Marathon Watch Company awarded $5.1M contract for Type I watches, a sole-source procurement

Contract Overview

Contract Amount: $5,089 ($5.1K)

Contractor: Marathon Watch Company Ltd

Awarding Agency: General Services Administration

Start Date: 2026-04-08

End Date: 2026-04-23

Contract Duration: 15 days

Daily Burn Rate: $339/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: STOPWATCH LABORATORY: IN ACCORDANCE WITH CIDA-A-2580 & GG-S-764C, TYPE I. SEE ATTACHED IPDFOR COMPLETE DESCRIPTION

Plain-Language Summary

General Services Administration obligated $5,088.9 to MARATHON WATCH COMPANY LTD for work described as: STOPWATCH LABORATORY: IN ACCORDANCE WITH CIDA-A-2580 & GG-S-764C, TYPE I. SEE ATTACHED IPDFOR COMPLETE DESCRIPTION Key points: 1. The contract value of $5.1 million for a 15-day period suggests a high per-unit cost for specialized watches. 2. Sole-source procurement limits competitive pressure, potentially impacting price efficiency for the government. 3. The short duration of the contract (15 days) indicates a specific, immediate need rather than a long-term supply agreement. 4. The procurement is for Type I watches, adhering to specific military or government standards (CIDA-A-2580 & GG-S-764C). 5. The General Services Administration (GSA) is the contracting agency, utilizing the Federal Acquisition Service. 6. The absence of small business set-aside flags suggests this contract was not specifically targeted towards small business participation.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to the specific nature of Type I watches and the sole-source award. Without competitive bids, it's difficult to assess if the $5.1 million price represents fair market value. The high cost for a short 15-day delivery period warrants scrutiny. Comparing this to similar government procurements for specialized timekeeping devices, especially those awarded competitively, would be necessary for a more definitive value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under Simplified Acquisition Procedures (SAP) and is explicitly listed as 'NOT COMPETED'. This indicates a sole-source award, meaning only one vendor, Marathon Watch Company Ltd., was solicited or considered. The lack of competition means there was no opportunity for other qualified vendors to bid, which can limit price discovery and potentially lead to higher costs for the government.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive bidding. Without multiple offers, the government cannot be assured it received the best possible price for these specialized watches.

Public Impact

The primary beneficiaries are likely government personnel or agencies requiring specialized Type I watches for operational or ceremonial purposes. The contract delivers specific timekeeping devices compliant with stringent federal specifications. The geographic impact is likely limited to the end-users of the watches within government entities. Workforce implications are minimal, primarily impacting the manufacturing and distribution of watches by Marathon Watch Company.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potentially increases cost to taxpayers.
High contract value for a very short delivery period raises questions about unit pricing and necessity.
Lack of transparency in the justification for sole-source procurement.
Absence of small business participation could be a missed opportunity for economic inclusion.

Positive Signals

Contract adheres to specific federal standards (CIDA-A-2580 & GG-S-764C), ensuring product quality and suitability.
Marathon Watch Company is a known entity in watch manufacturing, suggesting potential expertise.
General Services Administration (GSA) is managing the procurement, indicating established federal acquisition processes are involved.

Sector Analysis

The procurement falls within the wholesale trade sector, specifically for jewelry, watches, and precious metals. While the dollar amount is significant, it represents a niche within the broader federal spending landscape. Comparable spending benchmarks would involve analyzing other government contracts for specialized timekeeping devices or equipment requiring adherence to strict military or federal specifications. The market for such specialized watches is likely limited to a few manufacturers capable of meeting the stringent requirements.

Small Business Impact

This contract does not appear to have a small business set-aside. The sole-source nature of the award further suggests that opportunities for small businesses, either as prime contractors or subcontractors, were not actively pursued or mandated. This could represent a missed opportunity to support the small business ecosystem within the relevant manufacturing or supply chain sectors.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA) and its Federal Acquisition Service. Accountability measures would be tied to the terms of the purchase order, including delivery timelines and product specifications. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected during the procurement or fulfillment process.

