DoD's $48.1M Facilities Support Contract with Melwood Raises Competition Concerns
Contract Overview
Contract Amount: $48,105,515 ($48.1M)
Contractor: Melwood Horticultural Training Center, Inc.
Awarding Agency: Department of Defense
Start Date: 2019-07-01
End Date: 2021-12-31
Contract Duration: 914 days
Daily Burn Rate: $52.6K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: BASE OPERATIONS IGF::OT::IGF
Place of Performance
Location: FORT GEORGE G MEADE, ANNE ARUNDEL County, MARYLAND, 20755
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $48.1 million to MELWOOD HORTICULTURAL TRAINING CENTER, INC. for work described as: BASE OPERATIONS IGF::OT::IGF Key points: 1. Significant contract value of $48.1 million for facilities support services. 2. Limited competition noted, raising questions about price discovery. 3. Potential risk associated with a sole-source or limited competition award. 4. Services fall under facilities support, a common government need.
Value Assessment
Rating: fair
The contract value of $48.1 million is substantial. Without a competitive bidding process, it's difficult to assess if this price is optimal compared to similar facilities support contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, indicating a limited or potentially sole-source award. This limits price discovery and may result in higher costs for taxpayers.
Taxpayer Impact: The lack of competition could lead to taxpayers paying more than necessary for these essential facilities support services.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The long duration of the contract (914 days) locks in current pricing. Ensuring service quality remains high is crucial given the limited competition.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Lack of price benchmark
- Potential for overpayment
Positive Signals
- Established contract for essential services
- Long-term service provision
Sector Analysis
Facilities Support Services are crucial for maintaining government infrastructure. Spending in this sector can vary widely based on the size and type of facilities managed. Benchmarks are difficult without specific service details.
Small Business Impact
The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small businesses were considered or had the opportunity to compete.
Oversight & Accountability
Oversight is needed to ensure the Department of the Army is receiving fair value and quality services, especially given the limited competition. Contract performance reviews are essential.
Related Government Programs
- Facilities Support Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competitive bidding
- Potential for inflated pricing
- Limited transparency in award justification
- No small business participation indicated
Tags
facilities-support-services, department-of-defense, md, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $48.1 million to MELWOOD HORTICULTURAL TRAINING CENTER, INC.. BASE OPERATIONS IGF::OT::IGF
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 $48.1 million.
What is the period of performance?
Start: 2019-07-01. End: 2021-12-31.
What specific services are included in these facilities support operations, and how does their scope compare to industry standards?
The provided data categorizes the service as 'Facilities Support Services' (NAICS 561210) but lacks specific details on the scope. This could encompass a wide range of activities from maintenance and repair to groundskeeping and security. Without a detailed statement of work, comparing it to industry standards or assessing its value proposition is challenging.
What factors led to the determination that this contract was 'NOT AVAILABLE FOR COMPETITION', and were alternatives explored?
The determination of 'NOT AVAILABLE FOR COMPETITION' suggests specific circumstances, such as a sole-source justification or a highly specialized requirement. Understanding the rationale behind this decision is critical. Agencies must document why competition was not feasible, and explore if partial competition or set-asides for small businesses were viable options.
How is the performance of Melwood Horticultural Training Center, Inc. being monitored to ensure effective service delivery and taxpayer value?
Effective monitoring involves regular performance reviews, adherence to service level agreements, and tracking key performance indicators. Given the contract's value and limited competition, robust oversight is paramount. The Department of the Army should have mechanisms in place to assess quality, timeliness, and cost-effectiveness throughout the contract's duration.
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
Solicitation ID: W91QV119RFGGM
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: $53,472,607
Exercised Options: $53,472,607
Current Obligation: $48,105,515
Actual Outlays: $2,795,579
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2019-07-01
Current End Date: 2021-12-31
Potential End Date: 2021-12-31 00:00:00
Last Modified: 2023-06-02
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