GSA Awards $12,800 for 4-Seat Sofas, Not Competed Under SAP

Contract Overview

Contract Amount: $12,800 ($12.8K)

Contractor: LC Industries Inc

Awarding Agency: General Services Administration

Start Date: 2026-04-01

End Date: 2026-04-08

Contract Duration: 7 days

Daily Burn Rate: $1.8K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: 4 SEAT SOFA SHIPBOARD USE

Place of Performance

Location: DURHAM, DURHAM County, NORTH CAROLINA, 27703

State: North Carolina Government Spending

Plain-Language Summary

General Services Administration obligated $12,800 to LC INDUSTRIES INC for work described as: 4 SEAT SOFA SHIPBOARD USE Key points: 1. High per-unit cost for a sofa. 2. Lack of competition raises concerns about price discovery. 3. Limited contract duration may indicate a pilot or specific need. 4. Fixed Price with Economic Price Adjustment adds potential cost volatility.

Value Assessment

Rating: questionable

The unit price of $12,800 for a 4-seat sofa appears exceptionally high compared to typical commercial furniture procurement. Without competitive bidding, it's difficult to establish a fair market price.

Cost Per Unit: $3,200

Competition Analysis

Competition Level: limited

The contract was not competed under the Simplified Acquisition Procedures (SAP) and was awarded via a BPA Call. This limited competition method, especially for a high-value item, suggests potential for overpayment and reduced price discovery.

Taxpayer Impact: Taxpayers may be overpaying for furniture due to the lack of competitive bidding and the high unit price.

Public Impact

Government employees may receive high-end, potentially over-priced furniture. Limited transparency in the procurement process. Potential for funds to be used more efficiently elsewhere.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High unit cost
Lack of competition
Economic price adjustment
Limited duration

Positive Signals

Specific item procured
Established vendor relationship (BPA)

Sector Analysis

Procurement of office furniture falls under the broad category of general supplies. Benchmarks for similar items are difficult to ascertain without competitive data, but $3,200 per seat is significantly above typical government or commercial rates.

Small Business Impact

The data does not indicate if small businesses were involved in this specific BPA Call or the underlying BPA. Further investigation would be needed to assess small business participation.

Oversight & Accountability

The award was made via a BPA Call, suggesting it falls under an existing Blanket Purchase Agreement. Oversight of the BPA itself and the justification for using a limited competition call are crucial.

Related Government Programs

Office Supplies and Stationery Stores
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

High unit cost per seat
Lack of competitive bidding
Potential for price escalation due to EPA
Limited contract duration raises questions about long-term value
Unclear justification for limited competition

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $12,800 to LC INDUSTRIES INC. 4 SEAT SOFA SHIPBOARD USE

Who is the contractor on this award?

The obligated recipient is LC INDUSTRIES INC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $12,800.

What is the period of performance?

Start: 2026-04-01. End: 2026-04-08.

What is the justification for procuring such expensive sofas, and why was full and open competition not pursued?

The justification for the high cost and limited competition is not provided in the data. Typically, full and open competition is preferred to ensure best value. Reasons for limited competition might include unique requirements, urgency, or specific contract vehicles, but these would need to be documented and justified.

What is the risk associated with the 'Economic Price Adjustment' clause in this contract?

The Economic Price Adjustment (EPA) clause allows for price changes based on fluctuations in economic factors, such as inflation or material costs. This introduces risk for the government, as the final price could be significantly higher than the initially awarded fixed price, potentially leading to cost overruns.

How does the short duration of the contract (7 days) impact the overall value and oversight?

The extremely short duration suggests this might be for a very specific, immediate need or a pilot. It limits the opportunity for long-term cost savings or performance evaluation. Oversight is still critical to ensure the item meets requirements and the price is justified, even for a short period.

Industry Classification

NAICS: Retail Trade › Office Supplies, Stationery, and Gift Stores › Office Supplies and Stationery Stores

Product/Service Code: OFFICE SUPPLIES AND DEVICES

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

Evaluated Preference: NONE

Contractor Details

Address: 4500 EMPEROR BLVD, DURHAM, NC, 27703

Business Categories: AbilityOne Program Participant, Category Business, Corporate Entity Tax Exempt, Manufacturer of Goods, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $12,800

Exercised Options: $12,800

Current Obligation: $12,800

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS00F16120

IDV Type: BPA

Timeline