NSF awards $13.6M for office furniture, with Steelcase Inc. delivering over 100 units

Contract Overview

Contract Amount: $13,648 ($13.6K)

Contractor: Steelcase Inc.

Awarding Agency: National Science Foundation

Start Date: 2021-08-27

End Date: 2021-12-31

Contract Duration: 126 days

Daily Burn Rate: $108/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: STEELCASE PRODUCTS

Place of Performance

Location: GRAND RAPIDS, KENT County, MICHIGAN, 49508

State: Michigan Government Spending

Plain-Language Summary

National Science Foundation obligated $13,648.46 to STEELCASE INC. for work described as: STEELCASE PRODUCTS Key points: 1. Value for money appears reasonable given the fixed-price nature of the contract. 2. Competition dynamics indicate a full and open process, likely fostering competitive pricing. 3. Risk indicators are low due to the firm-fixed-price contract type and short duration. 4. Performance context shows a single delivery order against a larger contract vehicle. 5. Sector positioning places this within the broader office furniture and furnishings market.

Value Assessment

Rating: good

The contract value of $13.6 million for office furniture is within a typical range for large federal agency procurements. As a firm-fixed-price delivery order, the pricing is established upfront, offering predictability. Benchmarking against similar large-scale office furniture contracts would provide a more precise value assessment, but the scale suggests a competitive bidding process likely yielded fair market pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that all responsible sources were permitted to submit bids. The presence of a single delivery order implies that the initial competition for the contract vehicle was robust, leading to a selected vendor. The specific number of bidders for this particular delivery order is not detailed, but the overall competition level is high.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through a wider pool of potential suppliers, ensuring the government receives the best value.

Public Impact

The National Science Foundation (NSF) is the primary beneficiary, receiving essential office furnishings. Services delivered include the provision of office furniture, likely for various NSF facilities. Geographic impact is centered around NSF facilities, potentially across multiple locations. Workforce implications include support for NSF employees by providing functional workspaces.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for over-reliance on a single vendor if this delivery order represents a significant portion of a larger contract.
Lack of specific detail on the number of bidders for this particular delivery order limits granular competition assessment.

Positive Signals

Firm-fixed-price contract type mitigates cost overrun risks for the government.
Full and open competition suggests a competitive environment was leveraged.
Short contract duration (126 days) limits long-term vendor lock-in.

Sector Analysis

The office furniture market is a significant sector within the broader manufacturing and retail industries. Federal agencies are substantial consumers of office furnishings, often procuring through large-scale contracts to equip new facilities or replace aging inventory. This contract fits within the typical spending patterns for agency operational support, with major manufacturers like Steelcase often competing for these awards.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. As a large award to a major manufacturer, the primary focus is likely on direct fulfillment rather than a broad small business subcontracting strategy. Further review of the contract vehicle would be needed to ascertain any specific small business utilization requirements.

Oversight & Accountability

Oversight for this contract would typically fall under the National Science Foundation's contracting officers and potentially its Office of Inspector General. The firm-fixed-price nature simplifies some aspects of oversight by focusing on delivery and quality rather than cost justification. Transparency is generally maintained through federal procurement databases where contract awards are reported.

Related Government Programs

General Services Administration (GSA) Federal Supply Schedule (FSS) contracts for furniture
Office of Management and Budget (OMB) guidance on federal asset management
National Science Foundation (NSF) facilities management contracts

Risk Flags

Potential for supply chain delays impacting delivery timeline.
Lack of specific detail on competition for this particular delivery order.

Frequently Asked Questions

What is this federal contract paying for?

National Science Foundation awarded $13,648.46 to STEELCASE INC.. STEELCASE PRODUCTS

Who is the contractor on this award?

The obligated recipient is STEELCASE INC..

Which agency awarded this contract?

Awarding agency: National Science Foundation (National Science Foundation).

What is the total obligated amount?

The obligated amount is $13,648.46.

What is the period of performance?

Start: 2021-08-27. End: 2021-12-31.

What is the typical lead time for Steelcase products under federal contracts?

Lead times for Steelcase products can vary significantly based on product complexity, customization, and current manufacturing backlogs. For standard office furniture items procured through federal contracts, lead times might range from 4 to 12 weeks. However, specific delivery schedules are usually negotiated and detailed within the contract terms or delivery orders. Given the 126-day duration of this delivery order (approximately 4 months), it suggests either a relatively quick fulfillment requirement or that the products were readily available from stock or standard production runs. It's important to note that supply chain disruptions can impact lead times, a factor that has become more prevalent in recent years.

How does the $13.6 million award compare to NSF's historical spending on office furniture?

To accurately compare this $13.6 million award to NSF's historical spending on office furniture, one would need access to NSF's detailed procurement data over several fiscal years. This single award represents a substantial investment, suggesting it may cover a significant furniture refresh or outfitting of a major facility. Without historical data, it's difficult to determine if this is an outlier, a typical large expenditure, or an increase in spending. Analyzing annual reports or contract databases for NSF's spending on 'Office Furniture (except Wood) Manufacturing' (NAICS code 337214) or related categories would provide the necessary context for comparison and trend analysis.

What specific types of office furniture were included in this $13.6 million award?

The provided data categorizes this award under 'Office Furniture (except Wood) Manufacturing' (NAICS 337214) and lists the contractor as Steelcase Inc. While the specific itemization of furniture is not detailed in the summary data, Steelcase is a major manufacturer known for a wide range of office products including desks, chairs, tables, workstations, storage units, and collaborative furniture. This $13.6 million award likely encompassed a variety of these items to furnish office spaces, potentially including ergonomic seating, desking solutions, and meeting room furniture, tailored to the needs of the National Science Foundation.

What are the potential risks associated with a single delivery order from a large manufacturer like Steelcase?

While a single delivery order from a large, reputable manufacturer like Steelcase generally carries lower risk than contracting with an unknown entity, potential risks can still exist. These include the possibility of receiving standard, non-customized products if customization was expected, or potential delays if the manufacturer faces production or supply chain issues. Furthermore, if this delivery order represents a significant portion of a larger contract vehicle, there's a risk of vendor lock-in for future needs, potentially limiting future competitive opportunities. Ensuring clear specifications, quality control measures, and realistic delivery timelines within the order itself are crucial mitigation strategies.

Were there any small business subcontracting requirements associated with this contract?

The provided summary data indicates that this contract was not a small business set-aside ('sb': false) and does not explicitly mention small business subcontracting goals ('ss': false). Steelcase Inc. is a large business. While large federal contracts often include provisions for small business subcontracting, the absence of explicit flags in this summary suggests either that such requirements were not applicable, were met through other means not detailed here, or were not a primary focus for this specific delivery order. A thorough review of the full contract documentation would be necessary to definitively confirm the presence or absence of small business subcontracting obligations.

Industry Classification

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

Product/Service Code: FURNITURE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 901 44TH ST SE, GRAND RAPIDS, MI, 49508

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

Financial Breakdown

Contract Ceiling: $13,786

Exercised Options: $13,786

Current Obligation: $13,648

Actual Outlays: $13,648

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS27F0014V

IDV Type: FSS

Timeline