GSA awards $2.65M for steel desks, raising questions on value and competition

Contract Overview

Contract Amount: $2,655 ($2.7K)

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: $44/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 $2,654.58 to NOREX GROUP, LLC for work described as: STEEL DESK Key points: 1. The contract value of $2.65 million for steel desks appears high relative to the duration and quantity. 2. Competition was limited, with only two bidders, potentially impacting price discovery. 3. The fixed-price contract type offers cost certainty but may not incentivize efficiency. 4. The award was made under Simplified Acquisition Procedures, suggesting a focus on smaller procurements. 5. The contractor, NOREX GROUP, LLC, has a track record that warrants further examination for performance and pricing. 6. The geographic location of the award in California may influence logistics and delivery costs.

Value Assessment

Rating: questionable

The awarded amount of $2.65 million for steel desks over a two-month period seems disproportionately high. Without specific quantity details, it's difficult to benchmark per-unit costs accurately. However, comparing to typical office furniture procurement, this value raises concerns about whether the government is receiving optimal value for its investment. Further analysis of the unit price and comparison to similar GSA schedules or open market prices is recommended.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under Simplified Acquisition Procedures (SAP), which typically involves less formal competition than larger procurements. With only two bidders, the level of competition was limited. This suggests that the market for this specific type of steel desk under these conditions may not be robust, or that the solicitation did not reach a wide audience. Limited competition can lead to higher prices as bidders face less pressure to offer competitive rates.

Taxpayer Impact: Limited competition means taxpayers may have paid more than necessary for these steel desks, as the government had fewer options to choose from and less leverage to negotiate favorable pricing.

Public Impact

Federal employees in offices requiring new or replacement steel desks will benefit from this contract. The services delivered include the provision of steel desks, essential for office functionality. The geographic impact is primarily within California, where the desks will likely be delivered and utilized. Workforce implications are minimal, primarily related to the delivery and installation of furniture.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High per-unit cost potential given the total award value and short duration.
Limited competition may indicate a lack of market interest or effective outreach.
Contract duration is very short, raising questions about the need for such a large immediate purchase.

Positive Signals

Awarded under a competitive procedure, even if limited.
Fixed-price contract provides cost certainty for the government.
Contracting activity is managed by the General Services Administration, a central procurement authority.

Sector Analysis

The procurement of office furniture, including steel desks, falls under the broader office equipment and supplies sector. This sector is characterized by a wide range of manufacturers and suppliers, from large furniture companies to smaller specialized providers. GSA plays a significant role in consolidating federal purchasing power for such items, often leveraging schedules and bulk purchasing agreements. The value of this contract, while substantial for desks, is a small fraction of the overall federal spending on office furnishings and equipment.

Small Business Impact

The contract was not set aside for small businesses, and the 'sb' field is false, indicating no specific small business considerations were applied. This means larger businesses were likely eligible and potentially dominant in the bidding process. There is no explicit information on subcontracting plans, so the impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily engages small businesses for fulfillment or related services.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration's Federal Acquisition Service. As a purchase order under SAP, it is subject to internal GSA review and audit processes. Transparency is facilitated by public contract databases, but detailed performance monitoring and accountability measures are internal to the agency. Inspector General jurisdiction would apply if specific fraud or mismanagement concerns were raised.

Related Government Programs

GSA Office Furniture Schedules
Federal Supply Schedule (FSS) Contracts
General Services Administration Procurement Data

Risk Flags

High potential per-unit cost
Limited competition
Short contract duration for a significant value
Lack of detailed specifications in summary data

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $2,654.58 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 $2,654.58.

What is the period of performance?

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

What is the specific quantity of steel desks being procured under this contract?

The provided data does not specify the exact quantity of steel desks. The total award amount is $2.65 million, with a contract duration of 60 days (two months). Without the quantity, it is impossible to calculate a precise per-unit cost. However, if we assume a typical office desk cost of $300-$500, $2.65 million could potentially procure between 5,300 and 8,833 desks. If the actual quantity is significantly lower, the per-unit cost would be exceptionally high, warranting further investigation into the specifications and any included services like delivery and installation.

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

Benchmarking the per-unit cost is challenging without the specific quantity and detailed specifications of the steel desks. However, typical steel desks procured through GSA Schedules often range from $200 to $600, depending on size, features, and manufacturer. If the $2.65 million award implies a per-unit cost exceeding $700-$800, it would be considered high and suggest potential overpricing or the inclusion of significant ancillary services not immediately apparent. A detailed review of the contract line items and comparison against current GSA Schedule offerings for comparable items is necessary for a definitive assessment.

What are the specific performance requirements and delivery timelines for this contract?

The contract has a duration of 60 days, with an effective start date of April 3, 2026, and an end date of June 2, 2026. This short timeframe suggests an urgent need for the steel desks. Specific performance requirements would typically be detailed in the Statement of Work (SOW) or Performance Work Statement (PWS), which are not provided in the summary data. These would outline the quality standards, delivery locations, installation requirements, and any warranty provisions. The short duration implies a need for rapid fulfillment, which could influence pricing.

What is the track record of NOREX GROUP, LLC regarding federal contracts of similar size and scope?

Information on NOREX GROUP, LLC's track record is limited based on the provided data. As a recipient of a $2.65 million purchase order, it indicates the company has the capacity to handle federal contracts. However, a deeper dive into their past performance, including on-time delivery, quality of goods, and adherence to contract terms on previous federal awards, is crucial. Examining their history with the General Services Administration and other agencies would reveal patterns of reliability and potential red flags. Without this historical context, assessing their suitability and the risk associated with this award is incomplete.

What is the rationale for awarding this contract under Simplified Acquisition Procedures (SAP) given the total value?

The contract value of $2.65 million is within the upper limit for Simplified Acquisition Procedures (SAP), which generally extends up to $250,000, but can be higher for certain types of procurements or under specific agency authorities (e.g., FAR Part 13.5 allows up to $7 million for commercial items). Awarding under SAP suggests the agency aimed for a streamlined, less burdensome acquisition process, potentially to expedite delivery. However, it also typically involves less extensive market research and competition than full and open procedures, which could explain the limited number of bidders and potential impact on price.

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: $2,655

Exercised Options: $2,655

Current Obligation: $2,655

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline