GSA awards $3.5M for office furniture to MillerKnoll Inc. for multiple federal agencies

Contract Overview

Contract Amount: $3,518,894 ($3.5M)

Contractor: Millerknoll Inc

Awarding Agency: General Services Administration

Start Date: 2024-01-17

End Date: 2026-06-30

Contract Duration: 895 days

Daily Burn Rate: $3.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OFFICE FURNITURE AND RELATED SERVICES FOR U.S. CUSTOMS & BORDER PATROL, FISH & WILDLIFE, DEPARTMENT OF AGRICULTURE, AND FOOD & DRUG ADMINISTRATION, GORDIE HOWE BRIDGE PORT OF ENTRY, DETROIT, MI.

Place of Performance

Location: DETROIT, WAYNE County, MICHIGAN, 48209

State: Michigan Government Spending

Plain-Language Summary

General Services Administration obligated $3.5 million to MILLERKNOLL INC for work described as: OFFICE FURNITURE AND RELATED SERVICES FOR U.S. CUSTOMS & BORDER PATROL, FISH & WILDLIFE, DEPARTMENT OF AGRICULTURE, AND FOOD & DRUG ADMINISTRATION, GORDIE HOWE BRIDGE PORT OF ENTRY, DETROIT, MI. Key points: 1. Contract value of $3.5 million for office furniture and related services. 2. Services to be provided to U.S. Customs & Border Patrol, Fish & Wildlife, USDA, and FDA. 3. Contract awarded by the General Services Administration (GSA) Public Buildings Service. 4. Delivery order under a larger contract, indicating a specific need. 5. Firm Fixed Price contract type suggests predictable costs. 6. Contract duration of 895 days, ending June 2026. 7. No small business set-aside noted, suggesting a focus on larger contractors.

Value Assessment

Rating: good

The contract value of $3.5 million for office furniture appears reasonable given the scope of services and the number of agencies involved. Benchmarking against similar GSA furniture contracts would provide a more precise value-for-money assessment. The firm fixed price structure helps manage cost predictability for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. This competitive process is expected to yield fair market pricing. The number of bidders was not specified, but the full and open nature suggests a robust competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through market forces and ensuring the government receives the best value.

Public Impact

Federal agencies including U.S. Customs & Border Patrol, Fish & Wildlife, USDA, and FDA will benefit from updated office furniture. The Gordie Howe Bridge Port of Entry in Detroit, MI, is a specified location for service delivery. Improved workspace conditions can enhance employee productivity and morale within these federal agencies. The contract supports the manufacturing sector for office furniture.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for long-term reliance on a single supplier if future needs align with MillerKnoll's offerings.
Scope of 'related services' is broad and could lead to cost creep if not clearly defined and managed.

Positive Signals

Awarded under full and open competition, suggesting competitive pricing.
Firm Fixed Price contract type provides cost certainty.
Multiple federal agencies are consolidated under one contract, potentially streamlining procurement.
Delivery order structure allows for flexibility in fulfilling specific needs.

Sector Analysis

This contract falls within the broader office furniture manufacturing and supply sector. The North American Industry Classification System (NAICS) code 337214, 'Office Furniture (except Wood) Manufacturing,' categorizes the primary industry. The federal government is a significant purchaser of office furniture, with spending often managed through large indefinite-delivery/indefinite-quantity (IDIQ) contracts and subsequent delivery orders, as seen here.

Small Business Impact

The contract data indicates that this was not a small business set-aside, and the prime contractor, MillerKnoll Inc., is a large business. There is no explicit information on subcontracting plans for small businesses within this specific delivery order. Future opportunities for small businesses may exist through subcontracting if MillerKnoll engages them, or in other GSA contract vehicles.

Oversight & Accountability

The General Services Administration (GSA) Public Buildings Service is responsible for overseeing this contract. Oversight mechanisms would include contract performance monitoring, invoice review, and adherence to the terms and conditions of the firm fixed price delivery order. Transparency is generally maintained through public contract databases like FPDS.

