DHS awards $1.85M for USCIS office furniture, highlighting potential for cost savings in furniture procurement

Contract Overview

Contract Amount: $1,851,997 ($1.9M)

Contractor: Millerknoll Inc

Awarding Agency: Department of Homeland Security

Start Date: 2022-09-13

End Date: 2024-05-31

Contract Duration: 626 days

Daily Burn Rate: $3.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OFFICE FURNITURE FOR THE USCIS CENTRAL NEW JERSEY FIELD OFFICE

Place of Performance

Location: CRANBURY, MIDDLESEX County, NEW JERSEY, 08512

State: New Jersey Government Spending

Plain-Language Summary

Department of Homeland Security obligated $1.9 million to MILLERKNOLL INC for work described as: OFFICE FURNITURE FOR THE USCIS CENTRAL NEW JERSEY FIELD OFFICE Key points: 1. The contract value of $1.85M for office furniture suggests a significant investment in workspace infrastructure. 2. Competition dynamics for this contract are crucial for understanding price discovery and potential value for money. 3. The fixed-price contract type aims to mitigate cost overrun risks for the government. 4. Performance context is linked to the operational needs of the USCIS Central New Jersey Field Office. 5. This procurement falls within the broader 'Office Furniture Manufacturing' sector, with potential for benchmarking against similar government purchases.

Value Assessment

Rating: fair

The contract value of $1.85M for office furniture appears substantial for a single field office. Without specific details on the quantity and type of furniture procured, a direct comparison to similar contracts is challenging. However, the average cost per unit will be a key indicator of value. Benchmarking against General Services Administration (GSA) schedules for office furniture could provide a clearer picture of whether this price reflects market rates or if there's an opportunity for cost savings through more aggressive negotiation or bulk purchasing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This competitive process is generally expected to yield better pricing and value for the government. The number of bidders, if available, would further inform the intensity of the competition. A robust competition suggests that the chosen vendor's pricing is likely competitive within the market.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down prices through market forces, ensuring that government funds are used efficiently and that the best possible value is obtained for public services.

Public Impact

Federal employees at the USCIS Central New Jersey Field Office will benefit from updated and functional workspace. The services delivered include the provision of office furniture, essential for the daily operations of the USCIS. The geographic impact is localized to New Jersey, specifically supporting the USCIS field office operations there. Workforce implications include improved employee comfort and productivity through adequate office furnishings.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for overspending if furniture quality or quantity exceeds actual needs.
Risk of long-term maintenance or replacement costs if furniture is not durable.
Dependence on a single contractor for delivery and installation could lead to delays.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Fixed-price contract type helps control costs and budget predictability.
Supports critical USCIS operations, ensuring functional workspaces for essential services.

Sector Analysis

This contract falls within the broader manufacturing sector, specifically 'Office Furniture (except Wood) Manufacturing'. The market for government office furniture is often influenced by GSA schedules and large-scale procurement vehicles. Benchmarking against these established channels can reveal cost efficiencies. The total government spending on office furniture is significant, and contracts like this, even if seemingly small individually, contribute to the overall expenditure and highlight the importance of competitive sourcing.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). This means the competition was open to all responsible sources, including large businesses. There is no explicit information on subcontracting plans for small businesses. The impact on the small business ecosystem is neutral in this instance, as there was no specific mandate for their inclusion or exclusion.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's contracting officers and program managers. Accountability measures are inherent in the fixed-price contract type, which obligates the contractor to deliver specified goods within the agreed budget. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

General Services Administration (GSA) Schedules
Department of Homeland Security Facilities Management
USCIS Operational Support Contracts
Federal Office Supply Procurement

Risk Flags

Potential for high unit costs without detailed itemization.
Lack of small business subcontracting requirements.
Dependence on a single award for a significant furniture need.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $1.9 million to MILLERKNOLL INC. OFFICE FURNITURE FOR THE USCIS CENTRAL NEW JERSEY FIELD OFFICE

Who is the contractor on this award?

The obligated recipient is MILLERKNOLL INC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Citizenship and Immigration Services).

What is the total obligated amount?

The obligated amount is $1.9 million.

What is the period of performance?

Start: 2022-09-13. End: 2024-05-31.

What specific types and quantities of office furniture were procured under this contract?

The provided data does not specify the exact types and quantities of office furniture procured. It only states the contract's purpose as 'OFFICE FURNITURE FOR THE USCIS CENTRAL NEW JERSEY FIELD OFFICE' and its total value. To conduct a more thorough value analysis, details on the specific items (e.g., desks, chairs, filing cabinets, conference tables), their models, materials, and quantities would be necessary. This information is typically found in the contract's statement of work or delivery orders.

How does the per-unit cost of the furniture compare to GSA schedule pricing or other government contracts?

A precise per-unit cost comparison is not possible without knowing the specific items and quantities purchased. However, the total contract value of $1.85 million for a field office suggests a significant investment. If the contract included a large number of standard workstations, the average cost per workstation could be benchmarked against GSA's Multiple Award Schedule (MAS) for office furniture. A higher-than-average cost per unit, especially for common items like chairs or desks, could indicate a potential lack of aggressive price negotiation or a need to explore alternative procurement channels for future acquisitions.

What is the track record of MillerKnoll Inc. in fulfilling federal contracts for office furniture?

MillerKnoll Inc. is a well-established entity in the furniture industry, formed through the merger of Miller and Knoll. Both legacy companies have a history of supplying furniture to government agencies. Analyzing their past federal contract performance, including on-time delivery rates, quality of goods, and adherence to budget, would be crucial. Reviewing past performance evaluations and any reported disputes or contract terminations would provide further insight into their reliability as a federal contractor.

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

Potential risks include cost overruns if the fixed-price contract doesn't adequately account for all expenses, delivery delays impacting USCIS operations, or issues with the quality or durability of the furniture. The fixed-price nature of the contract is a primary mitigation strategy against cost overruns. Mitigation for delivery and quality issues would rely on the contract's terms, including inspection and acceptance clauses, liquidated damages for delays, and warranty provisions. The government's oversight by contracting officers is essential to monitor performance and enforce these terms.

How does this spending compare to historical federal spending on office furniture for similar facilities?

Without specific historical data for comparable USCIS field offices or similar-sized federal facilities, it's difficult to provide a direct comparison. However, $1.85 million represents a substantial capital investment for equipping a single field office. Factors influencing historical spending include inflation, changes in furniture standards, and the scale of office build-outs or renovations. Analyzing spending trends across the Department of Homeland Security or the broader federal government for office furnishings over the past decade could provide context for whether this award is within expected parameters.

Industry Classification

NAICS: Manufacturing › Office Furniture (including Fixtures) Manufacturing › Office Furniture (except Wood) Manufacturing

Product/Service Code: FURNITURE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Millerknoll, Inc.

Address: 855 E MAIN AVE, ZEELAND, MI, 49464

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $1,851,997

Exercised Options: $1,851,997

Current Obligation: $1,851,997

Actual Outlays: $1,851,997

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: HSHQDC16A00018

IDV Type: BPA

Timeline