DOJ's $26.4M correctional facility contract awarded to County of Reeves without competition

Contract Overview

Contract Amount: $26,362,689 ($26.4M)

Contractor: County of Reeves

Awarding Agency: Department of Justice

Start Date: 2018-07-01

End Date: 2020-01-27

Contract Duration: 575 days

Daily Burn Rate: $45.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 15BPCC18R00000031 OPERATION AND MANAGEMENT OF A CORRECTIONAL FACILITY.

Place of Performance

Location: PECOS, REEVES County, TEXAS, 79772

State: Texas Government Spending

Plain-Language Summary

Department of Justice obligated $26.4 million to COUNTY OF REEVES for work described as: 15BPCC18R00000031 OPERATION AND MANAGEMENT OF A CORRECTIONAL FACILITY. Key points: 1. Contract awarded on a firm-fixed-price basis, indicating defined costs and scope. 2. The contract duration of 575 days suggests a medium-term operational requirement. 3. Awarded to a county government, potentially indicating unique service delivery or local partnership. 4. The absence of competition raises questions about potential cost efficiencies and market responsiveness. 5. Facilities Support Services (NAICS 561210) is a broad category, requiring further detail on specific services. 6. The contract value of approximately $26.4 million over its term warrants scrutiny for value for money.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without detailed service descriptions and comparable contract data. The firm-fixed-price structure provides cost certainty for the government, but the lack of competition means there's no direct market comparison to assess if the price is optimal. The award to a county government might imply a non-standard procurement, potentially affecting typical cost structures. Further analysis would require understanding the specific services rendered and the operational costs associated with managing a correctional facility.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. The data indicates 'NOT COMPETED,' suggesting the County of Reeves was the only entity considered or available for this specific requirement. This approach bypasses the standard competitive bidding process, which typically aims to solicit offers from various qualified contractors to ensure the best value for the government.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as the absence of competition limits price negotiation and innovation. It also means taxpayers do not benefit from the potential cost savings and service improvements that a competitive bidding process might yield.

Public Impact

The primary beneficiaries are the inmates housed within the correctional facility managed under this contract. The contract ensures the operation and management of a correctional facility, providing essential services for inmate welfare and security. The geographic impact is localized to the area where the correctional facility is situated in Texas. Workforce implications include employment opportunities for correctional officers, administrative staff, and support personnel managed by the County of Reeves.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in suboptimal pricing and reduced incentive for efficiency.
Sole-source awards can set a precedent for non-competitive procurements, potentially limiting future market engagement.
The broad service category (Facilities Support Services) could mask inefficiencies or scope creep if not closely monitored.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Award to a county government may indicate a strategic partnership or utilization of existing public infrastructure.
The contract ensures continuity of essential correctional facility operations.

Sector Analysis

This contract falls under the Facilities Support Services sector, which encompasses a wide range of services related to the operation and maintenance of buildings and grounds. The market for correctional facility management can be specialized, often involving government entities or private companies with specific expertise in corrections and security. Comparable spending benchmarks are difficult to establish without more granular data on the facility's size, inmate population, and specific service requirements. However, contracts for facility operations and management can range from millions to hundreds of millions of dollars annually, depending on the scale and complexity.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false) and there is no indication of small business subcontracting requirements (sb: false). Therefore, this contract does not appear to directly benefit small businesses through set-asides or mandated subcontracting. The absence of small business participation in this specific award means that opportunities for small businesses within the facilities support services sector for this particular contract are limited.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Justice's Federal Prison System / Bureau of Prisons. As a sole-source award, scrutiny on performance and adherence to the firm-fixed-price terms would be critical. Transparency is dependent on the public availability of contract performance reports and any associated audits. The Inspector General for the Department of Justice would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Federal Prison System Operations
Correctional Facility Management Services
Government Facilities Support Contracts
County Government Service Contracts

Risk Flags

Lack of Competition
Potential for Cost Overruns (if scope poorly defined)
Performance Monitoring Challenges (for sole-source)
Contractor Capability Assessment (for non-traditional provider)

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $26.4 million to COUNTY OF REEVES. 15BPCC18R00000031 OPERATION AND MANAGEMENT OF A CORRECTIONAL FACILITY.

Who is the contractor on this award?

The obligated recipient is COUNTY OF REEVES.

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Prison System / Bureau of Prisons).

What is the total obligated amount?

The obligated amount is $26.4 million.

What is the period of performance?

Start: 2018-07-01. End: 2020-01-27.

What specific services are included under 'Operation and Management of a Correctional Facility' for this contract?

The provided data categorizes this contract under NAICS code 561210 (Facilities Support Services), which is a broad classification. For a correctional facility, this typically encompasses a wide range of essential functions including, but not limited to, security operations, inmate management, food services, healthcare provision, facility maintenance (plumbing, electrical, HVAC), sanitation, laundry services, transportation of inmates, and administrative support. The specific scope would be detailed in the contract's statement of work (SOW), which is not provided here. Without the SOW, it's difficult to ascertain the full extent of services and associated costs.

How does the $26.4 million contract value compare to similar correctional facility management contracts?

Direct comparison of the $26.4 million contract value is challenging without knowing the specific size, inmate capacity, location, and service level requirements of the correctional facility managed by the County of Reeves. Contracts for correctional facility operations can vary significantly. For instance, managing a small, low-security facility might cost a few million dollars annually, while a large, high-security federal penitentiary could cost tens or hundreds of millions. The County of Reeves' award is for approximately $26.4 million over a period of 575 days (about 1.57 years), equating to roughly $16.8 million per year. This annual figure needs to be benchmarked against facilities of similar size and security classification, which requires access to more detailed contract databases and market analysis reports.

What are the risks associated with awarding a correctional facility management contract on a sole-source basis?

The primary risk of a sole-source award for correctional facility management is the potential for inflated costs due to the lack of competitive pressure. Without competing bids, the government may not achieve the best possible price or service level. There's also a risk that the chosen contractor, even if a government entity like a county, may not possess the most efficient or innovative operational practices compared to specialized private sector providers. Furthermore, sole-source awards can reduce transparency and accountability, as the justification for not competing needs to be robust and verifiable. This can also limit opportunities for smaller, specialized firms to enter the market or provide services.

What is the track record of the County of Reeves in managing correctional facilities?

The provided data identifies the 'County of Reeves' as the contractor. Information regarding the County of Reeves' specific track record in operating correctional facilities is not included in the data snippet. Typically, a county government might operate local jails or detention centers. However, managing a federal correctional facility, even if operated under contract, requires specific expertise, adherence to federal standards, and potentially different operational scales than a local jail. A thorough assessment would require reviewing the County of Reeves' past performance on similar contracts, any relevant certifications, and feedback from oversight agencies or previous clients, if applicable.

What are the implications of the firm-fixed-price (FFP) contract type for this correctional facility operation?

A firm-fixed-price (FFP) contract type means that the contractor, the County of Reeves in this case, is obligated to perform the work specified in the contract for a predetermined, fixed price. This structure shifts the majority of the risk to the contractor, as they are responsible for managing costs and absorbing any overruns. For the government (Department of Justice), an FFP contract provides cost certainty and predictability, making budgeting easier. However, it also means that if the contractor is highly efficient and manages costs effectively, they retain the savings, which could be seen as a missed opportunity for the government to achieve lower prices through incentives. The fixed price also implies a clearly defined scope of work to prevent scope creep.

How does the Bureau of Prisons typically procure correctional facility management services?

The Bureau of Prisons (BOP) typically procures correctional facility management services through a variety of contract types and competition levels, depending on the specific need. Historically, the BOP has utilized both competitive solicitations (full and open competition) and, in certain circumstances, sole-source or limited competition awards. Services can range from comprehensive management of entire facilities (often private prisons or contracted county facilities) to specific support services like food, medical, or transportation. The BOP aims to ensure cost-effectiveness and operational efficiency, often using performance-based contracts to incentivize quality service delivery. The decision to use a sole-source award, as seen here, would require a strong justification based on market research and specific circumstances.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: SOCIAL SERVICES › SOCIAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 15BPCC18R00000031

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 100 E 4TH ST FIRST FL STE 207, PECOS, TX, 79772

Business Categories: Category Business, Government, U.S. Local Government, U.S. National Government, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $26,362,689

Exercised Options: $26,362,689

Current Obligation: $26,362,689

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline