GSA awards $7.7K for 13 multi-tools, with a unit price of $589, highlighting potential value concerns

Contract Overview

Contract Amount: $7,655 ($7.7K)

Contractor: Premier & Companies, Inc.

Awarding Agency: General Services Administration

Start Date: 2026-04-03

End Date: 2026-05-03

Contract Duration: 30 days

Daily Burn Rate: $255/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MULTI-TOOL TOOL QUANTITY 13

Place of Performance

Location: NEW YORK, NEW YORK County, NEW YORK, 10001

State: New York Government Spending

Plain-Language Summary

General Services Administration obligated $7,654.75 to PREMIER & COMPANIES, INC. for work described as: MULTI-TOOL TOOL QUANTITY 13 Key points: 1. The contract's unit price of $589 for a multi-tool appears significantly high compared to market averages. 2. Limited competition dynamics may have contributed to the elevated pricing. 3. The short duration and specific quantity suggest a targeted need rather than broad program support. 4. Performance risk appears low given the nature of the goods and the fixed-price contract. 5. This contract falls within the broader category of general supplies and equipment procurement. 6. The award to a single vendor warrants further scrutiny regarding price reasonableness.

Value Assessment

Rating: questionable

The awarded price of $7,654.75 for 13 multi-tools results in a per-unit cost of approximately $589. This figure is substantially higher than typical market prices for comparable multi-tools, which often range from $50 to $200 depending on features and brand. The General Services Administration (GSA) typically aims for competitive pricing through its schedules and bulk purchasing. The high unit cost here raises questions about whether the government secured the best possible value. Further investigation into the specific model and its features is needed to fully justify this price point.

Cost Per Unit: $589 per unit, significantly above market benchmarks for comparable multi-tools.

Competition Analysis

Competition Level: unknown

The contract was competed under SAP (Simplified Acquisition Procedures), which often implies a less extensive competitive process than full and open competition. While the data indicates it was 'competed,' the number of bids received and the specific method used are not detailed. SAP procedures are designed for smaller dollar value procurements and may involve fewer bidders, potentially limiting price discovery. Without knowing the number of offers received and the evaluation criteria, it's difficult to definitively assess the level of competition.

Taxpayer Impact: The limited information on the competitive process for this purchase order means taxpayers may not have benefited from the lowest possible price achievable through robust competition.

Public Impact

Federal employees requiring specialized multi-tool equipment for operational tasks are the primary beneficiaries. The contract delivers essential tools for maintenance, repair, or operational support functions. The geographic impact is localized to New York, where the contractor is based. Workforce implications are minimal, likely affecting only the procurement and logistics personnel involved.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High per-unit cost raises significant value-for-money concerns.
Lack of detailed competition data hinders assessment of price reasonableness.
Potential for overpayment due to non-competitive pricing strategies.

Positive Signals

Contract awarded to a registered business entity.
Procurement followed established procedures (SAP).
Fixed-price contract type limits cost overrun risk for the government.

Sector Analysis

This contract falls under the manufacturing sector, specifically related to handtools and hardware. The market for such tools is diverse, with numerous manufacturers and distributors. Government procurement of tools often occurs through GSA Schedules, which are designed to offer competitive pricing. However, procurements under Simplified Acquisition Procedures (SAP) can sometimes result in higher unit costs if not managed with rigorous price analysis, especially for specialized items.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from this particular award. The primary contractor, PREMIER & COMPANIES, INC., is not explicitly identified as a small business in the provided data.

Oversight & Accountability

Oversight for this purchase order would typically fall under the General Services Administration's internal procurement review processes. As a competed purchase order under SAP, it is subject to standard acquisition regulations and agency policies. Transparency is limited by the available data, which does not detail the specific evaluation or justification for the price. Inspector General jurisdiction would apply if significant fraud, waste, or abuse were suspected.

Related Government Programs

GSA Schedules
Federal Supply Schedule (FSS) Contracts
General Purpose Equipment Procurement
Tools and Hardware Procurement

Risk Flags

High Unit Cost
Limited Competition Data
Potential Value Concern

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $7,654.75 to PREMIER & COMPANIES, INC.. MULTI-TOOL TOOL QUANTITY 13

Who is the contractor on this award?

The obligated recipient is PREMIER & COMPANIES, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $7,654.75.

What is the period of performance?

Start: 2026-04-03. End: 2026-05-03.

What is the typical price range for multi-tools purchased by the federal government?

The typical price range for multi-tools purchased by the federal government can vary widely based on the specific type, brand, features, and quantity. However, for standard, commercially available multi-tools, prices often fall between $50 and $200. Purchases made through GSA Schedules or other competitively bid contracts generally aim to secure prices within this range or even lower for bulk orders. The unit price of $589 in this specific award is exceptionally high and suggests either a highly specialized, industrial-grade tool, or a significant deviation from standard market pricing that warrants further investigation into the justification for the cost.

How does the 'COMPETED UNDER SAP' designation affect price discovery?

Competing under Simplified Acquisition Procedures (SAP) means the procurement likely fell under the $250,000 threshold (for most agencies) and was subject to less stringent competition requirements than full and open competition. While SAP requires seeking out and considering price competition, it often involves fewer bidders and potentially less formal solicitation processes. This can sometimes lead to higher prices compared to large-scale, full-and-open competitions where a wider range of vendors can participate and bid aggressively. The effectiveness of price discovery under SAP depends heavily on the agency's diligence in soliciting offers and performing price analysis.

What are the potential risks associated with a high per-unit cost for tools?

The primary risk associated with a high per-unit cost for tools is the potential for waste, fraud, and abuse, leading to inefficient use of taxpayer funds. If the price is not justified by the product's features, quality, or market conditions, the government may be overpaying, which reduces the overall value obtained from the procurement. This can also set an undesirable precedent for future purchases. Furthermore, excessively high prices might indicate a lack of adequate market research or a failure to leverage available purchasing power, potentially impacting budget allocation for other essential government functions.

Can the contractor's track record influence the price of this contract?

While the provided data does not include specific details on PREMIER & COMPANIES, INC.'s track record, a contractor's past performance can indirectly influence pricing. If a contractor has a strong history of reliable delivery and quality products, agencies might be more willing to award contracts, potentially with less aggressive price negotiation if the price is deemed reasonable for the value offered. Conversely, a poor track record might lead to higher perceived risk, potentially requiring higher prices to compensate or leading to more stringent oversight. However, in this case, the exceptionally high unit price suggests that factors beyond the contractor's general track record, such as the specific product or limited competition, are more likely drivers of the cost.

What does the short contract duration (30 days) imply?

The short contract duration of 30 days (from May 3, 2026, to June 2, 2026, assuming the provided 'ed' date is the end date and 'dur' is days) suggests an urgent or immediate need for the multi-tools. This could be for a specific project, a temporary requirement, or to replenish stock quickly. Short durations can sometimes limit the ability to conduct extensive market research or lengthy competitive processes, potentially impacting the final price. However, for readily available items like multi-tools, a short duration is often feasible and does not inherently preclude competitive pricing if managed effectively.

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: 525 WINDSOR DR, SECAUCUS, NJ, 07094

Business Categories: Category Business, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $7,655

Exercised Options: $7,655

Current Obligation: $7,655

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline