VA awards $31.5M furniture contract to SDV Office Systems LLC for shelving and lockers

Contract Overview

Contract Amount: $31,552 ($31.6K)

Contractor: SDV Office Systems LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-12-12

End Date: 2026-07-31

Contract Duration: 231 days

Daily Burn Rate: $137/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FURNITURE

Place of Performance

Location: ASHEVILLE, BUNCOMBE County, NORTH CAROLINA, 28805

State: North Carolina Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $31,551.57 to SDV OFFICE SYSTEMS LLC for work described as: FURNITURE Key points: 1. Contract value appears reasonable given the scope of furniture, partition, shelving, and locker manufacturing. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract is a delivery order, indicating it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 4. Fixed-price contract type helps mitigate cost overrun risks for the government. 5. The North Carolina location of the awardee may have implications for delivery logistics. 6. The North American Industry Classification System (NAICS) code 337215 covers wood office furniture manufacturing, which aligns with the product description.

Value Assessment

Rating: good

The contract value of $31.5 million for furniture, partitions, shelving, and lockers seems within a reasonable range for a multi-year federal award of this nature. Without specific unit pricing or detailed scope breakdowns, a direct comparison to similar contracts is challenging. However, the fixed-price nature of the contract provides cost certainty. The award to SDV Office Systems LLC, a Service-Disabled Veteran-Owned Small Business (SDVOSB), aligns with federal procurement goals.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which typically means that proposals were solicited from all responsible sources, but certain sources were excluded from the initial solicitation phase. The presence of 3 bids indicates a degree of competition. The specific exclusion of sources might warrant further investigation to understand its impact on the breadth of competition and potential price discovery.

Taxpayer Impact: The use of full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and value. However, the exclusion of sources could potentially limit the number of competitive bids received.

Public Impact

The Department of Veterans Affairs (VA) is the primary beneficiary, receiving necessary furniture and fixtures for its facilities. Services delivered include the manufacturing and provision of showcase, partition, shelving, and locker units. The geographic impact is likely concentrated around VA facilities that will receive the delivered items, with manufacturing potentially occurring in North Carolina. Workforce implications may include jobs in manufacturing, logistics, and installation related to the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Exclusion of Sources' clause in the competition type requires further scrutiny to ensure it did not unduly restrict competition.
The duration of the contract (231 days) is relatively short for a manufacturing award of this value, suggesting it might be a task order under a larger IDIQ.

Positive Signals

The award to SDV Office Systems LLC, a Service-Disabled Veteran-Owned Small Business (SDVOSB), supports federal small business contracting goals.
The firm fixed-price contract type provides cost predictability for the government.
The contract is for essential office furnishings and fixtures, supporting VA operations.

Sector Analysis

The office furniture manufacturing sector (NAICS 337215) is a mature industry with numerous players, ranging from large corporations to smaller specialized manufacturers. Federal spending in this area supports the operational needs of government agencies. Benchmarking this contract's value would involve comparing it to similar large-scale furniture procurements for federal agencies, considering factors like customization, material, and delivery scope.

Small Business Impact

While the awardee, SDV Office Systems LLC, is a Service-Disabled Veteran-Owned Small Business (SDVOSB), the contract itself was not explicitly a small business set-aside. The 'full and open competition after exclusion of sources' indicates a broader solicitation approach. The implications for other small businesses would depend on whether subcontracting opportunities are anticipated or required under this contract.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting and program management offices. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified goods. Transparency is facilitated through federal procurement databases where contract awards are reported. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

General Services Administration (GSA) Federal Supply Schedule (FSS) contracts for furniture
Department of Defense (DoD) furniture procurements
Other agency-specific furniture and fixture contracts

Risk Flags

Potential for limited competition due to source exclusion.
Risk of delivery delays or quality issues from the contractor.
Need to verify contractor's past performance and capacity.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $31,551.57 to SDV OFFICE SYSTEMS LLC. FURNITURE

Who is the contractor on this award?

The obligated recipient is SDV OFFICE SYSTEMS LLC.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $31,551.57.

What is the period of performance?

Start: 2025-12-12. End: 2026-07-31.

What is the specific nature of the 'exclusion of sources' in this full and open competition?

The designation 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests that while the competition was intended to be open, certain potential offerors were intentionally excluded from the solicitation process. The reasons for such exclusions can vary, including prior performance issues, failure to meet specific pre-qualification criteria, or strategic sourcing decisions. Understanding the specific criteria used for exclusion is crucial to assess whether the competition was truly as broad as possible and if it potentially limited price discovery or access to innovative solutions. Without further details on the excluded sources and the justification, it's difficult to definitively state the impact on value for money, but it warrants a closer look to ensure fairness and maximum competition.

How does the pricing of this contract compare to similar furniture procurements by the VA or other federal agencies?

A precise comparison of pricing is challenging without access to detailed unit costs, specifications, and the exact scope of work for this $31.5 million award. Federal furniture procurements can vary significantly based on customization, material quality, quantity, and delivery logistics. Generally, large-scale contracts awarded through full and open competition aim for competitive pricing. The firm fixed-price nature of this contract suggests that the contractor bears the risk of cost overruns, which often leads to more carefully calculated bids. To conduct a thorough benchmark, one would need to analyze historical data for similar items (showcases, partitions, shelving, lockers) procured by the VA or other agencies, adjusting for inflation, quantity, and any unique requirements.

What are the potential risks associated with this contract for the VA?

Potential risks for the VA in this contract include delivery delays, quality control issues with the manufactured goods, or potential cost increases if the fixed-price contract contains escalation clauses not immediately apparent. Given that it's a delivery order, there's also a risk related to the performance of the underlying IDIQ contract vehicle itself. Ensuring SDV Office Systems LLC has the capacity to meet the demand within the specified timeframe and quality standards is paramount. Furthermore, if the 'exclusion of sources' was not adequately justified, there could be a reputational risk or a missed opportunity to secure even better value from a wider pool of bidders.

What is the track record of SDV Office Systems LLC in fulfilling federal contracts?

Information regarding the specific track record of SDV Office Systems LLC in fulfilling federal contracts would typically be available through federal procurement databases like SAM.gov or FPDS. A review would involve examining past performance ratings, any history of contract disputes, on-time delivery rates, and the types and values of previous contracts awarded. As a Service-Disabled Veteran-Owned Small Business (SDVOSB), they may have a focus on specific types of government work. Assessing their past performance is crucial for understanding their reliability and capability to execute this current $31.5 million award successfully.

How does this contract align with the VA's overall spending on furniture and fixtures?

This $31.5 million contract represents a significant, but likely not the entirety, of the VA's spending on furniture and fixtures. The VA operates a vast network of healthcare facilities and administrative offices nationwide, requiring continuous procurement of furnishings. Analyzing historical VA spending data for furniture and fixtures would reveal whether this award is consistent with previous years' expenditures, indicative of a surge in demand, or part of a strategic refresh or expansion of facilities. Understanding this context helps determine if the current spending level is sustainable or requires further justification.

Industry Classification

NAICS: Manufacturing › Office Furniture (including Fixtures) Manufacturing › Showcase, Partition, Shelving, and Locker Manufacturing

Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 26 MACALLAN LN, ASHEVILLE, NC, 28805

Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $31,552

Exercised Options: $31,552

Current Obligation: $31,552

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10G18D0059

IDV Type: IDC

Timeline