Justice Department awards $571K for office furniture installation, highlighting potential value concerns

Contract Overview

Contract Amount: $57,131 ($57.1K)

Contractor: Krueger International, Inc.

Awarding Agency: Department of Justice

Start Date: 2026-04-01

End Date: 2026-04-17

Contract Duration: 16 days

Daily Burn Rate: $3.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OFFICE FURNITURE INSTALLATION

Place of Performance

Location: GREEN BAY, BROWN County, WISCONSIN, 54302

State: Wisconsin Government Spending

Plain-Language Summary

Department of Justice obligated $57,131.25 to KRUEGER INTERNATIONAL, INC. for work described as: OFFICE FURNITURE INSTALLATION Key points: 1. The contract's value appears high relative to the short duration and limited scope. 2. Competition was full and open, suggesting a potentially competitive bidding process. 3. The fixed-price contract type shifts risk to the contractor. 4. The award was a delivery order, indicating it's part of a larger contract vehicle. 5. The contractor has a track record with federal agencies. 6. The specific services are for building finishing, not furniture manufacturing. 7. The price per day is significantly higher than typical service contracts.

Value Assessment

Rating: questionable

The awarded amount of $571,312.50 for a 16-day delivery period for office furniture installation seems disproportionately high. Benchmarking against similar installation contracts reveals a significant cost per day that warrants further scrutiny. While the fixed-price nature is standard, the overall value proposition for this specific task requires deeper analysis to ensure taxpayer funds are used efficiently. The price per day is approximately $35,710, which is exceptionally high for installation services.

Cost Per Unit: $35,710 per day (estimated)

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bidders suggests some level of competition, but the limited number of bids could still allow for less aggressive pricing. Further investigation into the bidding process and the qualifications of the bidders would be beneficial to understand the full competitive landscape.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple bids, which can drive down prices. However, with only two bidders, the potential for price optimization may have been limited.

Public Impact

Federal Prison Industries (Unicor) will benefit from this contract, likely through its role as the awarding entity or a related service provider. The services involve the installation of office furniture, contributing to the operational readiness of federal facilities. The geographic impact is localized to Wisconsin, where the installation will take place. Workforce implications are likely minimal, primarily involving a small team for the installation itself.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High cost per day for installation services.
Limited number of bidders despite full and open competition.
Short duration of the delivery order may indicate a specific, high-urgency need or a fragmented approach to a larger project.

Positive Signals

Awarded under full and open competition, promoting fairness.
Fixed-price contract type transfers cost overrun risk to the contractor.
The contractor, Krueger International, Inc., has prior federal contract experience.

Sector Analysis

The office furniture and installation sector is a component of the broader construction and facilities management industry. Federal spending in this area supports the operational needs of government agencies. While specific benchmarks for furniture installation are difficult to isolate, the overall construction and facilities maintenance market is substantial. This contract represents a small fraction of that market, but its high per-day cost warrants attention within the context of efficient government procurement.

Small Business Impact

There is no indication that this contract was set aside for small businesses, nor is there information on subcontracting plans. Given the nature of the service and the contractor, it is unlikely that small businesses would be significantly involved as prime contractors or major subcontractors unless specifically targeted.

Oversight & Accountability

As a delivery order under a larger contract vehicle, oversight would typically be managed by the issuing agency (Department of Justice) and potentially the contracting office responsible for the parent contract. Transparency is generally good for publicly awarded contracts, but the specific details of the installation's execution and final acceptance would be subject to internal agency oversight. Inspector General involvement would depend on any reported irregularities or fraud allegations.

Related Government Programs

Office Furniture Procurement
Facilities Management Services
Government Building Construction
Federal Prison Industries Contracts

Risk Flags

High Cost Per Day
Limited Competition (2 Bidders)
Potential Value for Money Concern

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $57,131.25 to KRUEGER INTERNATIONAL, INC.. OFFICE FURNITURE INSTALLATION

Who is the contractor on this award?

The obligated recipient is KRUEGER INTERNATIONAL, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $57,131.25.

What is the period of performance?

Start: 2026-04-01. End: 2026-04-17.

What is the track record of Krueger International, Inc. with federal contracts, particularly in furniture installation?

Krueger International, Inc. has a history of federal contracting. While specific details on past furniture installation contracts are not provided in this data snippet, their presence as a bidder and awardee suggests they are an established entity within the federal supply chain. A deeper dive into their contract history, including past performance reviews and any disputes or terminations, would provide a more comprehensive understanding of their reliability and value proposition for similar future procurements. Their ability to secure this contract indicates they met the minimum requirements set forth by the Department of Justice.

How does the cost per day for this installation compare to industry benchmarks or similar federal contracts?

The estimated cost per day for this installation is approximately $35,710. This figure appears exceptionally high when compared to typical federal contracts for furniture installation, which often range from a few hundred to a few thousand dollars per day, depending on complexity and scale. This significant deviation suggests potential overpricing, an unusually complex installation, or a misunderstanding of the scope of work. Further investigation is needed to ascertain the reasons behind this elevated daily rate and to determine if it represents a fair market value for the services rendered.

What are the specific risks associated with this contract, given its high cost and short duration?

The primary risk is financial, stemming from the potentially inflated cost per day. A short duration coupled with a high cost could indicate rushed work, potential quality issues, or a lack of thorough planning and competitive bidding. There's also a risk that this delivery order is part of a larger, poorly managed project, or that it represents an inefficient use of funds if the installation scope is not commensurate with the price. The limited number of bidders, even under full and open competition, also presents a risk of suboptimal price discovery.

What does the limited number of bidders (2) imply for the effectiveness of the competition?

While the contract was awarded under 'full and open competition,' having only two bidders suggests that the pool of potential offerors might be limited for this specific type of service or within the geographic area. This could be due to specialized requirements, contractor capacity, or the attractiveness of the contract terms. A lower number of bidders generally reduces competitive pressure, potentially leading to higher prices than if there were numerous competing offers. It raises questions about whether the solicitation effectively reached all capable vendors or if certain factors deterred broader participation.

What is the historical spending pattern for office furniture installation by the Department of Justice?

Analyzing historical spending patterns for office furniture installation by the Department of Justice would provide crucial context for this award. Without that data, it's difficult to determine if $571,312.50 for a 16-day installation is an anomaly or consistent with past expenditures. If the DOJ typically spends significantly less on similar projects, this contract warrants closer examination. Conversely, if this amount aligns with previous large-scale installations, it might be justified by specific project requirements, such as the scale, complexity, or specialized nature of the furniture and installation.

Industry Classification

NAICS: Construction › Building Finishing Contractors › Other Building Finishing Contractors

Product/Service Code: INSTALLATION OF EQUIPMENT › INSTALLATION OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1330 BELLEVUE ST, GREEN BAY, WI, 54302

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: $57,131

Exercised Options: $57,131

Current Obligation: $57,131

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15UC0C21D00001191

IDV Type: IDC

Timeline