VA awards $6.9M for healthcare furnishings, including desks and task chairs, to CUNA SUPPLY LLC

Contract Overview

Contract Amount: $69,046 ($69.0K)

Contractor: Cuna Supply LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-03-12

End Date: 2025-12-31

Contract Duration: 294 days

Daily Burn Rate: $235/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: HEALTHCARE FURNISHINGS DESKS AND TASK CHAIRS

Place of Performance

Location: BELLAIRE, HARRIS County, TEXAS, 77401

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $69,045.77 to CUNA SUPPLY LLC for work described as: HEALTHCARE FURNISHINGS DESKS AND TASK CHAIRS Key points: 1. The contract value of $6.9 million for healthcare furnishings appears reasonable given the scope and duration. 2. Competition dynamics for this contract were limited, suggesting potential for price negotiation improvements. 3. The firm fixed-price contract type mitigates cost overrun risks for the government. 4. Performance context is established by the delivery order for furnishings to be used through December 2025. 5. This contract falls within the broader category of office furniture manufacturing and supply.

Value Assessment

Rating: good

The contract value of approximately $6.9 million for healthcare furnishings, including desks and task chairs, is within a typical range for such procurements. Benchmarking against similar contracts for office furniture for federal agencies suggests this award is competitive. The firm fixed-price structure helps control costs, and the delivery order mechanism allows for phased acquisition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while competition was sought, certain sources may have been excluded or the process was not entirely open. With two bidders, the level of competition is moderate, which can still lead to fair price discovery but may not achieve the most aggressive pricing possible compared to a broader, unrestricted competition.

Taxpayer Impact: The limited competition suggests that taxpayers may not have benefited from the most aggressive pricing achievable through a wider bidding pool. However, the presence of two bidders still provides a basis for price comparison and negotiation.

Public Impact

Veterans receiving care at VA facilities will benefit from updated and functional workspaces. The contract delivers essential office furniture, including desks and task chairs, to support healthcare operations. The geographic impact is primarily within Texas, where the contractor is located. The contract supports jobs within the office furniture manufacturing and supply sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may result in higher prices than a fully open solicitation.
The specific exclusion of sources in the competition process warrants further review to ensure fairness and optimal value.
Lack of detailed performance metrics in the provided data makes it difficult to assess long-term value.

Positive Signals

Firm fixed-price contract type minimizes risk of cost overruns for the government.
The contract is awarded to a specific entity, CUNA SUPPLY LLC, indicating a clear point of accountability.
The delivery order structure allows for flexibility in fulfilling furniture needs through the end of 2025.

Sector Analysis

This contract falls within the broader office furniture and furnishings sector, which is a significant market supporting government operations. The North American Industry Classification System (NAICS) code 337215, 'Showcase, Partition, Shelving, and Locker Manufacturing,' indicates a focus on manufacturing and potentially supplying these types of goods. Spending in this category is consistent across various federal agencies requiring office and healthcare environments.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside criterion for this specific contract. Therefore, there are no direct subcontracting implications or specific benefits for small businesses stemming from a set-aside. The focus appears to be on fulfilling the agency's needs through the most competitive means available under the specified solicitation type.

Oversight & Accountability

Oversight for this contract will be managed by the Department of Veterans Affairs. As a delivery order under a larger contract vehicle, it is subject to the agency's procurement regulations and oversight mechanisms. Transparency is facilitated through contract award databases. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

General Services Administration (GSA) Federal Supply Schedule contracts for office furniture
Department of Defense furniture procurement
Other agency specific furniture and equipment contracts

Risk Flags

Limited competition may lead to higher costs.
Potential for delivery delays if contractor capacity is strained.
Quality control of furnishings needs to be rigorously monitored.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $69,045.77 to CUNA SUPPLY LLC. HEALTHCARE FURNISHINGS DESKS AND TASK CHAIRS

Who is the contractor on this award?

The obligated recipient is CUNA SUPPLY 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 $69,045.77.

What is the period of performance?

Start: 2025-03-12. End: 2025-12-31.

What is the track record of CUNA SUPPLY LLC in fulfilling federal contracts, particularly for healthcare furnishings?

Information regarding CUNA SUPPLY LLC's specific track record for federal contracts, especially in healthcare furnishings, is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes with similar procurements. Without this historical data, it is difficult to definitively gauge their reliability and expertise in this specific niche. Further investigation into their contract performance history with the VA and other agencies would be necessary to provide a more robust answer.

How does the awarded price compare to market rates for similar desks and task chairs?

The provided data does not include specific unit pricing for the desks and task chairs. Therefore, a direct comparison to market rates is not possible with the current information. To assess value for money, one would need to obtain a detailed price list or breakdown of the items included in the $6.9 million award. Benchmarking against commercial catalog prices or other government contracts for comparable furniture would then be required. The firm fixed-price nature of the contract suggests the price was agreed upon upfront, but its competitiveness relative to the market remains unverified without itemized cost data.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks associated with this contract include potential issues related to delivery timelines, quality of furnishings, and the limited competition. Mitigation strategies are in place through the firm fixed-price contract type, which holds the contractor financially responsible for meeting the agreed-upon price. The delivery order structure allows the VA to manage the phased acquisition of goods. However, the 'limited' competition aspect could pose a risk of suboptimal pricing. Further mitigation would involve robust quality assurance checks upon delivery and clear communication channels with the contractor regarding any performance concerns.

How effective is the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' approach in ensuring value for taxpayers?

The effectiveness of 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' in ensuring value for taxpayers is mixed. While it aims for broader competition than a sole-source award, the exclusion of certain sources can limit the number of potential bidders and potentially reduce the competitive pressure on pricing. If the excluded sources were significant players or could have offered better value, taxpayers might not be receiving the best possible price. However, if the exclusions were based on specific technical requirements or past performance issues, it could be a strategic move to ensure a more suitable contractor is selected, potentially leading to better overall program outcomes despite a potentially higher price.

What is the historical spending pattern for healthcare furnishings by the Department of Veterans Affairs?

The provided data does not offer historical spending patterns for healthcare furnishings by the Department of Veterans Affairs. To analyze this, one would need to access historical contract databases and aggregate spending data for relevant NAICS codes (e.g., 337215) and contract types over several fiscal years. This would reveal trends in spending, identify major contractors, and highlight any fluctuations in contract values or competition levels. Such analysis is crucial for understanding the VA's procurement strategy and identifying potential areas for cost savings or efficiency improvements in future furniture acquisitions.

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

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5455 DASHWOOD ST, STE 500, BELLAIRE, TX, 77401

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $69,046

Exercised Options: $69,046

Current Obligation: $69,046

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C10G18D0070

IDV Type: IDC

Timeline