DoD Extends Janitorial Services Contract by 181 Days for $2.6M, Citing Non-Competitive Award
Contract Overview
Contract Amount: $2,617,254 ($2.6M)
Contractor: Melwood Horticultural Training Center, Inc.
Awarding Agency: Department of Defense
Start Date: 2025-12-01
End Date: 2026-05-31
Contract Duration: 181 days
Daily Burn Rate: $14.5K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: FUND EXTENSION PERIOD RECURRING WORK
Place of Performance
Location: ANNAPOLIS, ANNE ARUNDEL County, MARYLAND, 21402
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $2.6 million to MELWOOD HORTICULTURAL TRAINING CENTER, INC. for work described as: FUND EXTENSION PERIOD RECURRING WORK Key points: 1. Contract value of $2.6M for 181 days indicates a high daily burn rate. 2. Awarded as a delivery order, suggesting it's part of a larger contract vehicle. 3. The 'NOT AVAILABLE FOR COMPETITION' status raises concerns about price discovery and potential overspending. 4. Focus on janitorial services suggests a stable, recurring need within the Navy.
Value Assessment
Rating: questionable
The contract value of $2.6M over 181 days equates to approximately $14,460 per day. Without comparable contract data or a competitive bidding process, it is difficult to assess if this pricing is reasonable. The benchmark of $14,460 per day is high for janitorial services.
Cost Per Unit: $14,460/day
Competition Analysis
Competition Level: limited
The contract was awarded under a 'NOT AVAILABLE FOR COMPETITION' basis, indicating a limited competition scenario. This lack of competition hinders price discovery and may lead to inflated costs for taxpayers.
Taxpayer Impact: The non-competitive award limits the government's ability to secure the best possible price, potentially resulting in higher taxpayer expenditure.
Public Impact
Taxpayers may be overpaying for janitorial services due to the lack of competition. The extension of services without a competitive process could indicate a lack of proactive contract management. Essential facility maintenance services are being provided, ensuring operational readiness.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Non-competitive award
- High daily cost
- Short contract duration with extension
Positive Signals
- Ensures continued janitorial services
- Supports facility maintenance
Sector Analysis
The Department of Defense frequently procures janitorial and facilities maintenance services. Spending benchmarks for these services vary widely based on facility size, scope of work, and location. This contract's daily rate appears high compared to typical janitorial service contracts.
Small Business Impact
There is no indication in the provided data whether small businesses were considered or involved in this contract award. The non-competitive nature suggests limited opportunity for small business participation.
Oversight & Accountability
The 'NOT AVAILABLE FOR COMPETITION' status warrants further oversight to ensure the justification for sole-sourcing is valid and that the pricing is fair and reasonable. Accountability for the lack of competition should be established.
Related Government Programs
- Janitorial Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competition may lead to inflated prices.
- High daily cost raises concerns about value for money.
- Potential for inadequate oversight on non-competitive awards.
- Short-term extension without clear path to competition.
Tags
janitorial-services, department-of-defense, md, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $2.6 million to MELWOOD HORTICULTURAL TRAINING CENTER, INC.. FUND EXTENSION PERIOD RECURRING WORK
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 Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $2.6 million.
What is the period of performance?
Start: 2025-12-01. End: 2026-05-31.
What is the specific justification for awarding this contract on a non-competitive basis, and has it been adequately documented?
The justification for a non-competitive award typically stems from specific circumstances such as urgent and compelling needs, unique capabilities of a single source, or if only one source is reasonably available. This documentation is crucial for oversight and ensuring taxpayer funds are used appropriately. Without access to the justification, it's impossible to validate the necessity of this procurement method.
How does the daily cost of $14,460 for janitorial services compare to industry benchmarks for similar-sized facilities and scope of work?
A daily cost of $14,460 for janitorial services is exceptionally high and significantly exceeds typical industry benchmarks, even for large facilities. Standard janitorial services usually range from a few hundred to a few thousand dollars per day, depending on the scale. This elevated cost strongly suggests potential overpricing or a scope of work far beyond basic cleaning.
What steps are being taken to transition this requirement to a competitive contract in the future to ensure better value for taxpayers?
Given the non-competitive nature and high daily cost, proactive steps should be underway to develop a strategy for future competitive procurement. This includes market research to identify potential sources, defining a clear scope of work, and establishing a timeline for releasing a solicitation. The goal is to leverage competition to drive down costs and ensure fair market pricing.
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
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: $2,617,254
Exercised Options: $2,617,254
Current Obligation: $2,617,254
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N4008021D3504
IDV Type: IDC
Timeline
Start Date: 2025-12-01
Current End Date: 2026-05-31
Potential End Date: 2026-05-31 00:00:00
Last Modified: 2026-01-09
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