DoD's $53M facilities support contract awarded to Melwood Horticultural Training Center, Inc. raises value questions

Contract Overview

Contract Amount: $53,348,277 ($53.3M)

Contractor: Melwood Horticultural Training Center, Inc.

Awarding Agency: Department of Defense

Start Date: 2011-07-01

End Date: 2018-09-30

Contract Duration: 2,648 days

Daily Burn Rate: $20.1K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BASOPS

Place of Performance

Location: FORT GEORGE G MEADE, ANNE ARUNDEL County, MARYLAND, 20755

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $53.3 million to MELWOOD HORTICULTURAL TRAINING CENTER, INC. for work described as: BASOPS Key points: 1. The contract's duration of over 2000 days suggests a long-term need for facilities support. 2. The firm fixed-price contract type indicates a defined scope and cost structure. 3. Awarded as 'not available for competition,' this contract bypasses standard competitive bidding processes. 4. The significant dollar value over its extended period warrants scrutiny of cost-effectiveness. 5. The lack of competition may limit opportunities for price discovery and potentially inflate costs. 6. The contract's performance period concluded in 2018, requiring an assessment of its historical value.

Value Assessment

Rating: questionable

Benchmarking the value of this $53.3 million facilities support contract is challenging due to its 'not available for competition' status and the absence of detailed performance metrics. Without comparable bids or market analysis, it's difficult to ascertain if the pricing was competitive or represented good value for the Department of Defense. The long duration of the contract (2648 days) means that the total expenditure needs to be evaluated against the services rendered over that entire period. Given the lack of competition, there's a heightened risk that the government may not have secured the most cost-effective solution.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a 'not available for competition' designation, indicating that a competitive bidding process was not utilized. This typically occurs when a specific justification is made, such as the unique capabilities of a sole provider or national security concerns. The absence of multiple bidders means that the government did not benefit from the price discovery mechanisms inherent in a competitive environment, potentially leading to higher costs than might have been achieved through open competition.

Taxpayer Impact: Taxpayers may have paid a premium for services due to the lack of competitive pressure to drive down costs. The justification for sole-source procurement should be robust to ensure public funds are used efficiently.

Public Impact

The primary beneficiaries of this contract are likely the facilities management and maintenance personnel employed by Melwood Horticultural Training Center, Inc. The contract delivered essential facilities support services to the Department of the Army, ensuring operational readiness. Services were geographically concentrated in Maryland (ST: MD, SN: MARYLAND), impacting the local workforce and economy. The contract supported the employment of individuals, potentially including those with disabilities, given Melwood's mission.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpayment and reduced value for taxpayer money.
The 'not available for competition' status requires strong justification to ensure it was truly the only viable option.
The long contract duration without clear performance benchmarks makes assessing overall effectiveness difficult.
The contract ended in 2018, so current value cannot be assessed, only historical.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
The contract supported a specific mission requirement for the Department of the Army.
Melwood Horticultural Training Center, Inc. has a history of providing services, suggesting established operational capacity.

Sector Analysis

Facilities Support Services, classified under NAICS code 561210, encompass a broad range of services including building operation and maintenance, cleaning, pest control, and groundskeeping. The federal government is a significant consumer of these services across various agencies and installations. Spending in this sector can range from small, localized contracts to large, multi-year agreements supporting entire military bases or federal complexes. Benchmarking requires comparing contract values against similar service scopes, durations, and geographic locations, which is complicated by the sole-source nature of this award.

Small Business Impact

This contract was not set aside for small businesses, and the data does not indicate any subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears minimal. The award to a single, non-small business entity means that opportunities for small businesses to compete for or participate in this specific contract were likely non-existent.

Oversight & Accountability

Oversight for this contract would have been managed by the contracting officers and program managers within the Department of the Army. Accountability measures would typically be outlined in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is limited due to the sole-source nature of the award and the lack of publicly available detailed performance data. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Base Operations Support (BASOPS)
Facilities Maintenance Contracts
Government Services Administration (GSA) Schedules
Department of Defense (DoD) Service Contracts

Risk Flags

Sole-source award
Lack of competition
Extended contract duration
No small business subcontracting noted

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $53.3 million to MELWOOD HORTICULTURAL TRAINING CENTER, INC.. BASOPS

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 Army).

What is the total obligated amount?

The obligated amount is $53.3 million.

What is the period of performance?

Start: 2011-07-01. End: 2018-09-30.

What specific services were included under this $53.3 million facilities support contract?

The contract falls under NAICS code 561210, Facilities Support Services. While specific line items are not detailed in the provided data, this typically includes a range of services such as general building maintenance and repair, groundskeeping, custodial services, pest control, and potentially specialized support functions necessary for the operation of military or government facilities. The exact scope would have been defined in the contract's Statement of Work (SOW), detailing the required tasks, performance standards, and deliverables expected from Melwood Horticultural Training Center, Inc. over the contract's duration.

Why was this contract awarded as 'not available for competition'?

The 'not available for competition' designation implies that the Department of the Army determined that a competitive bidding process was not feasible or appropriate for this specific requirement. Common justifications include the unique capabilities of a single source, urgent and compelling needs where only one contractor can respond in time, or situations where national security dictates a specific provider. Without further documentation from the agency, the precise reason for bypassing competition remains unknown, but it necessitates a strong justification to ensure the government obtained fair value and avoided potential monopolies.

How does the $53.3 million total value compare to similar facilities support contracts awarded by the DoD?

Direct comparison is difficult without knowing the specific services, geographic location, and duration of comparable contracts. However, $53.3 million spread over approximately 2648 days (about 7.25 years) represents an average annual value of roughly $7.3 million. This figure is substantial and falls within the mid-to-large range for facilities support contracts, especially if it covered extensive groundskeeping and maintenance for a significant installation. The lack of competition makes it harder to benchmark against competitively bid contracts, which might have yielded lower average annual costs.

What was the performance period and has the contract expired?

The contract had a start date of July 1, 2011, and an end date of September 30, 2018. This gives a total duration of 2648 days, which is approximately 7 years and 3 months. Therefore, the performance period for this contract has concluded. Any analysis of its effectiveness or value would be historical, looking back at the services rendered and costs incurred during its operational lifespan.

What is the track record of Melwood Horticultural Training Center, Inc. with federal contracts?

Melwood Horticultural Training Center, Inc. has a history of receiving federal contracts, primarily with the Department of Defense and other agencies requiring facilities support and grounds maintenance services. Their mission often involves employing individuals with disabilities, which may influence contract awards or justifications. While this specific contract was sole-sourced, their continued receipt of government work suggests a capacity to meet contractual obligations. A deeper dive into their contract history, including performance ratings and any past issues, would provide a more comprehensive view of their track record.

What are the potential risks associated with a sole-source contract of this magnitude and duration?

The primary risks associated with a sole-source contract of this magnitude and duration include potential overpricing due to the absence of competitive pressure, reduced incentive for the contractor to innovate or improve efficiency, and a lack of flexibility if the government's needs change significantly. There's also a risk that the government may become locked into a relationship with a contractor that may not be the best long-term value proposition. Robust oversight and clear performance metrics are crucial to mitigate these risks, though they are often less effective than the inherent price discovery of competition.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support 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: $174,881,927

Exercised Options: $126,128,442

Current Obligation: $53,348,277

Contract Characteristics

Commercial Item: SERVICES PURSUANT TO FAR 12.102(G)

Cost or Pricing Data: NO

Timeline