GSA awards $3.7M purchase order for handtools, with 2 bidders indicating moderate competition

Contract Overview

Contract Amount: $3,737 ($3.7K)

Contractor: Norex Group, LLC

Awarding Agency: General Services Administration

Start Date: 2026-04-03

End Date: 2026-06-02

Contract Duration: 60 days

Daily Burn Rate: $62/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CREDENZA,OFFICE

Place of Performance

Location: VALENCIA, LOS ANGELES County, CALIFORNIA, 91381

State: California Government Spending

Plain-Language Summary

General Services Administration obligated $3,737.08 to NOREX GROUP, LLC for work described as: CREDENZA,OFFICE Key points: 1. Value for money appears fair given the fixed-price nature and moderate competition. 2. Competition dynamics show a moderate level with two bidders, potentially limiting aggressive pricing. 3. Risk indicators are low due to a firm fixed-price contract and short duration. 4. Performance context is a standard purchase order for supplies, not a complex service. 5. Sector positioning is within the broader industrial and manufacturing supply chain.

Value Assessment

Rating: fair

The contract value of $3.7 million for handtools over a 60-day period seems within a reasonable range for federal procurement. Without specific itemized costs or detailed market research, a precise value-for-money assessment is challenging. However, the firm fixed-price structure suggests the government has locked in costs, mitigating risk of overruns. Benchmarking against similar large-scale handtool procurements would provide a clearer picture of cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under Simplified Acquisition Procedures (SAP), indicating a full and open competition for procurements below certain thresholds. The presence of two bidders suggests a degree of market interest, but it is not a highly competitive scenario. This level of competition may not drive the absolute lowest prices but likely ensures a reasonable market-based cost.

Taxpayer Impact: With two bidders, taxpayers benefit from a competitive process that prevents sole-source pricing, though a higher number of bidders could potentially yield greater cost savings.

Public Impact

Federal agencies requiring handtools and saw blades will benefit from this procurement. The services delivered include the supply of essential tools for various operational needs. The geographic impact is likely nationwide, as GSA serves all federal agencies. Workforce implications are minimal, primarily supporting the supply chain for tool manufacturing and distribution.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in future procurements if competition remains limited.
Dependence on a limited number of suppliers could pose supply chain risks.
Ensuring the quality and durability of tools meets federal standards requires diligent oversight.

Positive Signals

Firm fixed-price contract protects against cost overruns.
Short contract duration minimizes long-term financial commitment and risk.
GSA's established procurement processes ensure adherence to federal regulations.

Sector Analysis

This contract falls within the industrial and manufacturing sector, specifically related to the supply of tools. The market for industrial tools is large and diverse, with numerous manufacturers and distributors. Federal spending in this area is consistent, supporting the operational needs of various agencies. Comparable spending benchmarks would involve analyzing other GSA schedules or agency-specific procurements for similar industrial supplies.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary impact on the small business ecosystem would be through potential subcontracting opportunities if the prime contractor, NOREX GROUP, LLC, engages them. Without specific subcontracting plans, it's difficult to assess the direct benefit to small businesses from this particular award.

Oversight & Accountability

Oversight for this purchase order will be managed by the General Services Administration (GSA) through its Federal Acquisition Service. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified goods. Transparency is generally maintained through GSA's public contract databases. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

GSA Schedules Program
Federal Supply Schedule (FSS) Contracts
Industrial and Manufacturing Supplies Procurement
Purchase Orders

Risk Flags

Moderate competition may limit price optimization.
Supply chain vulnerability for specialized tools.
Ensuring consistent quality across all delivered items.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $3,737.08 to NOREX GROUP, LLC. CREDENZA,OFFICE

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 $3,737.08.

What is the period of performance?

Start: 2026-04-03. End: 2026-06-02.

What is the track record of NOREX GROUP, LLC in fulfilling federal contracts, particularly for similar supplies?

Information regarding NOREX GROUP, LLC's specific track record for fulfilling federal contracts, especially for handtools and saw blades, is not detailed in the provided data. A comprehensive analysis would require examining their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), contract history, and any reported issues or successes. Understanding their experience with similar procurements, delivery timelines, and quality compliance is crucial for assessing future performance reliability. Without this historical data, the assessment relies heavily on the general oversight mechanisms of the GSA and the terms of the current contract.

How does the $3.7 million award compare to historical federal spending on handtools and saw blades?

The provided data does not offer historical spending figures for handtools and saw blades, making a direct comparison difficult. Federal spending on such items can fluctuate based on agency needs, budget allocations, and specific project requirements. To benchmark this $3.7 million award, one would need to analyze aggregated federal spending data from sources like FPDS-NG or agency-specific procurement reports over several fiscal years. This analysis would reveal trends, identify peak spending periods, and establish a baseline for what constitutes typical or exceptional investment in these supplies. Without such historical context, it's challenging to determine if this award represents an increase, decrease, or standard level of federal investment.

What are the specific types and quantities of handtools and saw blades included in this purchase order?

The provided data summary does not specify the exact types and quantities of handtools and saw blades covered under this $3.7 million purchase order. The North American Industry Classification System (NAICS) code 332216, 'Saw Blade and Handtool Manufacturing,' indicates the general product category. A detailed breakdown would typically be found in the contract's statement of work or line item details. Understanding the specific items is essential for assessing the value proposition, ensuring the procured items meet agency requirements, and performing accurate price benchmarking against market rates for those specific tools.

What is the assessed risk level associated with this contract, considering its duration and competition?

The risk level associated with this contract is assessed as low. This is primarily due to its firm fixed-price (FFP) contract type, which shifts the financial risk of cost overruns to the contractor. Additionally, the contract duration is relatively short (60 days), minimizing the period during which unforeseen issues could arise and impact performance or cost. While the competition level (two bidders) is moderate and could potentially limit aggressive pricing, it does not inherently introduce significant performance or financial risk. The primary risks would stem from potential supply chain disruptions or quality issues, which are standard considerations for any goods procurement.

Are there any specific performance metrics or key performance indicators (KPIs) tied to this purchase order?

The provided data summary does not explicitly mention specific performance metrics or Key Performance Indicators (KPIs) tied to this purchase order. For a standard purchase order of supplies like handtools, performance is typically measured against adherence to delivery schedules, quality standards, and contract specifications. The firm fixed-price nature implies that meeting these basic requirements is paramount. Detailed KPIs might be outlined in the full contract documentation, focusing on aspects like on-time delivery rates, defect rates, or compliance with specific technical requirements. Without access to the full contract, it's assumed standard procurement performance expectations apply.

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: $3,737

Exercised Options: $3,737

Current Obligation: $3,737

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline