Treasury's $23.9M purchase order for sit-to-stand desks awarded to TALU LLC

Contract Overview

Contract Amount: $23,939 ($23.9K)

Contractor: Talu LLC

Awarding Agency: Department of the Treasury

Start Date: 2020-06-03

End Date: 2020-09-02

Contract Duration: 91 days

Daily Burn Rate: $263/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SIT TO STAND DESKS

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of the Treasury obligated $23,938.75 to TALU LLC for work described as: SIT TO STAND DESKS Key points: 1. Value for money appears fair given the short duration and fixed-price nature. 2. Competition dynamics indicate a competed award under simplified acquisition procedures. 3. Risk indicators are low due to the standard nature of the goods and short performance period. 4. Performance context shows a quick turnaround for office furniture needs. 5. Sector positioning is within general office supplies and equipment procurement.

Value Assessment

Rating: fair

The contract value of $23.9M for sit-to-stand desks over 91 days suggests a significant per-unit cost. Without specific details on the quantity of desks or their features, a direct comparison to similar contracts is challenging. However, the fixed-price nature of the award provides cost certainty for the government. The value proposition hinges on the quality and quantity of desks delivered within the specified timeframe.

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. The award was made via a purchase order, suggesting that the procurement process was streamlined. The number of bidders is not explicitly stated, but SAP awards often involve fewer than three formal bids, potentially impacting price discovery.

Taxpayer Impact: Limited competition under SAP may result in less aggressive pricing than a fully competed large-scale contract, potentially leading to higher costs for taxpayers.

Public Impact

Federal employees, particularly those within the Internal Revenue Service, will benefit from ergonomic workstations. The services delivered include the provision of sit-to-stand desks. The geographic impact is primarily within Virginia, where the vendor is located. Workforce implications include improved employee comfort and potential productivity gains.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for higher per-unit costs due to limited competition.
Lack of detailed specifications makes it difficult to assess exact value.
Short performance period could limit vendor options or lead to rushed fulfillment.

Positive Signals

Awarded under a competitive process (SAP).
Fixed-price contract provides cost certainty.
Addresses a clear need for ergonomic office furniture.

Sector Analysis

This contract falls within the broader office equipment and furniture sector. The market for office furniture is competitive, with numerous manufacturers and distributors. The government is a significant buyer in this sector, often leveraging bulk purchasing power. Benchmarks for similar government furniture procurements would typically consider quantity, quality, and delivery timelines.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it appear to involve significant subcontracting opportunities for them based on the available information. The award to TALU LLC, whose size status is not provided, means the direct impact on the small business ecosystem is unclear without further details on the contractor's size.

Oversight & Accountability

Oversight for this purchase order would primarily fall under the Department of the Treasury's contracting and financial management offices. Accountability is ensured through the fixed-price contract terms and the delivery of goods. Transparency is moderate, as purchase orders under SAP are generally less publicly detailed than larger, formally advertised contracts.

Related Government Programs

General Services Administration (GSA) Schedules
Office Furniture Procurement
Federal Workplace Ergonomics Programs

Risk Flags

Lack of detailed specifications
Limited competition data
Unknown contractor past performance

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $23,938.75 to TALU LLC. SIT TO STAND DESKS

Who is the contractor on this award?

The obligated recipient is TALU LLC.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Internal Revenue Service).

What is the total obligated amount?

The obligated amount is $23,938.75.

What is the period of performance?

Start: 2020-06-03. End: 2020-09-02.

What was the specific quantity of sit-to-stand desks procured under this purchase order?

The provided data does not specify the exact quantity of sit-to-stand desks procured. The total award amount is $23,938,750. To determine the per-unit cost, one would need to divide the total value by the number of desks. Without the quantity, it is impossible to calculate a precise per-unit cost or benchmark it against market rates or similar government contracts effectively. This information is crucial for a thorough value-for-money assessment.

What are the specific features and quality standards of the sit-to-stand desks purchased?

The available data does not detail the specific features, materials, or quality standards of the sit-to-stand desks. The contract type is 'FIRM FIXED PRICE,' and the Product Service Code (PSC) is blank, with the North American Industry Classification System (NAICS) code being 337214 (Office Furniture (except Wood) Manufacturing). Understanding these specifications is vital for assessing if the desks meet the government's needs and if the price is justified relative to the quality and functionality provided. Higher-end features or specific ergonomic certifications would command a higher price.

How many bids were received for this competed purchase order under SAP?

The data indicates the contract was 'COMPETED UNDER SAP' and the number of offers received was 3 ('no': 3). While this confirms competition, Simplified Acquisition Procedures (SAP) often involve fewer bidders than full and open competition. Knowing the number of offers helps contextualize the level of competition. Three offers suggest a degree of market interest, but it's not as robust as a large-scale solicitation that might attract dozens of bids, potentially influencing the final negotiated price.

What is the track record of TALU LLC in fulfilling government contracts, particularly for office furniture?

The provided data identifies TALU LLC as the contractor but does not offer details on their past performance history or track record with government contracts. To assess risk and reliability, further investigation into TALU LLC's contract history, past performance reviews (e.g., Contractor Performance Assessment Reporting System - CPARS), and experience with similar procurements would be necessary. A strong track record would increase confidence in their ability to deliver quality desks on time and within budget.

How does the $23.9M spending on these desks compare to historical federal spending on similar items?

The provided data focuses on a single purchase order and does not offer historical spending context for sit-to-stand desks or office furniture by the Department of the Treasury or the federal government broadly. To compare, one would need access to historical contract databases (like FPDS or USASpending) to analyze spending trends, average prices per unit, and quantities procured over previous fiscal years. This would help determine if the current spending level is consistent, increasing, or decreasing relative to past investments in workplace furniture.

What is the potential impact of this contract on federal workplace ergonomics initiatives?

This $23.9M purchase order for sit-to-stand desks directly supports federal initiatives aimed at improving workplace ergonomics and employee well-being. By providing adjustable workstations, the contract enables employees, particularly within the IRS, to alternate between sitting and standing, which is associated with health benefits like reduced back pain and improved cardiovascular health. This investment aligns with broader government efforts to create healthier and more productive work environments, potentially serving as a model for other agencies.

Industry Classification

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

Product/Service Code: FURNITURE

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2553 DULLES VIEW DR STE 700, HERNDON, VA, 20171

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $23,939

Exercised Options: $23,939

Current Obligation: $23,939

Actual Outlays: $23,939

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline