The Department of Justice (DOJ) Inspector General Michael E. Horowitz announced today the release of a report examining a $2.4 million Federal Bureau of Prisons’ (BOP) contract with DeTekion Security Systems, Inc. (DeTekion) to upgrade perimeter security by constructing an electronic taut wire fence detection system at Administrative U.S. Penitentiary Thomson in Thomson, Illinois.
The DOJ Office of the Inspector General (OIG) found that the BOP did not comply with the Federal Acquisition Regulation and that, as a result, the BOP might not have obtained the most cost advantageous price for the fence detection system. Some specific findings in the report released today include:
• The BOP limited competition by awarding a sole source contract when BOP officials acknowledge other companies exist that may have been able to install the same type of fence.
• The BOP paid $56,018 in commission to DeTekion for finding and overseeing the work of a related party subcontractor. The BOP contracting officer stated she was unaware of the related party and that had she known she would have at least questioned the inclusion of these costs if not disallowed them.
Notwithstanding the issues we identified with the awarding and administration of the contract, we determined that the BOP performed adequate contract oversight, and that DeTekion complied with the terms and conditions of the contract while properly billing the BOP for the services rendered.
Today’s report makes nine recommendations to the BOP to improve its contract award, administration, and oversight. The BOP agreed with all nine recommendations. Although all nine recommendations were directed to the BOP, DeTekion expressed disagreement with one of the recommendations.