DOJ's Minneapolis Reentry Services Contract Awarded to Volunteers of America of Minnesota for $3.7M

Contract Overview

Contract Amount: $3,703,304 ($3.7M)

Contractor: Volunteers of America of Minnesota

Awarding Agency: Department of Justice

Start Date: 2024-12-01

End Date: 2025-11-30

Contract Duration: 364 days

Daily Burn Rate: $10.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FY25 FUNDING TO PROVIDE RESIDENTIAL REENTRY CENTER (RRC) SERVICES, AND HOME CONFINEMENT SERVICES LOCATED WITHIN THE CITY LIMITS OF MINNEAPOLIS, MINNESOTA PERIOD OF PERFORMANCE: 12/01/2024 - 11/30/2025

Place of Performance

Location: MINNEAPOLIS, HENNEPIN County, MINNESOTA, 55439

State: Minnesota Government Spending

Plain-Language Summary

Department of Justice obligated $3.7 million to VOLUNTEERS OF AMERICA OF MINNESOTA for work described as: FY25 FUNDING TO PROVIDE RESIDENTIAL REENTRY CENTER (RRC) SERVICES, AND HOME CONFINEMENT SERVICES LOCATED WITHIN THE CITY LIMITS OF MINNEAPOLIS, MINNESOTA PERIOD OF PERFORMANCE: 12/01/2024 - 11/30/2025 Key points: 1. The contract focuses on providing essential residential reentry and home confinement services within Minneapolis. 2. Full and open competition was utilized, suggesting a potentially competitive bidding process. 3. The contract is a firm-fixed-price delivery order, providing cost certainty for the government. 4. Performance is scheduled for one year, aligning with typical federal fiscal year cycles. 5. The specific North American Industry Classification System (NAICS) code 623990 indicates services for 'Other Residential Care Facilities'. 6. The awardee, Volunteers of America of Minnesota, is a known provider in the social services sector.

Value Assessment

Rating: good

The contract value of approximately $3.7 million for a one-year period for residential reentry and home confinement services in Minneapolis appears reasonable given the scope. Benchmarking against similar contracts for these services can be challenging due to geographic and service variations, but the firm-fixed-price structure offers predictability. The absence of specific performance metrics in the provided data makes a detailed value-for-money assessment difficult, but the competitive award process is a positive indicator.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The number of bidders is not specified, but this procurement method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The agency's decision to use full and open competition suggests confidence in the market's ability to provide qualified vendors for these specialized services.

Taxpayer Impact: Full and open competition is the most advantageous approach for taxpayers as it maximizes the potential for cost savings through a robust bidding process and encourages a wider range of providers to compete, potentially driving down prices.

Public Impact

Individuals transitioning from incarceration within the Minneapolis area will benefit from residential reentry and home confinement services. The services aim to support successful reintegration into the community, potentially reducing recidivism. The contract directly impacts the Federal Prison System's ability to manage offenders nearing release. Geographic impact is concentrated within the city limits of Minneapolis, Minnesota. The contract supports the operational needs of the Bureau of Prisons in managing its population.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess the effectiveness of the services provided.
The specific outcomes for individuals served are not detailed, limiting insight into program success.
Potential for service variability based on the specific facility and staff at Volunteers of America of Minnesota.

Positive Signals

Awarded through full and open competition, suggesting a potentially competitive and fair process.
Firm-fixed-price contract type provides cost certainty for the government.
The awardee has experience in providing similar social services, indicating potential capability.
The contract duration is clearly defined for a one-year period.

Sector Analysis

The contract falls within the 'Other Residential Care Facilities' sector, specifically addressing the needs of individuals re-entering society from correctional facilities. This is a niche but critical area within the broader social services and public safety landscape. Spending in this sector is often driven by federal and state correctional budgets, with a focus on rehabilitation and reducing recidivism. Comparable spending benchmarks would typically involve analyzing per-diem rates for similar reentry programs across different jurisdictions.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While Volunteers of America of Minnesota may be a large organization, the absence of specific small business set-aside requirements means that subcontracting opportunities for small businesses are not mandated by this contract's structure. Further analysis would be needed to determine if the prime contractor voluntarily engages small businesses for subcontracting.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Justice, specifically the Bureau of Prisons, which is responsible for managing federal inmates and their transition back into society. Accountability measures are inherent in the firm-fixed-price contract, requiring the contractor to deliver specified services. Transparency is facilitated by the contract award itself, but detailed operational oversight and performance monitoring would be conducted by the contracting officer's representative (COR) and potentially through program reviews.

Related Government Programs

Federal Prison System Reentry Programs
Bureau of Prisons Home Confinement Services
Residential Reentry Center Operations
Offender Rehabilitation Services
Community Corrections Programs

Risk Flags

Contract performance risk
Service quality variability
Recidivism rate impact

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $3.7 million to VOLUNTEERS OF AMERICA OF MINNESOTA. FY25 FUNDING TO PROVIDE RESIDENTIAL REENTRY CENTER (RRC) SERVICES, AND HOME CONFINEMENT SERVICES LOCATED WITHIN THE CITY LIMITS OF MINNEAPOLIS, MINNESOTA PERIOD OF PERFORMANCE: 12/01/2024 - 11/30/2025

Who is the contractor on this award?

The obligated recipient is VOLUNTEERS OF AMERICA OF MINNESOTA.

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 $3.7 million.

What is the period of performance?

Start: 2024-12-01. End: 2025-11-30.

What is the track record of Volunteers of America of Minnesota in providing residential reentry services?

Volunteers of America of Minnesota (VOA MN) has a long-standing history of providing a wide range of social services, including those related to reentry and support for individuals with justice system involvement. As a non-profit organization, they typically operate various programs aimed at community support, housing, and employment assistance. While specific performance data for this particular contract is not available, VOA MN's established presence and experience in the social services sector suggest a foundational capability to deliver the required residential reentry and home confinement services. Their broader organizational mission often aligns with the goals of successful reintegration and reducing recidivism, which are central to the purpose of this contract.

How does the cost of this contract compare to similar services in other federal jurisdictions?

Directly comparing the cost of this $3.7 million contract for one year of services in Minneapolis to similar contracts in other federal jurisdictions is complex without detailed service level agreements and geographic cost-of-living adjustments. However, the contract is a firm-fixed-price delivery order, which provides a degree of cost certainty. To benchmark effectively, one would need to analyze per-diem rates for residential reentry and home confinement services in comparable urban areas, considering factors like the number of individuals served, the intensity of services (e.g., counseling, job placement assistance), and the duration of stay. The 'full and open competition' award method suggests that the pricing was likely vetted against market offerings, but a definitive comparison requires access to more granular data on service provision and pricing structures across different regions.

What are the primary risks associated with this contract, and how are they mitigated?

Primary risks for this contract include potential underperformance by the contractor in delivering quality reentry services, leading to higher recidivism rates, and potential cost overruns if the firm-fixed-price model does not adequately account for unforeseen service demands. Another risk is the contractor's capacity to manage the volume of individuals assigned. Mitigation strategies typically involve robust contract oversight by the Bureau of Prisons, including regular performance reviews, site visits, and adherence to established program standards. The firm-fixed-price structure itself mitigates financial risk for the government by capping the total cost. Clear performance expectations and reporting requirements are crucial for identifying and addressing any service delivery issues promptly.

What is the expected effectiveness of these reentry services in reducing recidivism?

The effectiveness of residential reentry and home confinement services in reducing recidivism is generally supported by research, provided the programs are well-designed and adequately resourced. These services aim to provide a structured environment, support systems, and resources for individuals transitioning from incarceration, such as assistance with housing, employment, and substance abuse treatment. By offering these supports, the goal is to help individuals successfully reintegrate into the community, thereby lowering the likelihood of reoffending. The specific effectiveness of this contract will depend on the quality of services delivered by Volunteers of America of Minnesota, the individual needs of the participants, and the overall support available within the Minneapolis community.

How has federal spending on residential reentry services evolved over recent fiscal years?

Federal spending on residential reentry services, managed primarily by the Bureau of Prisons (BOP), has seen fluctuations over recent fiscal years, often influenced by legislative priorities, inmate population levels, and budget appropriations. Historically, there has been a recognized need to invest in reentry programs to facilitate successful reintegration and reduce long-term corrections costs. While specific aggregate spending figures for reentry services alone can be difficult to isolate from broader BOP operational budgets, the trend has generally been towards recognizing the importance of these programs. Budgetary pressures and policy shifts can impact the level of funding allocated, but the underlying demand for such services remains consistent due to the federal prison population.

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: 15BRRC18R00000022

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7625 METRO BLVD STE 200, MINNEAPOLIS, MN, 55439

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: $3,703,304

Exercised Options: $3,703,304

Current Obligation: $3,703,304

Actual Outlays: $3,714,734

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15BRRC20D00000022

IDV Type: IDC

Timeline