DOJ's $74M Contract for Secure Correctional Facility Operation in Texas Awarded Under Full and Open Competition

Contract Overview

Contract Amount: $74,088,707 ($74.1M)

Contractor: County of Reeves

Awarding Agency: Department of Justice

Start Date: 2019-10-01

End Date: 2021-05-10

Contract Duration: 587 days

Daily Burn Rate: $126.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 11

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OPERATION OF A CONTRACTOR OWNED/CONTRACTOR LEASED, CONTRACTOR OPERATED SECURE CORRECTIONAL FACILITY.

Place of Performance

Location: PECOS, REEVES County, TEXAS, 79772

State: Texas Government Spending

Plain-Language Summary

Department of Justice obligated $74.1 million to COUNTY OF REEVES for work described as: OPERATION OF A CONTRACTOR OWNED/CONTRACTOR LEASED, CONTRACTOR OPERATED SECURE CORRECTIONAL FACILITY. Key points: 1. The contract value is substantial at $74.1 million, indicating significant resource allocation. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 4. The sector involves facilities support services, specifically correctional facility operations.

Value Assessment

Rating: fair

The contract value of $74.1 million over approximately 2 years (587 days) suggests a significant per-diem cost for operating a secure correctional facility. Benchmarking against similar facilities would be necessary to assess true value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating multiple bidders likely participated. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The competitive nature of the award suggests taxpayers likely benefited from a fair market price for the correctional facility services.

Public Impact

Ensures continued operation of essential correctional services for the Federal Prison System. Supports public safety by providing secure detention facilities. The contract's performance directly impacts inmate welfare and rehabilitation programs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen operational challenges arise.
Reliance on a single contractor for critical correctional services.
Ensuring contractor compliance with all federal regulations and standards.

Positive Signals

Firm Fixed Price contract shifts cost risk to the contractor.
Full and open competition likely resulted in competitive pricing.
Contract duration provides stability for service provision.

Sector Analysis

This contract falls under Facilities Support Services, specifically the operation of secure correctional facilities. Spending in this area is critical for public safety and the justice system, with costs influenced by security requirements, staffing, and inmate population.

Small Business Impact

The data indicates this contract was not awarded to small businesses (ss: false, sb: false). Further analysis would be needed to determine if small business participation was sought or if the nature of the service precluded it.

Oversight & Accountability

Oversight would involve monitoring the contractor's adherence to the terms of the Firm Fixed Price contract, ensuring operational standards are met, and managing any performance issues that arise. The Bureau of Prisons is responsible for this oversight.

Related Government Programs

Facilities Support Services
Department of Justice Contracting
Federal Prison System / Bureau of Prisons Programs

Risk Flags

Contract value is high, requiring diligent oversight.
Reliance on a single contractor for a critical service.
Potential for unforeseen operational costs impacting fixed price.
Lack of small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $74.1 million to COUNTY OF REEVES. OPERATION OF A CONTRACTOR OWNED/CONTRACTOR LEASED, CONTRACTOR OPERATED SECURE 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 $74.1 million.

What is the period of performance?

Start: 2019-10-01. End: 2021-05-10.

What is the average cost per inmate per day under this contract, and how does it compare to federal benchmarks?

To determine the average cost per inmate per day, the total contract value ($74,088,706.64) would need to be divided by the number of inmate days over the contract period (587 days). This figure should then be compared to industry and federal benchmarks for similar correctional facilities to assess cost-effectiveness and identify potential overspending or savings.

What are the key performance indicators (KPIs) for this contract, and how is contractor performance being measured?

Key performance indicators likely include security incident rates, inmate disciplinary actions, staffing levels and qualifications, facility maintenance, and compliance with health and safety regulations. The Bureau of Prisons would establish specific metrics and conduct regular reviews to ensure the contractor meets or exceeds these standards throughout the contract term.

What is the process for addressing contract disputes or performance failures by the contractor?

The contract likely includes clauses for dispute resolution and remedies for performance failures. The Department of Justice, through the Bureau of Prisons, would have established procedures for issuing cure notices, assessing penalties, or potentially terminating the contract if the contractor fails to meet its obligations, ensuring accountability and service continuity.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: RFP-PCC-0026

Offers Received: 11

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: $331,877,797

Exercised Options: $331,877,797

Current Obligation: $74,088,707

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline