DOJ's $2.05M Contract for Residential Care Facilities in Michigan Awarded to Cherry Street Services Inc
Contract Overview
Contract Amount: $2,053,562 ($2.1M)
Contractor: Cherry Street Services Inc
Awarding Agency: Department of Justice
Start Date: 2024-10-01
End Date: 2025-09-30
Contract Duration: 364 days
Daily Burn Rate: $5.6K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: FUNDING FOR FY25 - OY 5 (10/1/24-9/30/25).
Place of Performance
Location: GRAND RAPIDS, KENT County, MICHIGAN, 49503
State: Michigan Government Spending
Plain-Language Summary
Department of Justice obligated $2.1 million to CHERRY STREET SERVICES INC for work described as: FUNDING FOR FY25 - OY 5 (10/1/24-9/30/25). Key points: 1. The contract is for residential care facilities, a critical service for the Federal Prison System. 2. Cherry Street Services Inc. secured this delivery order under full and open competition. 3. The contract duration is one year, aligning with FY25 funding. 4. The base award amount is $2.05 million, with potential for modifications. 5. The PSC code 623990 indicates services for other residential care facilities.
Value Assessment
Rating: good
The contract value of $2.05M for a one-year duration appears reasonable for specialized residential care services. Benchmarking against similar contracts for correctional support services would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. This method typically leads to competitive pricing as multiple vendors had the opportunity to bid.
Taxpayer Impact: The competitive award process is expected to ensure taxpayer funds are used efficiently for essential correctional support services.
Public Impact
Ensures continued provision of essential residential care services for federal inmates. Supports the operational needs of the Federal Prison System / Bureau of Prisons. Provides stability for Cherry Street Services Inc. and its employees. Potential impact on inmate rehabilitation and reintegration programs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep or service expansion beyond initial award.
- Dependence on a single vendor for critical inmate services.
- Geographic concentration of services in Michigan.
Positive Signals
- Awarded through full and open competition.
- Clear contract duration and funding period.
- Specific service category (residential care facilities).
Sector Analysis
The Federal Prison System's reliance on residential care facilities falls under the broader 'Other Residential Care Facilities' sector. Spending in this sector is driven by correctional needs and inmate population management.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors or prime contractors in this award. Further analysis would be needed to assess small business participation.
Oversight & Accountability
The award process through full and open competition suggests adherence to procurement regulations. Ongoing oversight by the Department of Justice will be crucial to ensure service quality and contract compliance.
Related Government Programs
- Other Residential Care Facilities
- Department of Justice Contracting
- Federal Prison System / Bureau of Prisons Programs
Risk Flags
- Vendor performance history unknown.
- Potential for service gaps if vendor fails to perform.
- Limited visibility into specific service quality metrics.
- Geographic concentration of services.
Tags
other-residential-care-facilities, department-of-justice, mi, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $2.1 million to CHERRY STREET SERVICES INC. FUNDING FOR FY25 - OY 5 (10/1/24-9/30/25).
Who is the contractor on this award?
The obligated recipient is CHERRY STREET SERVICES INC.
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 $2.1 million.
What is the period of performance?
Start: 2024-10-01. End: 2025-09-30.
What is the historical performance of Cherry Street Services Inc. with the Federal Prison System or similar agencies?
Assessing Cherry Street Services Inc.'s past performance is crucial for understanding their reliability and capability in delivering residential care. Reviewing past contract awards, performance reviews, and any documented issues or successes with federal agencies, particularly the Bureau of Prisons, would provide valuable insight into their track record and suitability for this contract.
Are there any specific performance metrics or service level agreements tied to this contract?
Understanding the specific performance metrics and service level agreements (SLAs) is vital for evaluating the effectiveness of this contract. These metrics define the expected quality and quantity of services, allowing the Bureau of Prisons to monitor performance and hold Cherry Street Services Inc. accountable for meeting its obligations. Without clear SLAs, it's difficult to gauge the true value and impact of the services provided.
What is the potential for cost savings or efficiency gains through this contract compared to alternative service delivery models?
Evaluating potential cost savings and efficiency gains requires comparing this contract's terms and expected outcomes against alternative service delivery models. This could include in-house provision of services, different types of contracts, or services from other vendors. Analyzing the firm-fixed-price structure and the competitive bidding process helps assess if the current model optimizes taxpayer value.
Industry Classification
NAICS: Health Care and Social Assistance › Other Residential Care Facilities › Other Residential Care Facilities
Product/Service Code: SOCIAL SERVICES › SOCIAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 15BRRC18R00000005
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 100 CHERRY ST SE, GRAND RAPIDS, MI, 49503
Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $2,053,562
Exercised Options: $2,053,562
Current Obligation: $2,053,562
Actual Outlays: $2,060,934
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NOT OBTAINED - WAIVED
Parent Contract
Parent Award PIID: 15BRRC19D00000005
IDV Type: IDC
Timeline
Start Date: 2024-10-01
Current End Date: 2025-09-30
Potential End Date: 2025-09-30 00:00:00
Last Modified: 2026-02-11
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