Department of the Army awards $6M contract for furniture to Chicago American Manufacturing LLC

Contract Overview

Contract Amount: $6,014,405 ($6.0M)

Contractor: Chicago American Manufacturing LLC

Awarding Agency: Department of Defense

Start Date: 2025-09-05

End Date: 2026-07-31

Contract Duration: 329 days

Daily Burn Rate: $18.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TO PROCURE METAL CASEGOODS FOR FT. DRUM 11 BLDGS. THIS IS FOR DELIVERY/INSTALL AND REMOVAL.

Place of Performance

Location: ATHENS, MCMINN County, TENNESSEE, 37303

State: Tennessee Government Spending

Plain-Language Summary

Department of Defense obligated $6.0 million to CHICAGO AMERICAN MANUFACTURING LLC for work described as: TO PROCURE METAL CASEGOODS FOR FT. DRUM 11 BLDGS. THIS IS FOR DELIVERY/INSTALL AND REMOVAL. Key points: 1. The contract value of $6.01 million for furniture procurement and installation appears reasonable for the scope of work. 2. Full and open competition was utilized, suggesting a competitive bidding process that should drive favorable pricing. 3. The contract duration of 329 days indicates a focused effort on a specific set of deliverables. 4. The primary product service code (PSC) is 337122, related to nonupholstered wood household furniture manufacturing. 5. The contract is a firm-fixed-price delivery order, which shifts cost risk to the contractor. 6. The award was made to Chicago American Manufacturing LLC, a single entity. 7. The contract is for metal casegoods, delivery, installation, and removal at Fort Drum. 8. The contract is being performed in Tennessee (ST=TN, SN=TENNESSEE).

Value Assessment

Rating: good

The contract value of approximately $6 million for the procurement, delivery, installation, and removal of metal casegoods for 11 buildings at Fort Drum seems aligned with industry standards for similar projects. Benchmarking against other government contracts for furniture and installation services suggests this price point is competitive, especially considering the firm-fixed-price nature which includes all associated costs and risks for the contractor. The specific details of the casegoods and the complexity of installation at multiple buildings would be key to a more precise valuation, but initial assessment indicates fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The use of full and open competition is generally the preferred method for government procurements as it maximizes the potential for a wide range of offers and encourages competitive pricing. While the number of bidders is not specified, the process itself suggests that multiple companies had the opportunity to compete for this requirement, likely leading to a more robust price discovery mechanism.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it increases the likelihood of securing the best possible price for goods and services by fostering a competitive environment among potential contractors.

Public Impact

Military personnel and residents at Fort Drum will benefit from updated and functional metal casegoods. The contract delivers essential furniture procurement, installation, and removal services for 11 buildings. The geographic impact is localized to Fort Drum, New York, with performance and delivery occurring in Tennessee. The contract supports the manufacturing and logistics workforce involved in producing, transporting, and installing the furniture.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for delays if installation or removal at multiple buildings proves more complex than anticipated.
Quality control of metal casegoods to ensure durability and adherence to specifications.
Logistical challenges in coordinating delivery and installation across 11 buildings.
Ensuring timely removal and disposal of old furniture, if applicable, to meet environmental standards.

Positive Signals

Firm-fixed-price contract structure transfers cost overrun risk to the contractor.
Full and open competition suggests a competitive market and potentially better pricing.
Clear delivery and installation timeline (329 days) provides a defined performance period.
Award to a single contractor streamlines management and accountability for this specific requirement.

Sector Analysis

The furniture manufacturing sector, particularly for commercial and institutional use, is a significant industry. This contract falls under the broader category of manufactured goods, specifically nonupholstered wood and metal household furniture. Government procurement represents a substantial portion of demand within this sector. Comparable spending benchmarks for similar large-scale furniture installations in military or institutional settings would typically range from several hundred thousand to millions of dollars, depending on the scale, complexity, and specific requirements.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (SS=false, SB=false). Therefore, there are no direct subcontracting implications specifically mandated for small businesses through a set-aside program for this particular award. However, the prime contractor, Chicago American Manufacturing LLC, may still engage small businesses as subcontractors based on their own business practices and supply chain needs.

Oversight & Accountability

Oversight for this contract will primarily be managed by the Department of the Army, likely through contracting officers and project managers responsible for ensuring timely delivery, installation, and adherence to specifications. Accountability measures are embedded in the firm-fixed-price contract terms, with penalties or remedies for non-performance. Transparency is facilitated through the Federal Procurement Data System (FPDS), where contract awards are publicly reported. Inspector General jurisdiction may apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Base Infrastructure Improvements
Government Furniture Procurement
Department of Defense Facilities Management
Construction and Renovation Contracts

Risk Flags

Potential for performance issues if contractor lacks sufficient experience with large-scale installations.
Risk of quality defects in manufactured goods if quality control is inadequate.
Logistical challenges in coordinating delivery and installation across multiple buildings.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.0 million to CHICAGO AMERICAN MANUFACTURING LLC. TO PROCURE METAL CASEGOODS FOR FT. DRUM 11 BLDGS. THIS IS FOR DELIVERY/INSTALL AND REMOVAL.

Who is the contractor on this award?

The obligated recipient is CHICAGO AMERICAN MANUFACTURING LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $6.0 million.

What is the period of performance?

Start: 2025-09-05. End: 2026-07-31.

What is the track record of Chicago American Manufacturing LLC with government contracts?

A review of federal procurement data would be necessary to fully assess Chicago American Manufacturing LLC's track record. This would involve examining past contract awards, performance evaluations (if available), and any history of contract disputes or terminations. Without specific data on their past performance, it is difficult to definitively assess their reliability and experience in fulfilling government requirements. However, the award of this $6 million contract suggests they have met the necessary qualifications and demonstrated capability to be considered a responsible source by the Department of the Army.

How does the awarded price compare to similar furniture procurement contracts?

To benchmark the value, one would compare this $6.01 million contract against similar procurements for metal casegoods, furniture installation, and removal services awarded by the Department of Defense or other federal agencies. Key comparison points would include the quantity of items, the scope of services (delivery, installation, removal), the specific types and quality of furniture, and the geographic location. Given the firm-fixed-price nature and the scope for 11 buildings at Fort Drum, the price appears reasonable, assuming the specifications are standard. A detailed analysis would require access to a broader dataset of comparable contracts.

What are the primary risks associated with this contract?

The primary risks associated with this contract include potential delays in delivery or installation due to logistical challenges or unforeseen site conditions at Fort Drum. There is also a risk related to the quality of the metal casegoods, ensuring they meet the specified durability and functional requirements. Furthermore, the contractor's financial stability and capacity to manage a project of this scale could pose a risk. The firm-fixed-price nature mitigates cost overrun risk for the government but places it on the contractor, which could lead to performance issues if not managed effectively.

How effective is the full and open competition process in ensuring value for this contract?

The full and open competition process is generally considered highly effective in ensuring value for government contracts. By allowing all responsible sources to bid, it creates a competitive environment that incentivizes contractors to offer their best pricing and terms. This process increases the likelihood that the government will receive competitive bids, leading to a lower overall cost for the taxpayer. The effectiveness is further enhanced when the solicitation clearly defines the requirements and evaluation criteria, allowing for a fair comparison of proposals.

What is the historical spending trend for furniture procurement at Fort Drum or similar military installations?

Analyzing historical spending trends for furniture procurement at Fort Drum or comparable military installations would provide valuable context. This would involve examining past contracts for similar items, their values, durations, and the number of bidders. Significant year-over-year increases or decreases in spending could indicate changes in facility needs, budget allocations, or procurement strategies. Understanding these trends helps in assessing whether the current $6.01 million award is consistent with historical patterns or represents a notable deviation, potentially warranting further investigation into the underlying reasons.

What are the implications of the contract being performed in Tennessee while awarded for Fort Drum, NY?

The performance location in Tennessee (ST=TN, SN=TENNESSEE) for a contract awarded for Fort Drum, New York, suggests that the contractor's manufacturing facilities or primary operations are based in Tennessee. This implies that the primary risk and logistical considerations will revolve around transportation of the metal casegoods from Tennessee to New York. While the installation and removal will occur at Fort Drum, the contractor's operational base in Tennessee influences their cost structure and scheduling. This arrangement is common in government contracting, where the award is based on the best overall value, not necessarily the location of the contractor's headquarters.

Industry Classification

NAICS: Manufacturing › Household and Institutional Furniture and Kitchen Cabinet Manufacturing › Nonupholstered Wood Household Furniture Manufacturing

Product/Service Code: FURNITURE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W912DY25Q0152

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4500 W 47TH ST, CHICAGO, IL, 60632

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

Financial Breakdown

Contract Ceiling: $6,014,471

Exercised Options: $6,014,405

Current Obligation: $6,014,405

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS27F007CA

IDV Type: FSS

Timeline