Treasury's IRS Awards $2.89M for Chairs & Installation to Flatwater Professional Services

Contract Overview

Contract Amount: $2,885,869 ($2.9M)

Contractor: Flatwater Professional Services Company

Awarding Agency: Department of the Treasury

Start Date: 2024-09-28

End Date: 2025-05-31

Contract Duration: 245 days

Daily Burn Rate: $11.8K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CHAIRS & INSTALL

Place of Performance

Location: AUSTIN, TRAVIS County, TEXAS, 78741

State: Texas Government Spending

Plain-Language Summary

Department of the Treasury obligated $2.9 million to FLATWATER PROFESSIONAL SERVICES COMPANY for work described as: CHAIRS & INSTALL Key points: 1. Significant contract value for office furnishings. 2. Sole-source award limits competitive pricing. 3. Potential for higher costs due to lack of competition. 4. Focus on office infrastructure within the IRS.

Value Assessment

Rating: questionable

The contract value of $2.89M for chairs and installation appears high without competitive bidding. Benchmarking against similar government or commercial contracts for office furniture and installation services is crucial to assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under Simplified Acquisition Procedures, indicating a sole-source award. This significantly limits price discovery and may lead to inflated costs for taxpayers.

Taxpayer Impact: The lack of competition likely results in taxpayers paying more than necessary for these essential office furnishings.

Public Impact

Taxpayer funds allocated for office furniture and installation. Potential for cost savings through competitive bidding. Impact on IRS employee workspace and productivity.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competitive pricing
High contract value for furnishings

Positive Signals

Supports IRS operations
Fixed-price contract

Sector Analysis

This contract falls under general administrative and operational support services, specifically related to office furnishings. Spending benchmarks for similar contracts can vary widely based on quantity, quality, and installation complexity.

Small Business Impact

The data indicates this contract was not awarded to a small business, as the 'sb' field is false. Further analysis would be needed to determine if small businesses were considered or had the opportunity to bid.

Oversight & Accountability

Oversight is needed to ensure the justification for a sole-source award is valid and that the pricing is reasonable given the lack of competition. The IRS should document the procurement process thoroughly.

Related Government Programs

Other Building Finishing Contractors
Department of the Treasury Contracting
Internal Revenue Service Programs

Risk Flags

Sole-source award lacks transparency.
Potential for overpayment due to no competition.
High dollar value for office furniture.
Limited justification for sole-source status.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $2.9 million to FLATWATER PROFESSIONAL SERVICES COMPANY. CHAIRS & INSTALL

Who is the contractor on this award?

The obligated recipient is FLATWATER PROFESSIONAL SERVICES COMPANY.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.9 million.

What is the period of performance?

Start: 2024-09-28. End: 2025-05-31.

What is the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award is critical. Typically, this is reserved for situations where only one responsible source can provide the required supplies or services. Without this justification, the award raises concerns about fair opportunity and potential cost inefficiencies for the government.

How does the unit cost of these chairs and installation compare to market rates?

Without specific unit cost data or a competitive bidding process, it's difficult to ascertain the market rate. A thorough review would involve comparing the price per chair and installation cost against industry benchmarks for similar quality furniture and services, especially considering the large quantity likely involved.

What is the expected impact on IRS operational efficiency from these new furnishings?

New furnishings can positively impact IRS operational efficiency by improving employee comfort, ergonomics, and workspace functionality, potentially leading to increased productivity and morale. However, the primary concern remains the cost-effectiveness of acquiring these items through a sole-source contract.

Industry Classification

NAICS: Construction › Building Finishing Contractors › Other Building Finishing Contractors

Product/Service Code: FURNITURE

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Ho-Chunk, Inc.

Address: 818 ST. AUGUSTINES DR., NEBRASKA, NE, 68071

Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, Corporate Entity Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,885,869

Exercised Options: $2,885,869

Current Obligation: $2,885,869

Actual Outlays: $2,885,869

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline