HUD's $10.5M landscaping and custodial contract awarded to Melwood Horticultural Training Center, Inc. in 2003

Contract Overview

Contract Amount: $10,549,397 ($10.5M)

Contractor: Melwood Horticultural Training Center, Inc.

Awarding Agency: Department of Housing and Urban Development

Start Date: 2003-08-08

End Date: 2010-05-31

Contract Duration: 2,488 days

Daily Burn Rate: $4.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: LANDSCAPING, CUSTODIAL, PARKING

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20001

State: District of Columbia Government Spending

Plain-Language Summary

Department of Housing and Urban Development obligated $10.5 million to MELWOOD HORTICULTURAL TRAINING CENTER, INC. for work described as: LANDSCAPING, CUSTODIAL, PARKING Key points: 1. Contract awarded in 2003 for services spanning over 6 years, indicating long-term planning. 2. The contract was not competitively procured, raising questions about potential price optimization. 3. Services include landscaping, custodial, and parking, essential for maintaining federal facilities. 4. The contractor, Melwood Horticultural Training Center, Inc., has a mission focused on employing individuals with disabilities. 5. The contract's duration and fixed-price nature suggest a predictable cost structure. 6. The absence of a small business set-aside suggests this was not specifically targeted for small business participation.

Value Assessment

Rating: fair

This contract, awarded in 2003 and ending in 2010, represents a significant investment of over $10 million for landscaping, custodial, and parking services. Without comparable contract data from the same period or for similar services, a precise value-for-money assessment is challenging. However, the long duration and fixed-price nature suggest a stable cost environment. The fact that it was a sole-source award means direct price comparisons to competitive bids are not possible, potentially limiting the government's ability to secure the lowest possible price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This approach is typically used when only one responsible source is available or capable of providing the required services. The lack of competition means that the government did not benefit from the price discovery mechanisms inherent in a competitive bidding process, which could lead to higher costs than if multiple vendors had vied for the contract.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure to drive down prices. The government did not have the opportunity to evaluate multiple proposals and select the best value offer.

Public Impact

The primary beneficiaries are the Department of Housing and Urban Development (HUD) facilities, which receive essential maintenance services. Services include landscaping, custodial care, and parking management, contributing to the upkeep and usability of federal properties. The contract's geographic impact is localized to the District of Columbia, where HUD facilities are maintained. The contractor, Melwood Horticultural Training Center, Inc., provides employment opportunities for individuals with disabilities, aligning with social impact goals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential taxpayer savings.
Long contract duration (over 6 years) may not reflect current market prices or evolving service needs.
Lack of detailed performance metrics in the provided data makes it difficult to assess service quality.
Contract awarded in 2003, services may be outdated or less efficient compared to modern standards.

Positive Signals

Contractor's mission to employ individuals with disabilities offers significant social value.
Fixed-price contract provides cost predictability for the agency.
Long-term award suggests a stable and reliable service provider for essential facility maintenance.

Sector Analysis

This contract falls within the broader facilities management and support services sector. This sector encompasses a wide range of services essential for the operation of government buildings and infrastructure, including maintenance, cleaning, and groundskeeping. The total federal spending on facilities support services is substantial, with numerous contracts awarded annually across various agencies. This specific contract's value of over $10 million over its duration places it as a significant award within its niche, particularly given its sole-source nature and focus on a specific mission-driven contractor.

Small Business Impact

The provided data indicates that this contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses mentioned. The contractor, Melwood Horticultural Training Center, Inc., is a non-profit organization with a mission to employ individuals with disabilities, which may have influenced the procurement approach. Therefore, the direct impact on the broader small business ecosystem is likely minimal, with the primary focus being on the contractor's social mission.

Oversight & Accountability

Oversight for this contract would have been managed by the Department of Housing and Urban Development (HUD) contracting officers and program managers. As a sole-source award, the justification for this approach would have been documented and subject to review. Transparency regarding the specific oversight mechanisms and accountability measures implemented during the contract's lifecycle (2003-2010) is limited by the available data. Inspector General jurisdiction would typically apply to ensure the proper use of federal funds.

Related Government Programs

Federal Building Maintenance Contracts
Government Landscaping Services
Custodial Services for Federal Agencies
Parking Management Contracts
HUD Facility Operations

Risk Flags

Sole-source award may indicate lack of competition.
Contract awarded over 17 years ago; current market relevance and pricing may differ.
Limited performance data available for assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Housing and Urban Development awarded $10.5 million to MELWOOD HORTICULTURAL TRAINING CENTER, INC.. LANDSCAPING, CUSTODIAL, PARKING

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 $10.5 million.

What is the period of performance?

Start: 2003-08-08. End: 2010-05-31.

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

The provided data does not specify the exact justification for the sole-source award. Typically, sole-source contracts are awarded when only one responsible source is available to meet the government's needs. This could be due to unique capabilities, proprietary technology, or specific mission requirements. For this contract, awarded to Melwood Horticultural Training Center, Inc., the justification might have been related to their specialized mission of employing individuals with disabilities, potentially making them the only entity capable of fulfilling the contract while meeting specific social objectives. A thorough review of the contract file at HUD would be necessary to ascertain the precise documented reason.

How does the annual cost of this contract compare to similar landscaping and custodial contracts awarded by HUD or other agencies during the same period?

A direct comparison of the annual cost is challenging without access to a comprehensive database of federal contracts from 2003-2010 for similar services. However, the total contract value of approximately $10.5 million over roughly 7 years (2003-2010) suggests an average annual expenditure of around $1.5 million. This figure would need to be benchmarked against contracts for comparable facility sizes and service scopes in the Washington D.C. metropolitan area during that era. Given the sole-source nature, it's plausible that this annual cost might be higher than what could have been achieved through competitive bidding, but without comparative data, this remains speculative.

What were the key performance indicators (KPIs) and service level agreements (SLAs) for this contract, and how was performance monitored?

The provided data does not include details on the specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) established for this contract. Typically, such contracts would outline requirements for landscaping quality, frequency of custodial services, response times for issues, and standards for parking lot maintenance. Performance monitoring would have been the responsibility of the contracting officer's representative (COR) at HUD, who would conduct regular inspections, review service reports, and address any deficiencies. The absence of this information in the summary data limits our ability to assess the contractor's performance and the effectiveness of the oversight.

What is the track record of Melwood Horticultural Training Center, Inc. in fulfilling federal contracts, particularly those of this scale?

Melwood Horticultural Training Center, Inc. has a long history of providing services, including landscaping and custodial work, often with a focus on employing individuals with disabilities. While this specific $10.5 million contract with HUD was a significant award, Melwood has historically secured and performed on various government contracts. Their success in maintaining long-term relationships with agencies like HUD suggests a generally positive track record in delivering required services and meeting contractual obligations. However, a comprehensive assessment would require reviewing performance evaluations and any past disputes or contract modifications across all their federal engagements.

What was the total federal spending on landscaping, custodial, and parking services across all agencies during the contract period (2003-2010)?

Determining the precise total federal spending across all agencies for landscaping, custodial, and parking services between 2003 and 2010 would require extensive data aggregation and analysis from sources like the Federal Procurement Data System (FPDS) or its predecessors. This figure would likely be in the billions of dollars annually, given the vast number of federal facilities requiring these essential services. This specific HUD contract, valued at $10.5 million over its duration, represents a small fraction of the overall federal expenditure in these categories, highlighting the widespread need for such services across the government.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 5606 DOWER HOUSE RD, UPPER MARLBORO, MD, 05

Business Categories: AbilityOne Program Participant, Category Business, Nonprofit Organization, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $30,694,382

Exercised Options: $30,694,382

Current Obligation: $10,549,397

Timeline