Commerce's $32.8M Furniture Contract Awarded to Office Images Inc. Amidst Full and Open Competition

Contract Overview

Contract Amount: $32,842,763 ($32.8M)

Contractor: Office Images Inc.

Awarding Agency: Department of Commerce

Start Date: 2014-09-30

End Date: 2019-12-31

Contract Duration: 1,918 days

Daily Burn Rate: $17.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 12

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CAMPUS WIDE FURNITURE REPLACEMENT

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22314

State: Virginia Government Spending

Plain-Language Summary

Department of Commerce obligated $32.8 million to OFFICE IMAGES INC. for work described as: CAMPUS WIDE FURNITURE REPLACEMENT Key points: 1. The contract value of $32.8 million for campus-wide furniture replacement is substantial. 2. Office Images Inc. secured the contract through full and open competition, indicating a competitive bidding process. 3. The duration of the contract (over 5 years) suggests a long-term need for furniture services. 4. The sector is office furniture manufacturing, a mature industry with established players.

Value Assessment

Rating: fair

The contract value of $32.8M over 5 years averages around $6.5M annually. Benchmarking against similar large-scale furniture procurements is difficult without specific unit cost data, but the price appears within a reasonable range for a comprehensive campus-wide replacement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, suggesting multiple bidders likely participated. This method generally promotes competitive pricing and allows the government to select the best value offer.

Taxpayer Impact: Taxpayer funds are utilized for this procurement. The competitive nature of the award aims to ensure efficient use of these funds by securing favorable pricing.

Public Impact

Federal employees will benefit from updated and potentially more ergonomic office furniture. The procurement supports the office furniture manufacturing industry, potentially creating or sustaining jobs. The replacement of aging furniture could improve workplace aesthetics and employee morale. The contract ensures the Department of Commerce maintains functional and modern office spaces.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price creep over the contract duration.
Risk of furniture obsolescence if technology or design standards change rapidly.
Dependence on a single vendor for a large-scale, long-term need.

Positive Signals

Awarded through full and open competition.
Firm Fixed Price contract type limits cost uncertainty.
Long contract duration allows for planned budget allocation.

Sector Analysis

The office furniture sector is characterized by a mix of large manufacturers and smaller specialized suppliers. Spending benchmarks for campus-wide furniture replacement vary significantly based on the size of the campus, the quality of furniture specified, and the extent of the replacement (e.g., full overhaul vs. phased replacement).

Small Business Impact

While the contract was awarded through full and open competition, there is no specific indication of small business participation or subcontracting goals. Larger contracts like this often involve prime contractors who may or may not engage small businesses for specific components or services.

Oversight & Accountability

The contract falls under the purview of the Department of Commerce, specifically the U.S. Patent and Trademark Office. Standard federal procurement oversight processes would apply, including contract performance monitoring and compliance checks.

Related Government Programs

Office Furniture (except Wood) Manufacturing
Department of Commerce Contracting
U.S. Patent and Trademark Office Programs

Risk Flags

Potential for vendor lock-in due to long contract duration.
Lack of explicit small business subcontracting requirements.
Risk of furniture becoming outdated before contract end.
Limited insight into specific performance metrics and quality control.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $32.8 million to OFFICE IMAGES INC.. CAMPUS WIDE FURNITURE REPLACEMENT

Who is the contractor on this award?

The obligated recipient is OFFICE IMAGES INC..

Which agency awarded this contract?

Awarding agency: Department of Commerce (U.S. Patent and Trademark Office).

What is the total obligated amount?

The obligated amount is $32.8 million.

What is the period of performance?

Start: 2014-09-30. End: 2019-12-31.

What was the specific criteria used to evaluate the bids beyond price, and how did these factors contribute to the final selection of Office Images Inc.?

The provided data does not detail the specific evaluation criteria beyond the contract type (firm fixed price) and competition method (full and open). Typically, such evaluations consider factors like technical approach, past performance, management capability, and price. The government likely weighed these elements to determine the best overall value, ensuring the selected vendor could meet the USPTO's specific needs for campus-wide furniture replacement effectively and reliably.

Given the 5-year duration, what mechanisms are in place to ensure the furniture remains relevant and functional, considering potential changes in workplace design or technology?

The contract's firm fixed price structure suggests that the initial scope and specifications were defined upfront. Mechanisms for ensuring relevance might include performance standards within the contract, options for minor modifications, or a clear process for addressing wear and tear. However, significant changes in workplace design or technology would likely require a new procurement or contract modification, potentially impacting future costs and requiring careful management.

How does the $32.8M expenditure compare to the estimated value of the existing furniture being replaced, and what is the projected return on investment in terms of improved productivity or reduced mai

The data does not provide information on the value of the existing furniture or projected ROI. A comprehensive analysis would require assessing the condition and remaining useful life of the current furniture, as well as quantifying potential benefits like increased employee comfort, reduced repair costs, and enhanced workspace functionality. Without these details, it's difficult to definitively assess the financial efficiency beyond the competitive award.

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

Offers Received: 12

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Douron, Inc. (UEI: 047795315)

Address: 2099 GAITHER RD STE 130, ROCKVILLE, MD, 20850

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $88,879,003

Exercised Options: $32,842,763

Current Obligation: $32,842,763

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS27F0008Y

IDV Type: FSS

Timeline