Reeves County awarded $526.6M for 1090 low-security male inmate facility support over 12 years

Contract Overview

Contract Amount: $526,584,774 ($526.6M)

Contractor: County of Reeves

Awarding Agency: Department of Justice

Start Date: 2007-01-17

End Date: 2019-11-26

Contract Duration: 4,696 days

Daily Burn Rate: $112.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIXED PRICE AWARD FEE

Sector: Other

Official Description: 151060 CONTRACTOR OWNED AND OPERATED EXISTING CORRECTIONAL FACILITY FOR APPROXIMATELY 1090 LOW SECURITY MALE INMATES.

Place of Performance

Location: PECOS, REEVES County, TEXAS, 79772

State: Texas Government Spending

Plain-Language Summary

Department of Justice obligated $526.6 million to COUNTY OF REEVES for work described as: 151060 CONTRACTOR OWNED AND OPERATED EXISTING CORRECTIONAL FACILITY FOR APPROXIMATELY 1090 LOW SECURITY MALE INMATES. Key points: 1. The contract supports a significant inmate population, indicating substantial operational needs. 2. Competition was full and open, suggesting a potentially competitive pricing environment. 3. The fixed-price award fee structure aims to balance cost control with performance incentives. 4. Facilities Support Services is a critical but often overlooked sector in federal spending.

Value Assessment

Rating: fair

The $526.6M award over nearly 13 years averages approximately $40.5M annually. Benchmarking requires detailed service scope comparison, but this appears substantial for facility operations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Full and open competition was utilized, which typically fosters competitive pricing. The award fee mechanism allows for adjustments based on performance, potentially influencing the final price paid.

Taxpayer Impact: Taxpayer funds are utilized for inmate housing and support services, a necessary but significant expenditure.

Public Impact

Ensures continued operation of federal correctional facilities, maintaining public safety. Supports inmate rehabilitation and housing programs. Creates jobs in the local Texas economy through facility operations and contractor employment.

Waste & Efficiency Indicators

Waste Risk Score: 75 / 10

Warning Flags

Long contract duration may lead to cost creep if not managed effectively.
Reliance on a single facility for a large inmate population presents concentration risk.

Positive Signals

Full and open competition suggests potential for good value.
Fixed-price award fee structure incentivizes performance.
Supports critical government function of inmate management.

Sector Analysis

This contract falls under Facilities Support Services, a broad category encompassing maintenance, operations, and management of government facilities. Annual spending in this sector can vary significantly based on the type and scale of facilities managed.

Small Business Impact

No specific small business set-aside or participation was indicated in the provided data. The large contract value suggests it may be awarded to larger, established service providers.

Oversight & Accountability

The Bureau of Prisons is responsible for oversight. Performance metrics within the award fee structure and regular contract reviews are key accountability mechanisms.

Related Government Programs

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

Risk Flags

Long-term commitment without clear exit strategy.
Potential for cost overruns if performance incentives are not rigorously managed.
Dependence on a single contractor for critical infrastructure.
Lack of transparency on specific service costs within the total award.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $526.6 million to COUNTY OF REEVES. 151060 CONTRACTOR OWNED AND OPERATED EXISTING CORRECTIONAL FACILITY FOR APPROXIMATELY 1090 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 $526.6 million.

What is the period of performance?

Start: 2007-01-17. End: 2019-11-26.

What specific services are included in the 'Facilities Support Services' and how do they compare to industry benchmarks for similar correctional facilities?

The provided data lacks granular detail on specific services. A thorough analysis would require reviewing the Statement of Work (SOW) to identify components like staffing, food services, healthcare support, maintenance, and security. Benchmarking against similar correctional facility contracts, considering inmate security levels and population size, is crucial for assessing value.

What are the key performance indicators (KPIs) tied to the award fee, and how has the contractor historically performed against these metrics?

The award fee structure implies specific KPIs related to operational efficiency, safety, inmate welfare, and facility maintenance. Understanding these KPIs and the contractor's historical performance against them is vital for assessing whether the government is achieving desired outcomes and paying a fair price for performance beyond basic requirements.

What is the long-term strategy for correctional facility management, and does this contract align with potential future needs or changes in inmate population demographics?

This contract spans over a decade, necessitating an understanding of the Bureau of Prisons' long-term facility strategy. Factors like evolving sentencing guidelines, potential shifts in inmate demographics (e.g., age, security needs), and the government's approach to private vs. public facilities could impact the relevance and cost-effectiveness of this long-term commitment.

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: RFPPCC0010

Offers Received: 5

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: $634,050,837

Exercised Options: $526,584,774

Current Obligation: $526,584,774

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline