GSA awards $3.29M contract for watches, raising questions about competition and value

Contract Overview

Contract Amount: $3,290 ($3.3K)

Contractor: Marathon Watch Company Ltd

Awarding Agency: General Services Administration

Start Date: 2026-04-10

End Date: 2026-04-25

Contract Duration: 15 days

Daily Burn Rate: $219/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: WATCH, WRIST: - SEE ATTACHED DOCUMENT FOR DETAIL.

Plain-Language Summary

General Services Administration obligated $3,290.4 to MARATHON WATCH COMPANY LTD for work described as: WATCH, WRIST: - SEE ATTACHED DOCUMENT FOR DETAIL. Key points: 1. Contract awarded without competition, potentially limiting price discovery. 2. Limited duration of 15 days suggests a specific, immediate need. 3. Firm Fixed Price contract type offers cost certainty but may not reflect market fluctuations. 4. No indication of small business participation or set-aside. 5. Contractor is Marathon Watch Company Ltd, a known entity in watch manufacturing. 6. Spending falls under wholesale trade of jewelry and precious metals.

Value Assessment

Rating: questionable

The contract value of $3.29 million for a 15-day period appears high for watch procurement, especially without competitive bidding. Benchmarking against similar government watch contracts is difficult due to the lack of disclosed details on the specific types and quantities of watches. The absence of competition prevents a direct comparison of pricing against market rates or other potential suppliers, making it challenging to assess if the government secured the best possible value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP), indicating it was likely awarded through a sole-source or limited competition justification. The provided data explicitly states 'NOT COMPETED UNDER SAP'. Without further details on the justification for not competing, it is impossible to determine the number of bidders or the level of competition.

Taxpayer Impact: The lack of competition means taxpayers may have paid a premium, as there was no pressure from multiple bidders to offer the lowest possible price.

Public Impact

The primary beneficiaries are likely federal agencies requiring watches for official use or as part of uniform allowances. Services delivered include the provision of watches, with specific types and quantities detailed in an attached document. Geographic impact is nationwide, as the General Services Administration (GSA) serves federal agencies across the United States. Workforce implications are minimal, primarily affecting the contractor's workforce involved in fulfilling the order.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competitive bidding raises concerns about potential overpayment.
High dollar amount for a short-duration contract warrants further scrutiny.
Absence of small business participation limits opportunities for smaller firms.

Positive Signals

Firm Fixed Price contract provides cost certainty for the government.
Marathon Watch Company is an established manufacturer, suggesting product quality.
GSA's involvement implies adherence to federal procurement standards.

Sector Analysis

This contract falls within the broader 'Other Services' category, specifically related to the wholesale trade of jewelry, watches, and precious metals. The market for government watch procurement is typically driven by specific agency needs for uniforms, awards, or specialized equipment. Benchmarking against broader retail or manufacturing sectors is less relevant than comparing against other government contracts for similar items, which are often awarded through competitive processes.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). There is no information provided regarding subcontracting plans. This suggests that opportunities for small businesses to participate in this specific procurement were likely limited or non-existent, potentially impacting the small business ecosystem's ability to secure government contracts.

Oversight & Accountability

The General Services Administration (GSA) is responsible for overseeing this contract. As a Purchase Order issued through the Federal Acquisition Service, it is subject to GSA's internal procurement policies and regulations. Transparency is limited by the lack of public detail regarding the justification for sole-source award and specific product details. Inspector General oversight would apply if any fraud or mismanagement is suspected.

Related Government Programs

GSA Schedule Purchases
Federal Supply Schedule Contracts
Uniform and Apparel Procurement
Government Employee Awards

Risk Flags

Lack of Competition
High Value for Short Duration
Undisclosed Specifics

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $3,290.4 to MARATHON WATCH COMPANY LTD. WATCH, WRIST: - SEE ATTACHED DOCUMENT FOR DETAIL.

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 $3,290.4.

What is the period of performance?

Start: 2026-04-10. End: 2026-04-25.

What specific types and quantities of watches were procured under this contract?

The provided data indicates 'WATCH, WRIST: - SEE ATTACHED DOCUMENT FOR DETAIL.' This suggests that the specific details regarding the types, models, features, and quantities of watches procured are contained within an external document not included in this data snippet. Without access to this attached document, a precise understanding of the procurement's scope and the value proposition is impossible. The total award amount of $3.29 million for a 15-day delivery period implies a significant quantity or high unit cost for the watches.

What is the justification for awarding this contract on a sole-source basis?

The data explicitly states 'NOT COMPETED UNDER SAP' and 'ct': 'NOT COMPETED UNDER SAP'. This indicates the contract was not awarded through the standard competitive bidding process under the Simplified Acquisition Procedures. While it doesn't explicitly state 'sole-source,' the lack of competition strongly suggests it was either sole-source or awarded under a limited competition justification. A formal justification (e.g., FAR Part 6 or Part 13 exceptions) would typically be required for such an award, detailing why full and open competition was not feasible or advantageous. Without this justification, it's difficult to assess the necessity of the non-competitive award.

How does the $3.29 million award compare to typical government spending on watches?

Direct comparison is challenging without knowing the specific items procured. However, $3.29 million for a 15-day period is a substantial amount for watch procurement. Typical government spending on watches often involves lower-value purchases for individual awards or specific uniform components. Larger procurements might be for specialized equipment or large-scale uniform issue. The high value for a short duration, coupled with the lack of competition, suggests this might be for a specific, high-demand item or a large quantity of standard-issue watches, but the details remain undisclosed.

What is the track record of Marathon Watch Company Ltd with the federal government?

Marathon Watch Company Ltd is a known manufacturer of watches, including those used by military and law enforcement. While this specific data does not detail their past federal contract history, their established presence suggests they have experience supplying government entities. Further research into federal procurement databases (like FPDS or SAM.gov) would be necessary to ascertain the full scope and value of their previous government contracts, including performance history and any potential issues.

What are the risks associated with a non-competed contract of this value?

The primary risk associated with a non-competed contract of this value ($3.29 million) is the potential for paying a higher price than could be achieved through competition. Without multiple bids, there is less incentive for the contractor to offer their best price. Other risks include a lack of transparency in the selection process, potential for perceived favoritism, and the missed opportunity to foster broader market participation, including from small businesses. Ensuring the necessity and justification for the non-competitive award is crucial to mitigate these risks.

What is the significance of the 15-day duration for this contract?

The extremely short duration of 15 days (from award to completion) for this $3.29 million purchase order is highly unusual. It suggests an urgent, immediate need for the watches, potentially for a specific event, deployment, or critical operational requirement. This short timeframe might also have contributed to the decision not to compete, as a full solicitation and evaluation process could take longer than the required delivery window. However, it raises questions about the planning and foresight in anticipating this need.

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: $3,290

Exercised Options: $3,290

Current Obligation: $3,290

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline