DOJ awards $759K contract to FIRETREE LTD for residential care services, with a 242-day duration

Contract Overview

Contract Amount: $759,000 ($759.0K)

Contractor: Firetree Ltd

Awarding Agency: Department of Justice

Start Date: 2025-10-01

End Date: 2026-05-31

Contract Duration: 242 days

Daily Burn Rate: $3.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FUNDING ONLY ACTION.

Place of Performance

Location: WILLIAMSPORT, LYCOMING County, PENNSYLVANIA, 17701

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Justice obligated $759,000 to FIRETREE LTD for work described as: FUNDING ONLY ACTION. Key points: 1. The contract's firm-fixed-price structure suggests predictable costs for the government. 2. A 242-day duration indicates a short-term need for these services. 3. The award was made under full and open competition, implying a robust bidding process. 4. The specific NAICS code (623990) points to specialized residential care, not general healthcare. 5. The contract's value is relatively small in the context of federal spending, suggesting a focused service delivery. 6. The agency's use of a delivery order indicates it's likely part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: good

The contract value of $759,000 for a 242-day period appears reasonable for specialized residential care services. Benchmarking against similar contracts for correctional facility support or halfway house operations would provide a more precise value-for-money assessment. However, the firm-fixed-price nature helps control cost overruns. Without more detailed service scope, a definitive comparison is challenging, but the amount suggests a focused, potentially localized service requirement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. This process typically fosters price discovery and encourages competitive pricing among potential offerors. The number of bidders is not specified, but the method itself suggests a healthy market for these services and that the government sought the best value through a broad solicitation.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices and ensuring the government receives competitive rates for services rendered, maximizing the value of public funds.

Public Impact

The primary beneficiaries are individuals requiring residential care services, likely within the Federal Prison System. The contract delivers essential support services to facilitate rehabilitation and reintegration for incarcerated individuals. The geographic impact is focused on Pennsylvania, where the services are to be delivered. Workforce implications include the creation of jobs related to the provision of residential care and support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for service quality variations if not rigorously monitored.
Dependence on a single contractor for a critical service period.
Ensuring continuity of care beyond the contract's end date.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Full and open competition suggests a competitive award process.
Clear performance period (242 days) allows for focused management.

Sector Analysis

The contract falls within the Other Residential Care Facilities sector (NAICS 623990), which includes establishments primarily engaged in providing residential care services, excluding those primarily engaged in providing medical or surgical services. This sector is crucial for supporting various populations, including those transitioning from correctional facilities. The federal government, particularly agencies like the Department of Justice, frequently procures such services to manage inmate populations and support rehabilitation programs. The market size for these services is substantial, driven by federal, state, and local correctional and social service needs.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary focus was on full and open competition. There is no explicit information regarding subcontracting plans for small businesses. The impact on the small business ecosystem would be minimal unless FIRETREE LTD, as the prime contractor, voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officer and the Federal Prison System within the Department of Justice. The firm-fixed-price nature simplifies some aspects of financial oversight, focusing more on performance and service delivery. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal Prison System Operations
Bureau of Prisons Services
Residential Reentry Centers
Inmate Support Services
Correctional Facility Management

Risk Flags

Short contract duration may indicate a temporary need or potential for future re-competition.
Lack of small business participation noted.
Need for robust performance monitoring due to the nature of residential care services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $759,000 to FIRETREE LTD. FUNDING ONLY ACTION.

Who is the contractor on this award?

The obligated recipient is FIRETREE LTD.

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 $759,000.

What is the period of performance?

Start: 2025-10-01. End: 2026-05-31.

What is the specific nature of the 'Other Residential Care Facilities' services being provided under this contract?

The NAICS code 623990, 'Other Residential Care Facilities,' typically encompasses services for individuals who require residential supervision and support but do not require the level of medical care provided by nursing or assisted living facilities. For the Federal Prison System, this often translates to services provided by halfway houses or residential reentry centers. These facilities offer housing, supervision, case management, counseling, job placement assistance, and other programs designed to help individuals transition from incarceration back into the community. The specific scope would detail the level of supervision, programming requirements, and expected outcomes for the residents.

How does the $759,000 contract value compare to typical spending for similar residential care services by the Federal Prison System?

A contract value of $759,000 for a 242-day period represents an average daily cost of approximately $3,136 ($759,000 / 242 days). This figure needs to be contextualized by the number of individuals served and the specific services provided. Federal Prison System contracts for residential reentry services can vary significantly based on location, program intensity, and bed capacity. While this amount is not exceptionally large, it is substantial enough to indicate a significant service requirement. Benchmarking against publicly available data for similar contracts, particularly those awarded in Pennsylvania, would offer a clearer picture of whether this represents a competitive and efficient use of funds.

What are the potential risks associated with a firm-fixed-price contract for residential care services?

While firm-fixed-price (FFP) contracts offer cost certainty to the government, they can introduce risks for the contractor. For residential care, potential risks include underestimation of service delivery costs, unexpected increases in operational expenses (e.g., staffing, utilities), or unforeseen resident needs that require additional resources. If the contractor miscalculates these factors, they may struggle to meet performance standards or incur financial losses. Conversely, the government's risk is primarily that the contractor may cut corners on service quality to maintain profitability, necessitating robust performance monitoring and quality assurance measures to mitigate this.

What does the 'PA' contract type (ST: PA) signify in this context?

The 'ST: PA' designation likely refers to the 'Type of Contract' or a similar classification within the contract system being used. In the context of federal contracting, 'PA' often stands for 'Purchase Agreement' or 'Procurement Agreement,' which can be a broad term. However, given the other details (Delivery Order, Firm Fixed Price), it's more probable that 'PA' refers to a specific type of agreement or funding instrument used by the Department of Justice or the Federal Prison System. Without access to the specific agency's contract type codes, its precise meaning is difficult to ascertain definitively, but it generally indicates a formal agreement for the procurement of goods or services.

What is FIRETREE LTD's track record with the Federal Prison System or similar agencies?

Information regarding FIRETREE LTD's specific track record with the Federal Prison System or similar agencies is not provided in the abbreviated data. A comprehensive analysis would require searching federal procurement databases (like FPDS or SAM.gov) for past awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or contract terminations. Understanding their past performance, experience in delivering residential care, and compliance record is crucial for assessing the reliability and effectiveness of this award.

How does the 242-day duration impact the assessment of this contract's strategic importance?

The 242-day duration (approximately 8 months) suggests this contract is for a short-term or interim need, rather than a long-term, ongoing requirement. This could indicate a specific project, a temporary surge in demand, or a gap-filling measure while a more permanent solution is sought. Its strategic importance might be limited in terms of long-term program development but critical for immediate operational needs. The Federal Prison System may be using this approach to test a service provider, address an immediate capacity issue, or await budget appropriations for a longer-term contract.

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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 800 W 4TH ST STE 206, WILLIAMSPORT, PA, 17701

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: $759,000

Exercised Options: $759,000

Current Obligation: $759,000

Actual Outlays: $189,730

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NOT OBTAINED - WAIVED

Parent Contract

Parent Award PIID: 15BRRC21D00000326

IDV Type: IDC

Timeline