HHS Awards $714M for Emergency Child Care Services in Pecos, TX to Family Endeavors, Inc

Contract Overview

Contract Amount: $713,907,435 ($713.9M)

Contractor: Family Endeavors, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2021-03-17

End Date: 2025-02-03

Contract Duration: 1,419 days

Daily Burn Rate: $503.1K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: THE PURPOSE OF THIS ORDER IS TO AWARD EMERGENCY INTAKE SITE AND WRAP AROUND CARE SERVICES IN SUPPORT OF THE ORR UNACCOMPANIED CHILDREN'S PROGRAM; THE FACILITY IS LOCATED IN PECOS, TX.

Place of Performance

Location: PECOS, REEVES County, TEXAS, 79772

State: Texas Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $713.9 million to FAMILY ENDEAVORS, INC. for work described as: THE PURPOSE OF THIS ORDER IS TO AWARD EMERGENCY INTAKE SITE AND WRAP AROUND CARE SERVICES IN SUPPORT OF THE ORR UNACCOMPANIED CHILDREN'S PROGRAM; THE FACILITY IS LOCATED IN PECOS, TX. Key points: 1. Significant award for unaccompanied children's program services. 2. Sole-source award raises questions about competition and price discovery. 3. Long duration (1419 days) suggests a sustained need. 4. Focus on emergency intake and wrap-around care highlights critical humanitarian need.

Value Assessment

Rating: questionable

The contract value of $713.9M over 1419 days is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar services. Benchmarking is challenging due to the emergency nature and specific service requirements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under SAP, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.

Taxpayer Impact: The lack of competition for a large contract like this may result in taxpayers paying more than necessary for these essential services.

Public Impact

Provides critical support for unaccompanied children, addressing a humanitarian need. Services are located in Pecos, TX, impacting the local community and economy. The long-term nature of the contract suggests ongoing challenges in managing child welfare. Emergency services highlight the government's response to a crisis situation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
High contract value

Positive Signals

Addresses critical humanitarian need
Provides essential wrap-around care

Sector Analysis

The award falls under Child and Youth Services (NAICS 624110). Spending in this sector can be highly variable, often driven by social needs and emergency situations. Benchmarks are difficult without competitive data.

Small Business Impact

The data indicates that small business participation was not a factor in this award (ss: false, sb: false). There is no indication of subcontracting opportunities for small businesses.

Oversight & Accountability

Given the sole-source nature and significant value, robust oversight is crucial to ensure funds are used effectively and services meet the needs of the children. Accountability for performance and cost management will be key.

Related Government Programs

Child and Youth Services
Department of Health and Human Services Contracting
Administration for Children and Families Programs

Risk Flags

Lack of competitive bidding
High contract value
Sole-source award
Long contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $713.9 million to FAMILY ENDEAVORS, INC.. THE PURPOSE OF THIS ORDER IS TO AWARD EMERGENCY INTAKE SITE AND WRAP AROUND CARE SERVICES IN SUPPORT OF THE ORR UNACCOMPANIED CHILDREN'S PROGRAM; THE FACILITY IS LOCATED IN PECOS, TX.

Who is the contractor on this award?

The obligated recipient is FAMILY ENDEAVORS, INC..

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Administration for Children and Families).

What is the total obligated amount?

The obligated amount is $713.9 million.

What is the period of performance?

Start: 2021-03-17. End: 2025-02-03.

What specific factors necessitated a sole-source award for these emergency services, and were alternative competitive strategies considered?

The 'emergency intake' nature of the services likely drove the sole-source justification, suggesting a time-sensitive need that precluded a standard competitive procurement process. However, the duration of the contract (nearly 4 years) raises questions about whether a more competitive approach could have been phased in or explored after the initial emergency response.

How will the government ensure cost-effectiveness and value for money given the absence of competitive bidding for this $714M contract?

The government must implement rigorous performance monitoring and financial controls. This includes detailed tracking of service delivery against contract requirements, regular audits, and potentially establishing performance-based incentives or penalties to ensure Family Endeavors, Inc. provides high-quality services efficiently and avoids cost overruns.

What are the key performance indicators (KPIs) for this contract, and how will they be measured to ensure the effectiveness of the wrap-around care for unaccompanied children?

Key performance indicators should focus on child well-being, timely placement, access to education and healthcare, and psychological support. Measuring these KPIs will involve regular reporting from the contractor, site visits, and potentially independent assessments of child outcomes to ensure the services are effective and meet the complex needs of this vulnerable population.

Industry Classification

NAICS: Health Care and Social Assistance › Individual and Family Services › Child and Youth Services

Product/Service Code: SOCIAL SERVICES › SOCIAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6363 DE ZAVALA RD STE 200, SAN ANTONIO, TX, 78249

Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $795,357,967

Exercised Options: $713,907,435

Current Obligation: $713,907,435

Actual Outlays: $396,834,271

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline