HUD custodial services contract awarded to Melwood Horticultural Training Center for over $14.6 million

Contract Overview

Contract Amount: $14,622,539 ($14.6M)

Contractor: Melwood Horticultural Training Center, Inc.

Awarding Agency: Department of Housing and Urban Development

Start Date: 2008-09-01

End Date: 2014-02-28

Contract Duration: 2,006 days

Daily Burn Rate: $7.3K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NEW FOLLOW-ON CONTRACT FOR CUSTODIAL SERVICES AT THE HUD BUILDING, INCLUDING, BUT NOT LIMITED TO, JANITORIAL, CARPET CLEANING, WINDOW WASHING, PEST CONTROL, TRASH AND DEBRIS REMOVAL, SNOW REMOVAL AND PICK-UP AND STATING OF RECYCLABLE MATERIALS.

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 $14.6 million to MELWOOD HORTICULTURAL TRAINING CENTER, INC. for work described as: NEW FOLLOW-ON CONTRACT FOR CUSTODIAL SERVICES AT THE HUD BUILDING, INCLUDING, BUT NOT LIMITED TO, JANITORIAL, CARPET CLEANING, WINDOW WASHING, PEST CONTROL, TRASH AND DEBRIS REMOVAL, SNOW REMOVAL AND PICK-UP AND STATING OF RECYCLABLE MATERIALS. Key points: 1. Contract provides comprehensive custodial services for the HUD building. 2. Services include janitorial, carpet cleaning, window washing, pest control, and snow removal. 3. The contract was awarded as not available for competition. 4. The contract duration spans from September 2008 to February 2014. 5. The total value of the contract is over $14.6 million. 6. The contract type is Firm Fixed Price.

Value Assessment

Rating: fair

Benchmarking the value of this custodial services contract is challenging without specific performance metrics or comparable contract data. The total value of over $14.6 million over approximately 5.5 years suggests an average annual spend of around $2.6 million for custodial services at a federal building. This figure needs to be compared against similar-sized federal facilities or private sector contracts for similar scope and scale to determine if it represents good value for money. The firm fixed-price structure provides cost certainty but may limit flexibility if service needs change significantly.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a 'not available for competition' basis, indicating that a full and open competition was not conducted. This typically occurs when specific circumstances, such as a requirement for specialized services or a lack of qualified bidders in a timely manner, prevent open bidding. The absence of competition means that the government did not benefit from a range of proposals and potentially lower prices that could arise from a competitive bidding process.

Taxpayer Impact: Taxpayers may not have received the most competitive pricing due to the lack of open competition. Without multiple bids, there is a risk that the awarded price is higher than what could have been achieved in a competitive environment.

Public Impact

The primary beneficiary is the Department of Housing and Urban Development (HUD), which receives essential building maintenance and cleaning services. The contract ensures a clean, safe, and functional working environment for HUD employees and visitors. Services delivered include janitorial, carpet cleaning, window washing, pest control, trash removal, and snow removal. The geographic impact is localized to the HUD building in Washington D.C. The contract supports jobs through the contractor, Melwood Horticultural Training Center, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing and reduced value for taxpayer funds.
The 'not available for competition' award justification requires scrutiny to ensure it was appropriate and that alternatives were considered.
Performance metrics and quality assurance details are not readily available, making it difficult to assess service effectiveness.
The long duration of the contract (over 5 years) could lead to complacency or a lack of incentive for continuous improvement if not managed tightly.

Positive Signals

The contract ensures consistent and comprehensive custodial services, maintaining the operational integrity of the HUD building.
Melwood Horticultural Training Center, Inc. is a known entity providing these services, suggesting a degree of established capability.
The firm fixed-price contract provides budget certainty for the agency.

Sector Analysis

The janitorial services sector is a significant part of the facilities management industry. Federal agencies are major consumers of these services, with spending spread across various departments and locations. Contracts for custodial services are typically awarded on a fixed-price basis, with competition levels varying. Benchmarking requires comparing contract scope, building size, location, and service intensity against similar government or commercial contracts. The North American Industry Classification System (NAICS) code 561720 covers janitorial services.

Small Business Impact

Information regarding small business set-asides or subcontracting plans for this specific contract is not available in the provided data. However, Melwood Horticultural Training Center, Inc. is known to employ individuals with disabilities, which may align with certain government initiatives aimed at supporting specific populations, though not directly a small business set-aside. Further investigation would be needed to determine if any small business subcontracting goals were established or met.

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 in the contract's performance work statement (PWS) and monitored through regular inspections and performance reviews. Transparency is generally facilitated through contract databases like FPDS, where basic award information is published. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Building Maintenance Contracts
Government Facilities Management
Janitorial Services Contracts
HUD Operations and Maintenance

Risk Flags

Sole-source award without clear justification
Potential for inflated pricing due to lack of competition
Limited transparency in procurement process
Performance metrics not readily available for value assessment

Frequently Asked Questions

What is this federal contract paying for?

Department of Housing and Urban Development awarded $14.6 million to MELWOOD HORTICULTURAL TRAINING CENTER, INC.. NEW FOLLOW-ON CONTRACT FOR CUSTODIAL SERVICES AT THE HUD BUILDING, INCLUDING, BUT NOT LIMITED TO, JANITORIAL, CARPET CLEANING, WINDOW WASHING, PEST CONTROL, TRASH AND DEBRIS REMOVAL, SNOW REMOVAL AND PICK-UP AND STATING OF RECYCLABLE MATERIALS.

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 $14.6 million.

What is the period of performance?

Start: 2008-09-01. End: 2014-02-28.

What is the track record of Melwood Horticultural Training Center, Inc. in performing custodial services for the federal government?

Melwood Horticultural Training Center, Inc. has a history of providing services, including custodial and landscaping, to various government agencies. Their mission often involves employing individuals with disabilities, which can be a factor in contract awards, sometimes through specific programs or justifications. While this specific contract was awarded on a sole-source basis, their broader experience would need to be assessed to understand their overall performance reliability and capacity. Reviewing past performance evaluations and any documented issues on previous federal contracts would provide a clearer picture of their track record beyond this single award.

How does the $14.6 million contract value compare to similar federal custodial service contracts?

The total contract value of $14.6 million over approximately 5.5 years (September 2008 to February 2014) equates to an average annual spend of roughly $2.6 million. This figure is substantial and would need to be benchmarked against contracts for similar-sized federal buildings in the Washington D.C. metropolitan area. Factors such as the square footage of the HUD building, the intensity of services required (e.g., 24/7 operations vs. standard business hours), and the specific scope of work (e.g., inclusion of specialized cleaning, pest control, snow removal) are critical for a meaningful comparison. Without these details, it's difficult to definitively state if this represents a high or low value.

What were the specific justifications for awarding this contract as 'not available for competition'?

The 'not available for competition' designation implies that a full and open competition was deemed impractical or impossible. Common justifications include the existence of a unique capability held by only one source, urgent and compelling needs where competition cannot be timely, or specific statutory requirements. For this custodial services contract, potential reasons could have been a highly specialized requirement of the HUD building, a prior relationship with the incumbent that offered unique efficiencies, or a lack of other qualified bidders responding to initial inquiries. A thorough review of the official justification documentation (e.g., a Justification and Approval document) would be necessary to understand the precise rationale.

What are the potential risks associated with a sole-source award for essential building services?

Sole-source awards for essential services like custodial present several risks. Primarily, the government forgoes the potential for cost savings that competition typically generates, possibly leading to a higher price than necessary. There's also a reduced incentive for the contractor to innovate or improve service quality beyond the minimum requirements, as there is no direct competitive pressure. Furthermore, the lack of transparency in the procurement process can raise concerns about fairness and the best use of taxpayer funds. Without a competitive process, it's harder to ensure the government is receiving the best possible value and service.

How does the firm fixed-price (FFP) contract type impact risk and value for this custodial contract?

A Firm Fixed Price (FFP) contract shifts most of the risk to the contractor, as the price is set regardless of the contractor's actual costs. For custodial services, this provides budget certainty for HUD, as the total cost is known upfront. However, it can also incentivize the contractor to minimize costs, which might potentially impact service quality if not rigorously monitored. If the scope of work changes significantly, modifications to the FFP contract would be necessary, potentially leading to price adjustments. The FFP structure is generally suitable for services with well-defined requirements, like routine janitorial work.

What is the historical spending pattern for custodial services at the HUD building prior to and after this contract?

The provided data only details this specific contract from 2008 to 2014. To understand historical spending patterns, one would need to examine contract awards for custodial services at the HUD building for periods preceding September 2008 and following February 2014. Analyzing these previous and subsequent contracts, including their values, durations, award types (competitive vs. sole-source), and contractors, would reveal trends in spending, potential increases or decreases in costs over time, and shifts in procurement strategies. This broader view is essential for assessing the long-term cost-effectiveness of custodial services at this facility.

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, 05

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: $14,622,539

Exercised Options: $14,622,539

Current Obligation: $14,622,539

Timeline