DOT Spends $34.5M on Office Furniture from MillerKnoll Inc

Contract Overview

Contract Amount: $34,543,478 ($34.5M)

Contractor: Millerknoll Inc

Awarding Agency: Department of Transportation

Start Date: 2005-08-22

End Date: 2008-05-29

Contract Duration: 1,011 days

Daily Burn Rate: $34.2K/day

Number of Offers Received: 1

Pricing Type: FIXED PRICE

Sector: Other

Official Description: OFFICE FURNITURE

Place of Performance

Location: WASHINGTON NAVY YARD, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20374

State: District of Columbia Government Spending

Plain-Language Summary

Department of Transportation obligated $34.5 million to MILLERKNOLL INC for work described as: OFFICE FURNITURE Key points: 1. Significant spending on office furniture highlights a consistent need for workspace outfitting. 2. MillerKnoll Inc. is a major player in the office furniture market, suggesting potential for competitive pricing. 3. The fixed-price contract type mitigates cost overrun risk for the government. 4. Spending is concentrated in the District of Columbia, reflecting administrative hub needs.

Value Assessment

Rating: fair

The total award of $34.5 million for office furniture over three years appears substantial. Benchmarking against similar large-scale office furniture procurements would be necessary to definitively assess value.

Cost Per Unit: $34,168 (average per contract, not per unit)

Competition Analysis

Competition Level: unknown

The contract type is listed as 'DELIVERY ORDER' with no indication of the original solicitation method. Without knowing if this was a competitive bid or a sole-source award, it's difficult to assess price discovery.

Taxpayer Impact: Taxpayer funds are used for this procurement. The efficiency of the acquisition process and the final price paid will determine the overall taxpayer impact.

Public Impact

Government employees in the District of Columbia will benefit from updated office furnishings. The procurement supports a large corporation, potentially impacting employment within the manufacturing sector. The duration of the contract suggests a long-term need for office furniture within the Department of Transportation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of clarity on competition method
Potential for higher prices if not competitively bid

Positive Signals

Fixed-price contract limits cost escalation
Established vendor likely has efficient production

Sector Analysis

Office furniture manufacturing falls under the broader 'Office Furniture (except Wood) Manufacturing' sector. Spending benchmarks for this sector are typically measured by total contract value and duration, with this contract representing a significant investment.

Small Business Impact

The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further investigation would be needed to determine small business participation.

Oversight & Accountability

The contract was awarded by the Department of Transportation. Oversight would typically involve contract management by the agency's procurement office to ensure delivery and adherence to terms.

Related Government Programs

Office Furniture (except Wood) Manufacturing
Department of Transportation Contracting
Immediate Office of the Secretary of Transportation Programs

Risk Flags

Lack of competition details
Unclear value for money without unit cost analysis
Potential for overspending if not competitively sourced
Limited insight into small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $34.5 million to MILLERKNOLL INC. OFFICE FURNITURE

Who is the contractor on this award?

The obligated recipient is MILLERKNOLL INC.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Immediate Office of the Secretary of Transportation).

What is the total obligated amount?

The obligated amount is $34.5 million.

What is the period of performance?

Start: 2005-08-22. End: 2008-05-29.

What was the original solicitation method for this contract, and was it competitively bid?

The provided data does not specify the original solicitation method. The contract is listed as a 'DELIVERY ORDER,' which implies it may have been issued under a pre-existing contract or purchasing agreement. Determining if this was a full and open competition or a limited/sole-source award is crucial for assessing value and fairness.

How does the average contract value of $34,168 compare to industry benchmarks for similar office furniture procurements?

The average contract value of $34,168 is a broad figure and likely represents the total award divided by the number of contracts (1 in this case). To assess value, this figure needs to be broken down into per-unit costs for specific furniture items (e.g., desks, chairs) and compared against market rates for comparable quality and quantity.

What is the expected lifespan and durability of the furniture procured under this contract?

The contract duration is 1011 days (approximately 2.7 years), with an end date in 2008. Information on the expected lifespan and durability of the specific furniture items is not provided. This data is essential for evaluating the long-term value and return on investment for the taxpayer.

Industry Classification

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

Product/Service Code: FURNITURE

Contractor Details

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

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $34,543,478

Exercised Options: $34,543,478

Current Obligation: $34,543,478

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS28F8049H

IDV Type: FSS

Timeline