DOJ's FBI Headquarters Custodial Services Contract Awarded to Melwood for $28.3M
Contract Overview
Contract Amount: $28,349,101 ($28.3M)
Contractor: Melwood Horticultural Training Center, Inc.
Awarding Agency: Department of Justice
Start Date: 2014-11-19
End Date: 2022-01-31
Contract Duration: 2,630 days
Daily Burn Rate: $10.8K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: IGF::OT::IGF PROVIDE CUSTODIAL SERVICES AT THE FBI HEADQUARTERS
Place of Performance
Location: UPPER MARLBORO, PRINCE GEORGES County, MARYLAND, 20772
State: Maryland Government Spending
Plain-Language Summary
Department of Justice obligated $28.3 million to MELWOOD HORTICULTURAL TRAINING CENTER, INC. for work described as: IGF::OT::IGF PROVIDE CUSTODIAL SERVICES AT THE FBI HEADQUARTERS Key points: 1. Contract awarded to Melwood Horticultural Training Center, Inc. for custodial services. 2. Significant contract value of $28.3 million over its duration. 3. Procurement method was 'NOT AVAILABLE FOR COMPETITION', raising questions about competition. 4. Services provided are janitorial, falling under the NAICS code 561720.
Value Assessment
Rating: fair
The contract value of $28.3 million for custodial services over approximately 7 years appears high without a competitive benchmark. The firm fixed price structure provides cost certainty but may not reflect market rates.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, indicating a limited procurement approach. This likely restricted price discovery and potentially led to a higher cost than a competitive process might have yielded.
Taxpayer Impact: The lack of competition may have resulted in taxpayers paying more than necessary for these essential custodial services.
Public Impact
Essential services like janitorial support are critical for FBI headquarters operations. The contract's duration and value suggest a long-term reliance on the awarded vendor. The non-competitive nature of the award warrants scrutiny regarding fairness and value for money.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Potential for overpayment due to lack of competition
Positive Signals
- Consistent service delivery over contract duration
- Fixed price contract provides cost predictability
Sector Analysis
Custodial services, including janitorial, are a common government expenditure. Benchmarks for such services vary widely based on location, scope, and specific requirements, making direct comparison difficult without more detail.
Small Business Impact
The contract was awarded to Melwood Horticultural Training Center, Inc. Further analysis is needed to determine if this entity qualifies as a small business or if subcontracting opportunities were provided to small businesses.
Oversight & Accountability
The non-competitive award necessitates oversight to ensure the services are necessary, performed adequately, and priced reasonably. The Department of Justice's Federal Bureau of Investigation should have internal controls to monitor this contract.
Related Government Programs
- Janitorial Services
- Department of Justice Contracting
- Federal Bureau of Investigation Programs
Risk Flags
- Lack of competitive bidding
- Potential for inflated pricing
- Absence of detailed justification for limited competition
- Limited transparency on vendor's small business status and subcontracting
Tags
janitorial-services, department-of-justice, md, purchase-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $28.3 million to MELWOOD HORTICULTURAL TRAINING CENTER, INC.. IGF::OT::IGF PROVIDE CUSTODIAL SERVICES AT THE FBI HEADQUARTERS
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 Justice (Federal Bureau of Investigation).
What is the total obligated amount?
The obligated amount is $28.3 million.
What is the period of performance?
Start: 2014-11-19. End: 2022-01-31.
What was the justification for not making this contract available for competition?
The justification for the limited competition is not provided in the data. Typically, such justifications include factors like urgent needs, unique capabilities of a specific vendor, or situations where only one source can fulfill the requirement. Without this information, it's difficult to assess the validity of the procurement approach.
How does the per-unit cost of these custodial services compare to industry benchmarks?
A direct per-unit cost comparison is not possible with the provided data. Key metrics like cost per square foot, cost per service hour, or cost per employee supported are missing. A thorough benchmark analysis would require detailed service scope and pricing information to compare against similar government or commercial contracts.
What is the potential financial impact on taxpayers due to the lack of competition?
The lack of competition introduces a risk of overpayment. Without competitive bidding, the government may not have secured the lowest possible price for the custodial services. The difference between the awarded price and a potentially lower competitive price represents the potential financial impact on taxpayers, which is currently unquantifiable.
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
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: $28,349,101
Exercised Options: $28,349,101
Current Obligation: $28,349,101
Actual Outlays: $10,506,750
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2014-11-19
Current End Date: 2022-01-31
Potential End Date: 2022-01-31 00:00:00
Last Modified: 2024-02-13
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