GSA awards $51,057 contract for 7 days of hard hats, highlighting potential for price fluctuations

Contract Overview

Contract Amount: $51,057 ($51.1K)

Contractor: W.W. Grainger, Inc.

Awarding Agency: General Services Administration

Start Date: 2026-04-03

End Date: 2026-04-10

Contract Duration: 7 days

Daily Burn Rate: $7.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: HARD HAT,TYPE 1, CLASS E,ROBIN EGG BLUE

Place of Performance

Location: LAKE FOREST, LAKE County, ILLINOIS, 60045

State: Illinois Government Spending

Plain-Language Summary

General Services Administration obligated $51,057 to W.W. GRAINGER, INC. for work described as: HARD HAT,TYPE 1, CLASS E,ROBIN EGG BLUE Key points: 1. The contract's fixed-price with economic price adjustment (EPA) clause indicates potential for cost increases over its short duration. 2. Awarded via BPA Call, suggesting a pre-competed framework agreement was leveraged. 3. The short 7-day duration may limit the scope for significant performance issues but also reduces opportunities for extensive evaluation. 4. The contract value is relatively small, suggesting it may be for a specific, limited need. 5. The absence of small business set-aside flags indicates this was not specifically targeted to small businesses. 6. The contract falls under the 'Home Centers' NAICS code, which is broad and may encompass various retail and wholesale activities.

Value Assessment

Rating: fair

Benchmarking the value of a 7-day hard hat contract is challenging due to its short duration and specific nature. The price of $51,057 for potentially numerous units suggests a per-unit cost that would need to be compared against bulk purchasing agreements for safety equipment. The inclusion of an economic price adjustment clause introduces uncertainty regarding the final cost, making a definitive value assessment difficult without knowing the baseline pricing and adjustment mechanism.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The specific mechanism used was a BPA Call, which implies that a broader Best Practices Agreement (BPA) was already in place and competed previously. This call likely leveraged that existing competition to solicit offers for this specific requirement, potentially leading to a more streamlined process but with a pre-established competitive baseline.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging multiple vendors to bid, driving down prices and ensuring fair market value is obtained. The use of a BPA call suggests that the initial competition for the BPA was robust, potentially leading to favorable terms for this subsequent call.

Public Impact

Federal employees requiring safety head protection, particularly in construction or maintenance roles, are the primary beneficiaries. The service delivered is the provision of Type 1, Class E hard hats. The geographic impact is localized to Illinois, as indicated by the 'ST: IL' and 'SN: ILLINOIS' fields. Workforce implications are minimal, primarily affecting the supply chain for safety equipment rather than direct federal employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The economic price adjustment clause introduces uncertainty in the final cost, potentially leading to overspending if market prices rise significantly.
The short duration of the contract might indicate a reactive procurement rather than strategic planning, potentially missing out on volume discounts.
The broad NAICS code 'Home Centers' could obscure the specific nature of the procurement and its true market context.

Positive Signals

Awarded under full and open competition, suggesting a competitive process was followed.
Leveraging a BPA Call indicates efficient use of existing procurement vehicles.
The contract specifies clear product requirements (Type 1, Class E hard hats), ensuring a degree of quality control.

Sector Analysis

The procurement of safety equipment like hard hats falls within the broader industrial and supplies sector. This specific contract, categorized under NAICS code 444110 (Home Centers), relates to the retail and wholesale distribution of building materials and garden supplies. While the contract value is modest, it represents a small slice of the overall federal spending on supplies and equipment, which is a significant component of government operations. Comparable spending benchmarks would typically involve analyzing historical purchases of similar safety gear by various federal agencies.

Small Business Impact

The contract data indicates that this was not a small business set-aside (SS: false, SB: false). This means that the procurement was open to all responsible sources, including large businesses. There is no explicit information provided regarding subcontracting plans or requirements. Consequently, the direct impact on the small business ecosystem is likely minimal unless the prime contractor, W.W. Grainger, Inc., voluntarily engages small businesses in its supply chain for fulfilling this order.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA), specifically the Federal Acquisition Service which managed the award. As a BPA Call, the underlying BPA likely has its own oversight mechanisms. Transparency is facilitated by the public availability of contract data. Accountability measures are inherent in the fixed-price with economic price adjustment structure, which allows for cost adjustments but requires justification. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

GSA Schedules Program
Federal Supply Schedules
Construction and Facility Maintenance Supplies
Occupational Safety and Health Administration (OSHA) Compliance Equipment

Risk Flags

Economic Price Adjustment Clause
Short Contract Duration
Broad NAICS Code Classification

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $51,057 to W.W. GRAINGER, INC.. HARD HAT,TYPE 1, CLASS E,ROBIN EGG BLUE

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 $51,057.

What is the period of performance?

Start: 2026-04-03. End: 2026-04-10.

What is the typical cost per hard hat under this contract, and how does it compare to market rates?

The contract value is $51,057 for a 7-day period. Without knowing the exact quantity of hard hats procured, calculating a precise per-unit cost is impossible. However, if we assume a substantial quantity is needed for a 7-day period, the total value suggests a potential per-unit cost that would need to be benchmarked against bulk purchase agreements for similar safety equipment. Standard industrial hard hats can range from $10 to $50 per unit depending on features and brand. The economic price adjustment clause adds complexity, as the baseline price and adjustment mechanism are critical for a fair comparison. Further analysis would require the quantity awarded and the specific EPA terms.

What is the track record of W.W. Grainger, Inc. as a federal contractor?

W.W. Grainger, Inc. is a well-established and frequent federal contractor, primarily supplying industrial and safety equipment. They hold numerous federal supply schedule contracts and have a long history of awards across various agencies. Their extensive catalog and distribution network make them a common choice for government procurement of MRO (Maintenance, Repair, and Operations) supplies. While specific performance metrics for individual contracts are not detailed here, their sustained presence in the federal marketplace suggests a generally reliable track record in fulfilling government orders, though like any large contractor, specific contract performance can vary.

How does the economic price adjustment (EPA) clause typically function in short-term contracts like this?

An Economic Price Adjustment (EPA) clause is designed to protect both the contractor and the government from significant fluctuations in the cost of labor or materials. In a short-term contract (like this 7-day award), an EPA clause is less common but can still be included if the specific materials are subject to volatile pricing or if there's a lead time between order and delivery that spans a price change. The clause would typically reference an index or a specific formula to adjust the contract price based on market changes. For this contract, the EPA would likely be tied to indices for raw materials used in hard hat manufacturing or general industrial commodity price indices, ensuring the price reflects current market conditions at the time of delivery or invoicing.

What are the risks associated with a 7-day contract duration for safety equipment?

The primary risk with a 7-day contract duration for safety equipment is the potential for insufficient lead time if the procurement is reactive or if there are unexpected surges in demand. This short window might limit the ability to secure the best pricing through competitive bidding or volume discounts. Furthermore, if the specified equipment is not readily available, the short duration could lead to delays in delivery, impacting operational safety. However, for readily available items like standard hard hats, a 7-day period might be sufficient for rapid deployment, minimizing risks associated with long-term supply chain dependencies or obsolescence.

What does the 'Home Centers' NAICS code imply about this specific procurement?

The NAICS code 444110, 'Home Centers,' primarily categorizes businesses that sell building materials, hardware, plumbing supplies, and related items. While hard hats are safety equipment, they are often sold through these types of retail and wholesale outlets. This classification suggests that the procurement is likely sourcing the hard hats from a supplier that operates within this sector, possibly a large distributor or retailer that also serves the industrial market. It implies the government is procuring standard, commercially available safety gear rather than highly specialized or custom-manufactured items.

How does the BPA Call mechanism affect competition and pricing compared to a direct award?

A Best Practices Agreement (BPA) Call leverages a pre-competed BPA. This means the initial competition for the BPA itself was likely robust, establishing a pool of qualified vendors and potentially pre-negotiated pricing or terms. A BPA Call then solicits quotes or orders from vendors under that established BPA. This can lead to faster acquisition times and potentially better pricing due to the existing competitive framework. Compared to a sole-source direct award, a BPA Call offers significantly more competition. Compared to a new full and open competition for this specific item, it might offer a balance between speed and competitive pricing, as the initial BPA competition may have already driven favorable terms.

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: $51,057

Exercised Options: $51,057

Current Obligation: $51,057

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QSCC21A0001

IDV Type: BPA

Timeline