DOJ awards $10.8M custodial services contract to Melwood Horticultural Training Center, Inc

Contract Overview

Contract Amount: $10,803,058 ($10.8M)

Contractor: Melwood Horticultural Training Center, Inc.

Awarding Agency: Department of Justice

Start Date: 2023-06-01

End Date: 2026-09-30

Contract Duration: 1,217 days

Daily Burn Rate: $8.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ROBERT F KENNEDY BUILDING CUSTODIAL SERVICES

Place of Performance

Location: UPPER MARLBORO, PRINCE GEORGES County, MARYLAND, 20772

State: Maryland Government Spending

Plain-Language Summary

Department of Justice obligated $10.8 million to MELWOOD HORTICULTURAL TRAINING CENTER, INC. for work described as: ROBERT F KENNEDY BUILDING CUSTODIAL SERVICES Key points: 1. Contract awarded to a non-profit organization focused on employment for individuals with disabilities. 2. The contract is for custodial services, a common and essential government function. 3. The award was made on a sole-source basis, raising questions about competition. 4. The contract duration is over three years, indicating a significant commitment. 5. The fixed-price contract type aims to control costs for the government. 6. The specific NAICS code (541620) is for Environmental Consulting Services, which appears to be a mismatch for custodial services.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without more specific service details and comparable contracts. The fixed-price nature suggests cost certainty, but the absence of competition makes it difficult to assess if the pricing represents fair market value. The mismatch in NAICS code also raises concerns about the accuracy of the reported data and potential inefficiencies.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This approach is typically used when only one responsible source can satisfy the agency's needs. Without a competitive process, it's difficult to determine if the government received the best possible price or if alternative solutions were overlooked.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. It also limits opportunities for other qualified vendors to secure government contracts.

Public Impact

The primary beneficiary is the Department of Justice, which will receive custodial services for its facilities. Melwood Horticultural Training Center, Inc., a non-profit, will provide the services, potentially creating employment opportunities for individuals with disabilities. The services will be delivered in Maryland, impacting the local workforce and economy. The contract supports the operational needs of federal facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

NAICS code mismatch: The assigned NAICS code (541620 - Environmental Consulting Services) does not align with the stated service (custodial services), indicating potential data entry errors or misclassification.
Sole-source award: Lack of competition raises concerns about price reasonableness and potential missed opportunities for other vendors.
Limited transparency: Without a competitive bidding process, it's harder to ascertain the full scope of services and the justification for the sole-source award.

Positive Signals

Support for a non-profit: The award to Melwood Horticultural Training Center, Inc. aligns with government initiatives to support organizations that provide employment for individuals with disabilities.
Fixed-price contract: This contract type helps the government manage costs by establishing a set price for the services.
Long-term commitment: The multi-year duration suggests a stable service provision for the DOJ.

Sector Analysis

The custodial services sector is a significant part of government contracting, encompassing a wide range of maintenance and cleaning activities for federal facilities. While specific market size data for federal custodial services is not readily available, it is a consistently large segment of government spending. This contract fits within the broader facilities management and support services category. Comparable spending benchmarks for similar-sized federal custodial contracts would be necessary for a more precise value assessment.

Small Business Impact

This contract was awarded to Melwood Horticultural Training Center, Inc., which is a non-profit organization. There is no indication of a small business set-aside for this contract. The implications for the broader small business ecosystem are minimal, as the award was not directed towards small businesses. Subcontracting opportunities for small businesses are not explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Justice's contracting officers and program managers. Accountability measures would be defined in the contract terms and conditions, including performance standards and payment schedules. Transparency is limited due to the sole-source nature of the award, but contract award data is publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Custodial Services Contracts
Department of Justice Facilities Management
Non-profit Organization Support Contracts
Environmental Consulting Services (due to NAICS code)

Risk Flags

NAICS Code Mismatch
Sole-Source Award
Lack of Competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $10.8 million to MELWOOD HORTICULTURAL TRAINING CENTER, INC.. ROBERT F KENNEDY BUILDING CUSTODIAL 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 (Offices, Boards and Divisions).

What is the total obligated amount?

The obligated amount is $10.8 million.

What is the period of performance?

Start: 2023-06-01. End: 2026-09-30.

What is the specific justification for awarding this custodial services contract on a sole-source basis to Melwood Horticultural Training Center, Inc.?

The provided data indicates the contract was awarded on a 'NOT AVAILABLE FOR COMPETITION' basis, which is synonymous with a sole-source award. The specific justification for this sole-source determination is not detailed in the provided data. Typically, sole-source awards are made when an agency determines that only one responsible source can provide the required supplies or services. This could be due to unique capabilities, proprietary technology, or specific mission requirements. Without further information from the Department of Justice, the precise rationale remains unclear. However, given Melwood's mission as a horticultural training center that employs individuals with disabilities, it's possible the agency cited a unique social or mission-oriented requirement that only Melwood could fulfill, or perhaps a specific capability related to their training programs that aligns with the custodial needs in a unique way.

How does the awarded amount of $10.8 million compare to typical federal spending on custodial services for facilities of similar size and scope?

Directly comparing the $10.8 million award to typical federal spending on custodial services is challenging without more context on the size and specific needs of the Department of Justice facilities covered by this contract. Federal custodial contracts can vary significantly based on square footage, frequency of service, specialized cleaning requirements (e.g., for sensitive areas), and geographic location, which impacts labor costs. However, for a contract spanning over three years (approximately 36 months), $10.8 million translates to an average annual cost of $3 million. This figure falls within a plausible range for large-scale federal facility maintenance, but without benchmarks for comparable DOJ facilities or other agencies' contracts for similar square footage and service levels, a definitive assessment of value-for-money is difficult. The sole-source nature also complicates price benchmarking.

What are the potential risks associated with awarding a contract of this magnitude on a sole-source basis?

The primary risk associated with a sole-source award of this magnitude ($10.8 million) is the potential for inflated pricing due to the lack of competitive pressure. Without multiple bidders vying for the contract, the awarded vendor may not have had to offer the most cost-effective solution. Another risk is the potential for suboptimal performance or innovation, as there is less incentive for the sole provider to exceed expectations compared to a competitive environment. Furthermore, it limits opportunities for other qualified businesses, including small businesses, to compete for and win government contracts. There's also a risk of 'vendor lock-in,' where the agency becomes dependent on a single provider, making future transitions more difficult and potentially costly.

Given the NAICS code listed is 541620 (Environmental Consulting Services), how does this align with the contract's stated purpose of custodial services?

There appears to be a significant discrepancy between the stated contract purpose (custodial services) and the assigned North American Industry Classification System (NAICS) code (541620 - Environmental Consulting Services). Custodial services typically fall under NAICS codes related to building maintenance and cleaning services, such as 561720 (Janitorial Services) or 561790 (Other Services to Buildings and Dwellings). Environmental consulting services involve providing advice and assistance on environmental issues. This mismatch raises concerns about data accuracy within the federal procurement system. It could be a simple data entry error, or it might indicate a misunderstanding of the contract's scope by the reporting entity. This discrepancy hinders accurate analysis and benchmarking, as spending data might be miscategorized, affecting overall sector analysis and potentially obscuring the true nature of the services being procured.

What is the track record of Melwood Horticultural Training Center, Inc. in performing federal contracts, particularly for custodial services?

Information regarding Melwood Horticultural Training Center, Inc.'s specific track record in performing federal contracts for custodial services is not detailed in the provided data. As a non-profit organization, its primary mission often involves social impact, such as providing employment for individuals with disabilities. While this mission is commendable and often a factor in sole-source awards for social good, it doesn't automatically guarantee extensive experience in large-scale federal custodial operations. To assess their track record, one would need to examine past federal contract performance databases (like SAM.gov or FPDS) for previous awards, contract values, performance reviews, and any reported issues. Without this specific performance history, it's difficult to definitively evaluate their capability and past success in delivering custodial services at the scale required by the Department of Justice.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Environmental Consulting Services

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 15JPSS22R00000060

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: $13,976,653

Exercised Options: $10,803,058

Current Obligation: $10,803,058

Actual Outlays: $8,560,742

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline