DOJ's $448.7M Contract for Taft Correctional Institution Management Awarded to Management & Training Corporation

Contract Overview

Contract Amount: $448,663,859 ($448.7M)

Contractor: Management & Training Corporation

Awarding Agency: Department of Justice

Start Date: 2007-04-25

End Date: 2018-01-31

Contract Duration: 3,934 days

Daily Burn Rate: $114.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIXED PRICE INCENTIVE

Sector: Other

Official Description: TAS CODE 151060 - MANAGEMENT AND OPERATION OF A GOVERNMENT-OWNED, CONTRACTOR OPERATED, CORRECTIONAL INSTITUTION IN TAFT, CA

Place of Performance

Location: TAFT, KERN County, CALIFORNIA, 93268

State: California Government Spending

Plain-Language Summary

Department of Justice obligated $448.7 million to MANAGEMENT & TRAINING CORPORATION for work described as: TAS CODE 151060 - MANAGEMENT AND OPERATION OF A GOVERNMENT-OWNED, CONTRACTOR OPERATED, CORRECTIONAL INSTITUTION IN TAFT, CA Key points: 1. The contract, valued at $448.7 million, covers the management and operation of a government-owned, contractor-operated correctional institution. 2. Awarded under full and open competition, the contract utilized a fixed-price incentive pricing structure. 3. The primary risk involves ensuring the contractor meets performance standards for correctional facility operations and inmate welfare. 4. The sector is primarily government services, specifically correctional facility management.

Value Assessment

Rating: fair

The contract's fixed-price incentive structure aims to balance cost control with performance. Without specific benchmarks for correctional facility management, a direct pricing assessment is difficult, but the significant value suggests substantial operational scope.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, allowing multiple bidders to propose solutions. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: Taxpayer funds are utilized for the operation of the correctional facility, with the aim of achieving cost-effective and efficient management through competitive contracting.

Public Impact

Ensures the continued operation and management of a federal correctional facility, impacting inmate populations and staff. Provides essential services related to inmate care, security, and rehabilitation programs. The contract's performance directly affects the Bureau of Prisons' capacity and operational efficiency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if incentive targets are not met efficiently.
Ensuring consistent quality of services and inmate welfare over the contract's duration.
Reliance on a single contractor for critical correctional operations.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process.
Fixed-price incentive contract structure can incentivize contractor performance.
Long-term contract provides stability for facility operations.

Sector Analysis

This contract falls within the government services sector, specifically focusing on correctional facility management. Benchmarks for this niche sector are often tied to per-inmate costs and operational efficiency metrics, which are not detailed here.

Small Business Impact

The data indicates that small businesses were not directly involved as the prime contractor in this specific award. Further analysis would be needed to determine if small businesses were utilized as subcontractors.

Oversight & Accountability

Oversight is typically managed by the Department of Justice's Bureau of Prisons, which is responsible for monitoring contractor performance, ensuring compliance with contract terms, and safeguarding inmate welfare.

Related Government Programs

Facilities Support Services
Department of Justice Contracting
Federal Prison System / Bureau of Prisons Programs

Risk Flags

Contract duration is lengthy (over 10 years).
Fixed-price incentive contracts can be complex to administer.
Reliance on a single contractor for critical infrastructure.
Potential for performance degradation over time if not actively managed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $448.7 million to MANAGEMENT & TRAINING CORPORATION. TAS CODE 151060 - MANAGEMENT AND OPERATION OF A GOVERNMENT-OWNED, CONTRACTOR OPERATED, CORRECTIONAL INSTITUTION IN TAFT, CA

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 $448.7 million.

What is the period of performance?

Start: 2007-04-25. End: 2018-01-31.

What are the key performance indicators (KPIs) used to evaluate the contractor's success in managing the correctional institution?

Key performance indicators likely include inmate security and safety metrics, healthcare provision standards, disciplinary infraction rates, staff retention, and adherence to rehabilitation program goals. The contract's incentive structure would be tied to achieving specific targets within these areas, ensuring accountability for operational effectiveness and inmate well-being.

What are the potential risks associated with a fixed-price incentive contract for correctional facility management?

Risks include the potential for the contractor to cut corners on services to maximize profit if incentive targets are too aggressive or poorly defined. Conversely, if targets are too lenient, costs could escalate beyond initial projections. Ensuring fair and accurate performance measurement is crucial to mitigate these risks and achieve value.

How does the performance of this contract contribute to the overall effectiveness of the Federal Prison System?

This contract's effectiveness is crucial for the Federal Prison System's capacity management and operational goals. Successful management by the contractor ensures the safe and secure housing of inmates, facilitates rehabilitation programs, and maintains public safety. Failures in performance could lead to security breaches, inmate unrest, or overcrowding issues elsewhere.

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: RFP-PCC-0011

Offers Received: 3

Pricing Type: FIXED PRICE INCENTIVE (L)

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: $448,663,859

Exercised Options: $448,663,859

Current Obligation: $448,663,859

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline