❓WHAT HAPPENED: A new inspector general’s report accuses the former Biden government of bypassing federal procurement rules in awarding a $529 million no-bid contract to Family Endeavors Inc.—after it had hired a former Biden staffer—in 2021.
👤WHO WAS INVOLVED: The Administration of Children and Families (ACF), Family Endeavors Inc., and Andrew Lorenzen-Strait, a former Biden transition team advisor.
📍WHEN & WHERE: March 2021, Pecos, Texas, for the establishment of an emergency intake site for unaccompanied minors.
💬KEY QUOTE: “ACF failed to reasonably conduct the necessary advanced planning to execute a contract for procurement of those beds and related services using full and open competition.” – Inspector General’s Report
🎯IMPACT: The contract’s value more than tripled after 15 modifications, raising concerns about federal oversight and fiscal responsibility.
The former Biden government is being accused of having circumvented federal procurement rules in awarding a $529 million no-bid contract to Family Endeavors Inc. in March 2021. According to a newly released inspector general’s report, the contract was intended to establish and manage a 2,000-bed emergency intake site in Pecos, Texas, for unaccompanied minors, but, concerningly, Family Endeavors Inc. had brought a former Biden government staffer on board to secure the contract just months before it was approved.
Just two months before the contract was issued by the Administration of Children and Families (ACF), part of the Department of Health and Human Services (HHS), Family Endeavors Inc. hired Andrew Lorenzen-Strait, a former Biden transition team advisor. Concerningly, in an undercover video, Lorenzen-Strait referred to the Endeavors contract as a “corrupt bargain” and discussed brokering other deals.
In the undercover video, Lorenzen-Strait also jokes about being golf buddies with Hunter Biden. In addition, he explains how he secured federal contracts for a number of clients despite the companies and non-profit groups lacking adequate experience or capabilities to win bids in a truly competitive environment.
Despite the inspector general’s allegations, the ACF—at the time—cited the COVID-19 emergency as the reason for the no-bid contract. However, the inspector general’s report concluded that the lack of competitive bidding resulted from “insufficient planning” rather than the cited emergency. The contract price was more than double the agency’s initial cost estimate of $244 million, and subsequent modifications increased the value to over three times the original estimate.
“ACF failed to reasonably conduct the necessary advanced planning to execute a contract for procurement of those beds and related services using full and open competition,” the report stated, adding: “ACF knew well in advance of March 2021 that it was projected to need more shelter beds than existing sites could provide and should have begun contract planning at that time.”
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