DOJ's $16M detention services contract with Management & Training Corporation shows fair value, but limited competition raises concerns

Contract Overview

Contract Amount: $16,074,977 ($16.1M)

Contractor: Management & Training Corporation

Awarding Agency: Department of Justice

Start Date: 2010-01-01

End Date: 2022-09-30

Contract Duration: 4,655 days

Daily Burn Rate: $3.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DETENTION SERVICES

Place of Performance

Location: CENTERVILLE, DAVIS County, UTAH, 84014

State: Utah Government Spending

Plain-Language Summary

Department of Justice obligated $16.1 million to MANAGEMENT & TRAINING CORPORATION for work described as: DETENTION SERVICES Key points: 1. Contract value of $16.07 million over its life suggests a moderate investment in detention services. 2. The firm fixed-price contract type provides cost certainty for the government. 3. The contract was awarded under full and open competition, indicating a broad search for qualified providers. 4. The duration of the contract (4655 days) suggests a long-term need for these services. 5. The primary service area is Utah, indicating a geographically specific need. 6. The contractor, Management & Training Corporation, has a significant role in correctional services.

Value Assessment

Rating: fair

The contract's total value of approximately $16 million over nearly 13 years averages to about $1.2 million annually. Benchmarking this against similar detention service contracts is challenging without more specific service details and geographic scope. However, the firm fixed-price structure generally indicates a predictable cost for the government. The absence of detailed performance metrics in the provided data makes a definitive value-for-money assessment difficult, but the duration suggests a sustained need that the contractor has presumably met.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' suggesting that multiple bidders were likely solicited and considered. The fact that it is a definitive contract awarded to a single entity implies that Management & Training Corporation was selected as the most advantageous offer. The level of competition, while broad in its initial solicitation, ultimately resulted in a single award, which is typical for services requiring specialized capabilities and infrastructure.

Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it encourages multiple vendors to offer competitive pricing, potentially leading to cost savings for the government.

Public Impact

The U.S. Marshals Service benefits from reliable detention services for individuals in federal custody. The contract supports the operational needs of the Department of Justice in managing detainees. Services are primarily delivered within Utah, impacting the local justice system and potentially local economies through employment. The contract ensures the availability of facilities and management for federal detainees, contributing to public safety and the administration of justice.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for over-reliance on a single contractor for a critical service.
Limited data on performance metrics makes it difficult to assess ongoing value and efficiency.
Geographic concentration in Utah could limit flexibility if needs shift elsewhere.

Positive Signals

Awarded under full and open competition, suggesting a robust initial vetting process.
Firm fixed-price contract provides budget certainty.
Long contract duration indicates a stable, ongoing relationship meeting federal requirements.

Sector Analysis

This contract falls within the Facilities Support Services sector, specifically related to detention and correctional services. This is a critical component of the criminal justice system, ensuring the secure housing of individuals awaiting trial or serving sentences. The market for these services is often characterized by specialized requirements, regulatory compliance, and significant infrastructure needs. Comparable spending benchmarks would depend on the scale and specific services offered, but government contracts for detention facilities represent a substantial portion of the corrections industry.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). This suggests that the primary focus was on securing the most capable provider through full and open competition, rather than prioritizing small business inclusion. There is no explicit information on subcontracting plans, but for a contract of this nature and duration, it is possible that smaller, specialized service providers could be engaged by the prime contractor.

Oversight & Accountability

The contract is managed by the U.S. Marshals Service, an agency within the Department of Justice. Oversight would typically involve regular performance reviews, financial audits, and adherence to contractual terms and conditions. The firm fixed-price nature of the contract provides a degree of financial oversight by locking in costs. Transparency is generally maintained through federal contract databases, though specific operational details and performance reports may be less publicly accessible.

Related Government Programs

Federal Bureau of Prisons Contracts
Immigration and Customs Enforcement Detention Contracts
State and Local Government Detention Service Agreements

Risk Flags

Long contract duration may reduce flexibility.
Limited public data on performance metrics.
Potential for cost-cutting impacting service quality over time.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $16.1 million to MANAGEMENT & TRAINING CORPORATION. DETENTION SERVICES

Who is the contractor on this award?

The obligated recipient is MANAGEMENT & TRAINING CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Justice (U.S. Marshals Service).

What is the total obligated amount?

The obligated amount is $16.1 million.

What is the period of performance?

Start: 2010-01-01. End: 2022-09-30.

What is the historical spending trend for detention services by the U.S. Marshals Service?

The U.S. Marshals Service (USMS) is the primary federal law enforcement agency responsible for the custody and transportation of federal prisoners. Their spending on detention services has historically been substantial and has seen fluctuations based on caseloads, policy changes, and the availability of federal detention facilities. While this specific contract represents a $16 million investment over its term, the overall USMS budget for detention operations encompasses a much larger scope, including contracts with state and local facilities, as well as the management of its own assets. Analyzing historical spending requires examining annual appropriations and contract obligations over multiple fiscal years, looking for trends in per diem rates, facility utilization, and the number of detainees housed. Factors such as changes in immigration policy, sentencing reforms, and the overall crime rate can significantly influence the demand for detention services and, consequently, the USMS's spending.

How does the per-unit cost of this contract compare to other federal detention service contracts?

Determining a precise per-unit cost for this contract is difficult without knowing the average daily population housed or the specific services included beyond basic detention. The total contract value of $16.07 million over approximately 13 years (4655 days) yields an average annual cost of roughly $1.24 million. If we were to estimate a daily cost based on an assumed average population, it would still be a rough approximation. Generally, per diem rates for federal detention can vary significantly based on geographic location, facility type (e.g., minimum, medium, maximum security), services provided (medical care, food, programming), and the level of competition during the bidding process. Contracts awarded under full and open competition might yield more competitive rates than sole-source awards. Without specific data points on the number of detainees served daily or the specific services rendered, a direct comparison to other federal contracts remains speculative. However, the $1.2 million annual average suggests a significant operational scale.

What are the key performance indicators (KPIs) used to evaluate Management & Training Corporation's performance under this contract?

The provided data does not specify the Key Performance Indicators (KPIs) used to evaluate Management & Training Corporation's performance. However, for detention service contracts, typical KPIs often include metrics related to safety and security (e.g., number of escapes, assaults, use of force incidents), inmate welfare (e.g., timely medical care, food quality, sanitation), operational efficiency (e.g., staffing levels, adherence to schedules), and compliance with federal regulations and standards. Performance is usually assessed through regular site visits, audits, incident reports, and feedback from the contracting agency (U.S. Marshals Service). The firm fixed-price nature of the contract implies that the contractor is responsible for delivering the specified services within the agreed-upon budget, with penalties or incentives potentially tied to meeting or exceeding certain performance benchmarks.

What is the track record of Management & Training Corporation in providing federal detention services?

Management & Training Corporation (MTC) is a well-established private operator of correctional facilities, detention centers, and job training programs. They have a significant track record in managing government contracts for detention services, including those for federal agencies like the U.S. Marshals Service and Immigration and Customs Enforcement (ICE), as well as state and international clients. MTC's experience spans several decades, and they operate numerous facilities across the United States and internationally. Their involvement in federal contracts suggests they possess the necessary expertise, infrastructure, and compliance capabilities to meet the stringent requirements of government detention operations. However, like many large contractors in this sector, MTC has also faced scrutiny and occasional controversies related to facility conditions, staffing, and inmate management in some of its operations.

What are the potential risks associated with a long-duration contract for detention services?

Long-duration contracts for detention services, such as this nearly 13-year agreement, carry several potential risks. Firstly, there's the risk of contractor complacency or a decline in service quality over time if oversight is not consistently rigorous. Secondly, the fixed-price nature, while offering budget certainty, can become a risk if unforeseen operational costs arise for the contractor, potentially leading to pressure to cut corners on services or staffing. Thirdly, changes in federal policy, legal mandates, or detention population dynamics could render the contracted services less relevant or require significant modifications, which can be complex and costly to implement within a long-term fixed contract. Finally, there's the risk of vendor lock-in, making it difficult and expensive to switch providers if performance issues arise or if market conditions change, offering better alternatives.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

Business Categories: Category Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $16,074,977

Exercised Options: $16,074,977

Current Obligation: $16,074,977

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline