HUD's $5M Weaver Building Custodial Contract Awarded to Melwood, Lacking Competition

Contract Overview

Contract Amount: $5,012,352 ($5.0M)

Contractor: Melwood Horticultural Training Center, Inc.

Awarding Agency: General Services Administration

Start Date: 2025-09-01

End Date: 2026-08-31

Contract Duration: 364 days

Daily Burn Rate: $13.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: HUD TRANSFERRED CONTRACT 86614324C00005 FOR CUSTODIAL AND RELATED SERVICES AT THE WEAVER BUILDING IN WASHINGTON, DC.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20410

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $5.0 million to MELWOOD HORTICULTURAL TRAINING CENTER, INC. for work described as: HUD TRANSFERRED CONTRACT 86614324C00005 FOR CUSTODIAL AND RELATED SERVICES AT THE WEAVER BUILDING IN WASHINGTON, DC. Key points: 1. Contract awarded for custodial services at HUD's Weaver Building in Washington, DC. 2. Melwood Horticultural Training Center, Inc. is the sole awardee. 3. The contract is for a base term of 364 days with a firm fixed price. 4. The award value is approximately $5.01 million. 5. This contract falls under the Janitorial Services NAICS code 561720.

Value Assessment

Rating: fair

The contract value of $5.01M for 364 days of custodial services appears high for a single building. Benchmarking against similar GSA contracts for custodial services in the DC area is needed for a precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, suggesting a limited competition approach. This limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for these essential building services.

Public Impact

Taxpayers may be overpaying for custodial services due to a lack of competitive bidding. The award to a single entity limits opportunities for other service providers. The Weaver Building's operational efficiency could be impacted if service quality is not maintained. Transparency in the procurement process is reduced when competition is limited.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Potentially high cost

Positive Signals

Contract awarded to a known entity
Clear service period

Sector Analysis

This contract falls within the facilities maintenance and custodial services sector. Spending benchmarks for janitorial services in major metropolitan areas like Washington, DC, typically vary based on building size, scope of services, and security requirements.

Small Business Impact

The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small businesses were considered or had an opportunity to bid.

Oversight & Accountability

Oversight will be crucial to ensure Melwood Horticultural Training Center, Inc. delivers the contracted custodial services effectively and efficiently, especially given the limited competition. The General Services Administration (GSA) should monitor performance closely.

Related Government Programs

Janitorial Services
General Services Administration Contracting
Public Buildings Service Programs

Risk Flags

Lack of competition
Potentially high cost
Limited transparency
No small business consideration indicated

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $5.0 million to MELWOOD HORTICULTURAL TRAINING CENTER, INC.. HUD TRANSFERRED CONTRACT 86614324C00005 FOR CUSTODIAL AND RELATED SERVICES AT THE WEAVER BUILDING IN WASHINGTON, DC.

Who is the contractor on this award?

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

Which agency awarded this contract?

Awarding agency: General Services Administration (Public Buildings Service).

What is the total obligated amount?

The obligated amount is $5.0 million.

What is the period of performance?

Start: 2025-09-01. End: 2026-08-31.

What is the justification for limiting competition on this custodial services contract?

The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION,' implying a specific justification was likely documented by the agency. This could be due to factors like urgent need, unique capabilities of the awardee, or prior contract structures. Without further details, the exact reason remains unclear, but it significantly impacts price discovery and potential cost savings.

How does the per-unit cost of this contract compare to industry benchmarks for similar services in the DC area?

A direct per-unit cost comparison is difficult without more granular data on the specific services provided (e.g., square footage cleaned, frequency, specialized tasks). However, the total award of $5.01M for a 364-day contract suggests a substantial cost. Benchmarking against GSA's historical data for similar facilities and services in the DC region would be necessary to assess if this pricing is competitive or inflated.

What is the potential impact on service quality and taxpayer value when competition is limited?

Limited competition can reduce the incentive for a contractor to innovate or maintain high service quality, as there are fewer alternatives for the government to switch to. This can lead to a decline in service standards over time and potentially less value for taxpayer money. Robust performance monitoring and clear contract terms are essential to mitigate these risks.

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 AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 86614324R00008

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: $19,964,307

Exercised Options: $5,012,352

Current Obligation: $5,012,352

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline