VA awards $175K for office furniture, with 3 bids received under full and open competition

Contract Overview

Contract Amount: $174,992 ($175.0K)

Contractor: SDV Office Systems LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-09

End Date: 2026-06-30

Contract Duration: 82 days

Daily Burn Rate: $2.1K/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: FLETCHER, HENDERSON County, NORTH CAROLINA, 28732

State: North Carolina Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $174,991.95 to SDV OFFICE SYSTEMS LLC for work described as: FURNITURE Key points: 1. The contract value appears reasonable for the specified furniture items, considering typical market prices for commercial-grade office furnishings. 2. Full and open competition was utilized, suggesting a competitive bidding process that should promote price discovery. 3. The contract duration is relatively short, indicating a need for immediate or near-term furniture supply. 4. The award was made to SDV OFFICE SYSTEMS LLC, a contractor with a presence in the office furniture sector. 5. The North Carolina location of the contractor may influence delivery timelines and logistics for the Department of Veterans Affairs. 6. The fixed-price contract type helps mitigate cost overrun risks for the government.

Value Assessment

Rating: good

The contract value of approximately $175,000 for office furniture, partitions, shelving, and lockers seems within a reasonable range for a government procurement of this nature. Benchmarking against similar contracts for office furnishings, the price per unit for standard items like desks or chairs would need to be assessed. However, the overall award amount does not immediately suggest overpricing, especially given the inclusion of specialized items like partitions and lockers. The fixed-price nature of the contract also provides cost certainty.

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,' indicating that the solicitation was broadly advertised, and multiple responsible sources were permitted to submit offers. The fact that three bids were received suggests a moderate level of competition for this specific requirement. While three bidders are better than one or two, a higher number of bids could potentially lead to even more aggressive pricing.

Taxpayer Impact: The competitive nature of this award, with three bids, likely resulted in a fair market price for the taxpayer. A more robust competition with a larger number of bidders could have potentially driven prices lower.

Public Impact

Veterans and VA staff will benefit from updated or new office furnishings, potentially improving workspace functionality and morale. The contract will deliver office furniture, partitions, shelving, and lockers to support VA facilities. The geographic impact is primarily centered around the VA facilities receiving the furniture, likely within the United States. The contract supports the manufacturing sector, specifically the production of office furniture and related components.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for delivery delays if the contractor faces supply chain issues for specific furniture components.
Ensuring the delivered furniture meets all specified quality and durability standards will be crucial.
Logistical challenges in delivering and installing furniture across potentially multiple VA locations.

Positive Signals

The use of full and open competition suggests a deliberate effort to obtain competitive pricing.
The firm fixed-price contract type provides budget certainty for the VA.
The contractor, SDV OFFICE SYSTEMS LLC, is likely experienced in providing office furniture solutions.

Sector Analysis

The office furniture market is a significant segment within the broader manufacturing and commercial furnishings industry. This contract falls under the manufacturing of furniture, specifically office and institutional types. Government procurement of furniture is substantial, with agencies like the VA requiring regular updates and replacements. Comparable spending benchmarks would involve analyzing other federal contracts for similar furniture packages awarded to manufacturers or resellers, considering factors like quantity, customization, and delivery requirements.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside. Therefore, there is no direct indication of a small business set-aside. However, the prime contractor, SDV OFFICE SYSTEMS LLC, may have its own subcontracting plans that could involve small businesses. Further analysis would be needed to determine if subcontracting opportunities exist and if they are being utilized effectively to support the small business ecosystem.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of Veterans Affairs contracting officers and program managers. They are responsible for ensuring timely delivery, adherence to specifications, and proper invoicing. The contract's fixed-price nature simplifies financial oversight by limiting the scope for cost adjustments. Transparency is generally maintained through federal procurement databases like FPDS-NG, where contract awards are publicly reported. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected.

Related Government Programs

General Services Administration (GSA) Federal Supply Schedule (FSS) contracts for furniture
Department of Defense (DoD) furniture procurements
Office of Management and Budget (OMB) guidance on federal procurement

Risk Flags

Potential for supply chain disruptions affecting delivery timelines.
Risk of delivered furniture not meeting stringent quality or durability standards.
Logistical complexities associated with delivery and installation across VA facilities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $174,991.95 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 $174,991.95.

What is the period of performance?

Start: 2026-04-09. End: 2026-06-30.

What is the track record of SDV OFFICE SYSTEMS LLC in fulfilling federal contracts, particularly for furniture and related items?

A review of federal procurement data would be necessary to fully assess SDV OFFICE SYSTEMS LLC's track record. This would involve examining past contract awards to the company, including their value, duration, and performance history. Specifically, one would look for patterns in on-time delivery, adherence to specifications, and any reported disputes or contract terminations. Understanding their experience with similar types of furniture (showcase, partition, shelving, locker) and their capacity to handle government orders would provide crucial context for evaluating the current award's risk and potential success. Without specific historical data, it's difficult to definitively gauge their reliability.

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

To compare pricing effectively, one would need to identify comparable federal contracts awarded within a similar timeframe for office furniture, partitions, shelving, and lockers. Key metrics for comparison would include the price per unit for specific items (e.g., per desk, per linear foot of shelving, per locker unit) and the overall contract value relative to the quantity and scope of work. Factors such as customization, delivery location, installation services, and warranty periods would also need to be accounted for to ensure a fair comparison. If this contract's unit prices are significantly higher or lower than benchmarks, it could indicate either exceptional value or potential overpricing/underbidding.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Primary risks include potential delays in delivery due to manufacturing or supply chain disruptions, quality issues with the delivered furniture not meeting specifications, and logistical challenges in transporting and installing the items. Mitigation strategies often involve clear contract terms and conditions, performance standards, inspection and acceptance clauses, and defined remedies for non-performance. The firm fixed-price nature of the contract shifts some financial risk to the contractor. The relatively short duration (82 days) might also imply a need for expedited production, increasing the risk of rushed work if not managed carefully.

How effective is the 'Full and Open Competition After Exclusion of Sources' approach in ensuring competitive pricing for this type of requirement?

This contracting approach aims to maximize competition by allowing all responsible sources to submit offers, while potentially excluding specific sources for justified reasons (though none are apparent here). Its effectiveness in ensuring competitive pricing depends on the number of actual bidders and the overall market dynamics for office furniture. Receiving three bids suggests a moderate level of competition. If the market has many capable suppliers, a higher number of bids might be expected. The effectiveness is also tied to how well the solicitation requirements are defined to attract a broad range of capable vendors and how the evaluation criteria are structured to incentivize competitive offers.

What is the historical spending pattern for office furniture by the Department of Veterans Affairs over the last five fiscal years?

Analyzing historical spending data for office furniture by the VA over the past five fiscal years would reveal trends in procurement volume, average contract values, and the types of furniture most frequently purchased. This data, typically available through sources like FPDS-NG, would show whether spending has been consistent, increasing, or decreasing. It would also highlight the primary contracting vehicles used (e.g., GSA Schedules, full and open competition) and the major contractors involved. Understanding this historical context helps in assessing whether the current $175,000 award is typical, an outlier, or part of a larger strategic furniture acquisition effort.

Industry Classification

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

Product/Service Code: FURNITURE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 36C25226Q0339

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: $174,992

Exercised Options: $174,992

Current Obligation: $174,992

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10G18D0072

IDV Type: IDC

Timeline