DOJ's $28.5M contract for Giles W. Dalby Correctional Facility management awarded without competition

Contract Overview

Contract Amount: $28,545,766 ($28.5M)

Contractor: Management & Training Corporation

Awarding Agency: Department of Justice

Start Date: 2018-10-01

End Date: 2019-10-17

Contract Duration: 381 days

Daily Burn Rate: $74.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CL::IGF OPERATION AND MANAGEMENT OF THE GILES W. DALBY CORRECTIONAL FACILITY, POST, TEXAS.

Place of Performance

Location: POST, GARZA County, TEXAS, 79356

State: Texas Government Spending

Plain-Language Summary

Department of Justice obligated $28.5 million to MANAGEMENT & TRAINING CORPORATION for work described as: IGF::CL::IGF OPERATION AND MANAGEMENT OF THE GILES W. DALBY CORRECTIONAL FACILITY, POST, TEXAS. Key points: 1. The contract was awarded on a sole-source basis, raising questions about potential cost savings through competition. 2. The firm fixed-price contract type suggests a defined scope, but the lack of competition limits price discovery. 3. The duration of the contract (381 days) is relatively short, potentially indicating a stop-gap measure or a contract under review. 4. The contractor, Management & Training Corporation, has experience in correctional facility operations. 5. The contract falls under Facilities Support Services, a broad category with varying cost benchmarks. 6. The absence of small business set-asides or subcontracting plans warrants further investigation into small business participation.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without comparable sole-source awards for similar correctional facility management services. The firm fixed-price structure provides some cost certainty, but the absence of competition means there's no direct market comparison to assess if the price represents optimal value for taxpayers. Further analysis would require understanding the specific services rendered and the operational complexities of the Giles W. Dalby Correctional Facility.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. The justification for a sole-source award is not provided in the data, which typically occurs when only one vendor can meet the government's needs. The lack of competition limits the government's ability to solicit bids and potentially secure a lower price through a competitive bidding process.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. This limits the government's leverage in negotiating favorable terms and ensures that the selected contractor is the only option considered.

Public Impact

The primary beneficiaries are the inmates housed at the Giles W. Dalby Correctional Facility, who will receive services under the contracted management. The contract delivers correctional facility management and operational services, ensuring the day-to-day functioning of the prison. The geographic impact is localized to Post, Texas, where the Giles W. Dalby Correctional Facility is located. The contract supports jobs within the correctional services industry, including security, administration, and support staff at the facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in suboptimal pricing for taxpayers.
Sole-source award justification needs further review to ensure necessity.
Limited transparency on performance metrics and contractor's past performance.
No indication of small business participation or subcontracting opportunities.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Contractor has experience in correctional facility management.
Services are essential for the operation of a federal correctional facility.

Sector Analysis

This contract falls within the Facilities Support Services sector, specifically related to the management and operation of correctional facilities. The market for correctional facility management is specialized, often involving a limited number of experienced providers. Benchmarking requires comparison with other government contracts for similar services, considering factors like facility size, inmate population, and security requirements. The total federal spending in this niche can be significant, but is often fragmented across various agencies and contract types.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false) and does not specify any subcontracting plans (sb: false). This suggests that opportunities for small businesses to participate in this contract, either as prime contractors or subcontractors, were likely limited or non-existent. Further investigation into the contractor's practices would be needed to understand if any small business engagement occurred outside of formal subcontracting requirements.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Justice's Bureau of Prisons. Accountability measures would be defined in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is limited by the sole-source nature of the award and the absence of detailed public reporting on performance. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse related to the contract.

Related Government Programs

Federal Prison System Operations
Correctional Facility Management Services
Department of Justice Contracts
Facilities Support Services

Risk Flags

Sole-source award lacks competitive justification.
Potential for inflated costs due to lack of competition.
Limited transparency on performance metrics and oversight.
No clear indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $28.5 million to MANAGEMENT & TRAINING CORPORATION. IGF::CL::IGF OPERATION AND MANAGEMENT OF THE GILES W. DALBY CORRECTIONAL FACILITY, POST, TEXAS.

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 $28.5 million.

What is the period of performance?

Start: 2018-10-01. End: 2019-10-17.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are awarded when a competitive bidding process is not feasible or advantageous. Reasons can include the urgency of the requirement, the unique capabilities of a single contractor, or the lack of adequate competition. Without the official justification document, it is impossible to definitively state why this contract was not competed. This lack of transparency is a common concern with sole-source awards, as it limits the public's understanding of the government's procurement decisions and potential cost implications.

How does the contract value compare to similar correctional facility management contracts?

Direct comparison of the $28.5 million contract value to similar correctional facility management contracts is difficult without more specific data points. Key factors influencing cost include the size of the facility, the number of inmates, the level of security required, the duration of the contract, and the specific services included (e.g., healthcare, food services, rehabilitation programs). The Giles W. Dalby Correctional Facility's specific characteristics and the scope of services provided under this contract are crucial for a meaningful benchmark. Furthermore, the sole-source nature of this award means it was not subject to competitive pricing pressures, which could affect its relative value compared to competed contracts.

What are the key performance indicators (KPIs) for this contract, and how has the contractor performed against them?

The provided data does not detail the specific Key Performance Indicators (KPIs) established for this contract or the contractor's performance against them. Typically, correctional facility management contracts include metrics related to security, inmate safety, facility maintenance, staff performance, and compliance with regulations. Performance data is usually collected and reported by the contracting agency (in this case, the Bureau of Prisons). Without access to these performance reports or contractually defined KPIs, it is not possible to assess the contractor's effectiveness or the overall success of the contract in meeting its objectives.

What is the track record of Management & Training Corporation in managing federal correctional facilities?

Management & Training Corporation (MTC) is a known entity in the private correctional facility management industry. They operate numerous facilities across the United States and internationally. Their track record generally involves managing medium to maximum-security prisons, juvenile detention centers, and reentry facilities. While MTC has extensive experience, like any large contractor, they have faced scrutiny and criticism regarding various aspects of their operations, including staffing levels, inmate conditions, and security incidents in some of the facilities they manage. A comprehensive assessment would require reviewing specific contract performance histories, any government audits, and public records related to their operations.

What is the historical spending pattern for correctional facility management by the Bureau of Prisons?

The Bureau of Prisons (BOP) has a history of utilizing private contractors for the management and operation of correctional facilities, particularly when facing capacity issues or seeking cost efficiencies. Historical spending patterns show a consistent allocation of funds towards these services, though the extent of reliance on private facilities can fluctuate based on policy, budget, and political considerations. The total annual spending on private prison contracts can range in the hundreds of millions of dollars, varying year by year. Analyzing historical spending requires examining BOP's annual budget reports and contract databases to identify trends in contract awards, values, and the types of services procured.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 15BPCC18R00000032

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: $28,545,766

Exercised Options: $28,545,766

Current Obligation: $28,545,766

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline