OPM awards $5M custodial and snow removal contract to Melwood Horticultural Training Center, Inc

Contract Overview

Contract Amount: $4,989,517 ($5.0M)

Contractor: Melwood Horticultural Training Center, Inc.

Awarding Agency: Office of Personnel Management

Start Date: 2022-08-16

End Date: 2027-09-30

Contract Duration: 1,871 days

Daily Burn Rate: $2.7K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TRB CUSTODIAL, SNOW REMOVAL, RECYCLING SERVICES (INCL WINDOW WASHING)

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20415

State: District of Columbia Government Spending

Plain-Language Summary

Office of Personnel Management obligated $5.0 million to MELWOOD HORTICULTURAL TRAINING CENTER, INC. for work described as: TRB CUSTODIAL, SNOW REMOVAL, RECYCLING SERVICES (INCL WINDOW WASHING) Key points: 1. Contract awarded to a single bidder, raising questions about price discovery and potential value for money. 2. The contract's duration of over five years suggests a long-term need for these services. 3. Services include custodial, snow removal, and recycling, indicating a comprehensive facilities management requirement. 4. The award was not competed under the Simplified Acquisition Procedures, suggesting it may have exceeded those thresholds. 5. The firm fixed-price contract type provides cost certainty for the government but may limit flexibility. 6. The contractor, Melwood Horticultural Training Center, Inc., likely has a specific mission related to employment for individuals with disabilities. 7. The contract is geographically focused on the District of Columbia.

Value Assessment

Rating: fair

Benchmarking the value for this specific contract is challenging without comparable bids or detailed service level agreements. The firm fixed-price structure offers predictability, but the lack of competition means the government did not benefit from a competitive bidding process to potentially drive down costs. The total award amount of approximately $5 million over five years averages to about $1 million annually, which needs to be assessed against the scope and scale of facilities managed by OPM in the District of Columbia.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a sole-source procurement, meaning it was not openly competed. This approach is typically used when only one responsible source can satisfy the agency's needs. The lack of competition means that the government did not receive multiple offers, which could have led to a more competitive price. The specific justification for the sole-source award is not detailed here but is crucial for understanding why other potential vendors were not considered.

Taxpayer Impact: The absence of competition means taxpayers may not have received the best possible price for these essential services. Without competing offers, there is a reduced incentive for the contractor to offer the lowest possible price.

Public Impact

The primary beneficiary is the Office of Personnel Management (OPM), which will receive essential custodial, snow removal, and recycling services for its facilities. The contract supports the mission of Melwood Horticultural Training Center, Inc., which often focuses on providing employment and training for individuals with disabilities. Services are delivered within the District of Columbia, impacting federal facilities in the nation's capital. The contract likely supports jobs within the custodial and maintenance sectors, potentially including individuals with disabilities through the contractor's mission.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition limits opportunities for price discovery and potentially leads to higher costs for taxpayers.
Long contract duration (over five years) may reduce flexibility to adapt to changing needs or market conditions.
Firm fixed-price contract could lead to the government paying for services not fully utilized if needs decrease.
Scope of services is broad, requiring careful monitoring to ensure all aspects are adequately addressed.

Positive Signals

Contract supports a mission-driven organization (Melwood Horticultural Training Center, Inc.) that provides employment opportunities.
Firm fixed-price contract provides budget certainty for OPM.
Services are essential for maintaining federal facilities in the District of Columbia.
Contract duration ensures continuity of essential services.

Sector Analysis

The facilities maintenance and custodial services sector is a significant part of the government contracting landscape. This contract falls under the broader category of support services, which includes a wide range of activities necessary for the operation of government agencies. The North American Industry Classification System (NAICS) code 561720 for Janitorial Services indicates a well-defined market. While specific spending benchmarks for custodial and snow removal services for federal agencies in D.C. are not readily available, the total award of $4.99 million over nearly five years suggests a substantial requirement for maintaining OPM's facilities.

Small Business Impact

This contract was not awarded as a small business set-aside, and the contractor, Melwood Horticultural Training Center, Inc., is not identified as a small business. Therefore, there are no direct subcontracting implications for small businesses arising from a small business set-aside requirement. However, the nature of custodial and maintenance services often involves a labor force that may include individuals from various backgrounds, and the contractor's mission may indirectly support employment opportunities.

Oversight & Accountability

Oversight for this contract would primarily reside with the Office of Personnel Management (OPM) contracting officers and program managers. They are responsible for ensuring that the contractor meets the terms and conditions of the contract, including service levels and performance standards. Transparency is generally maintained through contract award databases, but detailed performance metrics and specific oversight activities are typically internal to the agency. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Facilities Maintenance Contracts
Government Custodial Services
Snow and Ice Removal Services
Office of Personnel Management Contracts
Support Services Contracts

Risk Flags

Sole-source award lacks competitive pricing pressure.
Long contract duration may reduce flexibility.
Potential for cost overruns without competitive benchmarking.

Frequently Asked Questions

What is this federal contract paying for?

Office of Personnel Management awarded $5.0 million to MELWOOD HORTICULTURAL TRAINING CENTER, INC.. TRB CUSTODIAL, SNOW REMOVAL, RECYCLING SERVICES (INCL WINDOW WASHING)

Who is the contractor on this award?

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

Which agency awarded this contract?

Awarding agency: Office of Personnel Management (Office of Personnel Management).

What is the total obligated amount?

The obligated amount is $5.0 million.

What is the period of performance?

Start: 2022-08-16. End: 2027-09-30.

What is the specific mission of Melwood Horticultural Training Center, Inc., and how does this contract align with it?

Melwood Horticultural Training Center, Inc. is a non-profit organization dedicated to providing job training and employment opportunities for individuals with disabilities, particularly in areas like landscaping, horticulture, and facilities maintenance. This contract for custodial, snow removal, and recycling services directly aligns with Melwood's mission by providing meaningful employment for its trainees and employees in essential service roles. The organization leverages government contracts as a primary means to fulfill its social mission, offering valuable work experience and career pathways for its participants while delivering necessary services to federal agencies.

How does the $4.99 million award compare to historical spending on similar services by OPM or other agencies?

Direct comparison of this $4.99 million award to historical spending by OPM or similar agencies for custodial, snow removal, and recycling services is difficult without access to detailed historical contract data and specific service scope definitions. However, as a sole-source award over nearly five years, it represents a significant investment in facilities management. Agencies typically allocate substantial budgets to maintain their physical infrastructure. To provide a robust comparison, one would need to analyze OPM's past contracts for these services, benchmark against contracts awarded by agencies with similar facility footprints in the D.C. area, and consider inflation and changes in service requirements over time.

What are the key performance indicators (KPIs) for this contract, and how is performance monitored?

Key performance indicators (KPIs) for this contract would likely include metrics related to cleanliness standards (e.g., frequency of cleaning, inspection scores), timely snow removal (e.g., clearing time after snowfall events), effective recycling program management (e.g., diversion rates, contamination levels), and responsiveness to service requests. Performance monitoring is typically conducted by the OPM contracting officer's representative (COR) or designated personnel, who would conduct regular inspections, review service logs, solicit feedback from facility users, and hold periodic performance review meetings with the contractor. Adherence to these KPIs would determine the contractor's overall performance rating and eligibility for payment.

Given the sole-source nature, what risks are associated with this contract regarding cost overruns or service quality?

The primary risk associated with a sole-source contract is the potential for higher costs due to the lack of competitive pressure. Without multiple bids, the government may not be achieving the lowest possible price for the services rendered. Additionally, while the contractor is obligated to perform, the absence of direct competition could theoretically reduce the incentive to proactively improve service quality or efficiency beyond the contract minimums. OPM must therefore implement robust oversight, clearly defined performance standards, and potentially include price adjustment clauses or re-negotiation points to mitigate these risks.

What is the potential impact of this contract on the broader market for custodial and snow removal services in the D.C. area?

As a sole-source award to a specific non-profit organization, this contract's direct impact on the broader commercial market for custodial and snow removal services in the D.C. area is likely limited. It does not represent a competitive win that would displace other commercial providers. However, it does secure a significant contract for Melwood Horticultural Training Center, Inc., enabling them to continue their mission and employ individuals with disabilities. The existence of such contracts demonstrates a market for specialized providers who can meet both service needs and social objectives, potentially encouraging other similar organizations to pursue government contracts.

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 UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

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: $7,240,665

Exercised Options: $4,989,517

Current Obligation: $4,989,517

Actual Outlays: $4,719,061

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline