GSA awards $3.5M for handtools, with 2 bidders indicating moderate competition

Contract Overview

Contract Amount: $3,499 ($3.5K)

Contractor: MAY Tool Inc

Awarding Agency: General Services Administration

Start Date: 2026-04-03

End Date: 2026-04-24

Contract Duration: 21 days

Daily Burn Rate: $167/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: WATCH,WRIST

Place of Performance

Location: PARAMOUNT, LOS ANGELES County, CALIFORNIA, 90723

State: California Government Spending

Plain-Language Summary

General Services Administration obligated $3,498.5 to MAY TOOL INC for work described as: WATCH,WRIST Key points: 1. Value appears reasonable given the short duration and fixed-price nature. 2. Competition was moderate, with two bids received. 3. No immediate risk indicators are apparent from the contract details. 4. Performance context is limited to a short 21-day delivery period. 5. This contract falls within the broader manufacturing and tools sector. 6. The award was made under simplified acquisition procedures, suggesting a smaller scale.

Value Assessment

Rating: good

The contract value of $3.5 million for a 21-day delivery period for handtools seems within a reasonable range for a firm-fixed-price purchase order. Without specific itemized costs or detailed specifications, a direct value-for-money assessment is challenging. However, the use of simplified acquisition procedures often implies a focus on efficiency and competitive pricing for smaller procurements. Benchmarking against similar GSA schedules or other federal procurements for comparable tool sets would provide a more precise valuation.

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 full and open competition but may have streamlined processes. The receipt of two bids suggests a moderate level of competition. While two bidders are better than one, a higher number of bids would generally lead to more robust price discovery and potentially lower prices for the government. The specific solicitation details would clarify if any restrictions were placed on the competition.

Taxpayer Impact: The moderate competition level means taxpayers likely received a fair price, but there may be an opportunity for greater savings with broader outreach to potential suppliers.

Public Impact

Federal agencies requiring handtools will benefit from this contract. The contract delivers essential tools for various maintenance and operational tasks. The geographic impact is primarily within California, where the contractor is located. Workforce implications are minimal, likely involving existing personnel for order fulfillment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price escalation if demand increases significantly beyond this initial award.
Dependence on a single contractor for a specific set of tools could pose a supply chain risk if not managed.

Positive Signals

Firm-fixed-price contract limits the government's exposure to cost overruns.
Short delivery period suggests efficient fulfillment and timely availability of needed tools.
Award under SAP indicates adherence to efficient procurement practices.

Sector Analysis

The procurement of handtools falls under the broader manufacturing and industrial supplies sector. This sector is characterized by a wide range of suppliers, from large manufacturers to specialized distributors. Federal spending in this area supports the operational needs of various government agencies. Comparable spending benchmarks would typically involve analyzing GSA Schedule contracts or other agency-specific procurements for similar tool categories, often measured by total dollar volume or average order size.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). While the contractor, MAY TOOL INC, could be a small business, the procurement method (SAP) and the number of bidders do not inherently suggest a focus on small business participation or subcontracting. Further analysis would be needed to determine if small businesses were excluded or if subcontracting opportunities exist.

Oversight & Accountability

Oversight for this purchase order would primarily fall under the General Services Administration (GSA), specifically the Federal Acquisition Service. Accountability is maintained through the firm-fixed-price contract terms and the delivery schedule. Transparency is generally provided through federal procurement databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

GSA Federal Supply Schedule Contracts
Maintenance, Repair, and Operations (MRO) Supplies
Tools and Hardware Procurement

Risk Flags

Potential for price not being fully optimized due to moderate competition.
Risk associated with the substantial value awarded under potentially simplified procedures.
Lack of detailed itemization makes quality assessment difficult from summary data.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $3,498.5 to MAY TOOL INC. WATCH,WRIST

Who is the contractor on this award?

The obligated recipient is MAY TOOL INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $3,498.5.

What is the period of performance?

Start: 2026-04-03. End: 2026-04-24.

What is the track record of MAY TOOL INC in fulfilling federal contracts?

Information regarding MAY TOOL INC's specific track record with federal contracts is not detailed in the provided data. A deeper dive into the Federal Procurement Data System (FPDS) or other contract databases would be necessary to assess their past performance, including on-time delivery rates, contract modifications, and any past performance evaluations. Understanding their history with similar procurements, especially under GSA schedules or simplified acquisition procedures, would provide valuable insight into their reliability and capability to meet the government's needs for handtools.

How does the $3.5 million value compare to similar federal handtool procurements?

The $3.5 million award for handtools over a 21-day period is a significant amount for a short-term delivery, especially under simplified acquisition procedures which typically cap at $250,000 (though this can be higher for certain categories or under specific authorities). This suggests either a very large quantity of tools or high-value specialized tools. Benchmarking against historical GSA Schedule awards or other agency procurements for similar tool categories would be essential. For instance, comparing the average price per unit or the total value of similar multi-year contracts for broader tool requirements would contextualize whether this specific award represents a competitive price point or potentially an outlier.

What are the primary risks associated with this contract award?

The primary risks associated with this contract include potential supply chain disruptions if MAY TOOL INC faces issues fulfilling the order within the tight 21-day window, especially given the substantial value. Another risk is the moderate competition level (two bidders), which might mean the government did not secure the absolute best price possible. If the tools are critical for ongoing operations, a failure to deliver could impact agency functions. Furthermore, the lack of detailed itemization makes it difficult to assess the risk of receiving substandard quality tools without thorough inspection upon receipt.

How effective is the simplified acquisition procedure for procuring items like handtools?

Simplified Acquisition Procedures (SAP) are designed to streamline the procurement process for purchases below certain thresholds (currently $250,000, but higher under specific circumstances), making them highly effective for acquiring routine items like handtools efficiently. SAP emphasizes speed and reduced administrative burden, allowing agencies to obtain necessary goods and services quickly. While this contract's value exceeds the standard SAP threshold, its use suggests leveraging expedited processes. The effectiveness hinges on ensuring adequate competition within the chosen procedure and obtaining fair and reasonable pricing, which appears to have been moderately achieved with two bidders.

What is the historical spending pattern for handtools by the General Services Administration?

Historical spending patterns for handtools by the General Services Administration (GSA) can be analyzed through federal procurement databases. GSA, through its Federal Supply Schedules (FSS) and other contracting vehicles, regularly procures a wide array of tools and equipment to support federal agencies. Annual spending can fluctuate based on agency needs, budget allocations, and the introduction of new technologies or product lines. Analyzing past years' data would reveal trends in the types of tools procured, average order values, and the primary contractors supplying these items, providing context for the current $3.5 million award.

Are there any specific performance metrics tied to this contract?

The provided data does not explicitly detail specific performance metrics beyond the delivery date (2026-04-24) and duration (21 days). As a firm-fixed-price purchase order, the primary performance expectation is the timely delivery of the specified handtools in accordance with the contract's terms and conditions. Acceptance of the goods would likely be contingent upon inspection and verification of quality and quantity. Additional performance metrics, such as quality standards or specific product specifications, would typically be outlined in the detailed contract statement of work or specifications, which are not included here.

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: 15145 ILLINOIS AVE, PARAMOUNT, CA, 90723

Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, 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: $3,499

Exercised Options: $3,499

Current Obligation: $3,499

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline