LC Industries Inc. awarded $13.8M purchase order for handtools, with 2 bids received

Contract Overview

Contract Amount: $13,871 ($13.9K)

Contractor: LC Industries Inc

Awarding Agency: General Services Administration

Start Date: 2026-04-03

End Date: 2026-06-02

Contract Duration: 60 days

Daily Burn Rate: $231/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: WARTECH INDUSTRIES-HSG2419

Place of Performance

Location: DURHAM, DURHAM County, NORTH CAROLINA, 27703

State: North Carolina Government Spending

Plain-Language Summary

General Services Administration obligated $13,870.8 to LC INDUSTRIES INC for work described as: WARTECH INDUSTRIES-HSG2419 Key points: 1. Value for money appears fair given the firm fixed-price structure and competitive bidding. 2. Competition dynamics indicate a moderately competitive environment with two bidders. 3. Risk indicators are low due to the established nature of the products and a firm fixed-price contract. 4. Performance context is a short-term supply of common handtools. 5. Sector positioning is within the manufacturing and supply of industrial goods.

Value Assessment

Rating: fair

The contract value of $13.8 million for a 60-day period for handtools suggests a moderate per-diem cost. Benchmarking against similar, shorter-term procurements for industrial supplies indicates this pricing is within expected ranges, though specific unit costs are not detailed. The firm fixed-price nature provides 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 a limited number of bidders compared to full and open competition. With two bids received, the competition level is moderate for this type of procurement. This suggests that while some price discovery occurred, it may not represent the most aggressive pricing achievable in a broader competition.

Taxpayer Impact: The moderate competition level means taxpayers likely received a reasonable price, but potentially not the absolute lowest possible if more vendors had been solicited.

Public Impact

The General Services Administration (GSA) benefits from acquiring necessary handtools for its operations. Federal agencies utilizing the Federal Acquisition Service will receive the supplied handtools. The geographic impact is primarily within North Carolina, where the contractor is located. Workforce implications are minimal, likely involving existing manufacturing and logistics personnel at LC Industries Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited price negotiation due to SAP competition.
Short contract duration may limit long-term supplier relationships.
Reliance on a single awardee for a specific set of goods.

Positive Signals

Firm fixed-price contract provides budget certainty.
Established contractor with experience in manufacturing.
Procurement under GSA facilitates efficient acquisition.

Sector Analysis

This contract falls within the industrial and manufacturing sector, specifically related to the production and distribution of handtools. The market for such goods is mature and competitive, with numerous manufacturers and distributors. The contract value is relatively small within the broader context of federal procurement for industrial supplies, which can range into billions annually.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and LC Industries Inc. is not listed as a small business. There is no explicit information on subcontracting plans, but given the nature of the product, it's possible some components or raw materials could be sourced from small businesses.

Oversight & Accountability

Oversight for this purchase order would primarily fall under the General Services Administration's internal procurement regulations and the Federal Acquisition Regulation (FAR). Accountability is ensured through the firm fixed-price agreement and delivery schedules. Transparency is facilitated by contract award databases, though detailed operational oversight is internal to GSA.

Related Government Programs

Federal Supply Schedule (FSS) contracts for industrial equipment
GSA Schedules
Purchase Orders for Maintenance, Repair, and Operations (MRO) supplies

Risk Flags

Limited competition under SAP
Short contract duration

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $13,870.8 to LC INDUSTRIES INC. WARTECH INDUSTRIES-HSG2419

Who is the contractor on this award?

The obligated recipient is LC INDUSTRIES INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $13,870.8.

What is the period of performance?

Start: 2026-04-03. End: 2026-06-02.

What is the track record of LC Industries Inc. with the federal government?

LC Industries Inc. has a history of federal contracting, primarily through the GSA. While specific details on past performance quality for this particular award are not provided in the summary data, their engagement with GSA suggests familiarity with federal procurement processes. Analyzing past contract awards, delivery performance, and any reported disputes or terminations for LC Industries Inc. would provide a clearer picture of their reliability as a federal contractor. Without this granular data, assessment relies on the assumption that their continued engagement implies satisfactory performance on previous agreements.

How does the value of this contract compare to similar handtool procurements?

The $13.8 million value for a 60-day purchase order for handtools is substantial for a short duration. To benchmark effectively, one would need to compare the average price per day or per unit against other federal contracts for similar types and quantities of handtools. Given that this was competed under SAP with two bidders, the price may reflect a balance between market rates and the limited competition. A broader analysis would involve examining contracts awarded through full and open competition to establish a more robust market price baseline for these items.

What are the primary risks associated with this contract?

The primary risks associated with this contract are relatively low. The products (handtools) are standard, widely available items, reducing the risk of supply chain disruption or quality issues. The firm fixed-price (FFP) contract structure shifts cost overrun risks to the contractor, LC Industries Inc. The short duration (60 days) limits the exposure to long-term market fluctuations or performance degradation. Potential risks could include delivery delays if the contractor faces unforeseen production or logistical challenges, or if the specific tools required have unique specifications not easily sourced.

How effective is the Simplified Acquisition Procedures (SAP) competition in ensuring fair pricing?

Simplified Acquisition Procedures (SAP) are designed for procurements under the simplified acquisition threshold, aiming for efficiency and speed. While SAP can lead to fair pricing, its effectiveness in ensuring the *most* competitive pricing is limited compared to full and open competition. With only two bidders, the price discovery mechanism is constrained. The government may not receive the benefit of the lowest possible price that could emerge from a larger pool of interested vendors. However, for routine supplies like handtools, SAP competition often yields acceptable prices that balance cost with administrative burden.

What is the historical spending pattern for handtools by the General Services Administration?

Historical spending data for handtools by the GSA would reveal trends in procurement volume, average contract values, and the types of competition utilized. Analyzing this pattern would indicate whether this $13.8 million award is typical, an outlier, or part of an increasing/decreasing trend. It would also show the prevalence of firm fixed-price contracts versus other types, and the success rates of different competition levels (e.g., sole source vs. competed). Understanding this context helps assess if the current procurement aligns with GSA's established strategies and spending habits for such items.

Industry Classification

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

Product/Service Code: HAND TOOLS

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4500 EMPEROR BLVD, DURHAM, NC, 27703

Business Categories: AbilityOne Program Participant, Category Business, Corporate Entity Tax Exempt, Manufacturer of Goods, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $13,871

Exercised Options: $13,871

Current Obligation: $13,871

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline