HUD awards $19.4M custodial and landscaping contract to Melwood Horticultural Training Center, Inc

Contract Overview

Contract Amount: $19,426,690 ($19.4M)

Contractor: Melwood Horticultural Training Center, Inc.

Awarding Agency: Department of Housing and Urban Development

Start Date: 2019-09-01

End Date: 2024-08-31

Contract Duration: 1,826 days

Daily Burn Rate: $10.6K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CUSTODIAL AND LANDSCAPING SERVICES

Place of Performance

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

State: District of Columbia Government Spending

Plain-Language Summary

Department of Housing and Urban Development obligated $19.4 million to MELWOOD HORTICULTURAL TRAINING CENTER, INC. for work described as: CUSTODIAL AND LANDSCAPING SERVICES Key points: 1. Contract awarded for custodial and landscaping services, indicating a need for ongoing facility maintenance. 2. The contract duration of 1826 days suggests a long-term requirement for these services. 3. The award to Melwood Horticultural Training Center, Inc. may align with specific agency missions or social objectives. 4. Fixed-price contract type suggests cost certainty for the government, assuming scope is well-defined. 5. The lack of competition data requires further investigation into the procurement process. 6. Geographic focus on Washington D.C. highlights localized service delivery.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without comparable bids or detailed service scope. The fixed-price nature provides cost predictability, but the absence of competitive pricing data makes a definitive value-for-money assessment difficult. The contract's duration suggests a significant investment, and its success hinges on efficient service delivery and adherence to the fixed price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source or limited competition award. The specific reasons for this procurement approach are not detailed in the provided data. Without a competitive bidding process, it is difficult to ascertain if the government received the best possible pricing or if alternative solutions were considered.

Taxpayer Impact: Taxpayers may not have benefited from potential cost savings that could arise from a competitive bidding environment. The absence of competition could lead to higher prices than might be achieved in an open market.

Public Impact

The primary beneficiaries are the facilities managed by the Department of Housing and Urban Development (HUD) in Washington D.C., which will receive custodial and landscaping services. The contract ensures the upkeep and maintenance of government properties, contributing to a safe and presentable environment. Services are geographically concentrated within the District of Columbia. The contract supports the operational mission of HUD by outsourcing essential facility management tasks.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competitive bidding raises concerns about potential overpayment and lack of market-driven pricing.
Limited transparency into the justification for a sole-source award hinders public trust.
Absence of performance metrics makes it difficult to assess the quality and effectiveness of services provided.
Contract duration without clear performance benchmarks could lock the government into a potentially suboptimal arrangement.

Positive Signals

Award to Melwood Horticultural Training Center, Inc. may support a mission-driven organization, potentially aligning with social or employment goals.
Fixed-price contract type offers budget certainty for the agency.
Long-term contract provides stability for service delivery and contractor planning.

Sector Analysis

This contract falls within the facilities support services sector, specifically custodial and landscaping. This is a common area for government outsourcing, as agencies often require specialized services for maintaining their physical infrastructure. The market for these services is generally competitive, with numerous providers ranging from large corporations to smaller, specialized firms. The size of this contract, at approximately $19.4 million over five years, places it in the mid-to-large range for individual service contracts within this sector.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false) and there is no specific information regarding subcontracting plans (sb: false). Therefore, it is unlikely that small businesses will be directly involved as prime contractors or through mandated subcontracting opportunities under this specific award. Further investigation would be needed to determine if the prime contractor has any internal small business utilization policies.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Housing and Urban Development's contracting officers and program managers. Accountability measures would be defined within the contract's terms and conditions, likely including performance standards and reporting requirements. Transparency is limited by the lack of public detail regarding the sole-source justification and performance outcomes. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

General Services Administration (GSA) Schedules for Facilities Maintenance
Department of Defense (DoD) Base Operations Support Contracts
National Park Service (NPS) Grounds Maintenance Contracts
Federal Buildings Fund Expenditures

Risk Flags

Sole-source award without clear justification.
Lack of competitive bidding may lead to suboptimal pricing.
Absence of publicly available performance metrics.
Potential for higher costs due to lack of competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Housing and Urban Development awarded $19.4 million to MELWOOD HORTICULTURAL TRAINING CENTER, INC.. CUSTODIAL AND LANDSCAPING 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 Housing and Urban Development (Department of Housing and Urban Development).

What is the total obligated amount?

The obligated amount is $19.4 million.

What is the period of performance?

Start: 2019-09-01. End: 2024-08-31.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was awarded as 'NOT AVAILABLE FOR COMPETITION,' which typically signifies a sole-source or limited competition procurement. Common justifications for sole-source awards include unique capabilities of the contractor, urgent and compelling needs where only one source can fulfill the requirement, or specific socio-economic program requirements. Without further documentation from the agency (e.g., Justification for Other Than Full and Open Competition - JOFOC), the precise reason remains unknown. This lack of transparency is a significant concern for ensuring fair and competitive procurement practices.

How does the awarded price compare to market rates for similar custodial and landscaping services in Washington D.C.?

Direct comparison of the awarded price to market rates is difficult without knowing the exact scope of services, service levels, and quality standards required by HUD. However, the total contract value of $19.4 million over approximately five years averages to about $3.88 million per year. Industry benchmarks for custodial and landscaping services vary widely based on facility size, complexity, and specific tasks. Given the sole-source nature, it is impossible to definitively state if this price represents optimal value without competitive bids. Further analysis would require detailed service descriptions and comparison with publicly available pricing data for similar government or commercial contracts in the D.C. metropolitan area.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

The provided data does not include specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. Typically, such details are outlined in the contract's statement of work (SOW) or performance work statement (PWS). These metrics are crucial for evaluating the contractor's performance and ensuring the government receives the required quality and quantity of custodial and landscaping services. Without access to these KPIs and SLAs, it is challenging to objectively assess the effectiveness and efficiency of Melwood Horticultural Training Center, Inc.'s service delivery under this award.

What is the track record of Melwood Horticultural Training Center, Inc. in performing similar government contracts?

Information regarding Melwood Horticultural Training Center, Inc.'s specific track record on similar government contracts is not provided in the data. However, their name suggests a potential focus on horticultural training, which may align with landscaping services. To assess their capability, one would typically review past performance evaluations, contract history databases (like SAM.gov or FPDS), and any debriefings from previous procurements. A strong track record with successful past performance on comparable contracts would increase confidence in their ability to meet HUD's requirements.

What is the historical spending trend for custodial and landscaping services by the Department of Housing and Urban Development?

The provided data only pertains to a single contract award and does not offer historical spending trends for HUD's custodial and landscaping services. To analyze historical spending, one would need to examine contract databases over multiple fiscal years, filtering for relevant NAICS codes (like 561720 for Janitorial Services) and agencies. This would reveal patterns in contract values, types of awards (competitive vs. sole-source), and the number of contracts awarded over time, providing context for the current $19.4 million award.

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: 86543J19R00001

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: $21,360,087

Exercised Options: $21,360,087

Current Obligation: $19,426,690

Actual Outlays: $19,426,690

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline