Treasury's $6.9M Contract for Gift Shop Operations Awarded to Melwood Horticultural Training Center
Contract Overview
Contract Amount: $6,911,990 ($6.9M)
Contractor: Melwood Horticultural Training Center, Inc.
Awarding Agency: Department of the Treasury
Start Date: 2023-03-01
End Date: 2027-02-28
Contract Duration: 1,460 days
Daily Burn Rate: $4.7K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: LABOR HOURS
Sector: Other
Official Description: THE CONTRACTOR SHALL PROVIDE MANAGEMENT AND SUPERVISION, AND ALL OTHER RESOURCES TO OPERATE AND MANAGE BOTH THE VISITORS CENTER GIFT SHOP AND MAIL ORDER SALES CENTER.
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20228
Plain-Language Summary
Department of the Treasury obligated $6.9 million to MELWOOD HORTICULTURAL TRAINING CENTER, INC. for work described as: THE CONTRACTOR SHALL PROVIDE MANAGEMENT AND SUPERVISION, AND ALL OTHER RESOURCES TO OPERATE AND MANAGE BOTH THE VISITORS CENTER GIFT SHOP AND MAIL ORDER SALES CENTER. Key points: 1. Contract focuses on operational management of visitor center gift shop and mail order sales. 2. Limited competition is noted, raising questions about price discovery and value. 3. Potential risk associated with reliance on a single provider for essential services. 4. Sector context suggests a need for efficient retail and administrative support.
Value Assessment
Rating: questionable
Pricing is not available for this contract, making a direct comparison difficult. The labor hours contract type suggests costs could fluctuate based on actual hours worked.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract is listed as 'NOT AVAILABLE FOR COMPETITION,' indicating a sole-source or limited competition award. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition may result in the government paying more than necessary for these services, impacting taxpayer value.
Public Impact
Taxpayers may be overpaying for gift shop and mail order services due to limited competition. The contract supports a specific organization, Melwood Horticultural Training Center, which may have a social mission. Operational efficiency of the visitor center's retail functions could be impacted by the contract structure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Unknown pricing details
- Potential for cost overruns
Positive Signals
- Contract supports a specific organization's mission
- Clear definition of services provided
Sector Analysis
This contract falls under administrative services, specifically retail operations for a government facility. Benchmarks for similar outsourced retail management contracts are not readily available but typically focus on revenue generation and operational efficiency.
Small Business Impact
The contract was not awarded to a small business. Further analysis would be needed to determine if small businesses were considered or had the capability to perform this service.
Oversight & Accountability
Oversight will be crucial to ensure Melwood Horticultural Training Center meets the performance requirements and that costs remain within reasonable bounds, especially given the limited competition.
Related Government Programs
- Office Administrative Services
- Department of the Treasury Contracting
- Bureau of Engraving and Printing Programs
Risk Flags
- Lack of competitive bidding
- Potential for inflated costs
- Absence of performance metrics
- Limited transparency on pricing
Tags
office-administrative-services, department-of-the-treasury, dc, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $6.9 million to MELWOOD HORTICULTURAL TRAINING CENTER, INC.. THE CONTRACTOR SHALL PROVIDE MANAGEMENT AND SUPERVISION, AND ALL OTHER RESOURCES TO OPERATE AND MANAGE BOTH THE VISITORS CENTER GIFT SHOP AND MAIL ORDER SALES CENTER.
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 the Treasury (Bureau of Engraving and Printing).
What is the total obligated amount?
The obligated amount is $6.9 million.
What is the period of performance?
Start: 2023-03-01. End: 2027-02-28.
What is the justification for awarding this contract on a limited competition basis, and what steps were taken to ensure fair pricing?
The provided data states the contract is 'NOT AVAILABLE FOR COMPETITION.' Without further documentation, the specific justification remains unclear. Typically, such designations require a formal justification, often related to unique capabilities or urgent needs. The impact on fair pricing is significant, as limited competition generally reduces the incentive for the contractor to offer the lowest possible price.
How does the performance of Melwood Horticultural Training Center align with the overall mission of the Bureau of Engraving and Printing?
The contract's purpose is to operate the visitor center gift shop and mail order sales. While not directly related to currency production, these services enhance the visitor experience and potentially generate revenue. Melwood's mission, as a horticultural training center, suggests a potential alignment if the contract leverages their training or employment goals for individuals with disabilities, contributing to a broader social impact alongside operational needs.
What are the key performance indicators (KPIs) for this contract, and how will they be measured to ensure effective service delivery?
The provided data does not specify the key performance indicators (KPIs) for this contract. Effective service delivery would likely be measured by metrics such as sales volume, customer satisfaction, inventory management, and operational efficiency. The Bureau of Engraving and Printing would need to establish and monitor these KPIs to ensure the contractor is meeting expectations and providing value for the taxpayer.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Office Administrative Services › Office Administrative Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: 2031ZA20R00033
Offers Received: 1
Pricing Type: LABOR HOURS (Z)
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: $8,663,887
Exercised Options: $6,911,990
Current Obligation: $6,911,990
Actual Outlays: $3,056,851
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2023-03-01
Current End Date: 2027-02-28
Potential End Date: 2028-02-28 00:00:00
Last Modified: 2026-02-27
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