DOJ's $360M contract for inmate services awarded to Management & Training Corporation, serving 7000 low-security males

Contract Overview

Contract Amount: $360,848,504 ($360.8M)

Contractor: Management & Training Corporation

Awarding Agency: Department of Justice

Start Date: 2007-01-17

End Date: 2017-09-30

Contract Duration: 3,909 days

Daily Burn Rate: $92.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIXED PRICE AWARD FEE

Sector: Other

Official Description: CONTRACTOR OWNED AND OPERATED EXISTING CORRECTIONAL FACILITY FOR APPROXIMATELY 7000 LOW SECURITY MALE INMATES.

Place of Performance

Location: POST, GARZA County, TEXAS, 79356

State: Texas Government Spending

Plain-Language Summary

Department of Justice obligated $360.8 million to MANAGEMENT & TRAINING CORPORATION for work described as: CONTRACTOR OWNED AND OPERATED EXISTING CORRECTIONAL FACILITY FOR APPROXIMATELY 7000 LOW SECURITY MALE INMATES. Key points: 1. The contract's fixed-price award fee structure aims to incentivize performance while managing costs. 2. Competition was full and open, suggesting a robust market for these services. 3. The duration of the contract (over 10 years) indicates a long-term need for these correctional services. 4. The contract is for facilities support services, a critical component of correctional operations. 5. The geographic location in Texas is noted, potentially impacting local workforce and economy. 6. The absence of small business set-asides warrants further investigation into subcontracting opportunities.

Value Assessment

Rating: good

The total award value of $360.8 million over approximately 10 years translates to an average annual cost of roughly $36 million. This figure needs to be benchmarked against similar correctional facility management contracts to fully assess value for money. The fixed-price award fee structure suggests an attempt to control costs while allowing for performance-based incentives. Without specific performance metrics and their associated fee payouts, a precise value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This level of competition is generally favorable for price discovery and can lead to more competitive pricing for the government. The presence of five bidders suggests a healthy market for correctional facility management services.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces, ensuring the government receives competitive pricing for essential services.

Public Impact

The primary beneficiaries are the approximately 7000 low-security male inmates housed in the facility, who receive essential support services. The contract delivers comprehensive facilities support services, ensuring the operational integrity of the correctional facility. The geographic impact is concentrated in Texas, where the facility is located, potentially creating local employment and economic activity. Workforce implications include direct employment for facility staff and indirect economic benefits within the local community.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for over-reliance on a single contractor for a critical government function.
Long contract duration could lead to complacency or reduced innovation if not actively managed.
Lack of specific small business participation targets may limit opportunities for smaller firms in the sector.

Positive Signals

Full and open competition suggests a competitive market, potentially leading to better service and pricing.
Fixed-price award fee structure provides cost control while incentivizing contractor performance.
The contract addresses a long-standing need for correctional facility management, indicating stability in service provision.

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, staffing, and operational support. Benchmarking this contract's value against other similar federal or state correctional facility contracts would provide further context on its cost-effectiveness.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and there is no explicit mention of small business subcontracting goals. This suggests that opportunities for small businesses may be limited to direct subcontracting by the prime contractor, Management & Training Corporation. Further analysis would be needed to determine if MTC has a robust subcontracting plan that includes small businesses.

Oversight & Accountability

Oversight for this contract would typically fall under the Bureau of Prisons (BOP), a division of the Department of Justice. The BOP is responsible for monitoring contractor performance, ensuring compliance with contract terms, and managing payments. Inspector General oversight from the DOJ would also be applicable to investigate any potential fraud, waste, or abuse related to the contract.

Related Government Programs

Federal Prison System / Bureau of Prisons Contracts
Correctional Facility Management Services
Inmate Support Services Contracts
Department of Justice Facilities Operations

Risk Flags

Long-term contract duration may reduce flexibility.
Potential for performance degradation over time.
Lack of explicit small business subcontracting requirements.
Reliance on private sector for core government function.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $360.8 million to MANAGEMENT & TRAINING CORPORATION. CONTRACTOR OWNED AND OPERATED EXISTING CORRECTIONAL FACILITY FOR APPROXIMATELY 7000 LOW SECURITY MALE INMATES.

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 $360.8 million.

What is the period of performance?

Start: 2007-01-17. End: 2017-09-30.

What is Management & Training Corporation's track record with federal correctional facility contracts?

Management & Training Corporation (MTC) has a significant history of operating correctional facilities for various government agencies, including the Bureau of Prisons (BOP) and U.S. Immigration and Customs Enforcement (ICE). Their experience spans decades, managing both adult and juvenile facilities. While MTC has a substantial portfolio, like many large private prison operators, they have faced scrutiny and criticism regarding staffing levels, inmate safety, and operational costs in some of their facilities. A review of past performance evaluations, any contract disputes, or litigation involving MTC's federal contracts would provide a more comprehensive understanding of their track record.

How does the per-inmate cost of this contract compare to similar federal facilities?

The approximate annual cost for this contract is around $36 million for approximately 7000 inmates, translating to roughly $5,143 per inmate per year. To benchmark this effectively, we would need to compare it with the per-inmate costs of other Bureau of Prisons facilities, both government-operated and privately managed, particularly those housing similar security levels and inmate demographics. Factors such as the age and condition of the facility, the specific services included (healthcare, education, rehabilitation programs), and regional labor costs can significantly influence per-inmate expenses. A detailed comparison with publicly available BOP cost data or reports from the Government Accountability Office (GAO) would be necessary for a robust assessment.

What are the primary risks associated with this long-term correctional facility contract?

Key risks include potential cost overruns if the fixed-price component is insufficient to cover unforeseen operational challenges, or conversely, if the award fee structure is overly generous, leading to reduced value for money. There's also a risk of service degradation over the contract's long duration if performance monitoring is lax, potentially impacting inmate welfare and safety. Reputational risk for the government is another concern, as issues within privately managed facilities can attract negative public and media attention. Furthermore, changes in federal sentencing laws or inmate population trends could impact the facility's utilization and associated costs.

How effective has Management & Training Corporation been in meeting the performance objectives of this contract?

The effectiveness of MTC in meeting performance objectives is primarily assessed through the award fee component of the contract. Without access to the specific performance metrics, evaluation criteria, and the actual award fee amounts paid, a definitive assessment is not possible. Typically, the Bureau of Prisons would conduct regular performance reviews. Information regarding any penalties, deductions, or significant positive awards would indicate their performance level. Publicly available reports or IG audits related to this specific facility could also offer insights into operational effectiveness and compliance.

What are the historical spending patterns for correctional facility support services by the Bureau of Prisons?

The Bureau of Prisons has historically relied on a mix of government-operated and privately managed facilities to meet its inmate housing needs. Spending on private prison contracts has fluctuated over time, influenced by policy shifts, congressional appropriations, and the overall inmate population. In recent years, there has been a trend towards reducing reliance on private facilities, though they remain a significant component of the BOP's infrastructure. Analyzing historical BOP budgets and contract awards for facilities support services would reveal trends in spending, the proportion allocated to private contractors versus government facilities, and the average cost per inmate over time.

What is the potential impact of this contract on the private correctional facility market?

This contract represents a substantial award within the private correctional facility market, reinforcing Management & Training Corporation's position as a major player. The full and open competition suggests that the market is competitive, with multiple firms capable of undertaking such large-scale operations. The continued use of private facilities by the BOP indicates ongoing demand for these services, influencing investment and strategic decisions for other companies in the sector. The contract's terms and performance outcomes could also set precedents or benchmarks for future solicitations in the industry.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: RFPPCC0010

Offers Received: 5

Pricing Type: FIXED PRICE AWARD FEE (M)

Evaluated Preference: NONE

Contractor Details

Address: 500 N MARKET PLACE DR, CENTERVILLE, UT, 84014

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $360,848,504

Exercised Options: $360,848,504

Current Obligation: $360,848,504

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline