GSA awards $2.7M for filing cabinets, highlighting potential for price adjustments

Contract Overview

Contract Amount: $2,698 ($2.7K)

Contractor: Metro Office Solutions Inc

Awarding Agency: General Services Administration

Start Date: 2026-04-07

End Date: 2026-05-12

Contract Duration: 35 days

Daily Burn Rate: $77/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: FILING CABINET

Place of Performance

Location: BELCAMP, HARFORD County, MARYLAND, 21017

State: Maryland Government Spending

Plain-Language Summary

General Services Administration obligated $2,698.12 to METRO OFFICE SOLUTIONS INC for work described as: FILING CABINET Key points: 1. Contract value of $2.7M for office furniture, specifically filing cabinets. 2. Awarded by the General Services Administration (GSA) through its Federal Acquisition Service. 3. Utilizes a Fixed Price with Economic Price Adjustment (EPA) contract type. 4. The contract has a short duration of 35 days. 5. Metro Office Solutions Inc. is the awarded contractor. 6. Competition was full and open, suggesting a competitive bidding process. 7. The North American Industry Classification System (NAICS) code is 337214 for Office Furniture Manufacturing.

Value Assessment

Rating: fair

The contract value of $2.7M for filing cabinets over a 35-day period appears substantial. Without specific details on the quantity and type of cabinets, a direct value-for-money assessment is difficult. The inclusion of economic price adjustment clauses warrants careful monitoring to ensure costs do not escalate beyond reasonable market fluctuations. Benchmarking against similar GSA schedule awards for office furniture would provide a clearer picture of whether this pricing is competitive.

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 bids. This method generally fosters a competitive environment, which can lead to better pricing and terms for the government. The number of bidders is not specified, but the open competition suggests that multiple companies likely vied for this award, potentially driving down costs.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for cost savings through a robust bidding process, ensuring the government receives competitive pricing.

Public Impact

Federal agencies requiring office furniture, specifically filing cabinets, will benefit from this contract. The services delivered include the provision of office furniture. The geographic impact is likely focused on Maryland (MD) where the contractor is located, but could extend to other areas served by GSA. Workforce implications may include manufacturing and logistics roles within Metro Office Solutions Inc. and its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost increases due to Economic Price Adjustment (EPA) clause.
Short contract duration may limit long-term planning and relationship building.
Lack of specific quantity and product details makes precise value assessment challenging.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Contract managed by GSA, a reputable agency for federal procurement.
Contractor is established in office furniture manufacturing.

Sector Analysis

This contract falls within the broader office furniture manufacturing sector, a segment of the non-durable goods manufacturing industry. The NAICS code 337214 specifically targets office furniture production. The federal government is a significant purchaser of office furniture, with agencies like those served by GSA constantly needing to equip and re-equip workspaces. Spending in this sector is influenced by federal budget allocations, agency needs for modernization, and replacement cycles for existing furniture.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While Metro Office Solutions Inc. may be a small business itself, the contract was not explicitly structured to favor small businesses. There is no information provided on subcontracting plans, so the direct impact on the small business ecosystem is unclear, though larger contracts often involve subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would primarily fall under the purview of the General Services Administration (GSA). As a Best Practices Acquisition (BPA) Call, it is likely managed through established GSA procedures. Transparency is generally maintained through GSA's contract award databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

GSA Schedules Program
Office Furniture Procurement
Federal Supply Schedules
General Services Administration Contracts

Risk Flags

Economic Price Adjustment Clause
Short Contract Duration
Lack of Specific Quantity Data

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $2,698.12 to METRO OFFICE SOLUTIONS INC. FILING CABINET

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 $2,698.12.

What is the period of performance?

Start: 2026-04-07. End: 2026-05-12.

What is the typical profit margin for office furniture manufacturers like Metro Office Solutions Inc. when selling to the federal government?

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 manufacturing can vary widely based on operational efficiency, material costs, scale of production, and market competition. For federal contracts, especially those awarded under full and open competition, profit margins are often constrained by competitive pressures. The inclusion of an Economic Price Adjustment (EPA) clause suggests that the contractor has factored in potential cost fluctuations, which could impact the final profit. Generally, government contractors aim for margins that are competitive yet sustainable, often falling within the 5-15% range for established products, but this is a broad estimate and highly dependent on specific contract terms and market conditions.

How does the Economic Price Adjustment (EPA) clause typically function in a contract of this nature?

An Economic Price Adjustment (EPA) clause in a contract allows for the modification of the contract price based on specified economic factors, such as changes in labor costs, material costs, or other economic indices. For this contract, the EPA would likely be tied to fluctuations in the cost of raw materials used in filing cabinet production (e.g., steel, plastic, paint) or labor wages. The specific index or formula for adjustment would be detailed in the contract's terms and conditions. The purpose is to protect both the contractor from unforeseen cost increases that could make the contract unprofitable and the government from paying excessively inflated prices if costs were to decrease significantly. The short duration of this contract (35 days) might limit the potential impact of the EPA, but it still introduces a variable element to the final cost.

What is the historical spending pattern of the General Services Administration (GSA) on office furniture, specifically filing cabinets?

The General Services Administration (GSA) is a primary channel for federal agencies to procure office furniture, including filing cabinets. Historical spending data from GSA indicates consistent and substantial investment in this category over the years. GSA utilizes various procurement vehicles, such as GSA Schedules and Blanket Purchase Agreements (BPAs), to facilitate these purchases. While specific figures for 'filing cabinets' alone are not readily available without deep dives into GSA's procurement databases, the overall spending on office furniture and related equipment runs into hundreds of millions of dollars annually across the federal government, with GSA facilitating a significant portion. This contract, valued at $2.7M, represents a small fraction of the total federal expenditure on such items, reflecting ongoing demand driven by agency needs for workspace outfitting and replacement.

What are the potential risks associated with a short-duration contract like this, despite full and open competition?

Even with full and open competition, a short-duration contract (35 days) presents unique risks. One primary risk is the potential for rushed delivery or quality issues if the contractor faces unexpected production or logistical challenges within the tight timeframe. Another risk is the limited opportunity for the government to assess the contractor's performance thoroughly before the contract concludes. While the competition aims for good pricing, the short window might mean less incentive for contractors to offer their absolute best pricing compared to longer-term agreements where relationship building and future work are factors. Furthermore, if the need for filing cabinets is ongoing, the short duration necessitates a rapid re-competition or extension process, which itself carries administrative burden and potential for disruption.

How does the NAICS code 337214 specifically define the scope of this contract?

The North American Industry Classification System (NAICS) code 337214 precisely defines the scope of this contract as pertaining to establishments primarily engaged in manufacturing office furniture, except wood. This includes the production of metal, plastic, and other non-wood office furniture, such as filing cabinets, desks, chairs, and partitions. By assigning this code, the government ensures that the procurement is targeted towards manufacturers with the specific capabilities and industry classification relevant to producing these goods. It helps in identifying appropriate vendors and in categorizing federal spending within the manufacturing sector, allowing for relevant industry analysis and benchmarking.

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: $2,698

Exercised Options: $2,698

Current Obligation: $2,698

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QSMA23A08NC

IDV Type: BPA

Timeline