Purchase order for rifle magazines awarded to TERA CONSULTING INC. for $1,349,400

Contract Overview

Contract Amount: $13,494 ($13.5K)

Contractor: Tera Consulting Inc.

Awarding Agency: General Services Administration

Start Date: 2026-04-03

End Date: 2026-04-18

Contract Duration: 15 days

Daily Burn Rate: $900/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: MAG576-BLK PMAG D-60 AR/M4 GEN M3 , 5.56X45, BLACK

Place of Performance

Location: LEVITTOWN, NASSAU County, NEW YORK, 11756

State: New York Government Spending

Plain-Language Summary

General Services Administration obligated $13,494 to TERA CONSULTING INC. for work described as: MAG576-BLK PMAG D-60 AR/M4 GEN M3 , 5.56X45, BLACK Key points: 1. Value for money appears questionable given the short duration and lack of competition. 2. Competition dynamics are absent as the contract was not competed. 3. Risk indicators include a lack of competitive bidding and a short performance period. 4. Performance context is limited to the supply of rifle magazines. 5. Sector positioning is within office supplies manufacturing, though the product is defense-related.

Value Assessment

Rating: questionable

The contract value of $1,349,400 for a 15-day period raises concerns about value for money, especially without competitive bidding. Benchmarking against similar contracts for rifle magazines is difficult without more detailed specifications and market data. The unit price for the MAG576-BLK PMAG D-60 AR/M4 GEN M3, 5.56X45, BLACK is not explicitly provided, making a direct cost assessment challenging. However, the overall price for a short-term supply contract of this nature warrants scrutiny.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under SAP (Simplified Acquisition Procedures) and is listed as 'NOT COMPETED UNDER SAP'. This indicates a sole-source or limited competition award, likely due to specific requirements or urgency. The lack of a competitive process means that price discovery through market forces was not utilized, potentially leading to a higher cost for the government.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding, as the government did not leverage market competition to secure the best possible price.

Public Impact

The primary beneficiaries are likely military or law enforcement personnel who require these specific rifle magazines. The service delivered is the supply of ammunition magazines. The geographic impact is concentrated in New York, where the contractor is located. Workforce implications are minimal, likely limited to the manufacturing and distribution of the magazines.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated prices.
Short performance period could indicate a rushed or poorly planned procurement.
The product classification as 'Office Supplies' seems incongruent with the item's nature.

Positive Signals

Contract awarded to a single vendor, potentially simplifying administrative processes.
Clear product specification provided.
Fixed price contract provides cost certainty.

Sector Analysis

The procurement falls under the broader category of defense-related supplies, specifically ammunition magazines. While classified under NAICS 339940 (Office Supplies (except Paper) Manufacturing), the actual product is for firearms. The market for such specialized components is often influenced by defense contracts and specific military or law enforcement requirements. Benchmarking against similar defense supply contracts would require access to classified or specialized procurement data.

Small Business Impact

The contract indicates that small business participation was not a primary consideration, as the 'sb' (small business) flag is false. There is no mention of subcontracting requirements for small businesses. This suggests that the contract was not set aside for small businesses and may not actively contribute to the small business ecosystem in this specific procurement.

Oversight & Accountability

Oversight mechanisms for this purchase order are likely managed through the General Services Administration's Federal Acquisition Service. Accountability measures would stem from the terms of the firm fixed-price purchase order and adherence to procurement regulations. Transparency is limited due to the lack of competitive bidding and the short performance period. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Defense Logistics Agency (DLA) procurements
General Services Administration (GSA) Schedule contracts
Federal tactical gear and equipment purchases

Risk Flags

Lack of Competition
Potential for Overpricing
Short Performance Period
Unclear Product Classification

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $13,494 to TERA CONSULTING INC.. MAG576-BLK PMAG D-60 AR/M4 GEN M3 , 5.56X45, BLACK

Who is the contractor on this award?

The obligated recipient is TERA CONSULTING INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $13,494.

What is the period of performance?

Start: 2026-04-03. End: 2026-04-18.

What is the track record of TERA CONSULTING INC. in supplying defense-related equipment?

Information regarding TERA CONSULTING INC.'s specific track record in supplying defense-related equipment is not readily available through the provided data. The contract is categorized under 'Office Supplies (except Paper) Manufacturing' (NAICS 339940), which may indicate a broader scope of operations or a classification mismatch. Further investigation into the company's past performance, other government contracts, and industry reputation would be necessary to assess their reliability and experience in this specific product category. Without this, it is difficult to gauge their suitability beyond the immediate transaction.

How does the price of these magazines compare to market rates for similar items?

The provided data does not include the unit price for the MAG576-BLK PMAG D-60 AR/M4 GEN M3, 5.56X45, BLACK magazines, nor does it specify the quantity purchased. This prevents a direct comparison to market rates. Given that the contract was not competed, there is a risk that the price may be higher than what could have been achieved through a competitive bidding process. To perform a robust comparison, one would need the total quantity, the total price, and the unit price, then benchmark these against prices from other reputable defense suppliers or retailers.

What are the primary risks associated with this contract award?

The primary risks associated with this contract award include a lack of price competition, which could lead to overpayment. The short performance period (15 days) might indicate a rushed procurement or potential supply chain issues, increasing the risk of delivery delays or quality concerns. Furthermore, the classification of the product under 'Office Supplies' while being a firearm accessory raises questions about the accuracy of the procurement data and potentially the oversight of the acquisition process. The sole-source nature also limits the government's ability to explore alternative, potentially more cost-effective solutions.

What is the expected effectiveness of this contract in meeting the government's needs?

The effectiveness of this contract hinges on TERA CONSULTING INC.'s ability to deliver the specified MAG576-BLK PMAG D-60 AR/M4 GEN M3, 5.56X45, BLACK magazines within the short 15-day performance period. Assuming the contractor can fulfill the order accurately and on time, the contract will be effective in meeting an immediate need for these specific items. However, the lack of competition and the high total value for a short duration raise questions about the long-term strategic effectiveness and cost efficiency of this procurement approach. It suggests a focus on immediate fulfillment rather than strategic sourcing.

What are the historical spending patterns for similar rifle magazines by the General Services Administration?

Historical spending patterns for similar rifle magazines by the General Services Administration (GSA) are not detailed in the provided data. GSA's Federal Acquisition Service (FAS) manages a wide range of supplies, and specific item categories like ammunition magazines might be procured through various channels, including GSA Schedules or direct purchase orders. To analyze historical spending, one would need to query GSA procurement databases for similar National Stock Numbers (NSNs) or product descriptions over several fiscal years. Understanding past competition levels, average prices, and contract durations for similar items would provide crucial context for evaluating the current award.

Industry Classification

NAICS: Manufacturing › Other Miscellaneous Manufacturing › Office Supplies (except Paper) Manufacturing

Product/Service Code: OFFICE SUPPLIES AND DEVICES

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: 29 ELVES LN, LEVITTOWN, NY, 11756

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $13,494

Exercised Options: $13,494

Current Obligation: $13,494

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline