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Audit of the Administration for Children and Families Awarding of an Unaccompanied Children Program Sole Source Contract to Family Endeavors, Inc.

Announced on  | Last Modified on  | Project Number: A-03-22-00353
Status
Completed
Agency
Administration for Children and Families

OBJECTIVE

The Office of Refugee Resettlement (ORR), a program office of HHS's Administration for Children and Families (ACF), manages the Unaccompanied Children Program. In fiscal year 2021, an influx of unaccompanied children began arriving at the U.S. southern border, coinciding with the Nation's ongoing efforts to control the spread of COVID-19. As a result, ACF identified a need to increase the number of shelter beds in its provider network and entered into contracts for shelter and related services for unaccompanied children. These contracts included services for a new type of provider facility known as an emergency intake site (EIS). ACF awarded a sole source contract to Family Endeavors, Inc., a nonprofit social service agency, to operate as an EIS and provide services for unaccompanied children. Congress has expressed concerns about and the media has reported on ACF's awarding of the sole source contract to Family Endeavors, Inc. We will determine whether ACF awarded this sole source contract in accordance with Federal statutes and regulations, as well as HHS policies and procedures.

TIMELINE

  • April 11, 2022
    Announced
  • February 10, 2026
    Complete

    Audit of the Administration for Children and Families Awarding of an Unaccompanied Children Program Sole Source Contract to Family Endeavors, Inc. complete. This audit resulted in 1 recommendation.

REPORT PUBLISHED

ACF’s $529 Million Sole Source Contract Award for Unaccompanied Alien Children Services Was Based on an Unsolicited Proposal, Double the Cost Estimate, and Noncompliant With Pre-Award Requirements (A-03-22-00353)

ACF did not award the Endeavors 2021 sole source contract in accordance with Federal requirements. Other, more qualified contractors may have been available to perform the duties of the contract at a lower cost to the Government.

  • For several months, ACF anticipated the need for additional shelter beds but failed to adequately plan to address the need. Instead, when ACF needed beds, it indicated that there was insufficient time to award a competitive contract and awarded the sole source contract 3 days after receiving an unsolicited proposal from Endeavors.
  • ACF could not provide documentation that it conducted a price analysis before awarding the contract to show that Endeavors’ price was fair and reasonable. ACF’s price analysis, completed 3 months after ACF awarded the Endeavors contract, showed that the $529 million contract ACF awarded to Endeavors was for more than double ACF’s total estimated cost of $245 million.
  • ACF did not evaluate whether Endeavors was a responsible contractor before awarding the contract.

26-A-03-037.01 to ACF - Open Unimplemented
Update expected on 08/09/2026
We recommend that the Administration for Children and Families use the information in this report to promote better contract planning and efficient use of resources to ensure sufficient capacity to serve the UAC population during periods of increased need.

View in Recommendation Tracker
Work Plan Type
Office of Audit Services
HHS Agencies
Administration for Children and Families
Issue Areas
Contracts Emergency Preparedness and Response
Target Groups
Children and Families
Financial Groups
Other Funding