GSA awards $3.08M purchase order for handtools to MAY TOOL INC, with 21-day duration

Contract Overview

Contract Amount: $3,084 ($3.1K)

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: $147/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 $3,084 to MAY TOOL INC for work described as: WATCH,WRIST Key points: 1. Value for money appears fair given the short duration and fixed-price nature. 2. Competition dynamics indicate a potentially limited but efficient procurement process. 3. Risk indicators are low due to the small dollar value and short performance period. 4. Performance context suggests a routine acquisition of standard industrial supplies. 5. Sector positioning places this contract within the broader industrial and hardware supply chain.

Value Assessment

Rating: fair

The total award amount of $3.08 million for a 21-day period suggests a moderate per-day expenditure. Without specific unit pricing or comparison to similar bulk purchases of handtools, a precise value-for-money assessment is challenging. However, the fixed-price nature of the purchase order provides cost certainty for the government. The award to MAY TOOL INC, a single entity, implies a focused procurement rather than a broad market engagement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP (Simplified Acquisition Procedures), which typically involves a less extensive competition than full and open procedures. While the specific number of bidders is not detailed, SAP is designed for efficiency in acquiring goods and services below certain dollar thresholds. The limited competition under SAP may result in less aggressive pricing compared to a full and open competition, but it ensures timely delivery of needed supplies.

Taxpayer Impact: Taxpayers benefit from the efficiency of SAP, which reduces administrative costs associated with larger procurements. However, the potential for slightly higher prices due to limited competition means taxpayers might not always receive the absolute lowest price achievable.

Public Impact

Federal agencies requiring standard handtools and saw blades will benefit from this contract. The services delivered include the provision of essential tools for maintenance, repair, and operational activities. The geographic impact is likely nationwide, as the General Services Administration serves federal agencies across the country. Workforce implications are minimal, primarily affecting the supply chain and logistics personnel involved in tool distribution.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited price discovery due to simplified acquisition procedures.
Short performance period might not allow for extensive performance evaluation.
Dependence on a single awardee for a critical supply category.

Positive Signals

Fixed-price contract provides cost certainty.
Efficient procurement process under SAP.
Award to a single entity simplifies administration.

Sector Analysis

This contract falls within the industrial and hardware sector, specifically related to the manufacturing and distribution of tools. The market for such goods is generally competitive, with numerous manufacturers and distributors. The General Services Administration (GSA) plays a crucial role in consolidating federal purchasing power for common items like tools, aiming for better pricing and streamlined acquisition. Comparable spending benchmarks would involve analyzing historical GSA purchases of similar tool categories or other agencies' direct procurements.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). While MAY TOOL INC's size is not specified, the use of Simplified Acquisition Procedures (SAP) does not preclude small business participation. However, without a specific set-aside, the opportunity for small businesses to compete depends on their ability to meet the requirements and be identified through the procurement process. Subcontracting implications are unlikely to be significant for a short-term purchase order of this nature.

Oversight & Accountability

Oversight for this purchase order would primarily fall under the General Services Administration's Federal Acquisition Service. Accountability is ensured through the fixed-price contract terms and the purchase order system, which requires adherence to specifications and delivery schedules. Transparency is facilitated by federal procurement data systems that record such awards. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

GSA Schedule purchases
Federal Supply Schedule (FSS) contracts
Procurement of industrial supplies
Maintenance, Repair, and Operations (MRO) supplies

Risk Flags

Award value exceeds typical SAP thresholds, requiring further investigation into procurement authority.
Short performance period may indicate urgency or a specific, limited need.
Lack of detailed competition information limits assessment of price reasonableness.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $3,084 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 $3,084.

What is the period of performance?

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

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

Information regarding MAY TOOL INC's specific track record with government contracts is not provided in the given data snippet. A comprehensive analysis would require accessing historical contract databases (like FPDS or SAM.gov) to review past performance, award history, and any reported issues or successes. Without this external data, it's impossible to assess their reliability or experience in fulfilling federal requirements. The current award is a purchase order under SAP, suggesting a potentially smaller scale of operation or a specific need being met.

How does the $3.08 million award compare to similar GSA procurements for handtools?

Direct comparison of the $3.08 million award for a 21-day period is difficult without more granular data on the specific types and quantities of handtools procured. GSA often procures tools through various mechanisms, including GSA Schedules, which allow for more continuous purchasing. A purchase order under SAP, especially for a short duration, might represent a specific, urgent need or a bulk buy of common items. To benchmark effectively, one would need to identify comparable GSA contracts for similar tool categories, analyze their total value, duration, and the number of items purchased to ascertain if this award represents a competitive price point.

What are the primary risks associated with this specific purchase order?

The primary risks associated with this purchase order are relatively low due to its nature. Key risks include potential delivery delays, although the short 21-day duration minimizes this impact. Another risk is receiving non-conforming products if quality control is insufficient, though the fixed-price nature incentivizes the contractor to meet specifications. Given the use of Simplified Acquisition Procedures (SAP), there's a minor risk of suboptimal pricing compared to a full and open competition, but this is often offset by the speed and efficiency gained. The small business status (or lack thereof) and contractor's past performance are also factors, but not explicitly detailed here.

How effective is the SAP procurement method for acquiring tools like these?

The Simplified Acquisition Procedures (SAP) are generally effective for acquiring goods and services below certain thresholds (currently $250,000, though specific agency policies and contract types can influence this). For items like handtools, where specifications are often standard and market prices are relatively stable, SAP offers a streamlined and efficient method. It reduces administrative burden and speeds up delivery compared to more complex procurement methods. However, its effectiveness in achieving the absolute lowest price can be limited by the reduced scope of competition it typically entails. For this $3.08M award, it's unusual as it significantly exceeds the standard SAP threshold, suggesting it might be a specific type of simplified process or an aggregation of smaller buys.

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

Historical spending patterns for handtools by the General Services Administration (GSA) would typically show consistent procurement activity to support various federal agencies. GSA often utilizes its Federal Supply Schedules (FSS) and other contract vehicles to provide a wide range of industrial supplies, including tools. Spending levels can fluctuate based on agency needs, budget allocations, and the introduction of new technologies or product standards. Analyzing past GSA spending data would reveal trends in the types of tools purchased, average contract values, and the primary contract vehicles used. This specific $3.08M purchase order, if indeed under SAP, would be an outlier given its value, suggesting it might be an aggregation or a specific program requirement.

What is the significance of the 21-day duration for this contract?

The 21-day duration is highly significant as it indicates a very short-term requirement, likely for immediate or urgent needs. This short timeframe suggests the purchase order is for readily available stock items rather than custom-manufactured goods or long-term supply agreements. It minimizes the government's long-term commitment and reduces risks associated with market fluctuations or changing requirements. For the contractor, it means a rapid fulfillment cycle. The short duration also implies that the $3.08 million is the total value for this brief period, making the daily expenditure rate quite high, underscoring the need for efficient delivery.

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: $3,084

Exercised Options: $3,084

Current Obligation: $3,084

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline