DOJ's $37.9M contract for correctional services awarded to Management & Training Corporation, a single definitive contract

Contract Overview

Contract Amount: $37,937,888 ($37.9M)

Contractor: Management & Training Corporation

Awarding Agency: Department of Justice

Start Date: 2017-10-01

End Date: 2018-09-30

Contract Duration: 364 days

Daily Burn Rate: $104.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CL::IGF TO PROVIDE PRIVATIZED CORRECTIONS SERVICES IN ACCORDANCE WITH THE CURRENT APPROVED POLICIES AND PROCEDURE IDENTIFIED IN CONTRACT DJB1PC006 AND THE TECHNICAL PROPOSAL SUBMITTED UNDER RFP-PCC-0010 (CAR 6).

Place of Performance

Location: POST, GARZA County, TEXAS, 79356

State: Texas Government Spending

Plain-Language Summary

Department of Justice obligated $37.9 million to MANAGEMENT & TRAINING CORPORATION for work described as: IGF::CL::IGF TO PROVIDE PRIVATIZED CORRECTIONS SERVICES IN ACCORDANCE WITH THE CURRENT APPROVED POLICIES AND PROCEDURE IDENTIFIED IN CONTRACT DJB1PC006 AND THE TECHNICAL PROPOSAL SUBMITTED UNDER RFP-PCC-0010 (CAR 6). Key points: 1. The contract value of $37.9M for one year of services represents a significant investment in correctional facility management. 2. The use of a firm-fixed-price contract type suggests a clear scope of work and predictable costs for the government. 3. Awarded under full and open competition, this contract implies a robust bidding process and potential for competitive pricing. 4. The specific services provided are tied to existing policies and procedures, indicating a focus on continuity of operations. 5. The contract's duration of 364 days aligns with standard federal contracting practices for service-based agreements. 6. The geographic location in Texas (TX) is a key factor in understanding the operational context and potential workforce implications.

Value Assessment

Rating: fair

Benchmarking the value of this contract requires more detailed cost breakdowns and comparisons to similar privatized correctional service contracts. Without specific performance metrics or unit cost data, it's challenging to definitively assess value for money. However, the firm-fixed-price structure suggests an attempt to control costs. The total award amount of $37.9M for a year of services needs to be evaluated against the number of inmates served and the level of services provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors were likely solicited and allowed to bid. This process is designed to foster a competitive environment, which can lead to better pricing and service offerings for the government. The fact that it was competed openly suggests that the Bureau of Prisons sought the best value available in the market for these essential correctional services.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces and encouraging innovation among service providers, leading to more efficient use of public funds.

Public Impact

The primary beneficiaries are the Federal Prison System and the Bureau of Prisons, receiving essential correctional services. The contract ensures the provision of privatized corrections services, maintaining operational capacity within the federal system. Services are delivered within Texas, impacting the local economy and potentially the state's correctional landscape. The contract supports jobs within the correctional services sector in Texas, contributing to local employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for over-reliance on private entities for core government functions.
Ensuring consistent quality of care and security standards across privatized facilities.
Monitoring contractor performance to ensure adherence to policies and procedures.
Managing the transition of services if contract is not renewed or is awarded to a different provider.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
Firm-fixed-price contract type can provide cost certainty for the government.
Contract is tied to specific approved policies and procedures, ensuring alignment with federal standards.
The contractor has a defined role in providing essential correctional services.

Sector Analysis

The correctional services industry is a significant sector within the broader government services market. Privatized correctional facilities play a role in managing inmate populations when public facilities are at capacity or when specific management expertise is sought. This contract fits within the government's strategy to utilize private sector capabilities for certain operational needs. Comparable spending benchmarks would involve analyzing the per-inmate cost of similar privatized facilities across different federal and state systems.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary focus is on large-scale service providers. There is no explicit information regarding subcontracting plans for small businesses within this award. The absence of a small business set-aside suggests that the competition was geared towards entities with the capacity to manage large correctional facilities, potentially limiting direct opportunities for smaller specialized firms in this specific contract.

Oversight & Accountability

Oversight for this contract would typically fall under the Bureau of Prisons (BOP) within the Department of Justice. Accountability measures are embedded in the contract's performance standards, which are tied to 'current approved policies and procedures.' Transparency is facilitated through the contract award process itself, being under full and open competition. The Inspector General of 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
Bureau of Prisons Contracts
Privatized Correctional Facility Management
Department of Justice Services Contracts
Correctional Services Industry

Risk Flags

Potential for cost overruns if scope changes.
Risk of service quality degradation if performance is not rigorously monitored.
Dependence on a single contractor for critical government function.
Challenges in ensuring consistent application of federal policies in a privatized setting.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $37.9 million to MANAGEMENT & TRAINING CORPORATION. IGF::CL::IGF TO PROVIDE PRIVATIZED CORRECTIONS SERVICES IN ACCORDANCE WITH THE CURRENT APPROVED POLICIES AND PROCEDURE IDENTIFIED IN CONTRACT DJB1PC006 AND THE TECHNICAL PROPOSAL SUBMITTED UNDER RFP-PCC-0010 (CAR 6).

Who is the contractor on this award?

The obligated recipient is MANAGEMENT & TRAINING CORPORATION.

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 $37.9 million.

What is the period of performance?

Start: 2017-10-01. End: 2018-09-30.

What is the historical spending trend for correctional services by the Federal Prison System with Management & Training Corporation?

To assess historical spending trends, one would need to examine contract awards and modifications for Management & Training Corporation (MTC) by the Federal Prison System (FPS) over several fiscal years. This specific contract, valued at $37.9M, ran from October 1, 2017, to September 30, 2018. Analyzing prior and subsequent contracts with MTC would reveal if this award represents an increase, decrease, or stable level of spending. It's also important to compare MTC's overall share of the FPS budget for correctional services against other private providers to understand market dynamics and contractor reliance over time. Without access to a comprehensive contract database or historical spending reports, a precise trend analysis is not possible based solely on this single award.

How does the cost per inmate for this contract compare to other federal correctional facilities, both public and private?

Determining the cost per inmate requires knowing the average daily population housed under this contract and dividing the total contract value ($37.9M) by the number of days and the average population. For instance, if the contract served an average of 1,000 inmates over 365 days, the daily cost per inmate would be approximately $103,835 / 1,000 = $103.84. This figure then needs to be benchmarked against per-inmate costs in comparable federal Bureau of Prisons (BOP) facilities and other privately operated facilities. Publicly available data from the BOP's annual reports or the Bureau of Justice Statistics can provide average costs for federal prisons. Comparisons should account for variations in security levels, services offered (e.g., healthcare, rehabilitation programs), and geographic location, as these factors significantly influence costs. A higher or lower cost per inmate than benchmarks would indicate potential issues with value for money or operational efficiency.

What are the key performance indicators (KPIs) used to evaluate Management & Training Corporation's performance under this contract?

While the provided data states the contract is for 'PRIVATIZED CORRECTIONS SERVICES IN ACCORDANCE WITH THE CURRENT APPROVED POLICIES AND PROCEDURE IDENTIFIED IN CONTRACT DJB1PC006 AND THE TECHNICAL PROPOSAL SUBMITTED UNDER RFP-PCC-0010 (CAR 6),' it does not specify the Key Performance Indicators (KPIs). Typically, contracts for correctional services include KPIs related to inmate safety and security (e.g., incident rates, use of force), health services (e.g., access to care, medical compliance), facility maintenance, staff training and retention, and adherence to operational schedules. Performance evaluations would likely involve regular audits, site visits, and reviews of incident reports by Bureau of Prisons officials. Failure to meet these KPIs could result in contract deficiencies, penalties, or non-renewal.

What is the track record of Management & Training Corporation in managing federal correctional facilities, and have there been any significant issues?

Management & Training Corporation (MTC) is a significant private operator of correctional and detention facilities, as well as job corps centers, for federal, state, and local governments in the U.S. and internationally. Their track record includes managing numerous facilities. However, like many large correctional service providers, MTC has faced scrutiny and criticism regarding conditions in some of the facilities they operate. Reports from watchdog groups, media investigations, and government oversight bodies have sometimes highlighted concerns related to staffing levels, inmate safety, healthcare provision, and use of force. Specific incidents or systemic issues at MTC-managed facilities can be found through searches of news archives, Department of Justice Office of the Inspector General reports, and reports from organizations like the American Civil Liberties Union (ACLU). Evaluating MTC's overall track record requires a balanced review of their operational history, including both successful contract fulfillments and documented challenges.

What are the risks associated with relying on a single definitive contract for correctional services in a specific region?

Relying on a single definitive contract for correctional services, especially when awarded to one provider like Management & Training Corporation for this DOJ contract, carries several risks. Firstly, it reduces competition, potentially leading to complacency and less incentive for the contractor to innovate or optimize services. Secondly, it creates a single point of failure; if the contractor experiences significant operational issues, financial instability, or fails to meet performance standards, the government has limited immediate alternatives, potentially disrupting services. Thirdly, it can lead to a lack of price pressure over time, as the incumbent may have an advantage in future re-procurements. For taxpayers, this can translate to higher costs and potentially lower service quality if oversight is not rigorous. The government mitigates some of this risk through strong contract management, performance monitoring, and contingency planning, but the inherent risk of a sole-source or single-award situation remains.

How does the 'Facilities Support Services' classification (NAICS 561210) for this contract align with the actual services provided?

The NAICS code 561210, 'Facilities Support Services,' is a broad classification that encompasses a wide range of services related to the operation and maintenance of facilities. This includes services like building operation and maintenance, security services, cleaning services, and other support activities. For a contract providing 'PRIVATIZED CORRECTIONS SERVICES,' this NAICS code is generally appropriate as it covers the essential operational and maintenance aspects of running a correctional facility. These services are critical for ensuring the facility is secure, functional, and compliant with regulations. The specific details mentioned in the contract (DJB1PC006 and RFP-PCC-0010) would further define the scope within this broad category, ensuring that the services rendered align with the government's needs for managing inmate populations and maintaining the physical infrastructure.

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-0028

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 500 N MARKET PL DR STE 100, CENTERVILLE, UT, 84014

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

Financial Breakdown

Contract Ceiling: $37,980,096

Exercised Options: $37,980,096

Current Obligation: $37,937,888

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline