DOJ FBI Awards $23.7M Janitorial Contract to Melwood, a Non-Competed Sole Source
Contract Overview
Contract Amount: $23,716,417 ($23.7M)
Contractor: Melwood Horticultural Training Center, Inc.
Awarding Agency: Department of Justice
Start Date: 2022-03-01
End Date: 2027-02-28
Contract Duration: 1,825 days
Daily Burn Rate: $13.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: JEH JANITORIAL SERVICES
Place of Performance
Location: UPPER MARLBORO, PRINCE GEORGES County, MARYLAND, 20772
State: Maryland Government Spending
Plain-Language Summary
Department of Justice obligated $23.7 million to MELWOOD HORTICULTURAL TRAINING CENTER, INC. for work described as: JEH JANITORIAL SERVICES Key points: 1. Significant contract value of $23.7 million over five years. 2. Sole source award to Melwood Horticultural Training Center raises competition concerns. 3. Potential risk of overpayment due to lack of competitive bidding. 4. Janitorial services sector is generally competitive, making this award unusual.
Value Assessment
Rating: questionable
The contract's value of $23.7 million for janitorial services over five years appears high without competitive benchmarking. The lack of competition makes it difficult to assess if the pricing is fair and reasonable compared to market rates for similar services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded on a sole-source basis, meaning it was not competed. This significantly limits price discovery and may lead to higher costs for taxpayers as there was no market pressure to drive down the price.
Taxpayer Impact: The sole-source nature of this award means taxpayers may be paying a premium for janitorial services, as competitive forces were bypassed.
Public Impact
Taxpayers may be overpaying for janitorial services due to the lack of competition. The FBI is potentially missing out on cost savings achievable through a competitive bidding process. The award to Melwood, a specific type of organization, may limit broader market participation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- High contract value for services
Positive Signals
- Contract supports a specific mission-oriented organization (Melwood)
Sector Analysis
The janitorial services sector is typically characterized by numerous small and medium-sized businesses competing on price and quality. A $23.7 million sole-source contract in this sector is unusual and warrants scrutiny regarding the justification for bypassing competition.
Small Business Impact
The contract was awarded to Melwood Horticultural Training Center, Inc., which may have specific social or mission-oriented objectives. However, the sole-source nature of this award prevents other small or large businesses in the janitorial services sector from competing for this significant contract.
Oversight & Accountability
The sole-source justification for this large contract should be thoroughly reviewed by oversight bodies to ensure it aligns with federal procurement regulations and that taxpayer funds are being used efficiently.
Related Government Programs
- Janitorial Services
- Department of Justice Contracting
- Federal Bureau of Investigation Programs
Risk Flags
- Sole-source award bypasses competition.
- Potential for overpayment due to lack of price discovery.
- High contract value for janitorial services.
- Limited transparency in contract award process.
Tags
janitorial-services, department-of-justice, md, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $23.7 million to MELWOOD HORTICULTURAL TRAINING CENTER, INC.. JEH 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 Justice (Federal Bureau of Investigation).
What is the total obligated amount?
The obligated amount is $23.7 million.
What is the period of performance?
Start: 2022-03-01. End: 2027-02-28.
What is the specific justification for awarding this $23.7 million janitorial contract on a sole-source basis, and how does it align with the government's commitment to maximizing competition?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or specific statutory requirements. For this $23.7 million janitorial contract, the FBI would need to provide a compelling rationale demonstrating why only Melwood could fulfill the requirement. This would be scrutinized against the general principle of maximizing competition to ensure fair pricing and efficient use of taxpayer funds.
What are the potential risks associated with awarding a large janitorial services contract without competition, particularly regarding cost and service quality?
The primary risk of awarding a large contract without competition is the potential for inflated costs, as the absence of bidding removes market pressure to offer competitive pricing. There's also a risk that service quality might not be optimized, as the contractor faces less pressure to innovate or improve performance compared to a competitive environment. This could lead to less value for the taxpayer's money.
How effective is the FBI in managing janitorial services contracts, and does this sole-source award indicate any potential challenges in achieving optimal service delivery and cost-effectiveness?
Assessing the overall effectiveness of the FBI's contract management requires broader data. However, a sole-source award for a service like janitorial work, which is typically competitive, might suggest either a unique requirement or a potential oversight in exploring competitive options. This could impact the effectiveness in achieving the best possible service delivery and cost-efficiency for this specific contract.
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 COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: 15F06722R0000001
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: $88,822,190
Exercised Options: $84,320,324
Current Obligation: $23,716,417
Actual Outlays: $17,801,416
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: SERVICES PURSUANT TO FAR 12.102(G)
Cost or Pricing Data: NO
Timeline
Start Date: 2022-03-01
Current End Date: 2027-02-28
Potential End Date: 2027-02-28 00:00:00
Last Modified: 2026-02-23
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