GSA awards $3.77M for steel desks, with 2 bidders indicating moderate competition

Contract Overview

Contract Amount: $3,775 ($3.8K)

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: $63/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 $3,775.1 to NOREX GROUP, LLC for work described as: STEEL DESK Key points: 1. Value for money appears fair given the fixed-price contract and moderate competition. 2. Competition dynamics show two bidders, suggesting some market interest but not broad engagement. 3. Risk indicators are low due to a firm fixed-price contract and short duration. 4. Performance context is a standard supply contract for office furniture. 5. Sector positioning is within the General Services Administration's broad category for office supplies. 6. The contract's value is modest within the overall federal furniture procurement landscape.

Value Assessment

Rating: fair

The contract value of $3.77 million for steel desks is a moderate expenditure. Without specific per-unit cost data or comparison to similar recent awards for identical items, a precise value-for-money assessment is challenging. However, the firm fixed-price structure provides cost certainty. The presence of two bidders suggests a degree of market interest, which typically helps in achieving reasonable pricing, though a more competitive environment could potentially drive prices lower.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under the Simplified Acquisition Procedures (SAP), indicating it was likely solicited broadly within the eligible vendor pool for procurements under the federal micro-purchase threshold. The presence of two bidders suggests that while the opportunity was open, the market response was limited. This level of competition is better than a sole-source award but does not represent the robust price discovery typically seen in larger, more widely advertised full-and-open competitions.

Taxpayer Impact: With two bidders, taxpayers benefit from some price negotiation, but the limited competition may mean that the government did not secure the absolute lowest possible price.

Public Impact

Federal agencies requiring office furniture will benefit from the supply of steel desks. The services delivered include the provision of specific office furniture items. The geographic impact is likely nationwide, as GSA procures for various federal entities. Workforce implications are minimal, primarily related to the manufacturing and delivery of the desks.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may result in a higher per-unit cost than a more robust bidding process.
Reliance on a small number of bidders could pose a risk if one contractor fails to perform.
The specific quality and durability of the steel desks are not detailed, posing a potential risk if they do not meet long-term needs.

Positive Signals

The firm fixed-price contract provides cost certainty and limits the government's exposure to cost overruns.
The short contract duration (60 days) minimizes long-term commitment and allows for re-competition if needed.
Procurement through GSA leverages established channels for efficient acquisition of common goods.

Sector Analysis

The office furniture market within the federal sector is a consistent area of spending, driven by agency needs for workspace outfitting and replacement. The General Services Administration (GSA) plays a significant role in consolidating these purchases to achieve economies of scale. While specific data on the total federal spending on office furniture is not provided, it represents a substantial segment of the broader facilities and equipment procurement category. This contract for steel desks fits within the standard procurement of office furnishings.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). While NOREX GROUP, LLC may be a small business, the procurement method (COMPETED UNDER SAP) does not guarantee small business participation or subcontracting opportunities. Further analysis would be needed to determine if any small business subcontracting plans were required or achieved.

Oversight & Accountability

The General Services Administration (GSA) typically has robust oversight mechanisms for its procurement processes, including the Federal Acquisition Service (FAS). This contract, being a purchase order under SAP, would be subject to internal GSA review and audit processes. Transparency is generally maintained through contract databases like FPDS. Inspector General oversight would apply if any irregularities or fraud were suspected.

Related Government Programs

GSA Office Furniture Procurement
Federal Office Supply Contracts
General Services Administration Purchase Orders
Steel Desk Federal Contracts

Risk Flags

NAICS Code Mismatch
Limited Competition

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $3,775.1 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 $3,775.1.

What is the period of performance?

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

What is the typical price range for steel desks procured by the federal government?

Determining a precise typical price range for federal steel desks is complex due to variations in size, material thickness, features (e.g., drawers, adjustable height), and quantity ordered. However, based on publicly available contract data for similar items, individual steel desks can range from under $100 for basic models to several hundred dollars for more feature-rich or larger units. The average price per desk in this $3.77 million contract, with 2 bidders and a 60-day duration, would depend on the total number of desks procured. If, for example, 10,000 desks were ordered, the average cost would be approximately $377 per desk, which might be on the higher end unless these are specialized or high-volume units. Without the exact quantity, a direct comparison is difficult.

How does the competition level of two bidders compare to other GSA furniture procurements?

A competition level of two bidders for a federal contract, especially under Simplified Acquisition Procedures (SAP), is not uncommon but represents moderate engagement. Many larger GSA furniture procurements, particularly those using full and open competition with significant dollar values, often attract a larger number of bidders, sometimes exceeding five or ten. Conversely, procurements for highly specialized items or those with very small dollar values might see only one or zero responsive bidders. Therefore, two bidders suggest a market that is aware of the opportunity and has some interest, but it falls short of the robust competition that typically drives the most aggressive pricing.

What are the potential risks associated with a firm fixed-price contract for furniture?

Firm fixed-price (FFP) contracts are generally favored for their cost certainty, as the contractor assumes the risk of cost overruns. For furniture procurement, the primary risks associated with an FFP contract are less about cost overruns for the contractor and more about the potential for the government to receive suboptimal value if the pricing was not aggressively bid due to limited competition. Another risk could be contractor performance issues, such as delays or quality defects, which, while not a cost overrun for the government, can still impact program delivery. However, the short duration of this contract (60 days) mitigates some long-term performance risks.

What is the significance of the NAICS code 332216 (Saw Blade and Handtool Manufacturing) for a steel desk contract?

The NAICS code 332216, 'Saw Blade and Handtool Manufacturing,' appears to be a mismatch for a contract primarily for steel desks. Steel desks typically fall under NAICS codes related to 'Office Furniture Manufacturing' (e.g., 337214) or 'Metal Furniture Manufacturing' (e.g., 337215). This discrepancy suggests a potential data entry error in the provided information or that the contractor, NOREX GROUP, LLC, may specialize in metal fabrication and supplies a broader range of metal products, including desks, under a classification that doesn't perfectly align with the end product. It warrants further investigation to confirm the correct product classification and ensure accurate reporting.

How does the contract award date and period of performance impact the relevance of the pricing?

The contract was awarded under SAP with a performance period from April 3, 2026, to June 2, 2026, a duration of 60 days. This short performance period means the pricing is relevant for immediate needs and reflects current market conditions at the time of award (likely in late 2025 or early 2026). It does not lock the government into potentially outdated pricing for an extended period. The short timeframe also suggests these are likely standard, readily available steel desks rather than custom-manufactured items requiring longer lead times. The pricing is therefore a snapshot of the market for this specific, short-term supply requirement.

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: $3,775

Exercised Options: $3,775

Current Obligation: $3,775

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline