DOJ's $51.4M contract for Taft Correctional Facility management awarded to Management & Training Corporation

Contract Overview

Contract Amount: $51,444,147 ($51.4M)

Contractor: Management & Training Corporation

Awarding Agency: Department of Justice

Start Date: 2019-02-01

End Date: 2021-05-12

Contract Duration: 831 days

Daily Burn Rate: $61.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROVIDE SERVICES FOR THE MANAGEMENT AND OPERATION OF THE GOVERNMENT OWNED/CONTRACTOR OPERATED CORRECTIONAL FACILITY LOCATED AT TAFT, CALIFORNIA.

Place of Performance

Location: CENTERVILLE, DAVIS County, UTAH, 84014

State: Utah Government Spending

Plain-Language Summary

Department of Justice obligated $51.4 million to MANAGEMENT & TRAINING CORPORATION for work described as: PROVIDE SERVICES FOR THE MANAGEMENT AND OPERATION OF THE GOVERNMENT OWNED/CONTRACTOR OPERATED CORRECTIONAL FACILITY LOCATED AT TAFT, CALIFORNIA. Key points: 1. Contract provides essential services for a government-owned, contractor-operated correctional facility. 2. The firm-fixed-price contract type suggests predictable costs for the government. 3. The duration of the contract (831 days) indicates a significant, ongoing operational need. 4. The absence of competition raises questions about potential cost efficiencies and value. 5. The contract's focus on facility management aligns with broader government needs for operational support. 6. Performance context is critical to assess the effectiveness of services delivered under this contract.

Value Assessment

Rating: fair

Benchmarking the value of correctional facility management is complex due to unique operational requirements and varying security levels. Without comparable contract data or detailed performance metrics, it is difficult to definitively assess if the $51.4 million price tag represents excellent value for money. The firm-fixed-price structure provides cost certainty, but the lack of competition may have limited downward pressure on pricing. Further analysis would require comparing per-inmate costs or operational efficiency metrics against similar facilities.

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. This approach is typically used when only one vendor can provide the required services, or in specific circumstances where full and open competition is not feasible or advantageous. The lack of competition means that the government did not benefit from the price discovery and potential cost savings that can arise from a competitive bidding process.

Taxpayer Impact: Taxpayers may not have received the most competitive pricing due to the absence of a bidding process. This could potentially lead to higher overall costs compared to a competed contract.

Public Impact

The primary beneficiaries are the Federal Prison System (Bureau of Prisons) and the inmates housed at the Taft Correctional Facility. Services delivered include the management and operation of the correctional facility, ensuring security, housing, and essential services for inmates. The geographic impact is localized to Taft, California, where the facility is located. Workforce implications include employment opportunities for staff managing and operating the facility, likely including security personnel, administrative staff, and support services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source awards require strong justification to ensure fair pricing and value.
Performance metrics and oversight are crucial to ensure service quality and accountability without competitive pressure.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Contract addresses a core government function: correctional facility operations.
The contractor has a defined role in managing a government-owned asset.

Sector Analysis

The correctional services industry is a significant sector within government contracting, encompassing the management and operation of detention and correctional facilities. This contract falls under facilities support services, a broad category that includes maintenance, operations, and management. The market for correctional facility management is influenced by government policy, inmate populations, and security requirements. Benchmarking against other correctional facility contracts would require detailed operational data and security classifications.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the 'psc' (Product Service Code) is blank, and the 'br' (Base Realization) is 61906, which doesn't directly indicate small business subcontracting goals. Without specific subcontracting plans or set-aside requirements, the direct impact on the small business ecosystem is likely minimal for this particular award, though the prime contractor may engage small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Justice, specifically the Federal Prison System/Bureau of Prisons. Accountability measures would be defined in the contract's terms and conditions, focusing on performance standards, security protocols, and operational requirements. Transparency is generally maintained through contract awards databases, but detailed operational oversight and performance reviews are typically internal to the agency. Inspector General jurisdiction would apply to any investigations of fraud, waste, or abuse related to the contract.

Related Government Programs

Federal Prison System Operations
Correctional Facility Management Services
Government Owned Contractor Operated Facilities
Department of Justice Contracts

Risk Flags

Sole-source award lacks competitive pricing.
Potential for cost overruns if initial pricing is not well-benchmarked.
Requires strong government oversight to ensure service quality and accountability.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $51.4 million to MANAGEMENT & TRAINING CORPORATION. PROVIDE SERVICES FOR THE MANAGEMENT AND OPERATION OF THE GOVERNMENT OWNED/CONTRACTOR OPERATED CORRECTIONAL FACILITY LOCATED AT TAFT, CALIFORNIA.

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 $51.4 million.

What is the period of performance?

Start: 2019-02-01. End: 2021-05-12.

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

Management & Training Corporation (MTC) has a significant history of operating correctional facilities for federal, state, and local governments. They manage numerous facilities across the United States and internationally. Their experience includes providing security, inmate management, healthcare, and rehabilitation programs. While MTC has a long operational history, the specific performance quality and any past issues or commendations related to the Taft Correctional Facility contract would require a deeper dive into agency performance reports, contract modifications, and any formal complaints or reviews. Assessing their track record involves looking at compliance with regulations, incident rates, and successful program outcomes.

How does the cost of this contract compare to similar correctional facility management contracts?

Direct cost comparison is challenging without access to detailed operational data and specific facility characteristics (e.g., capacity, security level, inmate programs). The total award of $51.4 million over approximately 831 days (roughly 2.28 years) translates to an average annual cost of approximately $22.5 million. To benchmark effectively, one would need to compare per-inmate per-day costs or per-bed costs for facilities with similar security classifications and service requirements. Given this was a sole-source award, it's difficult to ascertain if the pricing reflects market competitiveness. A comprehensive analysis would involve gathering data on other Bureau of Prisons contracts or similar state-level contracts for comparable facilities.

What are the primary risks associated with a sole-source award for correctional facility management?

The primary risk of a sole-source award for correctional facility management is the potential for inflated costs due to a lack of competitive pressure. Without competing bids, the government may not achieve the most favorable pricing. Another risk is reduced incentive for the contractor to innovate or improve efficiency beyond contractual minimums, as there is no direct competition to outperform. Furthermore, sole-source awards can raise concerns about fairness and transparency in the procurement process. Robust oversight, clear performance metrics, and strong contract management are essential to mitigate these risks and ensure value for taxpayer money.

How effective is the firm-fixed-price contract type in managing the costs of correctional facility operations?

The firm-fixed-price (FFP) contract type is generally effective in managing costs for correctional facility operations because it shifts most of the cost risk to the contractor. Under an FFP contract, the contractor agrees to a set price for the work, and is responsible for controlling their costs to remain profitable. This provides the government with cost certainty, as the total price is fixed unless the contract scope changes. For a service like facility management, where operational needs are relatively predictable, FFP can be advantageous. However, it's crucial that the initial price is set appropriately, and that the government has strong oversight to ensure the contractor is not cutting corners on essential services to maintain profitability.

What is the historical spending trend for correctional facility management by the Department of Justice?

Historical spending by the Department of Justice (DOJ) on correctional facility management has been substantial, reflecting the federal government's role in incarceration. The Bureau of Prisons (BOP) is the largest component of this spending. Over the years, the BOP has utilized both government-operated facilities and contracted services. Spending patterns are influenced by factors such as inmate population levels, sentencing guidelines, and policy decisions regarding privatization of correctional services. While specific year-over-year trends for this particular Taft facility contract are not detailed here, overall BOP spending on facility operations and management has been a consistent and significant budget item, often involving both in-house management and contracts with private entities like Management & Training Corporation.

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: RFP-PCC-0011

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: $51,811,968

Exercised Options: $51,811,968

Current Obligation: $51,444,147

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline