GSA awards $9,989 contract for 2-inch center nuts, highlighting hardware wholesale market dynamics

Contract Overview

Contract Amount: $9,989 ($10.0K)

Contractor: Wright Tool Company, LLC

Awarding Agency: General Services Administration

Start Date: 2026-04-02

End Date: 2026-04-10

Contract Duration: 8 days

Daily Burn Rate: $1.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 22

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: NUT, CENTER: DIAMETER: 2 INCHES FUNCTIONAL DESCRIPTION: THREADED 2 INCH CENTER NUT IS USED TO HOLD BACK-UP SANDING DISK PADS ONTO 4-1/2 INCH OR 7 INCH SANDERS. DESCO MANUFACTURING CO. INC. PN. 500.071 (PARTIAL DESCRIPTION)

Place of Performance

Location: WARREN, MACOMB County, MICHIGAN, 48091

State: Michigan Government Spending

Plain-Language Summary

General Services Administration obligated $9,989.09 to WRIGHT TOOL COMPANY, LLC for work described as: NUT, CENTER: DIAMETER: 2 INCHES FUNCTIONAL DESCRIPTION: THREADED 2 INCH CENTER NUT IS USED TO HOLD BACK-UP SANDING DISK PADS ONTO 4-1/2 INCH OR 7 INCH SANDERS. DESCO MANUFACTURING CO. INC. PN. 500.071 (PARTIAL DESCRIPTION) Key points: 1. Contract value appears modest, suggesting a focus on specific, low-volume hardware components. 2. The fixed-price structure with economic price adjustment offers some protection against market volatility. 3. A single award to Wright Tool Company, LLC indicates a potentially concentrated supplier relationship. 4. The contract duration of 8 days is exceptionally short, implying an immediate or urgent need. 5. The 'Hardware Merchant Wholesalers' NAICS code points to a well-established distribution channel. 6. The BPA Call award type suggests this is a call against an existing Blanket Purchase Agreement.

Value Assessment

Rating: fair

Benchmarking the value of a $9,989 contract for specific hardware components like a 2-inch center nut is challenging without detailed specifications and market volume data. However, the price appears reasonable for a specialized item, especially considering potential bulk purchasing power through the GSA. The economic price adjustment clause warrants monitoring to ensure it doesn't lead to significant cost overruns if market prices for raw materials or manufacturing increase substantially.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The fact that Wright Tool Company, LLC was the selected vendor suggests they offered the best value proposition among the bidders. The presence of 22 bids (implied by 'no': 22, though this field is not explicitly defined in the schema, it's a common data point) would typically lead to competitive pricing, but the specific number of bidders for this particular call order is not detailed.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through market forces, ensuring the government receives competitive rates for goods and services.

Public Impact

Federal agencies requiring hardware for maintenance and repair operations will benefit from the availability of these center nuts. The contract supports the supply chain for hardware tools and components, ensuring operational readiness. The geographic impact is likely national, as GSA contracts are typically accessible across various federal installations. Workforce implications are minimal, primarily affecting logistics and distribution within the hardware wholesale sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The short contract duration (8 days) could indicate a potential for future, larger requirements that were not captured in this initial award.
The reliance on a single awardee for this specific component might limit future competition if the incumbent's pricing or performance changes unfavorably.

Positive Signals

The use of a Blanket Purchase Agreement (BPA) Call indicates an established framework for efficient procurement of commonly used items.
Full and open competition suggests a healthy market for this type of hardware, with multiple potential suppliers.
The fixed-price with economic price adjustment structure provides a degree of cost certainty while allowing for market fluctuations.

Sector Analysis

The hardware merchant wholesalers sector (NAICS 423710) is a critical part of the supply chain, providing essential goods to various industries, including government. This contract fits within the broader category of industrial and commercial hardware procurement. Comparable spending benchmarks for such specific components are difficult to establish without more granular data, but GSA's role suggests a focus on standardized, commonly needed items across federal agencies.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). While Wright Tool Company, LLC's size is not provided, the absence of a set-aside suggests that larger businesses were eligible and potentially competed. Subcontracting opportunities for small businesses are not explicitly detailed but could arise if Wright Tool Company, LLC sources components or services from smaller suppliers.

Oversight & Accountability

Oversight for this contract would fall under the General Services Administration (GSA), specifically the Federal Acquisition Service. GSA has established procurement regulations and oversight mechanisms to ensure fair and transparent contracting. Accountability is managed through contract performance monitoring and adherence to the terms of the BPA Call. Transparency is generally maintained through contract award databases, though specific details of the competition might be limited.

Related Government Programs

GSA Schedules Program
Federal Supply Schedule (FSS) Contracts
Hardware Procurement
Maintenance, Repair, and Operations (MRO) Supplies

Risk Flags

Short contract duration may indicate urgency or a limited scope.
Economic Price Adjustment clause requires monitoring for potential cost increases.
Single awardee for a specific component could pose future supply risks.
Lack of detailed quantity information hinders unit price benchmarking.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $9,989.09 to WRIGHT TOOL COMPANY, LLC. NUT, CENTER: DIAMETER: 2 INCHES FUNCTIONAL DESCRIPTION: THREADED 2 INCH CENTER NUT IS USED TO HOLD BACK-UP SANDING DISK PADS ONTO 4-1/2 INCH OR 7 INCH SANDERS. DESCO MANUFACTURING CO. INC. PN. 500.071 (PARTIAL DESCRIPTION)

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 $9,989.09.

What is the period of performance?

Start: 2026-04-02. End: 2026-04-10.

What is the typical track record of Wright Tool Company, LLC with GSA contracts?

Information regarding Wright Tool Company, LLC's specific track record with GSA contracts is not detailed in the provided data. To assess their performance, one would typically review past contract awards, performance evaluations, and any reported disputes or issues. A deeper dive into GSA's contract award databases and performance management systems would be necessary to ascertain their history, including on-time delivery, quality of goods, and adherence to contract terms for similar hardware items. Without this historical data, it's difficult to definitively assess their reliability for this specific requirement.

How does the unit price of this 2-inch center nut compare to similar market offerings?

The provided data does not include the unit price for the 2-inch center nut, only the total contract value of $9,989.09. To compare unit pricing, we would need the quantity of nuts purchased under this contract. Assuming the total value represents a specific quantity, we would then need to research market prices from other hardware wholesalers or manufacturers for identical or comparable 2-inch center nuts. Factors such as material, manufacturing process, and brand would influence price comparisons. Without the quantity, a direct unit price comparison is not feasible from the given information.

What are the primary risks associated with this contract, given its short duration and specific item?

The primary risks associated with this contract stem from its short duration (8 days) and the specific nature of the item (2-inch center nut). A short duration could indicate an urgent need, increasing the risk of supply chain disruptions if the awarded vendor faces unforeseen issues. It also limits the time for thorough performance evaluation. The risk of a single-source dependency, even within a competitive award, exists if this specific part is critical and Wright Tool Company, LLC is the sole or primary supplier. Furthermore, the economic price adjustment clause carries a risk of cost escalation if market prices for raw materials or manufacturing increase significantly during the contract period, potentially impacting the overall value for money.

How effective is the 'Hardware Merchant Wholesalers' classification in understanding the scope of this contract?

The 'Hardware Merchant Wholesalers' classification (NAICS 423710) is effective in broadly defining the industry sector from which this contract originates. It indicates that the supplier is primarily engaged in wholesaling hardware, tools, and related items. This classification helps contextualize the contract within the broader economy and supply chain. However, it does not provide specific details about the exact type of hardware, its intended use, or the volume. For a specific item like a '2-inch center nut,' this classification is a starting point but requires further detail from the functional description to fully understand the contract's scope and implications.

What are the historical spending patterns for similar hardware components through GSA?

Historical spending patterns for similar hardware components through GSA are not detailed in the provided data. To analyze this, one would need to query GSA's contract databases for previous awards related to hardware, specifically focusing on items like nuts, fasteners, or sanding accessories, potentially within the same NAICS code (423710). Examining past contract values, durations, awardees, and competition levels for similar items would reveal trends in pricing, supplier concentration, and the overall volume of such procurements. This analysis would help determine if this $9,989 contract is typical, an outlier, or part of a larger, ongoing procurement strategy for hardware.

What is the significance of the 'BPA Call' award type in this context?

The 'BPA Call' award type signifies that this contract is a task order or call placed against an existing Blanket Purchase Agreement (BPA). BPAs are pre-negotiated agreements established with vendors to streamline the procurement of commonly purchased items or services. This means that the terms, conditions, and potentially pricing for items like the 2-inch center nut were likely established when the parent BPA was awarded. Using a BPA Call indicates an efficient procurement method, as it bypasses the need for a full, open competition for each individual purchase, assuming the original BPA competition was robust and the call order adheres to its terms. It suggests a recurring need for such items.

Industry Classification

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

Product/Service Code: HAND TOOLS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 22

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: $9,989

Exercised Options: $9,989

Current Obligation: $9,989

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QSHA21A000D

IDV Type: BPA

Timeline