As budget woes continue, NYC turns to high-end furniture designer to outfit offices

With a fiscal crisis looming, New York City municipal workers are enjoying furniture and supplies from the high-concept designer Herman Miller — and last year it came with a price tag of more than $5 million.

Spending records show that in 2022 the city paid the famed Michigan-based furniture purveyor $442,000 in newly registered contracts, as well as $4.7 million in additional spending, for a total of $5.2 million.

That outlay to Herman Miller Inc., which is perhaps most famous for its chairs designed by Charles and Ray Eames, comes amid a push from Mayor Adams to reduce spending and as the city is reckoning with a projected budget shortfall of up to $6.5 billion in 2026.

Relatively speaking, the cost of the fancy furniture and office supplies is a drop in the city’s $102.7 billion budget bucket, and some of the spend went toward cubicles and other typical office furniture.

But city lawmakers have taken notice and say the purchases are a bad look at a time when the city is in belt-tightening mode.

“Designer furniture is the last thing we should be doing right now,” said City Councilman Bob Holden, a Democrat who represents Maspeth, Middle Village, Glendale and Ridgewood in Queens. “I think we need a little more oversight on that. We all know the city wastes money historically.”

An Adams’ administration official noted that the city has a five-year contract with Herman Miller that started in November 2019. The agreement, known as a requirement contract, has an estimated worth of $14.7 million, according to the official. The contract has no ceiling amount, and the city can purchase goods under it on an as-needed basis.

So far, the city has spent $12.8 million under the deal, according to the official, who said it’s unclear how much of the city’s spending last year falls under that umbrella and whether or not the contract will be renewed.

“While this contract was awarded under the previous administration, it was awarded to the lowest responsible and responsive bidder, in compliance with and as required by city procurement rules,” said Jonah Allon, a spokesman for Adams.

But not all of the contracts the city has with Herman Miller predate Adams’ administration. In one contract registered last year with the Buildings Department for $234,000, the manufacturer was hired to provide “emergency furniture” at 22 Reade St. for “cubical workstation systems and installation.”

Another contract inked last year put more than $155,000 toward the purchase of filing cabinets and work stations for the Law Department, and one with the Finance Department reserved $24,000 for the purchase of “office chairs, coffee table, sofa, and end tables,” city records show.

A fourth eyebrow-raising contract with Herman Miller that was registered last year is for a single chair that cost the city $961. The contract with the Department of Health was to purchase an “Embody” chair for a lone employee. When asked about the purchase, a Health Department spokesman said the chair was purchased as part of a medical accommodation for the worker, who provided multiple MRIs to the city to establish need.

“Any employee who requires accommodation is entitled — by law — to request supplies and equipment so they can serve our city,” the Health Department spokesman said. “This is a fair and just rule that ensures an equitable system that does not discriminate based on one’s physical needs.”

Still, some remain skeptical.

Michael Lambert, a former deputy city comptroller, said the key in situations like this is determining whether there’s a viable alternative to Herman Miller when it comes to such spending.

“I don’t see the justification to go with a luxury brand if there’s another vendor that provides a comparable product,” he said. “Is there a way to forego contracts with that type of vendor? Is there a viable alternative? These are the type of recommendations I would think the fiscal watchdog should be looking into.”

Lambert was referring to the city comptroller’s office, where he once worked and which he’s been critical of in the recent past.

Comptroller Brad Lander now helms that office.

Naomi Dann, a spokeswoman for Lander, said agencies should follow internal processes to ensure they’re making cost-effective purchases. The comptroller’s audit bureau also conducts audits to address wasteful spending on the back end of the procurement process, she said, but pointed out that bureau has not yet done one focused on furniture spending.

She added that as agencies continue to find ways to meet the mayor’s mandated cost-saving measures, “finding more cost-effective options should be on the table.”

Herman Miller did not respond to a message.