GSA awards $2,320 per high-back task chair, raising questions about value for taxpayer dollars

Contract Overview

Contract Amount: $2,320 ($2.3K)

Contractor: Raynor Marketing Ltd.

Awarding Agency: General Services Administration

Start Date: 2026-04-08

End Date: 2026-07-07

Contract Duration: 90 days

Daily Burn Rate: $26/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: HIGH BACK TASK CHAIR W/ADJUSTABLE HEADREST,FABRIC SEAT, MESH BACK,BLACK

Place of Performance

Location: WEST HEMPSTEAD, NASSAU County, NEW YORK, 11552

State: New York Government Spending

Plain-Language Summary

General Services Administration obligated $2,320.16 to RAYNOR MARKETING LTD. for work described as: HIGH BACK TASK CHAIR W/ADJUSTABLE HEADREST,FABRIC SEAT, MESH BACK,BLACK Key points: 1. The unit price for this task chair appears significantly higher than typical market rates for comparable office furniture. 2. Competition was full and open, suggesting a potentially competitive bidding process, yet the final price remains a concern. 3. The contract is a BPA Call, indicating it's an order against an existing Blanket Purchase Agreement, which can sometimes lead to less granular price scrutiny. 4. The contract duration is short (90 days), which may limit opportunities for long-term cost savings or volume discounts. 5. The specific model details (adjustable headrest, fabric seat, mesh back) are standard for executive office chairs, not justifying an exceptionally high price point. 6. The awarding agency, GSA, is responsible for procuring a wide range of goods and services for the federal government, including office furniture.

Value Assessment

Rating: questionable

The price of $2,320.16 per task chair is substantially above the average market price for high-back, adjustable office chairs with similar features. Comparable chairs from reputable manufacturers typically range from $300 to $800. This significant deviation suggests a potential lack of aggressive price negotiation or an overestimation of the product's value within the context of the BPA call. Further investigation into the specific model's features and any unique contractual terms is warranted to understand this pricing anomaly.

Cost Per Unit: $2,320.16 per chair; market benchmarks for comparable chairs range from $300-$800.

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which theoretically allows all responsible sources to submit offers. However, the high unit price suggests that either the competition was not robust enough to drive prices down, or the specific requirements of the BPA call limited the pool of competitive offers. Without knowing the number of bids received, it's difficult to definitively assess the effectiveness of the competition in achieving optimal price discovery for this specific item.

Taxpayer Impact: While full and open competition is generally favorable for taxpayers, the elevated price paid in this instance indicates that the competitive process did not result in the most cost-effective outcome for government funds.

Public Impact

Federal employees in New York will benefit from the provision of new office furniture. The contract supports the operational needs of federal agencies by providing essential workspace equipment. The geographic impact is localized to New York, where the chairs will be delivered. The contract does not appear to have significant direct workforce implications beyond the supply chain for office furniture manufacturing.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High unit cost for a standard office item.
Potential for overpayment due to lack of aggressive price competition.
BPA Call mechanism may obscure true market price discovery.

Positive Signals

Awarded under full and open competition, allowing broad participation.
Contract is for a necessary office supply, supporting federal operations.
GSA's involvement suggests adherence to federal procurement standards.

Sector Analysis

The office furniture manufacturing sector is a mature industry with established players and a wide range of price points. Federal agencies are significant consumers of office furniture, with GSA acting as a primary procurement channel through various mechanisms like GSA Schedules and Blanket Purchase Agreements (BPAs). Spending benchmarks for office furniture vary widely based on item type, quality, and volume, but prices exceeding $2,000 for a single task chair are highly unusual and typically reserved for highly specialized ergonomic or executive models, which this description does not fully support.

Small Business Impact

This contract does not indicate any specific small business set-aside provisions or subcontracting requirements. The award to Raynor Marketing Ltd. does not provide information on whether they are a small business or if they utilize small business subcontractors. Without further data, the direct impact on the small business ecosystem is unclear, but the high unit price could potentially limit the number of items purchased, indirectly affecting overall demand.

Oversight & Accountability

The General Services Administration (GSA) oversees this contract, including its administration and compliance. As a BPA Call, it falls under the existing BPA's oversight framework. Transparency is generally maintained through public contract databases, but the specific justification for the high unit price would require deeper review of the procurement file and any associated justifications. Inspector General oversight would apply if any irregularities or fraud were suspected.

Related Government Programs

GSA Federal Supply Schedule
Office Furniture Procurement
Blanket Purchase Agreements (BPAs)
General Services Administration Contracts

Risk Flags

High Unit Cost
Potential Lack of Price Competition
Unusual Pricing for Standard Item

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $2,320.16 to RAYNOR MARKETING LTD.. HIGH BACK TASK CHAIR W/ADJUSTABLE HEADREST,FABRIC SEAT, MESH BACK,BLACK

Who is the contractor on this award?

The obligated recipient is RAYNOR MARKETING LTD..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2,320.16.

What is the period of performance?

Start: 2026-04-08. End: 2026-07-07.

What is the typical price range for high-back task chairs with adjustable headrests and mesh backs purchased by the federal government?

The typical price range for high-back task chairs with adjustable headrests and mesh backs purchased by the federal government, especially through competitive GSA schedules or similar mechanisms, generally falls between $300 and $800. Prices can exceed this range for highly specialized ergonomic chairs, executive models with premium materials, or when purchased in very small quantities with expedited shipping. However, a price point of $2,320.16 is exceptionally high and suggests either a unique, high-end model, a significant markup, or a lack of effective price competition within the specific BPA call.

How many bids were received for this BPA Call, and what was the range of pricing submitted?

The provided data does not specify the number of bids received for this particular BPA Call, nor does it detail the pricing submitted by other offerors. The contract was awarded under 'FULL AND OPEN COMPETITION,' which implies that multiple bids were solicited and potentially received. However, the absence of this information prevents a thorough analysis of the competitive landscape and the extent to which the awarded price represents a market-driven outcome. Understanding the bid range is crucial to determining if the selected offer was indeed the most cost-effective.

What specific features or justifications support the $2,320.16 unit price for this task chair?

The provided data lists the chair as 'HIGH BACK TASK CHAIR W/ADJUSTABLE HEADREST, FABRIC SEAT, MESH BACK, BLACK.' While these are desirable features for an office chair, they are standard for mid-to-high-end ergonomic task chairs and do not inherently justify a price exceeding $2,000. Without access to the specific product catalog number, manufacturer's detailed specifications, or any unique contractual clauses related to customization, warranty, or delivery, it is difficult to ascertain the precise justification for such a high unit cost. It is possible the chair includes advanced ergonomic technology, premium materials not detailed, or is part of a larger, customized furniture package.

How does this contract's pricing compare to other similar office furniture procurements by the GSA Federal Acquisition Service?

Comparing this contract's unit price of $2,320.16 to other similar office furniture procurements by the GSA Federal Acquisition Service reveals a significant anomaly. GSA Schedules and BPAs typically offer competitive pricing due to the volume and established competition. While prices vary, a standard high-back task chair with the described features rarely exceeds $800 through GSA channels. This specific award is substantially higher than the average, suggesting it may represent a premium model, a less competitive call within a broader BPA, or a pricing issue that warrants further scrutiny by GSA's oversight bodies.

What is the historical spending pattern for this specific type of office chair or similar items under GSA contracts?

Historical spending data for this specific chair model is not available in the provided information. However, general historical spending patterns for high-back task chairs through GSA contracts indicate that prices typically range from $300 to $800. Significant deviations from this range, such as the $2,320.16 price point in this award, are uncommon for standard task chairs. Analyzing broader GSA spending trends for office furniture within the relevant North American Industry Classification System (NAICS) code (e.g., 337211) would likely show this price as an outlier, prompting questions about the specific circumstances of this procurement.

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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 525 HEMPSTEAD TURNPIKE, WEST HEMPSTEAD, NY, 11552

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

Financial Breakdown

Contract Ceiling: $2,320

Exercised Options: $2,320

Current Obligation: $2,320

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QSSC25A0007

IDV Type: BPA

Timeline