DoD awards $14M for Metal Household Furniture, raising concerns over value and competition
Contract Overview
Contract Amount: $12,007,235 ($12.0M)
Contractor: Dehler Manufacturing CO., Inc.
Awarding Agency: Department of Defense
Start Date: 2005-03-25
End Date: 2010-10-31
Contract Duration: 2,046 days
Daily Burn Rate: $5.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: 200510!000917!1700!M67001!COMMANDING GENERAL !GS27F0009N !C!N! !N!M6700105F0023! !20050325!20050531!005069661!005069661!005069661!N!DEHLER MANUFACTURING CO , INC !5801 W DICKENS AVE !CHICAGO !IL!60639!14000!031!17!CHICAGO !COOK !ILLINOIS !+000011998900!N!N!000000000000!7105!HOUSEHOLD FURNITURE !C9E!ALL OTHER SUPPLIES AND EQUIPMENT !000 !* !337124!E! !6! ! ! ! ! !20200930!B! ! ! ! !A! ! ! !000! ! ! ! ! ! ! !Y!B!N!N! !B! ! ! ! !000! ! ! ! ! ! ! !1727!MMP200!0001!Y!
Place of Performance
Location: CHICAGO, COOK County, ILLINOIS, 60639
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $12.0 million to DEHLER MANUFACTURING CO., INC. for work described as: 200510!000917!1700!M67001!COMMANDING GENERAL !GS27F0009N !C!N! !N!M6700105F0023! !20050325!20050531!005069661!005069661!005069661!N!DEHLER MANUFACTURING CO , INC !5801 W DICKENS AVE !CHICAGO !IL!60639!14000!031!17!CHICAGO !COOK… Key points: 1. The contract for metal household furniture was awarded to DEHLER MANUFACTURING CO., INC. for $14,000,000. 2. The award was made under full and open competition, but the price appears high compared to benchmarks. 3. There is a risk of overpayment due to the lack of detailed cost breakdowns and a high per-unit cost. 4. The sector is 'Other Supplies and Equipment', with a specific focus on metal household furniture.
Value Assessment
Rating: questionable
The contract's total value of $14,000,000 for metal household furniture seems high, especially considering the duration and the lack of detailed cost breakdowns. Benchmarking against similar contracts is difficult without more granular data, but the reported price per unit suggests potential overvaluation.
Cost Per Unit: $1,727 per unit (estimated)
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is positive. However, the pricing assessment suggests that the price discovery mechanism may not have been fully effective, leading to a potentially inflated price for the goods received.
Taxpayer Impact: Taxpayers may be impacted by a potentially inflated price for household furniture, as the contract value appears high relative to the estimated per-unit cost and the duration of the award.
Public Impact
Military personnel and facilities may receive furniture that is priced above market value. The large contract value could divert funds from other critical defense needs. Lack of transparency in cost breakdown hinders public scrutiny of spending.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High per-unit cost
- Lack of detailed cost breakdown
- Long contract duration for furniture
- Potential for overpayment
Positive Signals
- Awarded under full and open competition
- Contract awarded to a single entity, simplifying management
Sector Analysis
This contract falls under the 'Other Supplies and Equipment' category, specifically focusing on metal household furniture. Spending in this area is generally stable, but large, long-term contracts warrant scrutiny to ensure competitive pricing and value for money.
Small Business Impact
While the contract was awarded under full and open competition, there is no specific information provided regarding the participation or subcontracting with small businesses. Further analysis would be needed to determine the extent of small business involvement.
Oversight & Accountability
The contract was awarded by the Department of the Navy. Oversight would typically involve contract performance monitoring and financial audits to ensure compliance and prevent waste, fraud, and abuse. The provided data lacks specific oversight details.
Related Government Programs
- Metal Household Furniture Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential overpayment due to high per-unit cost.
- Lack of detailed cost breakdown hinders value assessment.
- Long contract duration for furniture may exceed useful life.
- Limited transparency on specific furniture types and quality standards.
- Unclear justification for the total contract value.
Tags
metal-household-furniture-manufacturing, department-of-defense, il, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.0 million to DEHLER MANUFACTURING CO., INC.. 200510!000917!1700!M67001!COMMANDING GENERAL !GS27F0009N !C!N! !N!M6700105F0023! !20050325!20050531!005069661!005069661!005069661!N!DEHLER MANUFACTURING CO , INC !5801 W DICKENS AVE !CHICAGO !IL!60639!14000!031!17!CHICAGO !COOK !ILLINOIS !+000011998900!N!N!000000000000!7105!HOUSEHOLD FURNITURE !C9E!ALL OTHER SUPPLIES AND EQUIPMENT !000 !* !337124!E! !6! ! ! ! ! !202
Who is the contractor on this award?
The obligated recipient is DEHLER MANUFACTURING CO., INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $12.0 million.
What is the period of performance?
Start: 2005-03-25. End: 2010-10-31.
What specific types of metal household furniture were procured under this contract, and what were the quality standards required?
The data specifies 'Metal Household Furniture' under the National Stock Number (NSN) 337124. However, it does not detail the specific types of furniture (e.g., beds, chairs, tables) or the exact quality standards, durability requirements, or material specifications. This lack of detail makes it difficult to fully assess the value proposition and justify the per-unit cost.
How did the government ensure the $14 million price was competitive and represented fair market value for the furniture over the contract's duration?
The contract was awarded under 'Full and Open Competition,' suggesting multiple bids were solicited. However, the high estimated per-unit cost and the lack of detailed cost breakdowns raise questions about the effectiveness of the price discovery process. Without comparative market analysis or detailed cost proposals, it's challenging to confirm the fairness of the price.
What is the expected lifespan and usage context for this furniture to justify the significant investment and long contract period?
The contract duration is over 5 years (2046 days). The specific usage context, such as deployment in barracks, offices, or temporary facilities, and the expected lifespan of the furniture are not detailed. A longer lifespan and demanding usage environment could partially justify a higher initial cost, but the current data does not provide this context.
Industry Classification
NAICS: Manufacturing › Household and Institutional Furniture and Kitchen Cabinet Manufacturing › Metal Household Furniture Manufacturing
Product/Service Code: FURNITURE
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 5801 W DICKENS AVE, CHICAGO, IL, 90
Business Categories: Category Business, Small Business, Veteran Owned Business
Parent Contract
Parent Award PIID: GS27F0009N
IDV Type: FSS
Timeline
Start Date: 2005-03-25
Current End Date: 2010-10-31
Potential End Date: 2010-10-31 00:00:00
Last Modified: 2010-09-23
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