New Report Critiques Biden Administration’s Contract Award Practices
An inspector general’s report released Thursday has accused the former Biden administration of sidestepping federal regulations by granting over $500 million in “sole supply contracts” to nonprofit organizations led by former officials in 2021, particularly to address minor crises involving unaccompanied minors.
In March 2021, the Administration for Children and Families (ACF), which oversees unaccompanied minors for HHS, executed a $529 million contract with a nonprofit called Family Endeavors, Inc. This was to set up and manage an emergency intake site (EIS) in Texas with capacity for 2,000 additional beds. However, the inspector general’s findings suggest that ACF did not adhere to federal procurement rules for open competition. The report claims this failure was not due to the COVID-19 emergency cited by the administration, but rather due to “poor planning” on ACF’s part.
The report also highlights that the awarded contract exceeded the agency’s own cost estimate of $244 million by more than double. It noted that ACF had amended the contract 15 times, extending its duration to May 2022 and raising the total to over three times the initial estimate.
The report stated, “ACF was aware well before March 2021 that it would need more shelter beds than available, yet it did not initiate contract planning timely.” It further criticized ACF’s approach as lacking adequate planning required for competitive procurement of these beds and services.
In its findings, the ACF’s investigations for the contract were described as superficial, and the agency did not fully pursue the conclusions of these investigations. In early March 2021, Endeavors had reached out to ACF proposing emergency help for unaccompanied minors, ultimately receiving a sole-source contract just days later.
This particular contract represents Family Endeavors’ most substantial agreement to date, following the hiring of Andrew Lorenzen Streit, who was involved in the Biden-Harris transition. It is reportedly the company’s second-largest contract ever.
Despite requests for a review of quoted prices and the analysis methods used, ACF allegedly did not provide the needed documentation, citing urgent time constraints for the contract’s award.
Family Endeavors has characterized its work at the border as a continuation of services the organization has offered to immigrant communities since 2012. By April 2021, records reveal that ACF had already disbursed $255 million to Family Endeavors under this no-bid contract, significantly more than the nonprofit’s entire budget for 2018.
The organization did not provide a comment upon request after hours.
Former Congressman Mark Green and others have addressed concerns regarding Lorenzen Streit’s ties to both the Biden administration and Endeavors, insisting on preserving records of his communications related to these sole-source contracts. They referenced Lorenzen Streit’s past role in the Biden transition team and noted a significant contract given to Endeavors shortly after he joined the organization.
Concerns have also been raised regarding statements made by Lorenzen Streit, which appeared to acknowledge the controversial nature of the contracts he was involved with, characterizing them as “corrupt deals.”
In response, an HHS spokesperson pointed out that under President Trump, ACF had introduced more rigorous oversight to prevent prior mismanagement that resulted in wasted funds on unused facilities intended for housing migrants.
