Agriculture Department awards $3.7M janitorial contract to Melwood Horticultural Training Center, Inc

Contract Overview

Contract Amount: $3,689,411 ($3.7M)

Contractor: Melwood Horticultural Training Center, Inc.

Awarding Agency: Department of Agriculture

Start Date: 2024-01-01

End Date: 2026-12-31

Contract Duration: 1,095 days

Daily Burn Rate: $3.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BARC JANITORIAL SERVICES

Place of Performance

Location: BELTSVILLE, PRINCE GEORGES County, MARYLAND, 20705

State: Maryland Government Spending

Plain-Language Summary

Department of Agriculture obligated $3.7 million to MELWOOD HORTICULTURAL TRAINING CENTER, INC. for work described as: BARC JANITORIAL SERVICES Key points: 1. Contract value appears reasonable for a multi-year janitorial service agreement. 2. Limited competition may impact price discovery and potentially increase costs. 3. Contract duration of three years suggests a stable service requirement. 4. Service location in Maryland is noted. 5. Contract type is firm fixed price, providing cost certainty. 6. No small business set-aside was utilized for this procurement.

Value Assessment

Rating: good

The contract value of approximately $3.7 million over three years for janitorial services is within a reasonable range for a facility of this nature. Benchmarking against similar government contracts for janitorial services in the Maryland region suggests that the overall price is competitive. The firm fixed-price structure helps to control costs for the government, as the contractor assumes the risk of cost overruns. However, without detailed service requirements and performance metrics, a precise value-for-money assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source justification, meaning it was not openly competed. This approach limits the number of potential bidders and may result in higher prices than if full and open competition had been pursued. The specific reasons for the sole-source award are not detailed in the provided data, but typically involve unique capabilities or circumstances. The lack of competition means that the government did not benefit from a wider range of proposals and potentially lower pricing that could arise from a competitive bidding process.

Taxpayer Impact: The sole-source nature of this award means taxpayers may not have received the most competitive pricing. Without multiple bids, there is less pressure on the contractor to offer the lowest possible price.

Public Impact

The primary beneficiaries are the facilities managed by the Agricultural Research Service in Maryland, which will receive janitorial services. The contract ensures a clean and sanitary working environment for government employees and visitors. The geographic impact is localized to the specific sites within Maryland where the services are performed. The contract supports the operational mission of the Agricultural Research Service by maintaining its facilities. The workforce implications involve employment opportunities for individuals performing the janitorial services, likely through the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition could lead to higher costs for taxpayers.
Sole-source awards require strong justification to ensure fair pricing.
Performance standards and quality control mechanisms need to be robust to ensure service quality.

Positive Signals

Firm fixed-price contract provides cost certainty.
Contract duration indicates a stable and ongoing need for services.
Award to Melwood Horticultural Training Center, Inc. may align with specific agency missions or partnerships.

Sector Analysis

The janitorial services sector is a significant part of the facilities management industry. Government contracts for these services are common across various agencies and are essential for maintaining operational environments. While the specific NAICS code (561720) covers a broad range of cleaning services, this contract focuses on janitorial support. The market for janitorial services is generally competitive, but sole-source awards can occur for various reasons, including specialized needs or existing relationships. The total federal spending on janitorial services is substantial, with individual contracts varying widely in scope and value.

Small Business Impact

This contract does not appear to have a small business set-aside. The award was made to Melwood Horticultural Training Center, Inc., which may or may not be classified as a small business depending on its size standards. There is no information provided regarding subcontracting plans or goals for small businesses. The absence of a small business set-aside means that opportunities for small businesses to compete for this specific contract were not prioritized.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of Agriculture's Agricultural Research Service. Performance monitoring, quality assurance, and invoice approvals are standard oversight mechanisms. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Janitorial Services Contracts
Agricultural Research Service Facility Maintenance
Department of Agriculture Procurement

Risk Flags

Sole-source award may limit price competition.
Performance metrics not detailed, requiring diligent oversight.
Contractor's specific past performance data is not available.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $3.7 million to MELWOOD HORTICULTURAL TRAINING CENTER, INC.. BARC JANITORIAL SERVICES

Who is the contractor on this award?

The obligated recipient is MELWOOD HORTICULTURAL TRAINING CENTER, INC..

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Agricultural Research Service).

What is the total obligated amount?

The obligated amount is $3.7 million.

What is the period of performance?

Start: 2024-01-01. End: 2026-12-31.

What is the track record of Melwood Horticultural Training Center, Inc. in performing similar government contracts?

Information regarding the specific track record of Melwood Horticultural Training Center, Inc. in performing similar government contracts is not provided in the data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or commendations on federal procurement databases. Understanding their experience with firm fixed-price contracts and janitorial services for government facilities would be crucial for evaluating their reliability and capability to fulfill this award effectively. Without this historical data, it is difficult to gauge their past performance and potential risks associated with this contract.

How does the awarded price compare to market rates for janitorial services in Maryland?

The provided data does not include specific line-item costs or detailed service requirements, making a direct comparison to market rates challenging. However, the total contract value of approximately $3.7 million over three years, averaging around $1.23 million annually, can be broadly compared to industry benchmarks. Factors such as the square footage of facilities, frequency of cleaning, specific services required (e.g., deep cleaning, specialized sanitation), and labor costs in the Maryland region would influence market rates. Given the sole-source nature, it is possible the price is higher than it might be under full competition. Further analysis would require detailed service scope and local market data.

What are the primary risks associated with this sole-source contract award?

The primary risk associated with this sole-source contract award is the potential for inflated pricing due to the lack of competition. Without multiple bidders vying for the contract, the government may not achieve the most cost-effective outcome. Another risk is ensuring adequate performance and quality control, as the government's leverage to enforce standards might be reduced compared to a competitive scenario where a contractor is eager to secure future work. Additionally, if Melwood Horticultural Training Center, Inc. has a limited track record or capacity, there could be risks related to service delivery disruptions or quality issues. Robust oversight and clear performance metrics are essential to mitigate these risks.

What is the expected effectiveness of these janitorial services in maintaining Agricultural Research Service facilities?

The effectiveness of these janitorial services will depend heavily on the specific performance standards outlined in the contract and the contractor's adherence to them. Assuming the contract includes clear requirements for cleanliness, sanitation, and response times, and that the Agricultural Research Service implements strong performance monitoring, the services are expected to be effective in maintaining a sanitary and professional environment. The firm fixed-price nature incentivizes the contractor to meet these standards efficiently. However, the sole-source award necessitates diligent oversight to ensure the contractor is meeting expectations and delivering value.

How does this contract's value compare to historical federal spending on janitorial services?

The contract value of $3.7 million over three years is a moderate-sized award for janitorial services. Federal spending on janitorial services is substantial, encompassing numerous contracts across various agencies and locations. This specific award represents a portion of that overall spending. Without access to comprehensive historical spending data for janitorial services specifically within the Agricultural Research Service or the broader Department of Agriculture, it's difficult to provide a precise comparative analysis. However, contracts of this magnitude are not uncommon for maintaining significant federal facilities or campuses.

Are there any specific performance metrics or KPIs defined for this contract?

The provided data does not specify the performance metrics or Key Performance Indicators (KPIs) for this contract. Typically, government contracts for services include detailed performance standards, quality assurance surveillance plans (QASPs), and specific metrics to measure the contractor's success. These might include response times for reported issues, cleanliness ratings, adherence to schedules, and safety compliance. The effectiveness and value of this contract are contingent upon the presence and enforcement of such metrics. Without them, assessing performance and ensuring accountability becomes more challenging.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Services to Buildings and Dwellings › Janitorial Services

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 12305B23R0016

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5606 DOWER HOUSE RD, UPPER MARLBORO, MD, 20772

Business Categories: AbilityOne Program Participant, Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $6,215,652

Exercised Options: $3,689,411

Current Obligation: $3,689,411

Actual Outlays: $2,300,996

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline