State Department awards $4.3M for office chairs, with 3 bidders competing for the delivery order

Contract Overview

Contract Amount: $435,561 ($435.6K)

Contractor: MOI, Inc.

Awarding Agency: Department of State

Start Date: 2024-08-01

End Date: 2024-10-15

Contract Duration: 75 days

Daily Burn Rate: $5.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OFFICE CHAIRS

Place of Performance

Location: BALTIMORE, BALTIMORE CITY County, MARYLAND, 21230

State: Maryland Government Spending

Plain-Language Summary

Department of State obligated $435,561 to MOI, INC. for work described as: OFFICE CHAIRS Key points: 1. Value for money appears reasonable given the competitive nature of the award. 2. The contract was fully and openly competed, suggesting a healthy market. 3. No immediate risk indicators are apparent from the basic contract data. 4. This award falls within the broader category of office furniture procurement. 5. The contractor, MOI, INC., is positioned within the office furniture manufacturing sector.

Value Assessment

Rating: good

The award amount of $4.36 million for office chairs seems within a reasonable range for a federal contract of this nature. Benchmarking against similar office furniture procurements would provide a more precise value assessment. The firm fixed-price structure helps control costs for the government. Without specific unit pricing or detailed specifications, a definitive value-for-money judgment is limited, but the competitive award suggests a fair market price was likely achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. Three bidders participated in this competition, which is a moderate level of engagement. While more bidders could potentially drive prices lower, three offers generally suggest sufficient competition to achieve a fair and reasonable price. The specific details of the solicitation and evaluation process would offer further insight into the effectiveness of the competition.

Taxpayer Impact: The full and open competition with multiple bidders is beneficial for taxpayers as it increases the likelihood of obtaining competitive pricing and prevents potential price gouging associated with limited or sole-source awards.

Public Impact

The Department of State is the primary beneficiary, receiving essential office furniture. The contract delivers office chairs to support the operational needs of the agency. The geographic impact is likely concentrated within the Department of State's facilities, primarily in Maryland. The award supports jobs within the office furniture manufacturing sector, specifically for MOI, INC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under full and open competition.
Firm fixed-price contract type limits cost uncertainty.
Moderate number of bidders (3) indicates market interest.

Sector Analysis

This contract falls within the broader office furniture and furnishings sector, a segment of the manufacturing industry. The market for office furniture is competitive, with numerous manufacturers and distributors vying for government and commercial contracts. Federal spending in this category supports domestic manufacturing and supply chains. Comparable spending benchmarks would involve analyzing historical awards for similar quantities and types of office furniture across various federal agencies.

Small Business Impact

This contract was not specifically set aside for small businesses, and the data indicates no explicit small business subcontracting requirements were mandated. The prime contractor, MOI, INC., is likely a larger entity. The absence of set-asides means opportunities for small businesses would primarily arise if they are subcontractors to the prime or if they participated directly in the bidding process and were successful.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of State's contracting officers and program managers. Accountability is ensured through the firm fixed-price contract terms, requiring delivery of specified goods. Transparency is facilitated by the public availability of contract award data. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Office Supplies and Equipment
Furniture and Furnishings
General Services Administration (GSA) Schedules

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $435,561 to MOI, INC.. OFFICE CHAIRS

Who is the contractor on this award?

The obligated recipient is MOI, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $435,561.

What is the period of performance?

Start: 2024-08-01. End: 2024-10-15.

What is the track record of MOI, INC. in fulfilling federal contracts, particularly for office furniture?

MOI, INC. has a history of receiving federal contracts, primarily within the office furniture category. Analyzing their past performance, including on-time delivery rates, quality of goods provided, and any past disputes or contract modifications, would offer a clearer picture of their reliability. Federal procurement databases often contain past performance information, which contracting officers use in source selection. Without access to specific past performance reviews for this contractor on similar awards, it's difficult to definitively assess their track record beyond the fact they were selected for this current contract.

How does the awarded price compare to market rates for similar office chairs?

The awarded amount of $4.36 million for office chairs needs to be broken down by unit cost to effectively compare it to market rates. The contract is for delivery orders with a specified end date, implying a certain quantity. If the average unit price is significantly lower than comparable commercial or government prices for similar quality chairs, it suggests good value. Conversely, a substantially higher unit price would raise concerns. Benchmarking against GSA schedules or other recent federal awards for office furniture would be necessary for a precise comparison.

What are the primary risks associated with this contract award?

The primary risks for this contract are relatively standard for a goods procurement. These include potential delays in delivery, issues with the quality or specifications of the chairs provided, and the possibility of the contractor encountering supply chain disruptions. Given the firm fixed-price nature, the financial risk to the government is somewhat mitigated, as the price is set. However, if the chairs do not meet requirements, the government may face costs associated with returns, replacements, or re-procurement. The moderate competition level (3 bidders) slightly increases the risk of suboptimal pricing compared to a scenario with many more bidders.

How effective is the competition level in ensuring a fair price for taxpayers?

The competition level of three bidders for this office chair contract is moderately effective in ensuring a fair price for taxpayers. While more bidders generally lead to more competitive pricing, three offers indicate that the market is sufficiently interested and capable of supplying the required goods. This level of competition typically prevents the highest possible prices that might occur with a sole-source or very limited competition award. However, it may not achieve the absolute lowest prices possible if a larger pool of bidders were engaged. The specific terms of the solicitation and the evaluation criteria also play a role in how effectively competition translates to taxpayer savings.

What is the historical spending pattern for office furniture by the Department of State?

Analyzing the Department of State's historical spending on office furniture would provide context for this $4.36 million award. Understanding whether this amount represents an increase, decrease, or is consistent with previous years' spending on similar items is crucial. Significant deviations could signal changes in agency needs, procurement strategies, or market conditions. Examining trends in contract types (e.g., fixed-price vs. cost-reimbursement), competition levels, and average award values over time would offer valuable insights into the department's procurement practices in this category.

Are there any specific performance metrics or KPIs tied to this delivery order?

The provided data does not specify any unique performance metrics or Key Performance Indicators (KPIs) beyond the standard requirement for timely delivery of conforming goods. Federal contracts, especially for supplies, typically rely on adherence to delivery schedules and product specifications as primary performance measures. Additional KPIs might be included in the full contract document, such as response times for issues or defect rates, but these are not detailed in the summary data. The firm fixed-price nature implies that meeting the contract's terms is the core performance expectation.

Industry Classification

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

Product/Service Code: FURNITURE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1801 PORTER ST STE 100, BALTIMORE, MD, 21230

Business Categories: Category Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $435,561

Exercised Options: $435,561

Current Obligation: $435,561

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS27F0029W

IDV Type: FSS

Timeline