GSA awards $8,842 purchase order for contemporary steel credenzas to Norex Group, LLC

Contract Overview

Contract Amount: $8,843 ($8.8K)

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: $147/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CREDENZA CONTEMPORARYSTEEL TWO SECTIONS ANDKNEESPACE 60'' WIDE BLACK

Place of Performance

Location: VALENCIA, LOS ANGELES County, CALIFORNIA, 91381

State: California Government Spending

Plain-Language Summary

General Services Administration obligated $8,842.75 to NOREX GROUP, LLC for work described as: CREDENZA CONTEMPORARYSTEEL TWO SECTIONS ANDKNEESPACE 60'' WIDE BLACK Key points: 1. Value for money appears fair given the fixed-price nature of the award. 2. Competition dynamics indicate a potentially limited bidding process under SAP. 3. Risk indicators are low due to the relatively small dollar value and short duration. 4. Performance context suggests a standard procurement for office furniture. 5. Sector positioning places this within the broader office supply and furnishings market.

Value Assessment

Rating: fair

The contract value of $8,842.75 for two credenzas seems within a reasonable range for specialized office furniture. Benchmarking against similar government furniture procurements would provide a clearer picture of value. The firm fixed-price contract shifts risk to the contractor, which is generally favorable for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under Simplified Acquisition Procedures (SAP), which typically involves fewer bidders and less formal solicitation processes compared to full and open competition. The presence of two bidders suggests some level of competition, but it may not have been as robust as a larger, more widely advertised procurement.

Taxpayer Impact: Limited competition under SAP can sometimes lead to higher prices than if a broader range of vendors were involved, though the small dollar value here mitigates significant taxpayer impact.

Public Impact

Federal employees in California will benefit from new office furniture. The services delivered include the provision of contemporary steel credenzas. The geographic impact is limited to the facility where the credenzas will be installed in California. Workforce implications are minimal, primarily related to the delivery and installation of the furniture.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition under SAP may not yield the best price.
Lack of detailed performance metrics makes assessing contractor performance difficult.

Positive Signals

Firm fixed-price contract provides cost certainty.
Short contract duration limits long-term financial commitment.
Awarded to a single vendor, simplifying administration.

Sector Analysis

This contract falls within the office furniture and fixtures sector, a segment of the broader manufacturing and wholesale trade industries. Spending in this area supports federal agency workspace needs. Comparable spending benchmarks are difficult to establish without more specific product details, but government furniture procurement is a consistent market.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, nor does it appear to involve significant subcontracting opportunities for them. The award to Norex Group, LLC, does not provide specific information on their small business status or subcontracting plans.

Oversight & Accountability

Oversight for this purchase order would typically be managed by the General Services Administration's Federal Acquisition Service. Accountability is established through the firm fixed-price contract terms. Transparency is moderate, as the award details are publicly available, but specific justifications for the competition level are not detailed.

Related Government Programs

Federal Office Furniture Procurement
General Services Administration Schedules
Simplified Acquisition Procedures

Risk Flags

Limited competition potential
Lack of detailed performance metrics

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $8,842.75 to NOREX GROUP, LLC. CREDENZA CONTEMPORARYSTEEL TWO SECTIONS ANDKNEESPACE 60'' WIDE BLACK

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 $8,842.75.

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, particularly for office furniture?

Information regarding Norex Group, LLC's specific track record with federal contracts, especially for office furniture, is not detailed in the provided data. A deeper analysis would require searching federal procurement databases like SAM.gov or FPDS for past performance history, including contract values, agencies served, and any reported issues or successes. Without this, it's difficult to assess their reliability and experience beyond this single award.

How does the price of these credenzas compare to similar items purchased by other federal agencies or in the commercial market?

The provided data does not include sufficient detail to benchmark the price effectively. The unit price per credenza is approximately $4,421.38. To compare, one would need to identify comparable steel credenzas with similar dimensions (60" wide) and features (two sections, kneespace) from other government contracts or commercial vendors. Factors like material quality, warranty, and delivery terms would also need to be considered for an accurate comparison. The limited competition may have influenced the final price.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks are relatively low given the contract's nature. These include potential delivery delays, minor defects in the furniture, or the furniture not meeting aesthetic or functional expectations. Mitigation is primarily achieved through the firm fixed-price contract, which incentivizes the contractor to deliver as specified to receive payment. The short duration (60 days) also limits the exposure period. The GSA's oversight and the potential for future contract awards to be influenced by performance also serve as indirect mitigation.

How effective is the Simplified Acquisition Procedures (SAP) process for procuring items like office furniture in terms of achieving best value?

SAP is designed for procurements under the simplified acquisition threshold (currently $250,000). It aims to reduce administrative burden and speed up the process for smaller purchases. For items like office furniture, SAP can be effective if multiple vendors are encouraged to participate, leading to competitive pricing. However, if competition is limited, as suggested by only two bidders, the government might not achieve the best possible value compared to a more widely competed process. The effectiveness hinges on the specific market and outreach efforts.

What is the historical spending pattern for office furniture by the General Services Administration (GSA)?

Historical spending data for office furniture by GSA would reveal trends in procurement volume, average prices, and preferred vendors over time. Analyzing this would require accessing GSA's historical contract databases. Such analysis could identify periods of high or low spending, shifts in product types (e.g., from traditional to contemporary designs), and the impact of different procurement strategies (e.g., GSA Schedules vs. direct procurements). This context helps in evaluating whether the current award aligns with historical patterns or represents a deviation.

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: $8,843

Exercised Options: $8,843

Current Obligation: $8,843

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline