GSA awards $4.9M for office furniture, with potential for price adjustments, to Metro Office Solutions Inc

Contract Overview

Contract Amount: $4,938 ($4.9K)

Contractor: Metro Office Solutions Inc

Awarding Agency: General Services Administration

Start Date: 2026-04-02

End Date: 2026-07-01

Contract Duration: 90 days

Daily Burn Rate: $55/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: WORKSTATION,OFFICERIGHTRETURN, MAHOGANYFINISHRIGHT RETURN, MAHOGANYFINISHFINISHFINISHFINISHFINISH

Place of Performance

Location: BELCAMP, HARFORD County, MARYLAND, 21017

State: Maryland Government Spending

Plain-Language Summary

General Services Administration obligated $4,938.29 to METRO OFFICE SOLUTIONS INC for work described as: WORKSTATION,OFFICERIGHTRETURN, MAHOGANYFINISHRIGHT RETURN, MAHOGANYFINISHFINISHFINISHFINISHFINISH Key points: 1. Value for money is subject to economic price adjustments, which could increase the final cost. 2. The contract was awarded through full and open competition, suggesting a competitive bidding process. 3. Risk indicators include the potential for price increases due to economic adjustments. 4. Performance context is a blanket purchase agreement call, indicating a pre-negotiated framework. 5. Sector positioning is within the office furniture manufacturing and supply chain.

Value Assessment

Rating: fair

The contract value of $4.9 million for office furniture appears moderate. Benchmarking against similar GSA furniture procurements would be necessary to assess true value for money, especially considering the economic price adjustment clause which introduces uncertainty. The fixed-price nature with adjustments suggests an attempt to balance cost certainty with market fluctuations.

Cost Per Unit: N/A

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 specific number of bidders is not provided, but this method generally fosters competitive pricing and allows the government to select the best value offering. The open competition suggests a healthy market for office furniture supply to the government.

Taxpayer Impact: Taxpayers benefit from the competitive process, which aims to secure the most favorable pricing and terms for the government, potentially leading to cost savings compared to non-competitive awards.

Public Impact

Federal agencies requiring office furniture will benefit from this contract. Services delivered include the provision of office furniture, specifically workstations and mahogany finish returns. Geographic impact is likely concentrated in Maryland (ST=MD), where the contract is managed. Workforce implications are minimal, primarily related to the manufacturing and delivery of furniture.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Economic price adjustment clause introduces potential for cost overruns.
Lack of specific bidder count limits assessment of competitive intensity.
Limited duration of the BPA call (90 days) may not reflect long-term needs.

Positive Signals

Awarded through full and open competition, promoting market access.
Contractor is Metro Office Solutions Inc., a known entity in office supply.
Fixed-price element provides some cost control.

Sector Analysis

The office furniture market is a mature sector with numerous manufacturers and distributors. Government procurement, often through GSA schedules, represents a significant portion of this market. This contract, under NAICS code 337214 (Office Furniture (except Wood) Manufacturing), fits within the broader office supply and furnishings industry, where competition is typically robust.

Small Business Impact

The contract data indicates that small business participation (SB=false) was not a specific set-aside for this BPA call. While the primary contractor is not identified as a small business, there is no information on subcontracting plans. This means opportunities for small businesses to participate as subcontractors are not explicitly mandated by this award.

Oversight & Accountability

Oversight for this contract falls under the General Services Administration (GSA), specifically the Federal Acquisition Service. As a BPA call, it leverages existing GSA schedule contracts, which have their own oversight mechanisms. Transparency is facilitated by public contract databases, but specific performance monitoring details are not provided. Inspector General jurisdiction would apply in cases of fraud or mismanagement.

Related Government Programs

GSA Schedules Program
Federal Supply Schedule Contracts
Office Furniture Procurement
Blanket Purchase Agreements

Risk Flags

Economic Price Adjustment Clause
Potential for Cost Overruns
Limited Competition Data Provided

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $4,938.29 to METRO OFFICE SOLUTIONS INC. WORKSTATION,OFFICERIGHTRETURN, MAHOGANYFINISHRIGHT RETURN, MAHOGANYFINISHFINISHFINISHFINISHFINISH

Who is the contractor on this award?

The obligated recipient is METRO OFFICE SOLUTIONS INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $4,938.29.

What is the period of performance?

Start: 2026-04-02. End: 2026-07-01.

What is the typical profit margin for office furniture manufacturers like Metro Office Solutions Inc. on government contracts?

Determining the exact profit margin for Metro Office Solutions Inc. on this specific contract is not possible with the provided data. However, industry benchmarks for office furniture manufacturing can offer some insight. Profit margins in this sector can vary widely based on product type, volume, competition, and operational efficiency. Generally, for manufactured goods sold through government contracts, profit margins might range from 5% to 15% after accounting for all costs, including materials, labor, overhead, and administrative expenses. The presence of an economic price adjustment clause could influence the perceived risk and thus the expected profit margin for the contractor. Without detailed cost breakdowns or specific market analysis for this contract, providing a precise profit margin is speculative.

How does the economic price adjustment (EPA) clause typically function in GSA contracts for office furniture?

An Economic Price Adjustment (EPA) clause in a GSA contract for office furniture is designed to allow for modifications to the contract price based on fluctuations in specified economic factors, such as labor costs, material costs, or general economic indices. For this contract, the specific index or formula for adjustment is not detailed. Typically, the contractor must provide documentation to justify any requested price increase. The GSA, in turn, reviews this documentation to ensure the adjustment is in line with the contract's EPA terms. This clause aims to protect both the contractor from unforeseen cost increases that could make the contract unprofitable and the government from excessively high initial pricing. However, it also introduces uncertainty regarding the final cost to the government.

What is the historical spending pattern for office furniture under GSA's Federal Acquisition Service?

Historical spending on office furniture through GSA's Federal Acquisition Service (FAS) has been substantial, reflecting the ongoing needs of federal agencies for workspace outfitting and modernization. GSA FAS manages numerous Indefinite Delivery/Indefinite Quantity (IDIQ) contracts and Blanket Purchase Agreements (BPAs) that facilitate furniture procurement. Annual spending can fluctuate based on agency budgets, major relocation projects, and furniture lifecycle replacement schedules. While specific aggregate figures for office furniture spending are not provided here, GSA's overall procurement volume runs into billions of dollars annually. Trends often show a move towards more ergonomic and sustainable furniture options, influencing purchasing decisions and contractor offerings over time.

What are the potential risks associated with a 'FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT' contract type for office furniture?

The primary risk associated with a 'FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT' (FP-EPA) contract type for office furniture is the uncertainty of the final cost to the government. While the fixed-price component provides a baseline, the EPA clause allows for price increases based on predefined economic factors. This means the total expenditure could exceed the initial estimated value of $4.9 million. Risks for the government include potential budget overruns and the administrative burden of reviewing and approving price adjustment requests. For the contractor, the risk lies in the possibility that the EPA might not fully compensate for unexpected cost increases, or that the process of claiming adjustments could be complex. Effective management and clear EPA terms are crucial to mitigate these risks.

How does the 'BPA CALL' contract award type differ from a standard GSA Schedule order?

A 'BPA CALL' signifies a specific order placed against an existing Blanket Purchase Agreement (BPA). A BPA is a simplified way to fill anticipated repetitive needs for supplies or services by establishing 'charge accounts' with qualified sources of supply. It's not a contract in itself but an agreement to buy under specified terms. A GSA Schedule order, on the other hand, is typically a direct order placed against a specific GSA Schedule contract held by a vendor. While both streamline procurement, a BPA call is an instance of utilizing a pre-established BPA, which might consolidate multiple vendors or specific pre-negotiated terms for a particular agency's recurring needs. This particular BPA call is against a GSA Schedule contract, effectively acting as a specific task order under a broader agreement.

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

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

Evaluated Preference: NONE

Contractor Details

Address: 4692 MILLENNIUM DR, BELCAMP, MD, 21017

Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $4,938

Exercised Options: $4,938

Current Obligation: $4,938

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QSMA22A08N5

IDV Type: BPA

Timeline