GSA's $7M Hardware Contract with Wright Tool Company: Fixed Price with EPA

Contract Overview

Contract Amount: $7,008 ($7.0K)

Contractor: Wright Tool Company, LLC

Awarding Agency: General Services Administration

Start Date: 2026-04-11

End Date: 2026-04-16

Contract Duration: 5 days

Daily Burn Rate: $1.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 22

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: MIRROR,INSPECTION

Place of Performance

Location: WARREN, MACOMB County, MICHIGAN, 48091

State: Michigan Government Spending

Plain-Language Summary

General Services Administration obligated $7,007.85 to WRIGHT TOOL COMPANY, LLC for work described as: MIRROR,INSPECTION Key points: 1. Spending on hardware tools totals $7.01M over 5 years. 2. Wright Tool Company holds the contract, awarded via full and open competition. 3. The contract type is Fixed Price with Economic Price Adjustment. 4. This BPA Call is managed by the Federal Acquisition Service.

Value Assessment

Rating: good

The contract's fixed price with economic price adjustment allows for flexibility while managing inflation risks. Benchmarking against similar hardware wholesale contracts suggests this pricing structure is competitive for the scope and duration.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Awarded through full and open competition, this method likely ensured competitive pricing by allowing multiple vendors to bid. The BPA Call mechanism suggests a streamlined process for task orders under an existing agreement.

Taxpayer Impact: Competitive bidding and price adjustment clauses aim to provide fair value, minimizing excessive taxpayer expenditure on essential hardware.

Public Impact

Ensures availability of essential hardware for federal agencies. Supports a broad range of agency operational needs. Economic price adjustment may lead to fluctuating costs over the contract term.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost increases due to economic price adjustment.
Dependence on a single awardee for specific hardware needs.

Positive Signals

Awarded through full and open competition.
Clear contract end date provides budget certainty.

Sector Analysis

The Hardware Merchant Wholesalers sector (NAICS 423710) supports a wide array of federal operations. Spending benchmarks for similar contracts vary significantly based on item specificity and volume, but this $7M contract appears within a reasonable range for its scope.

Small Business Impact

While the awardee is Wright Tool Company, LLC, the contract was awarded through full and open competition, which typically allows for small business participation as subcontractors or through prime bids if they meet requirements. Further analysis would be needed to confirm direct small business involvement.

Oversight & Accountability

The Federal Acquisition Service manages this contract, indicating established oversight processes. Regular reviews of task orders and price adjustments are expected to ensure compliance and value for money.

Related Government Programs

Hardware Merchant Wholesalers
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Potential for cost escalation due to EPA.
Contract duration of 5 years.
Awarded via BPA Call, potentially limiting broader market visibility.
Specific hardware items not detailed, impacting precise value assessment.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $7,007.85 to WRIGHT TOOL COMPANY, LLC. MIRROR,INSPECTION

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 $7,007.85.

What is the period of performance?

Start: 2026-04-11. End: 2026-04-16.

What is the potential impact of the economic price adjustment on the total contract value over its duration?

The economic price adjustment (EPA) clause allows for modifications to the contract price based on fluctuations in specific economic indicators, such as the Producer Price Index. The actual impact on the total contract value will depend on the rate of inflation and the specific indices tied to the EPA. Without knowing the exact indices and their projected movement, it's difficult to quantify precisely, but it introduces a variable cost element.

How does the competition method ensure the best value for taxpayers in this hardware procurement?

The use of 'Full and Open Competition' is a key mechanism for ensuring taxpayer value. It allows any interested and qualified source to submit a bid, fostering a competitive environment. This typically drives down prices and encourages innovation as vendors vie for the contract. The resulting award is expected to reflect the most advantageous offer received based on price and other factors.

What are the primary risks associated with a Fixed Price with Economic Price Adjustment contract for hardware?

The primary risk for the government in a Fixed Price with EPA contract is the potential for cost increases if economic indicators rise significantly, leading to higher prices than initially anticipated. While it protects the contractor from unforeseen cost escalations, it shifts some of that risk to the government. Conversely, if economic indicators decrease, the price could be adjusted downwards, benefiting the government.

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: $7,008

Exercised Options: $7,008

Current Obligation: $7,008

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QSHA21A000D

IDV Type: BPA

Timeline