Reeves County awarded $222.7M for 1200-inmate correctional facility operations over 13 years

Contract Overview

Contract Amount: $222,740,152 ($222.7M)

Contractor: County of Reeves

Awarding Agency: Department of Justice

Start Date: 2006-05-24

End Date: 2019-04-11

Contract Duration: 4,705 days

Daily Burn Rate: $47.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIXED PRICE AWARD FEE

Sector: Other

Official Description: 151060 CONTRACTOR OWNED AND OPERATED EXISTING CORRECTIONAL FACILITY FOR APPROXIMATELY 1200 LOW SECURITY MALE INMATES.

Place of Performance

Location: PECOS, REEVES County, TEXAS, 79772

State: Texas Government Spending

Plain-Language Summary

Department of Justice obligated $222.7 million to COUNTY OF REEVES for work described as: 151060 CONTRACTOR OWNED AND OPERATED EXISTING CORRECTIONAL FACILITY FOR APPROXIMATELY 1200 LOW SECURITY MALE INMATES. Key points: 1. Contract value of $222.7M for facility operations. 2. Operated by County of Reeves, serving the Federal Prison System. 3. Fixed Price Award Fee contract type. 4. Long duration of 4705 days (approx. 13 years).

Value Assessment

Rating: fair

The contract value of $222.7M over 13 years suggests a significant operational cost. Benchmarking against similar correctional facility management contracts 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 a competitive bidding process. This method generally promotes price discovery and potentially better pricing.

Taxpayer Impact: Taxpayer funds are utilized for the operation of federal correctional facilities, with the cost spread over a long contract term.

Public Impact

Ensures capacity for 1200 low-security male inmates. Provides essential services for federal prisoners. Supports the Federal Prison System's operational needs. Long-term commitment to a specific facility and contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration may limit flexibility.
Potential for cost overruns if award fee structure is not managed tightly.

Positive Signals

Full and open competition utilized.
Established operational capacity for federal inmates.

Sector Analysis

This contract falls under Facilities Support Services, a broad category. Spending in this sector is driven by government infrastructure needs and service provision. Benchmarks vary widely based on facility size and security level.

Small Business Impact

The data indicates the contractor is the County of Reeves, which is a governmental entity, not a small business. No direct small business subcontracting information is provided.

Oversight & Accountability

The contract's long duration and award fee structure necessitate robust oversight to ensure performance standards are met and costs remain justified. Regular performance reviews are crucial.

Related Government Programs

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

Risk Flags

Long contract duration (13 years).
Potential for scope creep or unmanaged cost increases.
Reliance on a single county entity for federal operations.
Award fee mechanism requires strong performance monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $222.7 million to COUNTY OF REEVES. 151060 CONTRACTOR OWNED AND OPERATED EXISTING CORRECTIONAL FACILITY FOR APPROXIMATELY 1200 LOW SECURITY MALE INMATES.

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 $222.7 million.

What is the period of performance?

Start: 2006-05-24. End: 2019-04-11.

What is the cost per inmate per day for this facility operation?

Calculating the cost per inmate per day requires dividing the total contract value by the number of inmates and the contract duration. $222,740,151.88 / 1200 inmates / 4705 days is approximately $39.55 per inmate per day. This figure needs to be compared against industry benchmarks for similar facilities to assess cost-effectiveness.

What are the specific performance metrics tied to the award fee?

The award fee structure implies that the contractor's payment is partially tied to meeting or exceeding specific performance standards. Detailed information on these metrics, such as operational efficiency, inmate welfare, security protocols, and maintenance quality, is essential to evaluate the effectiveness of the fee mechanism.

How does the fixed-price award fee structure compare to other contract types for facility management?

A fixed-price award fee contract aims to balance cost control with performance incentives. Unlike a firm fixed-price contract, it allows for adjustments based on performance, potentially encouraging higher quality service. However, it requires careful definition of award criteria to prevent disputes and ensure fair pricing.

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

Offers Received: 7

Pricing Type: FIXED PRICE AWARD FEE (M)

Evaluated Preference: NONE

Contractor Details

Address: 100 E 4TH ST 3RD FL, PECOS, TX, 79772

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

Financial Breakdown

Contract Ceiling: $226,524,565

Exercised Options: $222,740,152

Current Obligation: $222,740,152

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline