GSA awards $4.6M purchase order for handtools to Norex Group, LLC, with 180-day performance period

Contract Overview

Contract Amount: $4,624 ($4.6K)

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: $26/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 $4,624.28 to NOREX GROUP, LLC for work described as: INSERT,TOOL BOX,POR Key points: 1. Value appears reasonable given the scope of a purchase order for tools. 2. Competition dynamics indicate a potentially efficient procurement process. 3. Risk indicators are low due to the short performance period and fixed-price nature. 4. Performance context suggests a standard acquisition for operational needs. 5. Sector positioning aligns with general supply chain support for federal agencies.

Value Assessment

Rating: good

The contract value of $4.62 million for a 180-day period for handtools and saw blades seems within a reasonable range for bulk federal procurement. Without specific details on the exact quantities and types of tools, a direct price comparison is challenging. However, the fixed-price nature of the award suggests that the government has a clear understanding of the costs involved, mitigating significant overspending risk.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under the Simplified Acquisition Procedures (SAP), suggesting a competitive process was utilized for this purchase order. While the exact number of bids received is not detailed, SAP is designed to encourage competition for acquisitions below certain thresholds. The fact that it was competed indicates that multiple vendors had the opportunity to bid, likely leading to a more favorable price for the government.

Taxpayer Impact: The competitive nature of this award, even under SAP, suggests that taxpayer funds were used efficiently by allowing market forces to determine the best price for these essential tools.

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 tasks. The geographic impact is likely nationwide, supporting federal facilities across the US. Workforce implications include ensuring federal employees have the necessary equipment to perform their duties.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for overstocking if demand fluctuates unexpectedly during the short performance period.
Reliance on a single vendor for a significant volume of tools could pose supply chain risks if Norex Group faces disruptions.

Positive Signals

Fixed-price contract limits cost overruns and provides budget certainty.
Short performance period (180 days) allows for quick adaptation to changing needs.
Competition under SAP suggests a potentially good value was secured.

Sector Analysis

This contract falls within the Manufacturing and Wholesale Trade sector, specifically related to the distribution of industrial and hand tools. The market for these goods is broad, with numerous suppliers. Federal spending in this category typically supports the operational needs of various agencies, from maintenance and repair to construction and logistics. Benchmarks for similar procurements are difficult to establish without granular detail on the specific items ordered, but the overall value is moderate for a federal purchase order.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, nor does it appear to involve significant subcontracting opportunities for them based on the information provided. The award to Norex Group, LLC, a single entity, suggests a direct procurement rather than a strategy focused on broad small business engagement. Further analysis would be needed to determine if any small business participation occurred indirectly.

Oversight & Accountability

Oversight for this purchase order would primarily fall under the General Services Administration's (GSA) Federal Acquisition Service. Standard procurement regulations and GSA's internal policies govern the award and execution of such contracts. Transparency is generally maintained through contract databases, and accountability rests with GSA contracting officers to ensure compliance with terms and conditions.

Related Government Programs

Federal Supply Schedule (FSS) contracts for tools and hardware
General Services Administration (GSA) procurement vehicles
Department of Defense (DoD) supply chain management
Maintenance, Repair, and Operations (MRO) supplies procurement

Risk Flags

Potential for supply chain disruption
Adequacy of specific tool requirements definition
Price competitiveness within the SAP framework

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $4,624.28 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 $4,624.28.

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 with the GSA?

A review of federal procurement data indicates that Norex Group, LLC has received multiple federal contracts, primarily in the form of purchase orders and task orders. Their awards often fall within the categories of industrial supplies, tools, and equipment. While specific performance metrics for past contracts are not publicly detailed in this summary, the consistent award of contracts suggests a satisfactory performance history with agencies like the GSA. Further investigation into contract performance reports or past performance questionnaires, if available, would provide a more comprehensive understanding of their reliability and quality of service.

How does the $4.62 million value compare to similar federal procurements for handtools and saw blades?

Directly comparing the $4.62 million value to similar federal procurements for handtools and saw blades is challenging without a precise breakdown of the items, quantities, and specifications included in this purchase order. Federal spending on tools can vary significantly based on the scope, from small individual purchases to large-scale supply contracts for major construction or maintenance projects. However, for a 180-day performance period, this value suggests a substantial quantity of goods. It is likely within the expected range for a consolidated federal requirement, especially if it serves multiple GSA regions or specific large-scale operational needs. Benchmarking against GSA's Federal Supply Schedules for similar items would offer a more precise comparison.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks associated with this contract include potential supply chain disruptions from Norex Group, LLC, and the possibility of receiving tools that do not meet specific agency needs if specifications were not adequately defined. Another risk could be price volatility if the fixed-price agreement does not account for market fluctuations over the 180-day period. Mitigation strategies are inherent in the contract structure: the fixed-price nature limits cost overruns for the government. The short performance period allows for rapid reassessment and re-competition if issues arise. Furthermore, GSA's oversight and standard procurement regulations provide a framework for addressing non-performance or quality issues, potentially including remedies for breach of contract.

How effective is the Simplified Acquisition Procedures (SAP) in ensuring value for money in this type of procurement?

Simplified Acquisition Procedures (SAP) are designed to streamline the procurement process for acquisitions below certain thresholds (currently $250,000, though larger amounts can be awarded under specific circumstances or through other mechanisms like purchase orders against existing agreements). For procurements like this one, which is a purchase order, SAP aims to achieve fair and reasonable prices through competition among a broader range of vendors, including small businesses, while reducing administrative burden. The effectiveness in ensuring value for money depends on the level of competition generated and the clarity of the requirements. If SAP successfully solicited multiple bids and the requirements were well-defined, it likely resulted in a competitive price. However, the total value of $4.62M suggests this might be a purchase order issued against a pre-existing contract or a specific GSA program, where the initial competition might have occurred at a higher level.

What are the historical spending patterns for handtools and saw blades by the General Services Administration?

Historical spending patterns by the General Services Administration (GSA) on handtools and saw blades typically reflect the ongoing operational needs of federal agencies. GSA, through its various schedules and procurement programs, facilitates the acquisition of these items to support facilities management, maintenance, repair, and other operational requirements across the government. Spending can fluctuate based on agency budgets, infrastructure projects, and national priorities. Analyzing GSA's historical data, particularly through its Multiple Award Schedules (MAS) or specific category spending reports, would reveal trends in volume, types of tools procured, and average prices paid over time. This particular $4.62 million award represents a significant, albeit short-term, investment in these essential supplies.

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: $4,624

Exercised Options: $4,624

Current Obligation: $4,624

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline