HHS Awards $26M for White Oak Office Furniture to MillerKnoll Inc
Contract Overview
Contract Amount: $26,059,670 ($26.1M)
Contractor: Millerknoll Inc
Awarding Agency: Department of Health and Human Services
Start Date: 2006-07-13
End Date: 2010-09-30
Contract Duration: 1,540 days
Daily Burn Rate: $16.9K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: OFFICE FURNITURE FOR WHITE OAK CENTRAL SHARED USE
Place of Performance
Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20857
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $26.1 million to MILLERKNOLL INC for work described as: OFFICE FURNITURE FOR WHITE OAK CENTRAL SHARED USE Key points: 1. Significant contract value of $26 million for office furniture. 2. Sole awardee, MillerKnoll Inc., raises questions about competition. 3. Long contract duration of 1540 days could impact price competitiveness. 4. Spending falls within the 'Office Furniture Manufacturing' sector.
Value Assessment
Rating: fair
The contract value of $26 million is substantial for office furniture. Benchmarking against similar large-scale furniture procurements is necessary to assess if the pricing is competitive, especially given the single awardee.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This was a competitive delivery order, but awarded to a single vendor, MillerKnoll Inc. The specific competition method and how price discovery was achieved are not detailed, but a single awardee may limit competitive pressure.
Taxpayer Impact: Taxpayer funds are being used for this significant furniture procurement. Ensuring competitive pricing and value for money is crucial to minimize financial impact.
Public Impact
Provides essential office furnishings for the White Oak Central Shared Use facility. Supports the operational needs of the Food and Drug Administration. The long-term nature of the contract ensures continuity of supply for the agency.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition despite being a delivery order.
- Long contract duration may not reflect current market prices.
- Lack of detailed pricing justification.
Positive Signals
- Addresses a clear need for office furniture.
- Awarded to a known manufacturer in the sector.
Sector Analysis
This contract falls under the Office Furniture (except Wood) Manufacturing sector. Spending benchmarks for similar large-scale office furniture procurements would be useful for comparison, but are not readily available.
Small Business Impact
There is no indication that small businesses were involved in this specific contract award. Future procurements could explore opportunities for small business participation.
Oversight & Accountability
The contract was awarded as a competitive delivery order, suggesting some level of oversight. However, the limited competition and long duration warrant further review of the procurement process and pricing.
Related Government Programs
- Office Furniture (except Wood) Manufacturing
- Department of Health and Human Services Contracting
- Food and Drug Administration Programs
Risk Flags
- Limited competition for a significant dollar value.
- Long contract duration may not be optimal for furniture.
- Lack of transparency on price discovery.
- Potential for price escalation over the contract term.
Tags
office-furniture-except-wood-manufacturi, department-of-health-and-human-services, md, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $26.1 million to MILLERKNOLL INC. OFFICE FURNITURE FOR WHITE OAK CENTRAL SHARED USE
Who is the contractor on this award?
The obligated recipient is MILLERKNOLL INC.
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (Food and Drug Administration).
What is the total obligated amount?
The obligated amount is $26.1 million.
What is the period of performance?
Start: 2006-07-13. End: 2010-09-30.
What was the specific competitive process used for this delivery order, and how was price reasonableness determined given the single awardee?
The data indicates this was a 'COMPETITIVE DELIVERY ORDER' but awarded to a single vendor, MillerKnoll Inc. The exact competitive method (e.g., solicitation of quotes, pre-negotiated pricing) and the process for determining price reasonableness are not detailed. Further investigation into the solicitation documents and award justification would be needed to understand how competition was leveraged and value ensured.
What is the risk associated with a long-term contract for office furniture, particularly regarding potential price increases or obsolescence?
A long contract duration (1540 days) for office furniture carries risks of price escalation due to inflation and market fluctuations. Additionally, furniture designs and ergonomic standards can evolve, potentially leading to the agency acquiring outdated or less efficient furnishings over time. The fixed-price nature mitigates some risk, but the agency may miss out on newer, more cost-effective options.
How effectively does this contract meet the long-term furniture needs of the White Oak Central Shared Use facility, and what is the overall value for taxpayers?
The contract appears to effectively meet the stated need for office furniture for the White Oak facility over its duration. However, the overall value for taxpayers is questionable without a clear understanding of the competitive landscape and price benchmarking. A single awardee for a large sum necessitates scrutiny to ensure the government received the best possible price and value.
Industry Classification
NAICS: Manufacturing › Office Furniture (including Fixtures) Manufacturing › Office Furniture (except Wood) Manufacturing
Product/Service Code: FURNITURE
Competition & Pricing
Extent Competed: COMPETITIVE DELIVERY ORDER
Solicitation Procedures: SIMPLIFIED ACQUISITION
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 855 E MAIN AVE, ZEELAND, MI, 02
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $26,059,670
Exercised Options: $26,059,670
Current Obligation: $26,059,670
Parent Contract
Parent Award PIID: GS28F8049H
IDV Type: FSS
Timeline
Start Date: 2006-07-13
Current End Date: 2010-09-30
Potential End Date: 2010-09-30 00:00:00
Last Modified: 2014-06-24
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