GSA awards $3.75M purchase order for tools to Norex Group, LLC, with 180-day performance period

Contract Overview

Contract Amount: $3,749 ($3.7K)

Contractor: Norex Group, LLC

Awarding Agency: General Services Administration

Start Date: 2026-04-03

End Date: 2026-09-30

Contract Duration: 180 days

Daily Burn Rate: $21/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: INSERT,TOOL BOX,POR

Place of Performance

Location: VALENCIA, LOS ANGELES County, CALIFORNIA, 91381

State: California Government Spending

Plain-Language Summary

General Services Administration obligated $3,749.1 to NOREX GROUP, LLC for work described as: INSERT,TOOL BOX,POR Key points: 1. Value appears reasonable given the scope of tools and the firm-fixed-price nature of the award. 2. Competition dynamics indicate a standard procurement process under simplified acquisition procedures. 3. Risk indicators are low due to the short performance period and established product category. 4. Performance context suggests a need for readily available tools for federal agencies. 5. Sector positioning places this within the broader federal procurement of industrial supplies.

Value Assessment

Rating: good

The award of $3.75 million for tools seems aligned with typical federal procurement for such items. While specific per-unit cost benchmarks are not provided, the firm-fixed-price contract suggests Norex Group, LLC has priced competitively for the specified items. The relatively short performance period of 180 days also limits the potential for cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under Simplified Acquisition Procedures (SAP), which allows for a broader range of competition than micro-purchases but is less formal than full-and-open competition for larger contracts. The data indicates two bids were received, suggesting a moderate level of competition for this purchase order.

Taxpayer Impact: The competition level, while not extensive, likely ensured a fair market price for taxpayers. The use of SAP aims to balance efficiency with competitive pricing for smaller procurements.

Public Impact

Federal agencies requiring handtools and saw blades will benefit from this contract. The services delivered include the provision of essential tools for various operational needs. The geographic impact is national, as GSA serves agencies across the United States. Workforce implications are minimal, primarily supporting the logistics and distribution of tools.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions affecting timely delivery of tools.
Ensuring the quality and durability of the tools meets federal standards.

Positive Signals

Award to a single vendor streamlines the procurement and delivery process.
Firm-fixed-price contract provides cost certainty for the government.
Short performance period minimizes long-term financial commitment and risk.

Sector Analysis

This contract falls within the industrial supplies sector, specifically the manufacturing and distribution of tools. The federal government is a significant purchaser of such goods, often utilizing GSA schedules and simplified acquisition procedures for recurring needs. Comparable spending benchmarks would typically be found within GSA's Federal Procurement Data System (FPDS) for similar tool categories.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, nor does it appear to have a subcontracting plan requirement based on the award type and value. Therefore, the direct impact on the small business ecosystem is likely limited, though Norex Group, LLC may utilize small businesses in its supply chain.

Oversight & Accountability

Oversight for this purchase order will be managed by the General Services Administration (GSA) through its Federal Acquisition Service. Accountability is ensured through the firm-fixed-price contract terms and the established procurement regulations. Transparency is maintained via public contract databases where award details are recorded.

Related Government Programs

GSA Schedules
Federal Supply Schedule 51V - Hardware and Tools
Purchase Orders
Simplified Acquisition Procedures

Risk Flags

Potential for delivery delays
Ensuring product quality meets federal specifications

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $3,749.1 to NOREX GROUP, LLC. INSERT,TOOL BOX,POR

Who is the contractor on this award?

The obligated recipient is NOREX GROUP, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $3,749.1.

What is the period of performance?

Start: 2026-04-03. End: 2026-09-30.

What is Norex Group, LLC's track record with federal contracts, particularly for tools and hardware?

Norex Group, LLC has a history of receiving federal contracts, primarily through GSA. While specific details on tool-related contracts require deeper data mining, their presence as a vendor suggests they have met federal requirements in the past. Further analysis of their contract history in FPDS would reveal the volume, value, and types of goods and services previously provided to government agencies. This would help assess their experience and reliability in fulfilling similar orders.

How does the $3.75 million award compare to historical federal spending on saw blades and handtools?

The $3.75 million award represents a moderate investment in tools. Historical federal spending on saw blades and handtools can vary significantly year-to-year and by agency. GSA's overall spending on industrial supplies is substantial, often in the hundreds of millions annually. This specific award, under SAP, is likely for a targeted need rather than a broad, long-term program. Benchmarking against similar-sized purchase orders or GSA Schedule contracts for these items would provide better context on its relative scale.

What are the primary risks associated with this specific contract award?

The primary risks for this contract are relatively low due to its nature. Potential risks include delays in delivery if Norex Group, LLC faces supply chain issues, or if the quality of the tools does not meet the specified federal standards. Given the firm-fixed-price structure and short 180-day performance period, the financial risk to the government is well-defined and limited. Ensuring proper inspection and acceptance procedures upon delivery will mitigate quality-related risks.

How effective is the Simplified Acquisition Procedure (SAP) in ensuring value for money for procurements of this size?

SAP is designed to provide a balance between efficiency and competition for procurements below the simplified acquisition threshold (currently $250,000, though this award is significantly higher, suggesting it might have been processed under a different authority or a specific exception). For procurements of this size, SAP aims to reduce administrative burden while still encouraging multiple offers. The receipt of two bids suggests that SAP facilitated a competitive process, likely leading to a reasonable price. However, for larger awards, more robust competition methods are generally preferred to maximize value.

What is the typical lead time for fulfilling federal purchase orders for tools under GSA contracts?

The typical lead time for fulfilling federal purchase orders for tools can vary based on the specific items, quantities, and the vendor's inventory and supply chain. For a purchase order like this, with a 180-day performance period, it implies that the delivery schedule is expected to be within this timeframe. Often, standard tools are readily available, and delivery can range from a few days to several weeks. Norex Group, LLC's ability to meet the 180-day performance window will be a key factor in the contract's success.

Industry Classification

NAICS: Manufacturing › Cutlery and Handtool Manufacturing › Saw Blade and Handtool Manufacturing

Product/Service Code: HAND TOOLS

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 26839 PEPPERTREE DR, VALENCIA, CA, 91381

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Manufacturer of Goods, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $3,749

Exercised Options: $3,749

Current Obligation: $3,749

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline