GSA awards $57.4K for air-powered drills under full and open competition

Contract Overview

Contract Amount: $57,425 ($57.4K)

Contractor: W.W. Grainger, Inc.

Awarding Agency: General Services Administration

Start Date: 2026-03-03

End Date: 2026-04-01

Contract Duration: 29 days

Daily Burn Rate: $2.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: DRILL,AIR-POWERED,PISTOL GRIP,3/8 IN

Place of Performance

Location: LAKE FOREST, LAKE County, ILLINOIS, 60045

State: Illinois Government Spending

Plain-Language Summary

General Services Administration obligated $57,425.2 to W.W. GRAINGER, INC. for work described as: DRILL,AIR-POWERED,PISTOL GRIP,3/8 IN Key points: 1. Spending on air-powered drills is relatively low, indicating a niche market. 2. W.W. Grainger, Inc. is a major supplier, suggesting potential market concentration. 3. Fixed Price with Economic Price Adjustment introduces some cost fluctuation risk. 4. The Federal Acquisition Service procures tools for various agencies, impacting multiple sectors.

Value Assessment

Rating: good

The price appears reasonable for specialized industrial equipment. Benchmarking against similar tool contracts would provide further validation, but the fixed-price nature with EPA suggests a controlled cost structure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Full and open competition was utilized, allowing multiple vendors to bid. This method generally promotes competitive pricing and ensures the government receives fair market value.

Taxpayer Impact: The competitive bidding process likely resulted in a fair price, minimizing unnecessary taxpayer expenditure for these tools.

Public Impact

Agencies requiring specialized air-powered drills will have access to necessary equipment. The contract supports the operational needs of federal agencies through tool procurement. Availability of these tools can impact maintenance and repair efficiency across government facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Economic Price Adjustment introduces potential for cost increases.
Reliance on a single vendor (W.W. Grainger) could limit future negotiation leverage.

Positive Signals

Full and open competition ensures fair pricing.
Contract awarded by GSA, a reputable procurement agency.
Short contract duration limits long-term exposure.

Sector Analysis

The procurement falls under the 'Home Centers' NAICS code, which includes retail and wholesale distribution of hardware and home improvement items. Spending benchmarks for tools and equipment vary widely by agency and specific need.

Small Business Impact

The data does not indicate if small businesses were involved in this specific BPA call, though GSA generally aims to include them in broader contract vehicles.

Oversight & Accountability

The General Services Administration (GSA) oversees this contract, ensuring adherence to federal procurement regulations. The BPA Call mechanism allows for task-specific oversight.

Related Government Programs

Home Centers
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Economic Price Adjustment clause.
Potential for vendor lock-in if W.W. Grainger is the primary supplier.
Lack of specific unit cost data for direct comparison.
NAICS code 'Home Centers' might not fully capture the industrial nature of the tool.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $57,425.2 to W.W. GRAINGER, INC.. DRILL,AIR-POWERED,PISTOL GRIP,3/8 IN

Who is the contractor on this award?

The obligated recipient is W.W. GRAINGER, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $57,425.2.

What is the period of performance?

Start: 2026-03-03. End: 2026-04-01.

What is the typical unit cost for similar 3/8 inch air-powered pistol grip drills in the commercial market?

Commercial pricing for 3/8 inch air-powered pistol grip drills can range significantly based on brand, features, and durability. High-end industrial models might cost $100-$300, while basic consumer models could be $50-$150. Without specific model details, a precise benchmark is difficult, but the government's price should ideally fall within or below this range, considering bulk purchasing power.

What are the potential risks associated with the 'Fixed Price with Economic Price Adjustment' contract type for these drills?

The primary risk is that the price of the drills could increase during the contract period due to fluctuations in raw material costs, labor, or other economic factors. While this protects the contractor from unforeseen cost hikes, it exposes the government to potentially higher spending than initially budgeted, impacting overall budget predictability.

How effectively does this contract support the operational needs of agencies requiring these specific tools?

This contract effectively supports operational needs by ensuring a supply of necessary air-powered drills through a competitive process. The short duration and specific item focus suggest it addresses an immediate or recurring requirement. The BPA Call mechanism allows agencies to quickly acquire these tools as needed, maintaining operational readiness.

Industry Classification

NAICS: Retail Trade › Building Material and Supplies Dealers › Home Centers

Product/Service Code: HAND TOOLS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

Evaluated Preference: NONE

Contractor Details

Address: 100, GRAINGER PARKWAY, LAKE FOREST, IL, 60045

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $57,425

Exercised Options: $57,425

Current Obligation: $57,425

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QSCC21A0001

IDV Type: BPA

Timeline