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 routine supply of essential tools for government use. 5. Sector positioning places this within the broader federal procurement of industrial supplies.

Value Assessment

Rating: good

The total award of $3.75 million for tools is a significant amount, but without specific itemized pricing or a detailed list of tools, a precise value-for-money assessment is challenging. However, given the firm-fixed-price contract type and the short 180-day performance period, the pricing is likely benchmarked against catalog prices or established government price lists for industrial supplies. The award to Norex Group, LLC, a known supplier in this space, suggests a competitive bid process that should have yielded fair market pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under Simplified Acquisition Procedures (SAP), which typically 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. While not a large-scale competitive bid, SAP aims to ensure fair pricing and access for qualified vendors.

Taxpayer Impact: The competition level, while not extensive, is sufficient under SAP to provide reasonable price discovery for taxpayers. The receipt of two bids suggests that multiple vendors were aware of and interested in this opportunity.

Public Impact

Federal agencies requiring hand tools and saw blades will benefit from this contract. The services delivered include the supply of essential industrial and maintenance tools. The geographic impact is likely nationwide, supporting various federal installations. Workforce implications are minimal, primarily supporting the supply chain for tool distribution.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations if specific high-value tools are included without detailed cost breakdowns.
Dependence on a single awardee for timely delivery within the short performance window.

Positive Signals

Firm-fixed-price contract limits cost overrun risks for the government.
Short performance period reduces long-term commitment and allows for re-competition.
Award to a known entity suggests a degree of reliability in supply.

Sector Analysis

This contract falls within the industrial supplies sector, specifically related to tools and hardware manufacturing and distribution. The federal government is a significant purchaser of such goods, often through large-scale contracts managed by agencies like the General Services Administration (GSA). Spending in this category is generally stable, driven by the ongoing needs of various federal agencies for maintenance, repair, and operations (MRO). Comparable spending benchmarks would typically be found in GSA's Multiple Award Schedules (MAS) for industrial products.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). While Norex Group, LLC is the awardee, their size status is not specified here. The lack of a small business set-aside means that larger businesses could compete, and there is no explicit requirement for subcontracting to small businesses under this specific award. This could limit direct opportunities for small businesses unless they are suppliers to Norex Group.

Oversight & Accountability

Oversight for this purchase order is managed by the General Services Administration (GSA), specifically the Federal Acquisition Service. As a purchase order issued under Simplified Acquisition Procedures, it is subject to standard procurement regulations and internal GSA oversight. Transparency is provided through contract databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

GSA Federal Supply Schedule contracts
Industrial Product Procurement
Maintenance, Repair, and Operations (MRO) Supplies

Risk Flags

Lack of detailed itemization for the awarded tools.
Limited information on contractor's specific past performance for this exact scope.

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 the specific breakdown of tools included in this $3.75 million award?

The provided data does not include a specific breakdown of the tools covered under this $3.75 million purchase order. The North American Industry Classification System (NAICS) code 332216, 'Saw Blade and Handtool Manufacturing,' indicates the general category of goods. However, to understand the precise value and utility, a detailed list of items, quantities, and their individual unit prices would be necessary. This level of detail is typically found in the contract's statement of work or line item details, which are not available in the summary data. Without this, it's difficult to ascertain if the award represents a broad range of common tools or specialized, high-cost items.

How does Norex Group, LLC's past performance on similar contracts inform the risk assessment for this award?

The provided data indicates Norex Group, LLC as the awardee, but it does not offer specific details on their past performance record with the government or other clients. A comprehensive risk assessment would typically involve reviewing their performance history, including on-time delivery, quality of goods, and adherence to contract terms on previous similar awards. Assuming Norex Group is an established supplier within the federal procurement ecosystem, particularly for industrial tools, it suggests a baseline level of competence. However, without direct access to performance evaluations or contract close-out data, the risk associated with this specific award remains partially unquantified. The short duration and standard nature of the goods could mitigate risks if their general track record is satisfactory.

What is the typical market price range for the types of tools procured under NAICS 332216?

The North American Industry Classification System (NAICS) code 332216 covers 'Saw Blade and Handtool Manufacturing.' This broad category includes a wide array of products, from basic hand tools like hammers and screwdrivers to specialized saw blades and power tools. The market price range can vary dramatically based on brand, quality, material, intended use (e.g., professional vs. consumer grade), and quantity purchased. For federal procurement, prices are often benchmarked against GSA Multiple Award Schedule (MAS) contracts, commercial catalog prices, or prices established through competitive bidding. Without a specific itemized list, providing a precise market price range is not feasible. However, federal agencies aim to procure these items at or below established fair market prices, often leveraging volume discounts.

What are the potential implications of this contract on the broader industrial supplies market for federal agencies?

This $3.75 million award contributes to the overall federal spending on industrial supplies, specifically tools. By procuring through GSA and utilizing competitive procedures (even under SAP), the government aims to achieve economies of scale and ensure fair pricing. This contract helps maintain the availability of essential tools for various agency operations. Its impact on the broader market is likely moderate; while it represents a significant purchase, the federal government's total spending on industrial supplies is substantial, and this award is one component. It signals continued demand for these types of goods and provides business opportunities for suppliers like Norex Group, LLC.

How does the firm-fixed-price (FFP) contract type affect the government's financial risk compared to other contract types?

A firm-fixed-price (FFP) contract, like the one awarded here, places the maximum financial risk on the contractor. The contractor agrees to perform the work or provide the goods for a set price, regardless of their actual costs. This means that if Norex Group, LLC incurs higher costs than anticipated in supplying these tools, their profit margin will decrease, but the government's payment obligation remains fixed at $3.75 million. Conversely, if their costs are lower, their profit increases. This contract type is generally preferred by the government for procurements where the scope of work is well-defined and risks are manageable, as it provides budget certainty and protects against cost overruns.

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