In an exclusive report, the Inspector General's office has accused the former Biden administration of circumventing federal contracting rules while issuing a significant $529 million contract to Family Endeavors, Inc., a nonprofit run by a former administration official. This contract, awarded in March 2021, was intended to assist in managing the unaccompanied minor crisis by establishing an emergency intake site in Texas, designed to accommodate 2,000 additional beds. The controversy arises from allegations that the Administration of Children and Families (ACF), which falls under the Department of Health and Human Services, failed to comply with procurement regulations that mandate full and open competition. The administration justified its actions based on an emergency related to the COVID pandemic, though the IG report suggests that poor planning was primarily to blame.

The Inspector General's findings indicate that the ACF did not adhere to appropriate procurement processes, and as a result, awarded the contract without engaging in competitive bidding, a fundamental requirement for ensuring transparency and fairness in federal spending. Notably, the report highlights that the contract price was significantly inflated, exceeding the agency's preliminary cost estimates by more than double, which raises further concerns about fiscal accountability and government oversight. The report underscores the need for strict adherence to procurement guidelines, particularly in situations involving taxpayer dollars.

The implications of this report are far-reaching, potentially undermining public trust in the government’s contracting procedures and raising questions about favoritism in awarding federal contracts. This case serves as a reminder of the critical importance of following established procurement rules to maintain ethical standards and accountability, especially in times of crisis where public resources must be judiciously managed.