GSA awards $5.4M for handtools, with 20-day delivery, raising questions on value and competition

Contract Overview

Contract Amount: $5,447 ($5.4K)

Contractor: Premier & Companies, Inc.

Awarding Agency: General Services Administration

Start Date: 2026-04-08

End Date: 2026-04-28

Contract Duration: 20 days

Daily Burn Rate: $272/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: WIREWAY/HUSKY-B2211120 FOR BILLING PURPOSES ONLY.

Place of Performance

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

State: New York Government Spending

Plain-Language Summary

General Services Administration obligated $5,447 to PREMIER & COMPANIES, INC. for work described as: WIREWAY/HUSKY-B2211120 FOR BILLING PURPOSES ONLY. Key points: 1. The contract's short 20-day duration suggests an urgent need, potentially impacting price negotiation. 2. Limited competition is indicated by the award type, which may have led to suboptimal pricing. 3. The fixed-price contract type shifts risk to the contractor, but oversight is needed to ensure quality. 4. The award falls under Simplified Acquisition Procedures (SAP), typically for smaller purchases. 5. The specific product category, Saw Blade and Handtool Manufacturing, is a mature market with many suppliers. 6. The contract's value is relatively small in the context of overall federal procurement.

Value Assessment

Rating: fair

The contract value of $5.4 million for handtools is moderate. Given the short 20-day delivery period and the fact it was competed under SAP, it's difficult to definitively benchmark value without more detailed pricing information. However, the mature market for handtools suggests that competitive pricing should be achievable. The firm fixed-price nature indicates the government has secured a price, but the efficiency of that price depends heavily on the competition that existed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP (Simplified Acquisition Procedures), which often involves fewer bidders than full and open competition. While the data indicates 'COMPETED UNDER SAP,' it does not specify the number of bids received or the specific solicitation method. This suggests a potentially less robust competitive environment than larger, more complex procurements, which could influence price discovery.

Taxpayer Impact: For taxpayers, limited competition under SAP can mean potentially higher prices than if a broader range of suppliers had been solicited. This necessitates careful review to ensure the government received fair market value.

Public Impact

Federal agencies requiring handtools and saw blades will benefit from this contract. The contract ensures the availability of essential tools for various maintenance and operational tasks. The primary geographic impact is within New York (ST: NY, SN: NEW YORK), where the contractor is located. The contract supports jobs within the handtool manufacturing and distribution sector, likely benefiting Premier & Companies, Inc.'s workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for inflated pricing due to limited competition under SAP.
Short delivery window may have constrained competitive offers.
Lack of detailed competition metrics makes value assessment challenging.

Positive Signals

Firm fixed-price contract shifts cost overrun risk to the contractor.
Awarded to a known entity (Premier & Companies, Inc.), suggesting some level of vetting.
Contract falls within a standard industrial product category (NAICS 332216).

Sector Analysis

The handtool manufacturing sector is a well-established industrial market. Federal spending in this area typically supports agency maintenance, repair, and operations (MRO) needs. While specific benchmarks for federal handtool procurement are not readily available, the industry is characterized by numerous domestic and international suppliers, indicating a generally competitive landscape. This contract represents a small portion of overall federal spending on industrial supplies.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (SS: false, SB: false). Premier & Companies, Inc.'s size is not specified, but the award mechanism (SAP) and the nature of the product suggest it could be awarded to either small or large businesses. There is no explicit information on subcontracting requirements, but given the contract value and product type, significant small business subcontracting is not automatically implied.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA), specifically the Federal Acquisition Service. As a Purchase Order awarded under SAP, the level of formal oversight might be less intensive than for larger, sole-source, or complex contracts. Accountability relies on the firm fixed-price terms and the contractor's adherence to the delivery schedule and product specifications. Transparency is moderate, as basic award data is available.

Related Government Programs

Federal Supply Schedule (FSS) contracts for tools and hardware
General Services Administration (GSA) Multiple Award Schedule (MAS)
Department of Defense (DoD) procurement of tools
Maintenance, Repair, and Operations (MRO) supplies spending

Risk Flags

Potential for suboptimal pricing due to limited competition.
Short delivery window may impact contractor options and pricing.
Lack of detailed competition metrics hinders full value assessment.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $5,447 to PREMIER & COMPANIES, INC.. WIREWAY/HUSKY-B2211120 FOR BILLING PURPOSES ONLY.

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 $5,447.

What is the period of performance?

Start: 2026-04-08. End: 2026-04-28.

What is the track record of Premier & Companies, Inc. with federal contracts?

Information on Premier & Companies, Inc.'s specific federal contract history is not detailed in the provided data. However, the award of this purchase order suggests they are registered and capable of doing business with the federal government, specifically through the General Services Administration. A deeper dive into federal procurement databases like FPDS or SAM.gov would be necessary to assess their past performance, contract types, values, and any performance issues or accolades. Without this external data, it's difficult to gauge their reliability or experience beyond this single award.

How does the $5.4M value compare to similar federal handtool procurements?

The $5.4 million value for this specific handtool purchase order is moderate. Federal agencies procure a wide range of tools and hardware, with contract values varying significantly based on quantity, type, and duration. Larger, multi-year contracts awarded through GSA Schedules or other competitive vehicles can reach tens or hundreds of millions of dollars. Smaller, urgent needs are often met through SAP, similar to this award. To provide a precise comparison, one would need to analyze recent awards for similar items (e.g., NAICS 332216) across different agencies and contract types, looking at average award values and quantities.

What are the primary risks associated with this contract?

The primary risks associated with this contract include potential overpricing due to limited competition under Simplified Acquisition Procedures (SAP), and the short 20-day delivery window which might have constrained the number of viable bidders or led to expedited shipping costs being factored in. There's also a risk related to product quality and adherence to specifications, although the firm fixed-price nature mitigates financial risk for the government in case of cost overruns by the contractor. Ensuring the contractor meets the tight deadline without compromising quality is a key performance risk.

How effective is the competition level in ensuring fair market value?

The competition level, described as 'COMPETED UNDER SAP,' suggests a potentially limited number of bidders compared to full and open competition. While SAP is designed for efficiency in smaller procurements, it can sometimes result in less aggressive pricing if the pool of interested and capable vendors is small. The fact that it was competed at all is positive, but without knowing the exact number of bids received, it's challenging to definitively assess if fair market value was achieved. Taxpayers benefit most when multiple vendors compete vigorously on price and quality.

What is the historical spending pattern for saw blades and handtools by the GSA?

Historical spending data for saw blades and handtools by the GSA, or specifically through the Federal Acquisition Service (FAS) under NAICS code 332216, is not provided. However, GSA is a primary channel for procuring a vast array of goods and services for federal agencies. It's reasonable to assume consistent, albeit fluctuating, spending in this category to support agency operational needs. Analyzing historical GSA spending reports or contract databases would reveal trends, average contract values, and dominant award mechanisms for such items over time.

What oversight mechanisms are in place for this specific purchase order?

Oversight for this purchase order is managed by the General Services Administration (GSA). As it was awarded under Simplified Acquisition Procedures (SAP), the oversight might be less intensive than for larger contracts. Key oversight elements include ensuring the contractor, Premier & Companies, Inc., meets the firm fixed-price terms, delivers the specified saw blades and handtools within the tight 20-day window (by April 28, 2026), and adheres to quality standards. The contract's short duration and fixed price inherently simplify some oversight aspects, but performance monitoring remains crucial.

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: $5,447

Exercised Options: $5,447

Current Obligation: $5,447

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline