GSA awards $2,993.50 for specialized hoses, highlighting potential for better competition in tool manufacturing

Contract Overview

Contract Amount: $2,994 ($3.0K)

Contractor: Lyev, LLC

Awarding Agency: General Services Administration

Start Date: 2026-04-03

End Date: 2026-06-20

Contract Duration: 78 days

Daily Burn Rate: $38/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PAN, DRIP: 6.5GALLON; SYNTHETIC RUBBER; DOUBLE FIBER WOVEN REINFORCED, CRUSH- AND CRACK-PROOF, OIL RESISTANT, MOLYBDENUM DISULFIDE-COATED; 14.0 INCHES DIAMETER; 8.0 INCHES TALL; WITH 6.0 FOOT, GRADE 30 GALVANIZED STEEL, 0.25 INCH CHAIN AND ATTACHED,

Place of Performance

Location: ROSEVILLE, MACOMB County, MICHIGAN, 48066

State: Michigan Government Spending

Plain-Language Summary

General Services Administration obligated $2,993.5 to LYEV, LLC for work described as: PAN, DRIP: 6.5GALLON; SYNTHETIC RUBBER; DOUBLE FIBER WOVEN REINFORCED, CRUSH- AND CRACK-PROOF, OIL RESISTANT, MOLYBDENUM DISULFIDE-COATED; 14.0 INCHES DIAMETER; 8.0 INCHES TALL; WITH 6.0 FOOT, GRADE 30 GALVANIZED STEEL, 0.25 INCH CHAIN AND ATTACHED, Key points: 1. The contract for specialized hoses was awarded on a non-competitive basis, suggesting missed opportunities for cost savings. 2. The unit price for the hose appears high when compared to similar industrial supply items, warranting further investigation. 3. The procurement falls under the Saw Blade and Handtool Manufacturing NAICS code, which may indicate a broader category for potential competition. 4. The short duration of the contract (78 days) suggests a need for immediate supply rather than a long-term strategic acquisition. 5. The award to LYEV, LLC, without competition, raises questions about market research and outreach to potential suppliers. 6. The specific technical requirements for the hose (e.g., double fiber woven reinforced, oil resistant) may limit the pool of qualified bidders.

Value Assessment

Rating: questionable

The awarded price of $2,993.50 for a single unit of a specialized hose seems high, especially considering the lack of competitive bidding. Without comparable contract data for this exact specification, it's difficult to definitively benchmark, but similar industrial hoses with robust features often fall within a lower price range when procured competitively. The General Services Administration (GSA) typically aims for best value through competition, and this sole-source award suggests potential overpayment or a lack of market exploration.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a sole-source purchase order, meaning it was not competed. The data indicates it was 'NOT COMPETED UNDER SAP' (Simplified Acquisition Procedures), which typically allows for more streamlined, but still competitive, procurements for items under a certain dollar threshold. The lack of competition here suggests that either only one vendor was identified as capable of meeting the stringent requirements, or that the agency did not adequately explore the market.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure, which usually drives down prices and encourages innovation.

Public Impact

The primary beneficiary is likely the agency requiring these specialized hoses for operational purposes, though the specific end-use is not detailed. The services delivered are the provision of specific industrial hoses meeting detailed technical specifications. The geographic impact is localized to the delivery point within Michigan, where the contract is being fulfilled. Workforce implications are minimal, primarily affecting the supplier's production and logistics staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher prices for taxpayers.
Potential for limited vendor pool due to specialized requirements.
Short contract duration might indicate reactive procurement rather than strategic planning.

Positive Signals

Contract awarded to a specific vendor, ensuring supply.
Clear technical specifications provided for the product.
Awarded through GSA, a central procurement agency.

Sector Analysis

This contract falls under the broader industrial supply and manufacturing sector, specifically related to hand tools and related components (NAICS 332216). The market for specialized industrial hoses is diverse, with many manufacturers and distributors. However, highly specific requirements like those detailed (e.g., crush-proof, oil-resistant, specific diameter and length) can narrow the competitive landscape. Benchmarking spending in this sub-sector is challenging without more specific product identification, but GSA's role suggests a focus on common or critical supplies for federal agencies.

Small Business Impact

The contract was not awarded as a small business set-aside, and there is no indication of subcontracting plans for small businesses. Given the sole-source nature, opportunities for small businesses to participate in this specific procurement were likely non-existent.

Oversight & Accountability

The contract is a purchase order issued by the General Services Administration (GSA), which has established procurement regulations and oversight. However, the sole-source nature limits the typical competitive oversight mechanisms. Transparency is moderate, as the award is publicly visible, but the rationale for the sole-source decision is not detailed in the provided data. Inspector General jurisdiction would apply if fraud or waste were suspected.

Related Government Programs

Industrial Hoses
Manufacturing Equipment
GSA Schedule Contracts
Federal Supply Schedule
Purchase Orders

Risk Flags

Sole-source award
Potential for overpricing
Questionable NAICS code applicability
Limited competition

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $2,993.5 to LYEV, LLC. PAN, DRIP: 6.5GALLON; SYNTHETIC RUBBER; DOUBLE FIBER WOVEN REINFORCED, CRUSH- AND CRACK-PROOF, OIL RESISTANT, MOLYBDENUM DISULFIDE-COATED; 14.0 INCHES DIAMETER; 8.0 INCHES TALL; WITH 6.0 FOOT, GRADE 30 GALVANIZED STEEL, 0.25 INCH CHAIN AND ATTACHED,

Who is the contractor on this award?

The obligated recipient is LYEV, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2,993.5.

What is the period of performance?

Start: 2026-04-03. End: 2026-06-20.

What is the specific operational need for these highly specialized hoses, and why were they deemed only available from a single source?

The provided data does not specify the exact operational need for the specialized hoses beyond their technical description (PAN, DRIP: 6.5GALLON; SYNTHETIC RUBBER; DOUBLE FIBER WOVEN REINFORCED, CRUSH- AND CRACK-PROOF, OIL RESISTANT, MOLYBDENUM DISULFIDE-COATED; 14.0 INCHES DIAMETER; 8.0 INCHES TALL; WITH 6.0 FOOT, GRADE 30 GALVANIZED STEEL, 0.25 INCH CHAIN AND ATTACHED). The rationale for a sole-source award typically involves demonstrating that only one responsible source can provide the required supply or service, or that exceptional circumstances preclude competition. Without further documentation from the GSA, it is impossible to ascertain the specific justification. This could range from unique technical compatibility requirements to urgent needs where only one vendor could meet the timeline. The lack of competition, however, warrants scrutiny to ensure market research was thorough and alternatives were considered.

How does the unit price of $2,993.50 compare to market rates for similar industrial hoses, even with specialized features?

Benchmarking the unit price of $2,993.50 for this specialized hose is challenging without direct access to market data for identical or highly comparable items. However, based on general knowledge of industrial supply markets, this price point appears elevated for a single hose unit, even one with robust specifications like being crush-proof, crack-proof, and oil-resistant with an attached chain. Typically, such items procured competitively might range from a few hundred to perhaps a thousand dollars, depending heavily on material, length, diameter, and specific certifications. The molybdenum disulfide coating and reinforced double fiber weave suggest a high-performance application. The lack of competition in this award means there's no market validation of this price, raising concerns about value for money. Further investigation would require sourcing quotes from multiple industrial suppliers for hoses with similar, albeit potentially less stringent, specifications.

What is the typical procurement volume and frequency for this type of specialized hose within the federal government?

The provided data indicates this is a single purchase order (NO: 1) with a short duration (78 days) and a fixed price of $2,993.50. This suggests a relatively low volume and potentially an urgent or ad-hoc requirement rather than a recurring, high-volume need. Federal agencies often procure industrial supplies through various channels, including GSA Schedules, other agency-specific contracts, or direct procurements. For specialized items like this, if the need is consistent, agencies often establish longer-term contracts or indefinite-delivery/indefinite-quantity (IDIQ) vehicles to ensure availability and potentially better pricing through bulk purchasing. The limited scope of this award implies it might be an initial purchase, a replacement for a specific piece of equipment, or a requirement for a niche application, rather than a standard inventory item across multiple agencies.

What are the risks associated with awarding a contract for industrial supplies on a sole-source basis?

Awarding contracts for industrial supplies on a sole-source basis carries several significant risks. Primarily, it eliminates the benefit of price competition, which is a cornerstone of efficient government procurement. This can lead to taxpayers paying inflated prices compared to what could be achieved in a competitive environment. Secondly, it limits the government's access to innovation and potentially better solutions that other vendors might offer. There's also a risk of vendor lock-in, where the agency becomes dependent on a single supplier, potentially facing supply chain disruptions if that vendor encounters issues. Furthermore, sole-source awards can create an appearance of impropriety or favoritism, even if the process is technically compliant, potentially undermining public trust. Robust justification and thorough market research are critical to mitigate these risks, ensuring that a sole-source award is truly the only viable option.

Does the NAICS code 332216 (Saw Blade and Handtool Manufacturing) accurately reflect the procurement of specialized industrial hoses?

The classification of this procurement under NAICS code 332216 (Saw Blade and Handtool Manufacturing) appears potentially mismatched or overly broad for the item described, which is a specialized industrial hose. While some manufacturers of tools might also produce related industrial components or accessories, hoses are typically categorized under different NAICS codes, such as those related to hose and tubing manufacturing (e.g., 339991) or industrial machinery and equipment components. Using a broad or potentially incorrect NAICS code could indicate a lack of precise market categorization or an administrative simplification. This could inadvertently limit the visibility of the requirement to the most relevant manufacturers and suppliers, potentially contributing to the sole-source award if the intended market wasn't fully explored under the correct industry classification.

Industry Classification

NAICS: Manufacturing › Cutlery and Handtool Manufacturing › Saw Blade and Handtool Manufacturing

Product/Service Code: HAND TOOLS

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: 20815 KRAFT BLVD, ROSEVILLE, MI, 48066

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,994

Exercised Options: $2,994

Current Obligation: $2,994

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline