United States Marshals Service Contract Proposal for Detention Facilities in Leavenworth, Kansas Under Solicitation MS-97-R-0009

Office of the Inspector General

Executive Summary

The Office of the Inspector General (OIG), Audit Division has completed an audit of the contract proposal between the United States Marshals Service (USMS) and Corrections Corporation of America (CCA) for detention services in it Leavenworth, Kansas, facility.

Our review of the contract proposal and interim letter contract revealed that the per diem rates quoted by CCA are overstated. In 1997, CAA billed the USMS for 109,855 inmate jail days at an average cost of $76.60 per day, for a total of $8,415,334. In addition, through July 31, 1998, CAA billed the USMS a total of $5,161,010 for 64,650 inmate jail days at $79.83 per day plus an additional $20,170 for other contractual services. However, our audit of the proposed jail day rate revealed that CCA’s allowable expenses support a rate of $49.13. The amount used to compute this rate is exclusive of $1,944,280 which account for management fees, indirect costs, and state income taxes that are set aside pending further determination and negotiation by the USMS. Consequently, we concluded that the USMS:


Return to OIG Home Page