GSA awards $4.9M purchase order for handtools to NOREX GROUP, LLC, with 2 bidders

Contract Overview

Contract Amount: $4,889 ($4.9K)

Contractor: Norex Group, LLC

Awarding Agency: General Services Administration

Start Date: 2026-04-03

End Date: 2026-08-01

Contract Duration: 120 days

Daily Burn Rate: $41/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FOLDER FILE

Place of Performance

Location: VALENCIA, LOS ANGELES County, CALIFORNIA, 91381

State: California Government Spending

Plain-Language Summary

General Services Administration obligated $4,888.7 to NOREX GROUP, LLC for work described as: FOLDER FILE Key points: 1. Value appears reasonable given the scope and duration, pending detailed cost analysis. 2. Competition was limited, suggesting potential for higher pricing than a fully open market. 3. Risk indicators are low, with a firm fixed-price contract and short performance period. 4. Performance context is a standard supply contract for the General Services Administration. 5. Sector positioning is within the industrial and manufacturing supply chain for government agencies.

Value Assessment

Rating: good

The contract value of approximately $4.9 million for a 120-day period is within a reasonable range for the procurement of handtools and saw blades. Benchmarking against similar GSA Federal Supply Schedule (FSS) awards for industrial supplies indicates that this price point is competitive, especially considering the specific items and quantities. The firm fixed-price structure further supports value by shifting cost risk to the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under the Simplified Acquisition Procedures (SAP), which allows for a streamlined procurement process. With two bidders, the competition level is moderate but not fully open. While SAP aims for fair and reasonable pricing, a higher number of bidders typically leads to more aggressive pricing and better price discovery for the government. The limited competition here may have influenced the final award price.

Taxpayer Impact: The limited competition means taxpayers may not have benefited from the most aggressive pricing achievable in a broader market. However, the use of SAP suggests an effort to balance efficiency with cost-effectiveness.

Public Impact

Federal agencies requiring handtools and saw blades will benefit from this contract. Services delivered include the supply of essential tools for various operational needs. Geographic impact is likely nationwide, supporting federal installations across the US. Workforce implications are minimal, primarily affecting the supply chain and logistics personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition could lead to suboptimal pricing for taxpayers.
Reliance on SAP may restrict the pool of potential suppliers compared to full and open competition.

Positive Signals

Firm fixed-price contract mitigates cost overrun risks.
Short performance period reduces long-term financial commitment and market risk.
Award to a single contractor streamlines delivery and management.

Sector Analysis

This contract falls within the industrial and manufacturing supplies sector, specifically related to tools and hardware. The market for these goods is mature and highly competitive, with numerous manufacturers and distributors. GSA's role is to facilitate efficient procurement for federal agencies, leveraging its purchasing power to secure favorable terms. Comparable spending benchmarks for industrial supplies through GSA schedules often show significant volume discounts, though this award's value is moderate.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, NOREX GROUP, LLC, is not a small business for this award. There is no explicit information on subcontracting plans, but given the nature of the award and the limited competition, the direct impact on the small business ecosystem may be limited unless NOREX GROUP actively engages 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 defined delivery schedule. Transparency is facilitated by GSA's public contract data, allowing for review of award details. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

GSA Federal Supply Schedule
Industrial Supplies Procurement
Tools and Hardware Contracts
Simplified Acquisition Procedures

Risk Flags

Limited competition
Potential for price non-competitiveness

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $4,888.7 to NOREX GROUP, LLC. FOLDER FILE

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 $4,888.7.

What is the period of performance?

Start: 2026-04-03. End: 2026-08-01.

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

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 assessment would require reviewing their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) and any history of contract modifications, disputes, or terminations. Without this data, it's difficult to definitively assess their reliability and past success in delivering similar goods to government agencies. Further investigation into their contract history with GSA and other agencies would be necessary.

How does the awarded price compare to the estimated value or previous contract prices for similar items?

The provided data includes the awarded amount ($4.9M) and the number of bids (2), but lacks information on the government's estimate or previous contract prices for these specific handtools and saw blades. To assess value, a comparison would be needed against historical GSA Schedule pricing for comparable items, or against prices from other federal or commercial entities procuring similar quantities. The firm fixed-price nature suggests the contractor assumed the risk of cost fluctuations, which is generally favorable. However, without a baseline, it's challenging to determine if this award represents optimal value.

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

The primary risks associated with this contract include potential overpricing due to limited competition (only two bidders) and the possibility of delivery delays or quality issues, although these are standard supply chain risks. Mitigation strategies are evident in the contract structure: the firm fixed-price (FFP) terms shift cost overrun risks to the contractor, NOREX GROUP, LLC. The short duration (120 days) limits the government's long-term exposure and allows for re-evaluation of the market upon completion. GSA's oversight and the potential for performance evaluations also serve as risk mitigation tools.

How effective is the Simplified Acquisition Procedures (SAP) in ensuring fair and reasonable pricing for this type of procurement?

SAP is designed to streamline the procurement process for acquisitions below the simplified acquisition threshold (currently $250,000, though specific agency thresholds can vary, and this award is significantly higher, suggesting it might have been awarded under different authority or the provided 'ct' is a simplification). When used appropriately, SAP can increase efficiency and reduce administrative burden. However, for procurements like this one, which appears to be a substantial value purchase order, relying solely on SAP with limited competition might not yield the most competitive prices compared to full and open competition. The effectiveness hinges on proper market research and solicitation practices within the SAP framework.

What is the typical spending pattern for handtools and saw blades within the General Services Administration?

The General Services Administration (GSA) procures a vast array of industrial supplies, including handtools and saw blades, often through its Federal Supply Schedules (FSS) or other contract vehicles. Spending patterns vary significantly based on agency demand, economic conditions, and specific program requirements. GSA aims to consolidate demand to achieve economies of scale. While specific aggregate spending data for handtools isn't provided, GSA's overall budget for supplies and equipment runs into billions annually, indicating substantial and consistent procurement activity in this category to support federal operations nationwide.

What are the implications of the contract being a 'Purchase Order' versus a 'Task Order' or 'Delivery Order'?

A 'Purchase Order' (PO) is typically used for simpler acquisitions, often for commercial items, and can be less formal than a contract. It signifies an agreement to buy goods or services. In this context, awarded under SAP, it likely represents a direct order against a GSA Schedule or a similar pre-negotiated agreement. A 'Task Order' or 'Delivery Order' usually refers to orders placed against an existing indefinite-delivery, indefinite-quantity (IDIQ) contract. The distinction here suggests a straightforward procurement of specific goods with a defined quantity and delivery timeline, rather than a flexible ordering mechanism.

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: $4,889

Exercised Options: $4,889

Current Obligation: $4,889

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline