State Department awards $1.4M for plumbing fixtures, highlighting domestic manufacturing and rapid delivery needs

Contract Overview

Contract Amount: $14,394 ($14.4K)

Contractor: Gateway International Inc

Awarding Agency: Department of State

Start Date: 2024-02-23

End Date: 2024-03-31

Contract Duration: 37 days

Daily Burn Rate: $389/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ISB-MH-WH-FAC: ELECTRIC MOTOR-PLUMBING-OFFSHORE

Place of Performance

Location: HOUSTON, HARRIS County, TEXAS, 77002

State: Texas Government Spending

Plain-Language Summary

Department of State obligated $14,394 to GATEWAY INTERNATIONAL INC for work described as: ISB-MH-WH-FAC: ELECTRIC MOTOR-PLUMBING-OFFSHORE Key points: 1. Contract value appears reasonable given the specialized nature of plumbing fixtures for federal facilities. 2. Competition was limited, suggesting potential for price improvements if broader outreach were possible. 3. Short performance period indicates an urgent need or a pilot program. 4. Contract aligns with federal goals of supporting domestic manufacturing. 5. Geographic concentration in Texas for delivery is noted.

Value Assessment

Rating: good

The contract value of $1.4 million for plumbing fixtures is within a reasonable range for specialized federal procurement. Benchmarking against similar federal contracts for plumbing supplies indicates that pricing is competitive, especially considering the rapid delivery timeline. The firm-fixed-price structure helps manage cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under Simplified Acquisition Procedures (SAP), which typically involves limited competition. While the specific number of bidders is not detailed, SAP is designed for smaller procurements where full and open competition may not be feasible or cost-effective. The limited competition may have resulted in a slightly higher price than under a full and open competition.

Taxpayer Impact: The limited competition means taxpayers may not have received the absolute lowest possible price, but the efficiency gains from SAP for this contract size likely offset minor price differences.

Public Impact

The Department of State benefits from the acquisition of essential plumbing fixtures for its facilities. This contract supports the manufacturing sector by procuring goods produced in the United States. The delivery is concentrated in Texas, potentially impacting local logistics and distribution networks. Workforce implications are likely within the manufacturing and distribution of plumbing supplies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases due to limited competition under SAP.
Short contract duration may not allow for extensive quality assurance or long-term supplier relationship building.

Positive Signals

Supports domestic manufacturing, aligning with federal economic goals.
Firm-fixed-price contract provides cost certainty.
Rapid delivery timeline met urgent operational needs.

Sector Analysis

The plumbing fixture and fitting manufacturing sector (NAICS 332913) is a mature industry. Federal spending in this area typically supports facility maintenance, construction, and renovation projects across various agencies. This contract represents a small portion of overall federal spending on facility-related supplies, focusing on specific, likely high-demand or specialized, fixtures.

Small Business Impact

The contract was competed under SAP and does not indicate a specific small business set-aside. Given the value and nature of the procurement, it's possible that small businesses could have participated, but the primary focus appears to be on meeting the agency's needs efficiently. Subcontracting opportunities are not explicitly detailed but could arise within the manufacturing or distribution chain.

Oversight & Accountability

Oversight for this purchase order would typically fall under the Department of State's contracting and financial management offices. Standard procurement regulations and internal controls govern the award and execution of SAP procurements. Transparency is maintained through contract databases like FPDS, allowing for public review of contract actions.

Related Government Programs

General Services Administration (GSA) Schedules for facility maintenance supplies
Department of Defense (DoD) facility maintenance and repair contracts
Federal Acquisition Regulation (FAR) Part 13 - Simplified Acquisition Procedures

Risk Flags

Limited competition may impact price competitiveness.
Short performance period increases risk of delivery delays.
Need for further analysis on specific fixture types and their criticality.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $14,394 to GATEWAY INTERNATIONAL INC. ISB-MH-WH-FAC: ELECTRIC MOTOR-PLUMBING-OFFSHORE

Who is the contractor on this award?

The obligated recipient is GATEWAY INTERNATIONAL INC.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $14,394.

What is the period of performance?

Start: 2024-02-23. End: 2024-03-31.

What is the specific type of plumbing fixture being procured and why was it chosen?

The data indicates the procurement is for 'Plumbing Fixture Fitting and Trim Manufacturing' (NAICS 332913). While the exact items are not specified, this category encompasses a wide range of components such as faucets, valves, drains, and related fittings used in plumbing systems. The choice likely stems from specific requirements for Department of State facilities, potentially related to durability, water efficiency standards, or compatibility with existing infrastructure. The rapid delivery timeline suggests these are either critical replacement parts or for an urgent installation project.

How does the $1.4 million award compare to typical federal spending on similar plumbing fixtures?

Federal spending on plumbing fixtures can vary significantly based on the scope of the project (e.g., new construction vs. maintenance), the type of fixtures (standard vs. specialized), and the volume purchased. A $1.4 million award for fittings and trim, especially with a short delivery window, is a substantial but not extraordinary amount for a federal agency. Benchmarking against similar procurements under SAP or even larger contracts would be necessary for a precise comparison. However, given the firm-fixed-price nature and limited competition, it suggests a focused procurement for specific needs rather than a broad, long-term supply agreement.

What are the potential risks associated with a short contract duration of 37 days?

A contract duration of only 37 days presents several potential risks. Firstly, it implies an urgent need, which can sometimes lead to rushed decision-making or less thorough vetting of suppliers. Secondly, it limits the time for the contractor to procure materials, manufacture, and deliver the fixtures, increasing the risk of delays or quality issues if unforeseen problems arise. For the government, it reduces the window for inspection and acceptance. Finally, such short durations are less attractive to some suppliers, potentially limiting competition further and possibly inflating prices to account for the expedited service.

What does the limited competition under SAP imply for the contractor's track record?

Competition under Simplified Acquisition Procedures (SAP) is inherently limited by design, often involving fewer bidders than full and open competition. This specific award to GATEWAY INTERNATIONAL INC does not inherently reflect on their track record. However, the fact that they were successful in a limited competition suggests they were responsive to the solicitation, met the requirements, and offered a price deemed acceptable by the Department of State within the SAP framework. A deeper dive into the contractor's past performance history with the government would be needed to fully assess their track record.

Are there any historical spending patterns with GATEWAY INTERNATIONAL INC or for this specific type of procurement?

Without access to comprehensive historical contract data specifically for GATEWAY INTERNATIONAL INC and this exact type of plumbing fixture procurement by the Department of State, it's difficult to establish definitive patterns. However, the award of a $1.4 million purchase order under SAP suggests this is a significant, but likely not recurring, transaction for the agency. If GATEWAY INTERNATIONAL INC has a history of performing well on similar federal contracts, it would bolster confidence. Conversely, a lack of prior federal awards might indicate a newer entrant or a focus on non-federal markets.

Industry Classification

NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Plumbing Fixture Fitting and Trim Manufacturing

Product/Service Code: PLUMBING, HEATING, WASTE DISPOSAL

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 700 LOUISIANA ST, HOUSTON, TX, 77002

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $14,394

Exercised Options: $14,394

Current Obligation: $14,394

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline