GSA awards $15,872 for specialized hacksaw blades, highlighting potential for price variation with economic adjustments

Contract Overview

Contract Amount: $15,872 ($15.9K)

Contractor: Wright Tool Company, LLC

Awarding Agency: General Services Administration

Start Date: 2026-04-03

End Date: 2026-04-11

Contract Duration: 8 days

Daily Burn Rate: $2.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 22

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: BLADE, HAND HACKSAW: IAW AMERICAN SOCIETY OF MECHANICAL ENGINEERS (ASME) B94.52M-1999. BLADE LENGTH: 10 INCHES TEETH: 32 PER INCH MATERIAL: STEEL COMPOSITE BLADE FEATURES: FLEXIBLE, BI-METAL (EXCEPTIONS APPLY) (PARTIAL DESCRIPTION)

Place of Performance

Location: WARREN, MACOMB County, MICHIGAN, 48091

State: Michigan Government Spending

Plain-Language Summary

General Services Administration obligated $15,872.32 to WRIGHT TOOL COMPANY, LLC for work described as: BLADE, HAND HACKSAW: IAW AMERICAN SOCIETY OF MECHANICAL ENGINEERS (ASME) B94.52M-1999. BLADE LENGTH: 10 INCHES TEETH: 32 PER INCH MATERIAL: STEEL COMPOSITE BLADE FEATURES: FLEXIBLE, BI-METAL (EXCEPTIONS APPLY) (PARTIAL DESCRIPTION) Key points: 1. The contract for specialized hacksaw blades includes an economic price adjustment clause, indicating potential for cost fluctuations. 2. Competition for this hardware procurement was robust, with 22 bids received, suggesting a competitive market for these tools. 3. The contract is a BPA Call, a type of agreement that can streamline future procurements for similar items. 4. The fixed-price nature of the contract, with economic adjustments, requires careful monitoring to ensure value. 5. The supplier, Wright Tool Company, LLC, has been in business since 1984, suggesting established market presence. 6. The specific nature of the blades (ASME B94.52M-1999 compliant, bi-metal) suggests a niche market requirement.

Value Assessment

Rating: fair

Benchmarking the value of specialized hacksaw blades is challenging without more granular cost data. The contract's fixed-price with economic adjustment structure necessitates vigilance against potential cost creep. While 22 bids indicate a competitive process, the final price relative to market value for these specific ASME-compliant blades requires further analysis of unit costs and material inputs. The total award amount of $15,872.32 for an 8-day duration suggests a focus on immediate needs rather than a large-scale inventory build.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with 22 bids received. This high level of competition is generally positive, indicating that multiple suppliers were able to bid on the requirement. The presence of numerous bidders suggests that the market for these specialized hacksaw blades is accessible and that the government likely received a range of pricing options, contributing to price discovery.

Taxpayer Impact: The robust competition for these hardware components suggests that taxpayer funds were likely used efficiently, as the government could leverage multiple offers to secure favorable pricing.

Public Impact

Federal agencies requiring specialized cutting tools for maintenance and repair operations will benefit from this contract. The contract ensures the availability of specific hacksaw blades compliant with ASME B94.52M-1999 standards. The geographic impact is primarily within Michigan, where the supplier is located, but the tools will be distributed to federal users nationwide. The contract supports the hardware wholesale sector and the manufacturing of specialized tools.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Economic price adjustment clause introduces uncertainty in final cost.
Specificity of blade requirements may limit future competition if standards change.
Short duration (8 days) suggests a tactical purchase, not strategic sourcing.

Positive Signals

Full and open competition with 22 bidders indicates a healthy market.
BPA Call mechanism can streamline future, similar procurements.
Supplier has a long operational history since 1984.

Sector Analysis

This contract falls within the broader industrial and hardware supply sector, specifically focusing on cutting tools. The market for industrial hardware is vast, with numerous manufacturers and distributors. The General Services Administration (GSA) plays a crucial role in consolidating federal purchasing power for such common items. Comparable spending benchmarks for specialized tools are difficult to establish without detailed specifications, but the award amount suggests a relatively small, specific need.

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 has been in business since 1984, its size classification is not provided. There is no explicit information regarding subcontracting plans for small businesses within this BPA Call.