Related Government Programs

GSA Federal Supply Schedule (FSS) Contracts
Office Furniture Procurement
Federal Agency Workspace Modernization

Risk Flags

Potential for delivery delays impacting agency operations.
Risk of furniture not meeting specific agency ergonomic or functional requirements.
Over-reliance on a single supplier for future furniture needs.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $3.5 million to MILLERKNOLL INC. OFFICE FURNITURE AND RELATED SERVICES FOR U.S. CUSTOMS & BORDER PATROL, FISH & WILDLIFE, DEPARTMENT OF AGRICULTURE, AND FOOD & DRUG ADMINISTRATION, GORDIE HOWE BRIDGE PORT OF ENTRY, DETROIT, MI.

Who is the contractor on this award?

The obligated recipient is MILLERKNOLL INC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Public Buildings Service).

What is the total obligated amount?

The obligated amount is $3.5 million.

What is the period of performance?

Start: 2024-01-17. End: 2026-06-30.

What is the historical spending pattern for office furniture by the General Services Administration?

The General Services Administration (GSA) is a major procurer of office furniture for federal agencies, often utilizing Federal Supply Schedules (FSS) and other contract vehicles. Historical spending data indicates consistent, multi-million dollar annual expenditures on office furniture across various agencies. This spending fluctuates based on agency needs, office consolidations, and modernization initiatives. GSA's role is to leverage its purchasing power to secure competitive pricing and efficient delivery. Analyzing past GSA spending on similar items, particularly under the relevant NAICS codes and contract types, can provide a benchmark for evaluating the current contract's value and scale within the broader federal procurement landscape.

How does MillerKnoll Inc.'s pricing compare to other office furniture manufacturers serving the federal government?

MillerKnoll Inc.'s pricing for this contract, awarded under full and open competition, can be benchmarked against other manufacturers through various means. Publicly available contract databases (like FPDS) often show awarded prices for similar items. Comparing the unit prices or overall contract value against other GSA Schedule contracts or similar delivery orders awarded to competitors like Steelcase, Herman Miller (prior to merger), or Knoll (prior to merger) would be informative. Factors such as product lines, customization, delivery services, and volume discounts influence pricing. A comprehensive comparison would involve analyzing the specific items procured, quantities, and any associated service costs to determine if MillerKnoll's pricing is competitive within the federal market.

What are the key performance indicators (KPIs) for this office furniture contract?

Key performance indicators (KPIs) for this office furniture contract would likely focus on timely delivery, product quality, and adherence to specifications. Specific KPIs could include: On-Time Delivery Rate (percentage of orders delivered by the specified date), Order Accuracy (percentage of orders delivered without errors or damage), Product Quality Compliance (ensuring furniture meets all specified standards and is free from defects), and Customer Satisfaction (feedback from the receiving federal agencies). The firm fixed price nature of the contract incentivizes the contractor to meet these KPIs efficiently to maximize profit. GSA's Public Buildings Service would monitor these KPIs to ensure the government receives the expected value and service.

What is the typical duration and value of similar GSA office furniture delivery orders?

The typical duration and value of similar GSA office furniture delivery orders can vary significantly based on the scope and the agencies involved. Delivery orders under larger IDIQ contracts, like those often found on GSA Schedules, can range from a few months to several years, with values from tens of thousands to millions of dollars. This specific $3.5 million contract with an end date in June 2026 (approximately 2.5 years from the start date) falls within a moderate to large range for a delivery order. Shorter-term orders might cover immediate needs or smaller office reconfigurations, while longer-term, higher-value orders often involve comprehensive office fit-outs or agency-wide furniture replacements.

Are there any specific risks associated with procuring office furniture for multiple federal agencies simultaneously?

Procuring office furniture for multiple federal agencies simultaneously presents several risks. Coordination complexity is a primary concern; ensuring that the furniture meets the diverse needs, specifications, and logistical requirements of U.S. Customs & Border Patrol, Fish & Wildlife, USDA, and FDA requires meticulous planning. Delivery scheduling across different locations and agency priorities can lead to conflicts. Furthermore, managing stakeholder expectations from various agencies can be challenging. There's also a risk of scope creep if 'related services' are not tightly defined, potentially increasing costs. Ensuring consistent quality and compliance across all deliveries to different entities is another critical risk area that requires robust oversight.

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

Solicitation ID: 47PF0023Q0140

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Millerknoll, Inc.

Address: 855 E MAIN AVE, ZEELAND, MI, 49464

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: $3,518,894

Exercised Options: $3,518,894

Current Obligation: $3,518,894

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS03F036DA

IDV Type: FSS

Timeline