DoD Awards $86M Facility Maintenance Contract to Melwood Horticultural Training Center, Inc

Contract Overview

Contract Amount: $86,128,448 ($86.1M)

Contractor: Melwood Horticultural Training Center, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-05-01

End Date: 2026-04-30

Contract Duration: 1,460 days

Daily Burn Rate: $59.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FACILITY MAINTENANCE - VERTICAL

Place of Performance

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

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $86.1 million to MELWOOD HORTICULTURAL TRAINING CENTER, INC. for work described as: FACILITY MAINTENANCE - VERTICAL Key points: 1. Contract awarded to a single entity, raising questions about competition. 2. Significant contract value for facility maintenance services. 3. Potential for limited competition due to specific service provider. 4. Sector focus on facilities support services.

Value Assessment

Rating: fair

The contract value of $86.1M over four years suggests a substantial investment. Benchmarking against similar facility maintenance contracts is difficult without more detailed service scope and pricing breakdowns. The firm fixed-price structure aims to control costs, but the lack of competitive bidding may impact overall value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract is listed as 'NOT AVAILABLE FOR COMPETITION,' indicating a sole-source or limited competition award. This approach bypasses the standard competitive bidding process, potentially limiting price discovery and the opportunity for other qualified vendors to offer services.

Taxpayer Impact: The lack of open competition may result in taxpayers paying a premium for these services compared to what might be achieved through a more competitive procurement.

Public Impact

Ensures continued facility maintenance for Department of the Army installations. Supports the mission of Melwood Horticultural Training Center, which employs individuals with disabilities. Potential impact on local economies where services are rendered. Government reliance on a single provider for critical infrastructure upkeep.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Lack of competitive bidding
  • Potential for inflated costs due to sole-source award
  • Dependence on a single contractor for essential services

Positive Signals

  • Supports a social enterprise that employs individuals with disabilities
  • Ensures continuity of facility maintenance operations

Sector Analysis

This contract falls within the Facilities Support Services sector, which is crucial for the operational readiness of government agencies, particularly the Department of Defense. Spending in this sector can vary significantly based on the size and type of facilities managed.

Small Business Impact

The contract is awarded to MELWOOD HORTICULTURAL TRAINING CENTER, INC., which is identified as a social enterprise employing individuals with disabilities. Further analysis is needed to determine if this entity qualifies as a small business or if subcontracting opportunities exist for small businesses.

Oversight & Accountability

Oversight will be critical to ensure the contractor meets performance standards and that the pricing remains reasonable, especially given the limited competition. The Department of Defense's contracting officers are responsible for monitoring contract execution and ensuring compliance.

Related Government Programs

  • Facilities Support Services
  • Department of Defense Contracting
  • Department of the Army Programs

Risk Flags

  • Lack of competitive bidding
  • Potential for cost inefficiencies
  • Dependence on a single provider
  • Limited transparency on service scope and pricing

Tags

facilities-support-services, department-of-defense, md, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $86.1 million to MELWOOD HORTICULTURAL TRAINING CENTER, INC.. FACILITY MAINTENANCE - VERTICAL

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 $86.1 million.

What is the period of performance?

Start: 2022-05-01. End: 2026-04-30.

What specific facility maintenance services are included in this $86M contract, and how do they align with industry standards for cost-effectiveness?

The provided data lacks specific details on the scope of 'FACILITY MAINTENANCE - VERTICAL' services. A comprehensive analysis would require a breakdown of tasks such as landscaping, janitorial, HVAC maintenance, and structural repairs. Benchmarking costs against similar contracts with detailed service scopes is essential to assess value for money and ensure taxpayer funds are used efficiently.

Given the 'NOT AVAILABLE FOR COMPETITION' status, what justification was provided for limiting the bidding process, and what steps are in place to mitigate potential cost overruns?

The justification for a limited or sole-source award is not detailed in the provided data. Typically, such decisions are based on factors like unique capabilities, urgent needs, or specific socio-economic program requirements. Mitigation strategies for cost overruns in non-competitive contracts often include rigorous negotiation, performance-based payment structures, and robust oversight to ensure deliverables meet expectations.

How does the performance of Melwood Horticultural Training Center, Inc. compare to industry benchmarks for facility maintenance providers, particularly concerning service quality and responsiveness?

Assessing Melwood's performance against industry benchmarks requires access to past performance reviews, customer satisfaction data, and key performance indicators (KPIs) related to maintenance response times, issue resolution rates, and overall facility upkeep quality. Without this information, it's challenging to definitively evaluate their effectiveness relative to other providers in the market.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation ServicesFacilities Support ServicesFacilities Support Services

Product/Service Code: OPERATION OF GOVT OWNED FACILITYOPERATE GOVT OWNED BUILDINGS

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: $123,574,810

Exercised Options: $95,545,039

Current Obligation: $86,128,448

Actual Outlays: $8,209,539

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9124J22D0013

IDV Type: IDC

Timeline

Start Date: 2022-05-01

Current End Date: 2026-04-30

Potential End Date: 2027-04-30 00:00:00

Last Modified: 2025-12-04

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