GSA awards $6.17M BPA Call to SBFI for Air Force workstations, raising value-for-money questions

Contract Overview

Contract Amount: $6,173,591 ($6.2M)

Contractor: Sbfi North America Inc

Awarding Agency: General Services Administration

Start Date: 2023-09-26

End Date: 2026-03-13

Contract Duration: 899 days

Daily Burn Rate: $6.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BPA CALL 47QSMA23F0112 ISSUED TO SBFI FOR $6,173,591.00 FOR OPERATIONAL WORKSTATIONS FOR US AIR FORCE LANGLEY AIR FORCE BASE PROJECT IN ACCORDANCE WITH SBFI QUOTE DATED SEPTEMBER 18, 2023.

Place of Performance

Location: HAMPTON, HAMPTON CITY County, VIRGINIA, 23665

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $6.2 million to SBFI NORTH AMERICA INC for work described as: BPA CALL 47QSMA23F0112 ISSUED TO SBFI FOR $6,173,591.00 FOR OPERATIONAL WORKSTATIONS FOR US AIR FORCE LANGLEY AIR FORCE BASE PROJECT IN ACCORDANCE WITH SBFI QUOTE DATED SEPTEMBER 18, 2023. Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract's value of $6.17 million for operational workstations warrants a close look at unit pricing. 3. A significant duration of 899 days (approx. 2.5 years) for workstation delivery requires performance monitoring. 4. The award to SBFI NORTH AMERICA INC. for the US Air Force at Langley AFB places it within the defense sector. 5. Fixed-price contract type aims to control costs, but requires careful scope management. 6. The absence of small business set-aside indicates a focus on larger prime contractors or specific capabilities.

Value Assessment

Rating: fair

The contract value of $6.17 million for operational workstations appears substantial. Benchmarking against similar GSA schedule purchases for office furniture, particularly workstations, is crucial to assess if the pricing is competitive. The fixed-price nature of the award suggests an attempt to cap costs, but the specific unit prices within the $6.17 million total will determine the true value for money. Without detailed unit cost breakdowns, a definitive value assessment is challenging, but the overall sum warrants scrutiny.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a BPA Call, which itself was likely established through a competitive process. The 'full and open competition' designation indicates that all responsible sources were permitted to submit offers. The number of bidders for this specific BPA Call is not provided, but the open competition framework generally promotes price discovery and allows the government to select the best value offer. The specific details of the competition for this call would provide further insight into the level of price pressure.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better quality goods and services. It ensures that the government is not limited to a single provider, increasing the likelihood of obtaining a fair market price.

Public Impact

The primary beneficiaries are the US Air Force personnel at Langley Air Force Base, who will receive new operational workstations. The contract delivers essential office furniture, supporting the operational readiness and work environment of military staff. The geographic impact is localized to Langley Air Force Base in Virginia. Workforce implications include potential support for manufacturing and logistics jobs related to furniture production and delivery, though the direct impact on the federal workforce is minimal.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price inflation if the competitive bidding for the BPA Call was not sufficiently robust.
Risk of obsolescence if workstation technology evolves rapidly during the contract period.
Dependence on a single vendor (SBFI NORTH AMERICA INC.) for this specific requirement could lead to supply chain vulnerabilities.
Ensuring timely delivery and installation of workstations to meet operational needs is critical.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Fixed-price contract type helps mitigate cost overruns for the government.
Utilizing a GSA Schedule BPA Call streamlines the procurement process and potentially reduces administrative burden.
The contract supports a critical defense installation (Langley AFB), ensuring operational capability.

Sector Analysis

This contract falls within the broader office furniture and equipment sector, specifically focusing on operational workstations. The market for government office furniture is substantial, often procured through GSA Schedules and other indefinite-delivery/indefinite-quantity (IDIQ) vehicles. Benchmarking against other GSA Schedule awards for similar workstation types and quantities can provide context for the $6.17 million award. The defense sector's demand for reliable and functional workspace equipment is a consistent driver of spending in this category.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). This suggests that the competition was open to all responsible sources, including large businesses. While there's no direct subcontracting plan information provided, large prime contractors often utilize small businesses for portions of their work. The absence of a small business set-aside means that opportunities for small businesses to directly compete for this prime contract were limited, but they may still participate as subcontractors.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA), which issued the BPA Call. The Federal Acquisition Service (FAS) within GSA manages many schedule contracts. The US Air Force, as the end-user, would also have oversight responsibilities for performance and delivery. Transparency is facilitated through contract award databases like FPDS. Inspector General (IG) jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

GSA Federal Supply Schedule
Office Furniture Procurement
Defense Readiness Support
Air Force Base Infrastructure

Risk Flags

Potential for overpricing given the substantial contract value.
Need for detailed unit cost analysis to confirm value for money.
Performance monitoring required due to the long contract duration.
Limited visibility into the specific competitive bids received for this BPA Call.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $6.2 million to SBFI NORTH AMERICA INC. BPA CALL 47QSMA23F0112 ISSUED TO SBFI FOR $6,173,591.00 FOR OPERATIONAL WORKSTATIONS FOR US AIR FORCE LANGLEY AIR FORCE BASE PROJECT IN ACCORDANCE WITH SBFI QUOTE DATED SEPTEMBER 18, 2023.

Who is the contractor on this award?

The obligated recipient is SBFI NORTH AMERICA INC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $6.2 million.

What is the period of performance?

Start: 2023-09-26. End: 2026-03-13.

What is the average unit cost of a workstation under this contract, and how does it compare to market rates for similar government procurements?

The total contract value is $6,173,591.00 over a period of 899 days. To determine the average unit cost, we would need the quantity of workstations procured. Assuming a typical operational workstation might cost between $500 and $1500, a quantity of 4,000 to 12,000 workstations could be implied. Without the exact quantity, a precise unit cost comparison is impossible. However, GSA Schedule pricing for office furniture can vary widely based on features, materials, and brand. A review of comparable GSA Schedule solicitations and awards for similar workstation types (e.g., task chairs, desks, basic computer stations) would be necessary to benchmark the potential unit price against market rates and identify any significant deviations that might indicate overpricing or exceptional value.

How many bids were received for this specific BPA Call, and what does this indicate about the level of competition?

The provided data states the contract was awarded under 'FULL AND OPEN COMPETITION' but does not specify the number of bids received for this particular BPA Call. Full and open competition means that all responsible sources were allowed to submit offers. A high number of bids typically suggests robust competition, which can lead to better pricing and terms for the government. Conversely, a low number of bids, even under full and open competition, might indicate limited market interest, specialized requirements, or potential barriers to entry for some contractors. Without the specific bid count, it's difficult to definitively assess the competitive intensity for this call.

What is the track record of SBFI NORTH AMERICA INC. in fulfilling similar government contracts, particularly for the Department of Defense?

SBFI NORTH AMERICA INC. has a history of receiving federal contracts, primarily through GSA Schedules. Analyzing their past performance data, specifically contract values, on-time delivery rates, and any reported performance issues or awards, would provide insight into their reliability. For contracts with the Department of Defense, factors like security clearances, specialized logistics, and adherence to stringent military specifications are important considerations. A review of their contract history with agencies like the Air Force or other DoD branches would reveal their experience and success in meeting the unique demands of military procurements. Information on past performance evaluations and any disputes or terminations would be critical for a comprehensive assessment.

How does the $6.17 million spending on workstations for Langley AFB compare to historical spending patterns for similar furniture or equipment at this base or other Air Force installations?

To assess this spending in context, historical data on furniture and equipment procurement for Langley AFB and comparable Air Force bases would be needed. This includes looking at previous BPA calls, individual task orders, or other contract vehicles used for similar items over the past 5-10 years. Comparing the total dollar amount, the types of items purchased (e.g., workstations, chairs, desks), and the quantities can reveal if this $6.17 million award represents a significant increase or decrease in spending. Understanding the baseline spending and the frequency of such large procurements helps determine if this contract is an anomaly or part of a consistent investment strategy for base infrastructure and personnel support.

What are the key performance indicators (KPIs) and oversight mechanisms in place to ensure the successful delivery and quality of these workstations?

The contract is a Firm Fixed Price (FFP) award, which places the cost risk on the contractor. Key performance indicators would likely revolve around timely delivery according to the schedule (ending March 13, 2026), adherence to specifications outlined in the SBFI quote dated September 18, 2023, and the quality of the delivered workstations (e.g., no defects, proper assembly). Oversight mechanisms typically include regular progress meetings between the contracting officer's representative (COR) and the contractor, site inspections upon delivery, and formal acceptance procedures. The contract's duration (899 days) necessitates ongoing monitoring. Any deviations from the SOW or quality standards could lead to contract remedies, including withholding payment or termination.

Industry Classification

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

Product/Service Code: FURNITURE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 47QSMA23Q0074

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 123 LYMAN ST, ASHEVILLE, NC, 28801

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $6,173,591

Exercised Options: $6,173,591

Current Obligation: $6,173,591

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QSMA23A0009

IDV Type: BPA

Timeline