USDA Awards $22M Facility Management Contract to Melwood Horticultural Training Center

Contract Overview

Contract Amount: $21,961,201 ($22.0M)

Contractor: Melwood Horticultural Training Center, Inc.

Awarding Agency: Department of Agriculture

Start Date: 2022-09-22

End Date: 2026-09-30

Contract Duration: 1,469 days

Daily Burn Rate: $14.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: COMMERCIAL FACILITY MANAGEMENT SERVICES DESCRIBED HEREIN AT THE U.S. DEPARTMENT OF AGRICULTURES (USDA) GEORGE WASHINGTON CARVER AND HEADQUARTERS.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20024

State: District of Columbia Government Spending

Plain-Language Summary

Department of Agriculture obligated $22.0 million to MELWOOD HORTICULTURAL TRAINING CENTER, INC. for work described as: COMMERCIAL FACILITY MANAGEMENT SERVICES DESCRIBED HEREIN AT THE U.S. DEPARTMENT OF AGRICULTURES (USDA) GEORGE WASHINGTON CARVER AND HEADQUARTERS. Key points: 1. Contract awarded to a single entity, raising questions about competition. 2. Fixed-price contract with economic price adjustment may expose taxpayers to inflation risks. 3. Services are for facility management at USDA headquarters in Washington D.C. 4. The contract duration is over 4 years, indicating a significant commitment.

Value Assessment

Rating: questionable

The contract value of $21.96M over approximately 4 years averages to about $5.5M annually. Without specific details on the scope of services and comparable contracts, it is difficult to definitively assess pricing. However, the lack of competition suggests potential for overpricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract is listed as 'NOT AVAILABLE FOR COMPETITION,' indicating a limited or sole-source procurement. This significantly restricts price discovery and may lead to higher costs for the government compared to a competitive bidding process.

Taxpayer Impact: The lack of competition and potential for inflated pricing due to limited market engagement could result in inefficient use of taxpayer funds.

Public Impact

Essential facility management services for USDA headquarters will be provided by a single vendor. Taxpayers may be exposed to increased costs due to the absence of competitive bidding. The contract supports a specific organization, Melwood Horticultural Training Center, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Economic price adjustment clause
Potential for overpricing

Positive Signals

Contract supports a specific organization
Definitive contract type

Sector Analysis

Facility support services, categorized under NAICS code 561210, encompass a broad range of activities for maintaining and operating buildings and infrastructure. Spending in this sector can vary widely based on the size and complexity of the facilities managed.

Small Business Impact

The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small business set-asides were considered or if opportunities were missed.

Oversight & Accountability

Oversight of this contract will be crucial, especially given the limited competition. The Office of the Chief Financial Officer should ensure that the economic price adjustment is applied fairly and that the services meet all performance requirements.

Related Government Programs

Facilities Support Services
Department of Agriculture Contracting
Office of the Chief Financial Officer Programs

Risk Flags

Limited competition may lead to higher costs.
Economic price adjustment introduces inflation risk.
Lack of detailed service scope hinders value assessment.
Contract duration is substantial, requiring long-term oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $22.0 million to MELWOOD HORTICULTURAL TRAINING CENTER, INC.. COMMERCIAL FACILITY MANAGEMENT SERVICES DESCRIBED HEREIN AT THE U.S. DEPARTMENT OF AGRICULTURES (USDA) GEORGE WASHINGTON CARVER AND HEADQUARTERS.

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 (Office of the Chief Financial Officer).

What is the total obligated amount?

The obligated amount is $22.0 million.

What is the period of performance?

Start: 2022-09-22. End: 2026-09-30.

What specific services are included in this facility management contract, and how do they compare to industry standards for similar government facilities?

The provided data does not detail the specific services included in the facility management contract. A comprehensive understanding of the scope, such as janitorial, maintenance, security, or groundskeeping, is necessary to benchmark against industry standards. Without this, assessing the value and appropriateness of the $21.96M award is challenging.

What justification was provided for limiting competition on this contract, and what steps were taken to ensure the best possible price was achieved?

The data states the contract was 'NOT AVAILABLE FOR COMPETITION.' Typically, such limitations require a formal justification, such as a sole-source justification or specific statutory authority. The government agency should have documented the rationale and explored options to mitigate price increases despite the lack of competitive bids.

How will the economic price adjustment clause be monitored to prevent excessive cost increases due to inflation, and what is the projected impact on the total contract value?

The economic price adjustment (EPA) clause allows for modifications to the contract price based on changes in economic conditions, often tied to specific indices. Robust monitoring by the contracting officer is essential to ensure that any adjustments are justified and do not lead to unreasonable cost increases. The total impact depends on the specific indices used and the rate of inflation over the contract's duration.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 12314218R0028

Offers Received: 1

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

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: $26,670,847

Exercised Options: $21,961,201

Current Obligation: $21,961,201

Actual Outlays: $17,384,827

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline