A really good idea. Government should be acting in the overall public good, not just fulfilling narrow objectives (like buying inexpensive chairs). There is still an issue of public opinion, though, since these items would likely still be more expensive, at least at first. So even though this is really the most responsible thing to do, and may even save money over the long term, it could be deemed wasteful and irresponsible.
But more optimistically, this could be a middle ground between “let the mystical market solve everything” and “only huge government grants and regulation can save us” (though I personally come down a little towards the latter). I hope this gains some traction.