Coast Guard awards $9.9M janitorial contract to Melwood Horticultural Training Center via AbilityOne program

Contract Overview

Contract Amount: $9,874,190 ($9.9M)

Contractor: Melwood Horticultural Training Center, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2022-07-01

End Date: 2027-06-30

Contract Duration: 1,825 days

Daily Burn Rate: $5.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: USCG YARD CUSTODIAL SERVICES CONTRACT THROUGH ABILITYONE PROGRAM.

Place of Performance

Location: CURTIS BAY, BALTIMORE CITY County, MARYLAND, 21226

State: Maryland Government Spending

Plain-Language Summary

Department of Homeland Security obligated $9.9 million to MELWOOD HORTICULTURAL TRAINING CENTER, INC. for work described as: USCG YARD CUSTODIAL SERVICES CONTRACT THROUGH ABILITYONE PROGRAM. Key points: 1. Contract leverages the AbilityOne program, which prioritizes employment for individuals with disabilities. 2. The firm-fixed-price structure provides cost certainty for the government. 3. The contract duration of five years offers stability for service delivery. 4. Service is geographically concentrated in Maryland. 5. The contract is not competitively awarded, relying on a specific government program mandate.

Value Assessment

Rating: good

The contract value of $9.9 million over five years averages approximately $1.98 million annually. Benchmarking janitorial services is complex due to varying scopes and locations. However, given the use of the AbilityOne program, direct price comparisons to open market contracts may not be fully representative. The firm-fixed-price type suggests that the price was determined upfront and is not expected to fluctuate significantly with performance, which is a positive indicator for budget predictability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under the AbilityOne program, which is a mandatory source for certain supplies and services, effectively making it a sole-source procurement. The AbilityOne program aims to create employment opportunities for people with significant disabilities. Therefore, competition in the traditional sense, with multiple bidders vying for the contract, is not applicable here. The pricing is negotiated based on the program's guidelines.

Taxpayer Impact: Taxpayers benefit from supporting a program that provides employment for individuals with disabilities, aligning with social objectives. However, the lack of open competition means potential cost savings from a competitive bidding process are not realized.

Public Impact

Individuals with disabilities gain employment and job training through Melwood Horticultural Training Center. The U.S. Coast Guard receives essential custodial services for its facilities. The primary geographic impact is within Maryland, where the services are performed. The contract supports the workforce of Melwood Horticultural Training Center, including individuals with disabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for higher costs compared to a fully competitive bid due to sole-source nature.
Reliance on a single provider may limit flexibility in service adjustments.
Ensuring consistent quality and performance over the five-year term requires diligent oversight.

Positive Signals

Directly supports the AbilityOne program's mission of employing individuals with disabilities.
Provides stable, long-term employment opportunities for the contractor's workforce.
Firm-fixed-price contract offers budget certainty for the Coast Guard.

Sector Analysis

The janitorial services sector is a mature and competitive market. However, this contract operates within a specialized procurement channel, the AbilityOne program, which mandates the use of specific non-profit agencies that employ individuals with disabilities. This program significantly influences the competitive landscape for such services, shifting the focus from pure price competition to mission-driven procurement. Comparable spending benchmarks for janitorial services in the federal government are abundant, but direct comparisons to this AbilityOne contract must account for its unique sourcing and social impact objectives.

Small Business Impact

This contract is awarded through the AbilityOne program, which is specifically designed to provide employment for individuals with significant disabilities, often through associated non-profit organizations. While not a direct small business set-aside in the traditional sense, it fulfills a similar socio-economic objective. Subcontracting opportunities are not explicitly detailed but would likely be managed within the framework of the AbilityOne program's requirements and the prime contractor's operational model.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Coast Guard and the Department of Homeland Security. As a mandatory source procurement via the AbilityOne program, there are specific compliance and performance monitoring requirements set by the Committee for Purchase From People Who Are Blind or Severely Disabled (CPBPSSD). Transparency is facilitated through federal procurement databases, and accountability is maintained through contract performance reviews and adherence to AbilityOne program regulations.

Related Government Programs

AbilityOne Program Contracts
Federal Janitorial Services
Department of Homeland Security Contracts
U.S. Coast Guard Support Services

Risk Flags

Sole-source procurement
Potential for higher cost due to non-competitive award
Reliance on specific program mandates

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $9.9 million to MELWOOD HORTICULTURAL TRAINING CENTER, INC.. USCG YARD CUSTODIAL SERVICES CONTRACT THROUGH ABILITYONE PROGRAM.

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 Homeland Security (U.S. Coast Guard).

What is the total obligated amount?

The obligated amount is $9.9 million.

What is the period of performance?

Start: 2022-07-01. End: 2027-06-30.

What is the track record of Melwood Horticultural Training Center, Inc. in performing government contracts, particularly those under the AbilityOne program?

Melwood Horticultural Training Center, Inc. has a significant history of performing government contracts, primarily through the AbilityOne program. As a large non-profit organization, its mission is centered on providing employment and training for individuals with disabilities. Their experience typically spans a range of services, including custodial, landscaping, and administrative support. Government contract databases often show a consistent award history for Melwood, indicating a level of reliability and capability recognized by federal agencies. Performance reviews and past performance information, where available in federal systems, generally reflect their ability to meet contract requirements, though like any large contractor, specific contract performance can vary. Their long-standing presence suggests a strong understanding of the unique requirements and reporting associated with AbilityOne procurements.

How does the pricing of this contract compare to similar janitorial services procured through open competition?

Directly comparing the pricing of this contract to janitorial services procured through open competition is challenging and potentially misleading. This contract is awarded under the AbilityOne program, a mandatory source procurement designed to create employment for individuals with disabilities. The pricing is negotiated based on program guidelines and the cost of providing meaningful employment and training, rather than solely on market-driven competitive rates. While open market contracts might achieve lower prices due to intense competition, they do not fulfill the social mission inherent in the AbilityOne program. Therefore, while this contract may appear higher priced than a competitively bid equivalent, the difference reflects the social value and employment opportunities generated, which is a key objective of the AbilityOne framework.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks associated with this contract include potential performance inconsistencies due to the nature of the workforce, the possibility of higher costs compared to competitive procurements, and ensuring consistent service quality over the five-year term. Mitigation strategies likely involve robust contract management and oversight by the U.S. Coast Guard. This includes regular performance evaluations, clear communication channels with Melwood, and adherence to the established quality standards. The AbilityOne program itself has oversight mechanisms to ensure compliance and performance. Furthermore, the firm-fixed-price structure helps mitigate cost overrun risks for the government. Melwood's established experience with government contracts and the AbilityOne program also serves as a risk-reduction factor, indicating a known entity with a track record.

What is the overall effectiveness of the AbilityOne program in delivering essential services like janitorial support?

The AbilityOne program has been effective in delivering a wide range of essential services, including janitorial support, for decades. Its primary effectiveness lies in its dual mission: providing federal agencies with necessary goods and services while simultaneously creating significant employment opportunities for individuals with significant disabilities. Agencies like the U.S. Coast Guard rely on these services to maintain their facilities. While the program's pricing structure differs from open market competition, its success is measured not only by service delivery but also by the social impact achieved. The program's longevity and the continued participation of federal agencies suggest a perceived effectiveness in meeting both operational needs and socio-economic goals, though continuous monitoring of service quality and cost-efficiency remains important.

How has federal spending on janitorial services through the AbilityOne program trended over the past five years?

Federal spending on janitorial services through the AbilityOne program has generally remained substantial, reflecting the ongoing need for these services across various government agencies and the program's mandate. While specific aggregate data for 'janitorial services' alone can be difficult to isolate from broader service categories within AbilityOne procurements, the overall value of contracts awarded under the program indicates consistent government reliance. Trends are influenced by overall federal budgets, agency needs, and the program's capacity to meet demand. Factors such as increased focus on supporting employment for individuals with disabilities and the stability offered by long-term contracts contribute to a steady, albeit potentially fluctuating, spending pattern. Detailed analysis would require examining specific contract awards and spending reports over the period.

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: 70Z04022Q65058Y00

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: $10,739,948

Exercised Options: $9,874,190

Current Obligation: $9,874,190

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline