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. Limited competition dynamics may have influenced the final price. 3. The fixed-price contract type offers some cost certainty but may not reflect market fluctuations. 4. Performance context is minimal, with a short duration and standard product. 5. This contract falls within the broader office furniture and equipment sector.

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 or unit details, it's difficult to benchmark precisely, but typical government purchase orders for office furniture, even in bulk, rarely reach such figures for a single item like desks. This suggests a potential overpayment or a misunderstanding of the scope. Further investigation into the unit cost and comparison with similar GSA schedules or other agency procurements for comparable items is warranted.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The contract was competed under SAP (Simplified Acquisition Procedures), which typically involves fewer than three bids and is often used for purchases under the simplified acquisition threshold. While the exact number of bidders is not provided, SAP competitions generally offer less robust price discovery than full and open competition. The limited nature of SAP suggests that the government may not have received the most competitive pricing available in the market.

Taxpayer Impact: Taxpayers may have paid a premium due to the limited competition inherent in the Simplified Acquisition Procedures.

Public Impact

Federal employees in facilities managed by GSA will benefit from new steel desks. The services delivered include the provision of office furniture. The geographic impact is likely concentrated in California, where the contractor is located. Workforce implications are minimal, primarily related to the delivery and installation of furniture.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High contract value for a short-term supply of desks.
Limited competition under SAP may lead to inflated pricing.
Lack of detailed specifications makes value assessment difficult.

Positive Signals

Fixed-price contract provides cost certainty for the government.
Contract awarded to a single entity, potentially streamlining delivery.
GSA's role ensures adherence to federal procurement standards.

Sector Analysis

This contract falls within the broader office furniture and equipment manufacturing sector, specifically related to metal furniture. The North American Industry Classification System (NAICS) code 332216 (Saw Blade and Handtool Manufacturing) seems misaligned with the product description 'STEEL DESK,' suggesting a potential data entry error or a very niche classification. The market for office furniture is competitive, but specialized items or rapid delivery requirements can influence pricing.

Small Business Impact

The contract was not set aside for small businesses, and the data indicates the contractor, NOREX GROUP, LLC, is not a small business. There is no information provided regarding subcontracting plans, so the impact on the small business ecosystem is likely minimal unless NOREX GROUP voluntarily engages small businesses for support services.

Oversight & Accountability

Oversight for this contract would typically fall under the General Services Administration's Federal Acquisition Service. As a purchase order under SAP, the oversight might be less intensive than for larger, more complex contracts. Accountability is primarily managed through the contract terms and conditions, with potential for Inspector General review if significant issues arise. Transparency is limited by the nature of SAP procurements.

Related Government Programs

GSA Office Furniture Procurement
Federal Workspace Modernization
Government Supply Chain Management

Risk Flags

Potential overvaluation of goods
Questionable use of Simplified Acquisition Procedures for large value
Lack of detailed specifications
Misaligned NAICS code

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 being procured. The total award amount is $2.65 million, with a contract duration of 60 days. Without the quantity, calculating a meaningful per-unit cost or benchmarking against industry standards is impossible. This lack of detail hinders a thorough value-for-money assessment and raises concerns about the transparency of the procurement process. Further information from GSA would be required to determine the number of units included in this purchase order.

How does the per-unit cost of these steel desks compare to market rates or similar government contracts?

A direct per-unit cost comparison is not feasible with the current data, as the quantity of desks is not specified. The total award of $2.65 million over a two-month period for 'STEEL DESK' is exceptionally high if it refers to standard office desks. If this amount is accurate for the quantity procured, the per-unit cost would likely far exceed typical market rates for office furniture. Government contracts often have higher price points due to administrative overhead, specific compliance requirements, and sometimes less aggressive competition, but this figure warrants scrutiny. Benchmarking against GSA Schedule contracts for similar items would be necessary for a proper assessment.

What are the specific performance standards and delivery timelines expected for these steel desks?

The contract has a duration of 60 days, with an end date of June 2, 2026. This suggests a relatively short lead time for delivery and potential installation. Specific performance standards beyond the basic requirement for 'STEEL DESK' are not detailed in the provided data. Typically, government contracts would include specifications regarding material quality, durability, dimensions, finish, and potentially assembly requirements. The brevity of the contract duration implies a need for prompt fulfillment, which could influence pricing if expedited manufacturing or shipping is involved.

What is the track record of NOREX GROUP, LLC in fulfilling federal contracts, particularly for office furniture?

Information regarding the specific track record of NOREX GROUP, LLC in fulfilling federal contracts, especially for office furniture, is not provided in the data. As the award is a purchase order under Simplified Acquisition Procedures (SAP), it might represent one of many smaller transactions the company engages in. A comprehensive assessment of their past performance, including on-time delivery, quality of goods, and adherence to contract terms on previous government orders, would be crucial for evaluating the reliability of this current award. Accessing federal procurement databases like SAM.gov or FPDS could provide more insight into their performance history.

What is the rationale for using Simplified Acquisition Procedures (SAP) for a contract valued at $2.65 million?

The data indicates the contract was 'COMPETED UNDER SAP,' which typically applies to purchases below the simplified acquisition threshold (SAT), currently $250,000. An award of $2.65 million significantly exceeds this threshold. There might be an error in the data provided, or the contract could be composed of multiple smaller orders aggregated under a single identifier, or it might fall under specific exceptions allowing SAP for higher values (e.g., certain types of services or specific agency authorities). If the $2.65 million is accurate for a single procurement action, using SAP would be highly unusual and potentially non-compliant with standard federal acquisition regulations, raising significant oversight concerns.

Are there any known risks associated with the procurement of steel desks, such as supply chain disruptions or quality control issues?

While steel desks are generally standard items, potential risks can still exist. Supply chain disruptions for raw materials (steel) or manufacturing components could impact delivery timelines, although the short 60-day duration might mitigate this somewhat. Quality control is always a consideration; ensuring the desks meet specified durability, safety, and finish standards is important. Given the high value and potentially limited competition, there's a risk of receiving substandard products at an inflated price. The NAICS code mismatch (332216 - Saw Blade and Handtool Manufacturing vs. Steel Desks) could indicate a lack of specialized manufacturing expertise by the awardee or a data error, potentially increasing quality risks.

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