Category Archives: Oversight/Contract.Management

DHHS reviews child abuse cases it contracted out

Source: Matthew Stone, Bangor Daily News, March 28, 2018
 
Maine’s child welfare program is revisiting six-and-a-half months of child abuse reports it received and referred to contractors who intervene in “lower-risk” abuse and neglect cases. The Office of Child and Family Services earlier this month asked the four contractors who handle those lower-risk cases to comb through their records dating back to last Aug. 31 and re-report to the state many of the families whose cases they were assigned. The state would then review those cases. The request indicates that the state’s alternative response programs, which the four contractors run in their respective regions, are one area of focus for the Maine Department of Health and Human Services following the deaths of 10-year-old Marissa Kennedy and four-year-old Kendall Chick, allegedly at the hands of their caregivers. …

ICE Broke Contracting Rules in Establishing Its Largest Detention Facility

Source: Eric Katz, Government Executive, February 27, 2018
 
The nation’s largest immigrant detention facility was procured improperly, according to a watchdog report, with Immigration and Customs Enforcement in 2014 using an existing agreement with a town in Arizona as a vehicle to establish the center 900 miles away in Texas. Since 2014, ICE has spent $438,000 annually for Eloy, Ariz., to serve solely as a middleman for a 2,400-bed detention facility in Dilley, Texas, according to the Homeland Security Department’s inspector general. The agency first contracted with the city of Eloy in 2006 to establish the Eloy Detention Center, which the city subcontracted to a company called CCA. ICE reached the agreement with Eloy through a process known as an intergovernmental service agreement, or IGSA. …

Read full report.

Related:

Texas prison is big business for Eloy
Source: Tanner Clinch, Tri Valley Central, July 4, 2016

The city makes more money from a private immigration detention facility located in Texas than it does from the one housed in Eloy, budget figures show. The tentative budget for Eloy is around $38 million, but that reflects only a fraction of the actual money that passes through the city. Every year roughly $290 million is given to the city by the federal government in what’s called agency pass-through funds, which go directly to Corrections Corporation of America. Of this $290 million, around $37 million goes to operate Eloy Detention Center and the rest, $253 million, goes to run another Immigration and Customs Enforcement detention center over 900 miles away in the small town of Dilley, Texas. … The federal government did not go through a traditional, and possibly long, bidding process to decide who would run the facility, and the Eloy City Council modified the intergovernmental services agreement it already had with ICE to include the Dilley facility. Eloy gets a good deal out of the agreement, according to City Manager Harvey Krauss. The city itself received $450,000 from the Dilley facility and $96,000 for the Eloy facility during fiscal year 2015-16 just to act as a fiscal agent between ICE and CCA, according to the city’s budget. …

Dept. of Corrections awards private prison beds contract
Source: Lindsey Reiser, KPHO CBS5, September 01, 2012

A private prison company is getting a multimillion dollar contract for a new prison in our Arizona. But not everyone is celebrating. The contract goes to “Corrections Corporation of America” and according to the Arizona Department of Corrections (ADC), the company will house 1,000 medium-security male inmates.

Continue reading

FEMA Contract Called for 30 Million Meals for Puerto Ricans. 50,000 Were Delivered.

Source: Patricia Mazzei and Agustin Armendariz, New York Times, February 6, 2018
 
The mission for the Federal Emergency Management Agency was clear: Hurricane Maria had torn through Puerto Rico, and hungry people needed food. Thirty million meals needed to be delivered as soon as possible.  For this huge task, FEMA tapped Tiffany Brown, an Atlanta entrepreneur with no experience in large-scale disaster relief and at least five canceled government contracts in her past. FEMA awarded her $156 million for the job, and Ms. Brown, who is the sole owner and employee of her company, Tribute Contracting LLC, set out to find some help. … By the time 18.5 million meals were due, Tribute had delivered only 50,000. And FEMA inspectors discovered a problem: The food had been packaged separately from the pouches used to heat them. FEMA’s solicitation required “self-heating meals.” …

Fight Club: Audit documents Florida juvenile justice failures

Source: Carol Marbin Miller, Miami Herald, January 19, 2018

Florida juvenile justice administrators sometimes fail to report the deficiencies of their privately run youth programs, and don’t always ensure breakdowns are corrected even when they are documented, says a new report by the state’s Auditor General. The state’s top government auditor reviewed the Department of Juvenile Justice’s oversight of contracts for 10 of 54 privately run residential programs — totaling $251.3 million in state dollars — examining the department’s compliance with state laws, as well as department rules and policies. The review, which is dated January 2018, looked at agency contracts for the budget year 2016. …

… The 21-page audit was released about three months after a Miami Herald series exposed long-standing, far-ranging lapses in oversight and accountability throughout the state’s juvenile justice system. The Herald investigation, called Fight Club, revealed a broad range of abuses, including the hiring of youth care workers with criminal records and histories of violence and sexual misconduct, the widespread use of unnecessary and excessive force, the sexual abuse of detainees and the outsourcing of discipline by staff members — who sometimes offer teens snack foods as a reward for doling out beatings. The series also highlighted a troubling history of medical neglect by officers, youth workers and even nurses assigned to youth programs. Lax contract monitoring was a persistent theme in one of the stories reported by the Herald in October. …

Related:
Fight Club: A Miami Herald Investigation Into Florida’s Juvenile Justice System
Source: Miami Herald, October 2017

… Documents, interviews and surveillance videos show a disturbing pattern of beatings doled out or ordered by underpaid officers, hundreds of them prison system rejects. Youthful enforcers are rewarded with sweet pastries from the employee vending machines, a phenomenon known as “honey-bunning.” The Herald found fights staged for entertainment, wagering and to exert control, sex between staff and youthful detainees and a culture of see-nothing/say-nothing denial. Herald journalists also examined 12 questionable deaths of detained youths since 2000. In the end, untold numbers of already troubled youths have been further traumatized. With a one-year recidivism rate of 45 percent, it is a justice system that is supposed to reform juvenile delinquents, but too often turns them into hardened felons.

Veterans Journal: VA revises regulations for vets’ emergency treatment reimbursement

Source: George W. Reilly, Providence Journal, January 21, 2018

… The nation’s largest federal union, the American Federation of Government Employees, sent a letter on Jan. 9 to the U.S. House and Senate Veterans’ Affairs leadership calling for an investigation into the two main contractors running the controversial Choice program that allegedly have defrauded taxpayers by nearly $90 million. The Veterans Choice Program allows eligible veterans to receive health care in their communities rather than waiting for a VA appointment or traveling over a distance to a VA facility. … In a September memo by the VA Office of Inspector General, titled “Accuracy and Timeliness of Payments Made Under the Choice Program Authorized by the Veterans Access, Choice, and Accountability Act,” it was found that at least two third-party administrators of the VA Choice Program had led to $90 million in improper charges to the American taxpayer. … The revelations of overcharging by third-party administrators is just the latest controversy plaguing the Choice program, which allows veterans to obtain quicker, local medical appointments than at a VA facility. Last month, the House Committee on Veterans’ Affairs voted along party lines to pass H.R. 4242 — VA Care in the Community Act — which would continue to funnel funding away from veterans’ first and best choice for health care at VA facilities, and sticking them in the back of the line at unaccountable, private, for-profit providers. …

‘The Judge Is Upset:’ Federal Court Pursues Investigation Into Corizon Health Over Arizona Prison Allegations

Source: Jimmy Jenkins, KJZZ, January 18, 2018

At a Dec. 20 status hearing, U.S. Magistrate Judge David Duncan read aloud from a KJZZ report detailing allegations of denying specialty health care in Arizona prisons. Duncan said it looked like Corizon, the health-care provider the state contracts with, was trying to perform an “end run” around the monitoring process he oversees. The judge called for a special hearing to explore the merits of the allegations and “see how deep this evil goes.” …

Related:

On the Inside: The Chaos of Arizona Prison Health Care
Source: Jimmy Jenkins, KJZZ, December 18, 2017

The Arizona Department of Corrections contracts with privately owned, correctional health care company Corizon Health to oversee all medical, mental and dental care at 10 state prisons. However, that care has come under scrutiny in federal court. In 2015, inmates settled a lawsuit with Arizona over poor health care conditions in state prisons. More than two years later, Arizona and its provider have failed to meet the more than 100 stipulations agreed to in the settlement and a federal judge is threatening to fine the state millions of dollars. Inmates have testified in the settlement process to long wait times for medicine, delayed chronic disease care and a lack of access to specialists. The voices in this series confirm those allegations and more, recounting their experiences with the Arizona prison health care system. …

Low Staffing Levels at Arizona Prisons Could Lead to Big Fines
Source: Jimmy Jenkins, KJZZ, August 9, 2017

A federal judge will appoint an outside expert to address low health care staffing levels in Arizona prisons and could soon issue economic sanctions against the state. For years the state has failed to comply with performance measures from a settlement between the state and the inmates. The main reason for the failures is staffing, and Judge David Duncan said economic currents are to blame. At a status hearing Wednesday, Duncan said the state’s private contractor, Corizon, has made the decision to simply pay fines instead of paying for full staffing at state prisons. … Duncan became increasingly incensed when hearing of the state’s failure to comply with measures that guarantee inmates access to their prescribed medicine. He repeated his threat that the state is facing steep fines and suggested economic sanctions to counter Corizon’s profit motive. …

Hurricane Harvey, Irma, and Maria Contract Spending Revisited

Source: Project on Government Oversight, January 8, 2018

Back in October, the Project On Government Oversight did a top-level analysis of federal government spending on Hurricane Harvey, Irma, and Maria recovery contracts, as reported by the Federal Procurement Data System (FPDS). The FPDS spreadsheets contain a wealth of data that allow the public to track billions of dollars in federal contract expenditures in precise detail: the agency awarding the money, the amount, the purpose, and the recipient. At that time, the government had spent a total of $1.65 billion on contracts. However, FPDS imposes a 90-day delay on the release of Department of Defense (DoD) data, so we were missing a big piece of the spending puzzle. Now, DoD numbers are starting to trickle in and we are getting a more complete picture of federal contracting outlays for the recovery efforts in Texas, Louisiana, Florida, Puerto Rico, and the Virgin Islands. The federal contract award total now stands at $3.3 billion: $1.2 billion for Harvey$726 million for Irma, and $1.4 billion for Maria. … Federal expenditures on Hurricane Harvey, Irma, and Maria contracts have now surpassed the $3 billion spent for Hurricane Sandy and are steadily approaching the $20 billion total for Hurricane Katrina. As the total grows, so too will the misuse of those funds. To that end, POGO plans to release a database that will track all federal spending relating to Hurricane Harvey. …

Federal Fraud Recoveries Decline in Fiscal Year 2017

Source: Project on Government Oversight, January 2, 2018

… The DOJ announced it had recouped $3.7 billion through settlements and judgments in False Claims Act cases in fiscal year 2017. This amount is nearly 23 percent lower than the previous fiscal year, but roughly in line with FY 2015’s total. This seems to be a trend: a historical analysis of DOJ’s fraud recoveries since 1986 (the year Congress substantially strengthened the False Claims Act) shows that, in recent years, a substantial drop-off occurs in non-election years. … As in past years, the largest share of the recoveries—about two-thirds—involved health care fraud. But a substantial sum also came from some of Uncle Sam’s largest contractors:

  • AECOM and Bechtel: $125 million to settle False Claims Act allegations that the contractors charged the government for deficient materials and services at the Hanford Nuclear Site. Separately, AECOM paid over $5.2 million to settle another fraud investigation involving its work at Hanford.
  • Agility: $95 million to settle a 12-year-old case accusing the company of overcharging the government for food supplied to U.S. troops in the Middle East.
  • Atlantic Diving Supply: $16 million for allegedly inducing the government to award small business contracts to companies misrepresenting their eligibility as socially or economically disadvantaged small businesses.
  • Huntington Ingalls Industries: $9.2 million to resolve claims of overbilling the government for work at its Mississippi shipyards.
  • Pacific Architects and Engineers: $5 million to settle allegations that it failed to properly screen and oversee personnel working on a contract to train Afghan security forces.
  • Sierra Nevada Corporation: $14.9 million for allegedly causing the government to pay inflated labor costs on contracts.
  • Defense contractors accounted for $220 million in fraud settlements and judgments.

Lockheed Martin, Boeing aerospace venture bilked U.S. for $90 million, lawsuit says

Source: Kirk Mitchell, The Denver Post, January 8, 2018

A whistleblower has settled a lawsuit filed against a Centennial aerospace company formed by Lockheed Martin and The Boeing Company that claimed the company defrauded the U.S. government out of at least $90 million by grossly overcharging for employee work hours. Whistleblower Joseph Scott filed the lawsuit on behalf of himself and the government against United Launch Alliance and United Launch Services, under the Federal Civil False Claims Act. Scott is a former ULA employee. … This wasn’t the first time ULA practices have come under scrutiny. In December 2016, ULA paid the government $100,000 to settle allegations that a subcontractor paid its employees kickbacks in order to win contracts. As a result, the U.S. paid higher costs to subcontractor Apriori Technologies between 2011 and 2015, Troyer has previously said. …

… ULA used a system called the Keith Crohn model that creates a grid using the cost of equipment to reach an employee cost. A labor value was placed on the grid for every item ordered through the company’s purchasing department. For example, any item that cost between $1 and $1,000 would be assigned a labor value of 8 hours. It didn’t matter what part it was, the lawsuit said. The U.S. bans arbitrary cost estimates when actual data is available that establishes the cost. ULA took advantage of the government’s practice of not auditing smaller projects. On projects above $100 million, the government audits bids and can reduce the contract price if the Defense Contract Audit Agency discovers discrepancies, the lawsuit says. In the first five to seven years of its existence, ULA often failed those audits. For larger audited launches, ULA began using historic data of actual prior labor costs, the lawsuit says.
But for smaller bids, ULA continued using its flawed estimates, knowing that it wouldn’t be audited, the lawsuit says. …

Unhappy with cleanliness, Chesterfield school leaders break ties with outside custodial service

Source: Vanessa Remers, Richmond Times-Dispatch, December 12, 2017

Chesterfield County School Board members will bring at least some of their custodial services back in-house, cutting ties with an outside contractor that school officials said couldn’t keep the county’s schools clean enough. School Board members voted unanimously Tuesday not to renew their contract with Tennessee-based Service Solutions Corporation. Instead, they moved forward with a hybrid plan in which the daytime custodial work will be done in-house and after-school cleaning will be completed by at least three outside contractors. … In the past two years, school officials charged SSC more than $400,000 in penalties for not meeting the contracted level of cleanliness. … To shift back to at least some in-house custodial work, School Board members supported hiring custodians to work as day porters, in addition to outsourcing after-school cleaning to at least three contractors. That could cost the school system approximately $19 million in the first year, according to a plan that has been proposed by staff. That’s about $7 million more than it pays now under the current SSC contract. The tab could increase to $23 million annually as the schools increase staff to achieve a higher “ideal” level of cleanliness. … The school system switched from providing custodial services in-house to an outside contractor three years ago, in part because the shift would save millions. But even before that switch happened, school officials said the internal system wasn’t staffed properly. …