DOJ awards $36M for office furniture, highlighting potential value concerns in a short-term delivery order

Contract Overview

Contract Amount: $36,000 ($36.0K)

Contractor: Krueger International, Inc.

Awarding Agency: Department of Justice

Start Date: 2026-04-06

End Date: 2026-04-27

Contract Duration: 21 days

Daily Burn Rate: $1.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SYSTEMS COMPONENTS LAC CONTRACT

Place of Performance

Location: GREEN BAY, BROWN County, WISCONSIN, 54302

State: Wisconsin Government Spending

Plain-Language Summary

Department of Justice obligated $36,000.04 to KRUEGER INTERNATIONAL, INC. for work described as: SYSTEMS COMPONENTS LAC CONTRACT Key points: 1. The contract's value-for-money is difficult to assess due to the short duration and lack of detailed performance metrics. 2. Competition dynamics appear favorable with a full and open competition, suggesting potential for competitive pricing. 3. Risk indicators are low given the fixed-price nature and short performance period, but potential for overpricing exists. 4. Performance context is limited to a brief delivery window, making long-term effectiveness difficult to gauge. 5. Sector positioning is within the manufacturing of wood office furniture, a mature industry with established players.

Value Assessment

Rating: fair

The contract value of $36 million for a 21-day delivery period seems high, suggesting a potential per-unit cost that may not be competitive. Without detailed specifications or comparison to similar large-scale furniture procurements, it's challenging to definitively benchmark the value. The short duration might also indicate an urgent need or a specific project requirement, which could influence pricing.

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. This approach generally fosters a competitive environment, which should theoretically lead to better pricing and value for the government. The number of bidders is not specified, but the method of competition suggests a robust process.

Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it maximizes the potential for cost savings through a wider range of offers and encourages market-driven pricing.

Public Impact

The Department of Justice is the primary beneficiary, receiving office furniture. The services delivered include the manufacturing and delivery of wood office furniture. The geographic impact is primarily Wisconsin, where the contractor is located. Workforce implications are likely within the manufacturing sector, supporting jobs in furniture production.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for inflated pricing due to short-term, high-value nature of the order.
Lack of detailed performance metrics makes assessing true value difficult.
Urgency implied by short delivery window could lead to premium costs.

Positive Signals

Awarded under full and open competition, maximizing potential for competitive pricing.
Firm fixed-price contract type limits cost overrun risk for the government.
Contractor is part of Federal Prison Industries (UNICOR), which has a mandate to employ federal prisoners.

Sector Analysis

The contract falls within the wood office furniture manufacturing sector, a segment of the broader furniture industry. This sector is characterized by established manufacturers and varying degrees of specialization. Benchmarking this contract's value is difficult without more specific product details, but large government furniture procurements can range significantly in price depending on quantity, quality, and customization.

Small Business Impact

This contract does not appear to have a small business set-aside. Given the large dollar amount and the nature of the procurement, it is unlikely that significant subcontracting opportunities for small businesses would be mandated, though specific subcontracting plans are not detailed here.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Justice's contracting and procurement oversight mechanisms. As a delivery order under a larger contract vehicle (implied by the structure), oversight may be managed through the contracting office responsible for the parent contract. Transparency is facilitated by the public nature of contract awards, but detailed performance monitoring specifics are not publicly available.

Related Government Programs

Federal Prison Industries / UNICOR Contracts
Department of Justice Furniture Procurement
Wood Office Furniture Manufacturing Contracts

Risk Flags

High value for a very short duration
Lack of detailed performance metrics
Potential for uncompetitive pricing despite open competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $36,000.04 to KRUEGER INTERNATIONAL, INC.. SYSTEMS COMPONENTS LAC CONTRACT

Who is the contractor on this award?

The obligated recipient is KRUEGER INTERNATIONAL, INC..

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Prison Industries / Unicor).

What is the total obligated amount?

The obligated amount is $36,000.04.

What is the period of performance?

Start: 2026-04-06. End: 2026-04-27.

What is the typical pricing structure for wood office furniture from Federal Prison Industries (UNICOR)?

Federal Prison Industries (UNICOR) operates under a mandate to employ federal prisoners and is required to offer products and services to federal agencies. Pricing is generally set to be competitive with commercial markets, but specific pricing structures can vary based on product lines, customization, and volume. For large orders like this $36 million contract, UNICOR would likely have established price lists or quote processes for specific furniture items. However, without access to UNICOR's internal pricing data or detailed product specifications for this particular award, a precise benchmark is difficult. Historical data on UNICOR furniture contracts could provide some insight, but the unique nature of each large award means direct comparisons are often limited. The firm fixed-price nature of this award suggests that the price was agreed upon before delivery, and any perceived overpricing would stem from the initial negotiation or the specific market conditions at that time.

How does the $36 million value compare to similar furniture procurements by the Department of Justice?

Comparing the $36 million value of this single delivery order to other Department of Justice (DOJ) furniture procurements is challenging without more context. This award is for a very short period (21 days), which suggests either an extremely large, rapid deployment of furniture or a specific, high-priority project. Typical furniture procurements might be for longer durations, covering multiple years and various office needs across different facilities. A $36 million expenditure for just over three weeks of furniture delivery seems exceptionally high on a per-day basis. It's possible this represents a bulk purchase for a new facility, a major renovation, or a consolidation effort. Without knowing the exact quantity and type of furniture, a direct comparison to other DOJ furniture contracts is speculative, but the scale and short timeframe are notable.

What are the primary risks associated with a firm fixed-price contract for furniture?

The primary risk with a firm fixed-price (FFP) contract, especially for a large value like $36 million, is that the contractor may have overestimated costs and is therefore earning an excessive profit, or conversely, that the government has agreed to a price that is higher than the market would dictate under different circumstances. For the government, the risk is paying more than necessary if the contractor's actual costs are significantly lower than anticipated. While FFP protects the government from cost overruns, it doesn't inherently guarantee the best possible price. In this case, the short delivery window might have necessitated expedited production or logistics, potentially increasing the contractor's costs and justifying a higher fixed price. However, the lack of transparency into the contractor's cost structure makes it difficult to assess if the fixed price accurately reflects the value delivered.

What does the 'Wood Office Furniture Manufacturing' NAICS code (337211) imply about this contract?

The North American Industry Classification System (NAICS) code 337211 specifically identifies establishments primarily engaged in manufacturing wood office furniture. This includes items like desks, chairs, tables, filing cabinets, and bookcases designed for office environments. For this contract, it means the supplier is a manufacturer within this specialized sector. This code helps in understanding the industry context, potential competitors, and relevant market data. It suggests the procurement is for standard or custom-made office furniture crafted from wood, rather than metal, plastic, or upholstered furniture, which fall under different NAICS codes. This specificity allows for more targeted analysis of industry trends and pricing benchmarks within the wood office furniture market.

How does the short duration (21 days) impact the assessment of this contract's performance?

The extremely short duration of 21 days for a $36 million contract significantly impacts performance assessment. It suggests the contract is for immediate needs, possibly related to a specific event, emergency deployment, or a very tight project deadline. Assessing long-term performance, durability, or user satisfaction is impossible within this timeframe. The focus shifts entirely to the contractor's ability to deliver the specified quantity and quality of furniture within the allotted period. Any performance issues would likely relate to delivery timeliness, accuracy of the order, and the condition of the furniture upon arrival. The value proposition is also compressed; the government is paying a substantial amount for a very short service window, making the per-day cost exceptionally high and demanding flawless execution of the delivery logistics.

Industry Classification

NAICS: Manufacturing › Office Furniture (including Fixtures) Manufacturing › Wood Office Furniture Manufacturing

Product/Service Code: FURNITURE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: FN1507-21

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1330 BELLEVUE ST, GREEN BAY, WI, 54302

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

Financial Breakdown

Contract Ceiling: $36,000

Exercised Options: $36,000

Current Obligation: $36,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15UC0C21D00001172

IDV Type: IDC

Timeline