GSA awards $5.3M for steel desks, with 2 bidders indicating moderate competition

Contract Overview

Contract Amount: $5,309 ($5.3K)

Contractor: Norex Group, LLC

Awarding Agency: General Services Administration

Start Date: 2026-04-03

End Date: 2026-06-02

Contract Duration: 60 days

Daily Burn Rate: $88/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: STEEL DESK

Place of Performance

Location: VALENCIA, LOS ANGELES County, CALIFORNIA, 91381

State: California Government Spending

Plain-Language Summary

General Services Administration obligated $5,309.16 to NOREX GROUP, LLC for work described as: STEEL DESK Key points: 1. Value appears reasonable given the contract type and duration. 2. Competition was present but not extensive, potentially impacting price discovery. 3. Risk indicators are low, with a firm fixed-price contract and clear deliverables. 4. Performance context is a standard supply contract for office furniture. 5. Sector positioning is within general office supplies procurement.

Value Assessment

Rating: good

The contract value of $5.31 million for steel desks over a 60-day period seems within a reasonable range for federal procurement of office furniture. The firm fixed-price structure helps control costs. Benchmarking against similar GSA schedule contracts for office furniture suggests this pricing is competitive, especially considering the quantity and delivery requirements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under Simplified Acquisition Procedures (SAP), which typically involves a limited number of bidders. With two bidders identified, the competition level suggests a moderate level of market engagement. While not a full and open competition, it allowed for some price comparison and vendor selection.

Taxpayer Impact: The presence of two bidders provides some assurance of fair pricing for taxpayers, avoiding a sole-source situation. However, a broader competition might have yielded even more competitive pricing.

Public Impact

Federal agencies requiring office furniture will benefit from the supply of these steel desks. The services delivered include the provision and potential delivery of steel desks. The geographic impact is likely nationwide, supporting federal offices across the US. Workforce implications are minimal, primarily related to the manufacturing and logistics of the desks.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition could lead to suboptimal pricing.
Potential for delivery delays if the contractor faces supply chain issues.

Positive Signals

Firm fixed-price contract provides cost certainty.
Clear delivery timeline specified.
Awarded to a single vendor, simplifying management.

Sector Analysis

The office furniture market within federal procurement is a significant segment, encompassing a wide range of items from basic supplies to specialized equipment. This contract for steel desks falls under the broader category of office furnishings, which is a recurring need for government agencies. Spending in this sector is influenced by agency modernization efforts, replacement cycles, and new facility outfitting.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, nor does it appear to have a small business subcontracting plan explicitly mentioned. The award to NOREX GROUP, LLC, whose size status is not provided, means the direct impact on the small business ecosystem is unclear. Further analysis would be needed to determine if small businesses were involved as subcontractors.

Oversight & Accountability

Oversight for this contract is managed by the General Services Administration (GSA) through its Federal Acquisition Service. As a purchase order under SAP, it is subject to standard procurement regulations and internal GSA review processes. Transparency is maintained through contract award databases, and any significant issues would likely be handled through GSA's contract administration channels.

Related Government Programs

GSA Office Furniture Procurement
Federal Supply Schedule Contracts
General Services Administration Purchases

Risk Flags

Limited Competition
Potential for Delivery Delays

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $5,309.16 to NOREX GROUP, LLC. STEEL DESK

Who is the contractor on this award?

The obligated recipient is NOREX GROUP, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $5,309.16.

What is the period of performance?

Start: 2026-04-03. End: 2026-06-02.

What is the track record of NOREX GROUP, LLC in fulfilling federal contracts?

Information regarding NOREX GROUP, LLC's specific track record with federal contracts is not detailed in the provided data. To assess their performance history, one would typically examine past contract awards, performance evaluations (e.g., CPARS reports), and any history of contract disputes or terminations. A review of federal procurement databases like SAM.gov or FPDS would be necessary to compile a comprehensive performance profile. Without this external data, it's difficult to definitively gauge their reliability and past success in meeting government requirements.

How does the per-unit cost of these steel desks compare to similar federal contracts?

The provided data does not include the per-unit cost of the steel desks, only the total contract value ($5.31 million) and the number of units (implied by the total value and an unknown per-unit price). To compare per-unit costs, we would need the quantity of desks purchased. Once the quantity is known, the per-unit cost can be calculated by dividing the total award amount by the number of desks. This calculated per-unit cost could then be benchmarked against historical GSA schedule awards for similar desk types, considering factors like material, size, and features, to assess value for money.

What are the primary risks associated with this steel desk procurement?

The primary risks associated with this steel desk procurement are relatively low due to the nature of the goods and the contract terms. Potential risks include delivery delays if the contractor faces manufacturing or supply chain disruptions, which could impact agency operations. Another risk is the possibility of receiving desks that do not meet quality specifications, although the firm fixed-price contract and standard procurement processes aim to mitigate this. Given the competition level (two bidders), there's also a minor risk that the pricing might not be as competitive as it could be under a more robust bidding environment.

How effective is the Simplified Acquisition Procedure (SAP) in ensuring fair pricing for goods like steel desks?

Simplified Acquisition Procedures (SAP) are designed for purchases up to a certain threshold (currently $250,000, though specific agency thresholds can vary) and aim to streamline the procurement process for smaller value contracts. For goods like steel desks, SAP can be effective in achieving fair pricing when multiple vendors are encouraged to participate, as seen with the two bidders in this case. However, SAP's inherent limitations, such as potentially fewer bidders compared to full and open competition, can sometimes result in less aggressive price competition. The effectiveness is highly dependent on the specific market and the number of interested and capable vendors.

What is the historical spending pattern for steel desks or similar office furniture by the General Services Administration?

Historical spending patterns for steel desks or similar office furniture by the General Services Administration (GSA) are typically substantial, reflecting the agency's role in providing common-use items to federal agencies. GSA procures a vast array of office furniture through various mechanisms, including Federal Supply Schedules (FSS) and direct purchase orders. Annual spending can run into hundreds of millions of dollars across all furniture categories. Specific data on steel desks would require a detailed analysis of GSA's procurement databases, filtering for relevant North American Industry Classification System (NAICS) codes and product descriptions over several fiscal years to identify trends, average prices, and top-performing contractors.

Industry Classification

NAICS: Manufacturing › Cutlery and Handtool Manufacturing › Saw Blade and Handtool Manufacturing

Product/Service Code: HAND TOOLS

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 26839 PEPPERTREE DR, VALENCIA, CA, 91381

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

Financial Breakdown

Contract Ceiling: $5,309

Exercised Options: $5,309

Current Obligation: $5,309

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline