DOJ awards $18.7M for office seating raw materials, highlighting potential for price adjustments

Contract Overview

Contract Amount: $18,768 ($18.8K)

Contractor: Nightingale Corp

Awarding Agency: Department of Justice

Start Date: 2026-04-01

End Date: 2026-04-22

Contract Duration: 21 days

Daily Burn Rate: $894/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: OFFICE SEATING RAW MATERIALS

Plain-Language Summary

Department of Justice obligated $18,768.15 to NIGHTINGALE CORP for work described as: OFFICE SEATING RAW MATERIALS Key points: 1. Contract value of $18.7 million for raw materials suggests significant production volume. 2. The fixed-price with economic price adjustment (FP-EPA) contract type introduces potential for cost fluctuations. 3. Competition was full and open, indicating a potentially competitive bidding process. 4. The contract duration of 21 days is unusually short for a raw materials supply, raising questions about the scope. 5. Awarded to Nightingale Corp, a single contractor, for a specific product category. 6. The North American Industry Classification System (NAICS) code 337214 points to office furniture manufacturing.

Value Assessment

Rating: fair

The contract value of $18.7 million for raw materials is substantial. However, the fixed-price with economic price adjustment (FP-EPA) clause introduces uncertainty regarding the final cost. Without specific benchmarks for raw material costs in this sector or comparisons to similar raw material procurements, it is difficult to definitively assess value for money. The short duration of the delivery order (21 days) also makes a comprehensive value assessment challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple bidders were likely considered. The presence of four bids (no: 4) indicates a degree of market interest. This level of competition is generally favorable for price discovery and can lead to more competitive pricing for the government.

Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down prices through market forces, ensuring the government receives a fair price for the goods procured.

Public Impact

The Department of Justice benefits from the supply of essential raw materials for office furniture manufacturing. This contract supports the production of office furniture, likely for federal facilities. The geographic impact is primarily related to the manufacturing location of Nightingale Corp and its suppliers. Workforce implications are tied to the manufacturing sector, potentially supporting jobs in furniture production and raw material extraction/processing.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The FP-EPA clause introduces risk of cost overruns if raw material prices increase significantly.
The short delivery order duration (21 days) might indicate a rushed procurement or a very specific, immediate need, potentially leading to higher costs if not planned well.
Limited information on the specific raw materials procured makes it difficult to assess the full scope of the contract.
The reliance on a single contractor, Nightingale Corp, for this specific award warrants monitoring for future competition.
The NAICS code 337214 covers a broad range of office furniture manufacturing; the specific raw materials are not detailed.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
The contract value indicates a significant volume of materials being procured, potentially leading to economies of scale.
The fixed-price component provides some cost certainty, with adjustments only for specified economic factors.
The contract is for raw materials, which is a fundamental input for manufacturing, supporting the broader industrial base.

Sector Analysis

This contract falls within the broader manufacturing sector, specifically related to office furniture production (NAICS 337214). The market for raw materials supporting this industry can be influenced by global supply chains, commodity prices, and demand for office furnishings. Comparable spending benchmarks would typically involve analyzing other government procurements for similar raw materials or finished office furniture, considering factors like volume, material type, and contract terms.

Small Business Impact

There is no indication that this contract involved small business set-asides (sb: false). Furthermore, there is no information provided regarding subcontracting plans or implications for the small business ecosystem. Analysis would require details on Nightingale Corp's subcontracting practices and whether small businesses are involved in their supply chain for these raw materials.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Justice's contracting and procurement offices. The Inspector General's office may also have jurisdiction depending on the nature of any potential issues or audits. Transparency is facilitated by the public nature of contract awards, but detailed oversight of raw material sourcing and price adjustments would depend on specific reporting requirements within the contract.

Related Government Programs

Office Furniture Procurement
Raw Material Supply Contracts
Department of Justice Procurement
Federal Prison Industries / Unicor Contracts

Risk Flags

Potential for Cost Escalation due to FP-EPA
Short Delivery Window may indicate urgency or premium pricing
Lack of Specific Raw Material Details
Single Contractor Award for this Delivery Order

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $18,768.15 to NIGHTINGALE CORP. OFFICE SEATING RAW MATERIALS

Who is the contractor on this award?

The obligated recipient is NIGHTINGALE CORP.

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Prison Industries / Unicor).

What is the total obligated amount?

The obligated amount is $18,768.15.

What is the period of performance?

Start: 2026-04-01. End: 2026-04-22.

What specific raw materials are being procured under this contract, and what is their typical market volatility?

The provided data does not specify the exact raw materials being procured, only that they are for 'OFFICE SEATING RAW MATERIALS'. This lack of specificity makes it challenging to assess market volatility. However, common raw materials for office seating could include steel, aluminum, plastics, foam, and textiles. The prices of these commodities can fluctuate significantly due to global supply and demand, geopolitical events, and energy costs. The 'FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT' (FP-EPA) clause suggests that the government acknowledges this volatility and has agreed to a mechanism to adjust the price based on predefined economic indicators, which would need to be detailed in the contract's full text.

How does the unit cost of these raw materials compare to historical government purchases or industry benchmarks?

The provided data does not include unit cost information, only the total award amount ($18,768,150) for a delivery order with a 21-day duration. To compare unit costs, we would need the quantity of raw materials purchased. Without this, a direct comparison to historical government purchases or industry benchmarks is not possible. The contract's total value and the short delivery window suggest a potentially large volume of materials needed quickly, but the price per unit remains unknown from this summary.

What is Nightingale Corp's track record with similar raw material supply contracts for the federal government?

The provided data identifies Nightingale Corp as the contractor but does not offer details on their specific track record with raw material supply contracts for the federal government. Further investigation would be needed to ascertain their performance history, past contract values, types of materials supplied, and any past performance issues or commendations. This information is crucial for assessing the reliability and potential risks associated with awarding this contract to them.

What are the potential risks associated with the 'FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT' (FP-EPA) clause in this contract?

The primary risk of an FP-EPA clause is cost escalation. While it aims to account for legitimate price increases in raw materials, it can lead to higher overall spending for the government if market prices rise significantly beyond initial projections. The specific economic indicators used to trigger price adjustments are critical. If these indicators are broad or not tightly correlated with the actual cost of the specific raw materials, the government might overpay. Conversely, if the indicators are too restrictive, the contractor might face losses, potentially impacting supply.

Given the short 21-day duration of the delivery order, what is the likely urgency or specific need driving this procurement?

A 21-day delivery order duration for raw materials is exceptionally short. This suggests a highly urgent need, possibly to replenish critically low stock, meet an immediate production deadline for a high-priority item, or address an unforeseen supply chain disruption. It could also indicate a very specific, small batch requirement. The urgency might imply that the government accepted a premium price or less favorable terms to ensure rapid delivery, potentially impacting overall value for money.

How does the competition level (4 bidders) for this specific raw material procurement compare to typical competition for similar goods?

Having four bidders for a raw material supply contract under full and open competition is a moderately healthy level of competition. It suggests that the market is aware of the opportunity and that there are multiple capable suppliers. However, whether this is 'typical' depends heavily on the specificity of the raw materials and the size of the contract. For highly specialized or niche raw materials, four bidders might be excellent. For more common commodities, it might indicate less robust competition than ideal. Without more context on the specific materials, it's hard to definitively benchmark.

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: 4

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

Evaluated Preference: NONE

Contractor Details

Address: 2301 DIXIE RD, MISSISSAUGA

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $18,768

Exercised Options: $18,768

Current Obligation: $18,768

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15UC0C26D00001022

IDV Type: IDC

Timeline