offering a wide range of hardware and tools. The existence of a 'full and open competition' award for this BPA Call implies that other qualified suppliers could have bid. Agencies often have access to several GSA Schedule contracts within the hardware and tools categories, allowing them to compare offerings and pricing. While this specific BPA Call consolidates requirements with Wright Tool Company, other contracts and vendors remain available for different needs or as alternative sources, ensuring a degree of choice and competition within the broader GSA framework.

What are the potential risks associated with a 51-month contract duration for hardware procurement?

A 51-month contract duration for hardware procurement presents several potential risks. Firstly, technology and product specifications can evolve rapidly in the hardware sector; a contract spanning over four years might not always reflect the latest innovations or most efficient solutions available in the market. Secondly, the economic price adjustment clause, while intended to manage inflation, could lead to significant cost increases over such a long period, potentially exceeding initial budget expectations if not carefully monitored. Thirdly, long-term reliance on a single contract vehicle, even if competitively awarded, might reduce the incentive for continuous improvement or aggressive pricing from the contractor over time. Finally, changes in agency needs or federal procurement policies during the contract term could necessitate adjustments or lead to suboptimal utilization.

Industry Classification

NAICS: Wholesale Trade › Hardware, and Plumbing and Heating Equipment and Supplies Merchant Wholesalers › Hardware Merchant Wholesalers

Product/Service Code: HARDWARE AND ABRASIVES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

Evaluated Preference: NONE

Contractor Details

Parent Company: Federal Resources Supply Company LLC

Address: 24680 MOUND RD, WARREN, MI, 48091

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $1,287,514

Exercised Options: $1,287,514

Current Obligation: $1,287,514

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QSHA21A001B

IDV Type: BPA

Timeline