Oversight & Accountability

The contract is managed under the GSA's Federal Acquisition Service, which typically has established oversight mechanisms for its procurement vehicles like Blanket Purchase Agreements (BPAs). Transparency is facilitated by the public nature of contract awards. Accountability rests with the contracting officers at GSA and the performance of Wright Tool Company, LLC. Inspector General oversight would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

GSA Federal Acquisition Service
Hardware and Tools Procurement
Maintenance, Repair, and Operations (MRO) Supplies
Blanket Purchase Agreements (BPAs)

Risk Flags

Economic Price Adjustment Clause
Limited Specificity on Unit Cost
Potential for Price Volatility

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $15,872.32 to WRIGHT TOOL COMPANY, LLC. BLADE, HAND HACKSAW: IAW AMERICAN SOCIETY OF MECHANICAL ENGINEERS (ASME) B94.52M-1999. BLADE LENGTH: 10 INCHES TEETH: 32 PER INCH MATERIAL: STEEL COMPOSITE BLADE FEATURES: FLEXIBLE, BI-METAL (EXCEPTIONS APPLY) (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 $15,872.32.

What is the period of performance?

Start: 2026-04-03. End: 2026-04-11.

What is the typical profit margin for specialized hacksaw blades sold to the federal government?

Determining the typical profit margin for specialized hacksaw blades sold to the federal government is complex and not directly available from the provided contract data. Profit margins vary significantly based on manufacturing costs, material sourcing, brand reputation, volume of sales, and the specific terms of the contract, including competition levels and any economic price adjustments. For this specific contract, the award amount is $15,872.32. Without knowing the contractor's cost of goods sold, overhead, and desired profit, estimating a margin is speculative. However, federal contracts often aim for competitive pricing, which can compress margins compared to commercial sales. The presence of 22 bidders suggests a competitive environment that would likely limit excessive profit margins for the awarded contractor.

How does the price of these ASME B94.52M-1999 compliant blades compare to similar blades purchased by other federal agencies or commercial entities?

Direct comparison of the price for these specific ASME B94.52M-1999 compliant blades to other federal agencies or commercial entities is difficult without access to a broader market analysis or a database of similar federal procurements with detailed specifications. The contract value is $15,872.32 for an 8-day duration, suggesting a relatively small quantity or specialized nature. The fact that it was awarded under full and open competition with 22 bids implies the government likely received competitive pricing. However, the inclusion of an 'Economic Price Adjustment' clause means the final price could fluctuate. To perform a robust comparison, one would need to analyze the unit price, the exact specifications met (e.g., bi-metal, teeth per inch), and the prevailing market rates for such specialized tools at the time of purchase.

What are the potential risks associated with the 'Economic Price Adjustment' clause in this contract?

The primary risk associated with the 'Economic Price Adjustment' (EPA) clause in this contract is the potential for cost escalation beyond initial budget expectations. While EPA clauses are intended to protect contractors from unforeseen increases in material or labor costs, they can lead to higher final prices for the government if market conditions fluctuate unfavorably. For this contract, which involves steel composite blades, significant shifts in raw material prices (steel, alloys) or manufacturing labor costs could trigger price increases. The government's ability to mitigate this risk depends on the specific terms of the EPA clause, such as caps on adjustments or defined indices for price changes. Without these details, there's a risk that the final expenditure could exceed the initial $15,872.32 award estimate.

What is the track record of Wright Tool Company, LLC in fulfilling federal contracts for hardware?

Wright Tool Company, LLC has been in business since 1984, indicating a long-standing presence in the market. While the provided data confirms they are a supplier for this specific GSA contract, it does not detail their broader track record with federal contracts. A comprehensive assessment would require reviewing their past performance ratings on federal contract databases (like the Contractor Performance Assessment Reporting System - CPARS), examining the volume and types of previous federal awards they have received, and checking for any history of contract disputes or terminations. Their longevity suggests experience, but specific performance data on federal contracts is needed for a full evaluation.

How does the BPA Call mechanism streamline procurement compared to traditional contract awards for similar items?

A Blanket Purchase Agreement (BPA) Call, like the one awarded here, streamlines procurement by establishing pre-negotiated terms, conditions, and pricing (or pricing mechanisms) for recurring needs. Instead of issuing a new solicitation and contract for each individual purchase of hacksaw blades, agencies can simply place a 'call' against the existing BPA. This significantly reduces administrative burden, shortens lead times, and can lead to better pricing through volume commitments. For the GSA, establishing BPAs allows them to leverage their purchasing power to secure favorable terms from suppliers like Wright Tool Company, LLC, making subsequent purchases faster and more efficient for federal users.

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: $15,872

Exercised Options: $15,872

Current Obligation: $15,872

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QSHA21A000D

IDV Type: BPA

Timeline