Related Government Programs

Military Watches
Government Timekeeping Devices
Federal Supply Schedule (FSS) Purchases
Department of Defense Procurement
General Services Administration (GSA) Contracts

Risk Flags

Sole-source award
High value for short duration
Lack of competitive bidding justification
Potential for inflated pricing

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $5,088.9 to MARATHON WATCH COMPANY LTD. STOPWATCH LABORATORY: IN ACCORDANCE WITH CIDA-A-2580 & GG-S-764C, TYPE I. SEE ATTACHED IPDFOR COMPLETE DESCRIPTION

Who is the contractor on this award?

The obligated recipient is MARATHON WATCH COMPANY LTD.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $5,088.9.

What is the period of performance?

Start: 2026-04-08. End: 2026-04-23.

What is the specific justification for awarding this contract on a sole-source basis to Marathon Watch Company Ltd.?

The provided data indicates the contract was 'NOT COMPETED UNDER SAP' and is a sole-source award. A formal justification for sole-source procurement is typically required by federal acquisition regulations. This justification usually outlines why full and open competition is not feasible or advantageous, such as the unique capabilities of a single source, urgent and compelling needs where only one source can be identified, or specific government property requirements. Without access to the contract file or justification document, the precise reason remains unknown, but it implies that Marathon Watch Company Ltd. is believed to be the only capable or suitable provider for these specific Type I watches under the given conditions.

How does the unit cost of these Type I watches compare to commercially available similar products or other government contracts?

Direct comparison of unit cost is difficult without knowing the exact quantity of watches procured under the $5.1 million contract and the specific 'Type I' designation's requirements. However, the contract value of $5.1 million for a 15-day delivery period suggests a potentially high per-unit cost. Commercially, watches meeting military specifications can range significantly in price. If 'Type I' refers to a specific standard like MIL-W-46374, prices for such watches can vary widely. A sole-source award inherently limits the ability to benchmark against competitive bids, making it challenging to definitively state if the price is optimal. Further analysis would require the quantity and detailed specifications to compare against other government awards for similar specialized timepieces.

What are the risks associated with a sole-source procurement of this magnitude?

Sole-source procurements carry inherent risks, primarily related to cost and lack of innovation. Without competition, there is less pressure on the contractor to offer the lowest possible price, potentially leading to higher costs for the government. The absence of multiple bidders also means the government may not be aware of or benefit from alternative solutions or technological advancements offered by other companies. Furthermore, sole-source awards can sometimes indicate a lack of market research or planning, or potentially favor incumbent contractors without a thorough evaluation of the market. Transparency can also be reduced, making it harder for the public and oversight bodies to assess the fairness and efficiency of the award.

What is the historical spending pattern with Marathon Watch Company Ltd. for similar items?

The provided data does not include historical spending information with Marathon Watch Company Ltd. To assess historical patterns, one would need to query federal procurement databases (like FPDS or USASpending) for previous contracts awarded to this vendor, specifically looking for procurements of watches, timekeeping devices, or items meeting similar specifications (e.g., CIDA-A-2580, GG-S-764C). Analyzing past contract values, durations, competition levels, and performance would provide context on whether this $5.1 million award is an anomaly or part of a consistent procurement relationship. Without this historical data, it's difficult to gauge the vendor's track record with the government in terms of pricing and reliability.

How does the 'Jewelry, Watch, Precious Stone, and Precious Metal Merchant Wholesalers' classification impact the analysis of this contract?

This classification places the contract within a specific industry segment. It suggests that Marathon Watch Company Ltd. is operating as a wholesaler within this niche market. For federal spending analysis, this classification helps in understanding the type of goods being procured and the potential vendor pool. However, the 'Type I' specification and adherence to military/federal standards (CIDA-A-2580 & GG-S-764C) indicate that this is not a typical commercial watch sale. The classification is broad, and the contract's specifics point to a specialized government requirement rather than general merchandise procurement. It implies the government is sourcing specialized equipment from a vendor within this wholesale category.

Industry Classification

NAICS: Wholesale Trade › Miscellaneous Durable Goods Merchant Wholesalers › Jewelry, Watch, Precious Stone, and Precious Metal Merchant Wholesalers

Product/Service Code: INSTRUMENTS AND LABORATORY EQPT

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1-8355 JANE ST, VAUGHAN

Business Categories: Category Business, Corporate Entity Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $5,089

Exercised Options: $5,089

Current Obligation: $5,089

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline