Johnson Sends Letters to Federal Agencies Inquiring into $600 Million No-Bid Contracts to Organization with Biden Ties
WASHINGTON — On Wednesday, U.S. Sen. Ron Johnson (R-Wis.) sent letters to the U.S. Department of Health and Human Services (HHS) and U.S. Immigration and Customs Enforcement (ICE) inquiring into the Biden administration awarding two no-bid contracts for handling migrants to Family Endeavors, an organization whose senior director has ties to top Biden officials. The contracts are worth more than $600 million and Senator Johnson has ordered HHS and ICE to turn over all communications between their employees and the representatives of Family Endeavors. Senator Johnson, the ranking member of the Senate Homeland Security and Governmental Affairs’ Permanent Subcommittee on Investigations, gave the government until April 28 to provide the internal documents.
A piece from The Washington Examiner can be found here and excerpts are below.
Johnson asked ICE for materials “that support the claim that unusual and compelling urgency” led to the ICE deal, as well as reasoning for why it did not solicit bids on the HHS contract.
“The required justification and approval document for this contract notes that 'Family Endeavors, Inc. is the only known source that is presently capably of meeting the Government’s urgent requirement[s]' on this matter. Please explain how ICE made this determination,” Johnson wrote.
…
Lorenzen-Strait worked at ICE from 2008 through May 2019, where his last responsibility was overseeing the 45,000-person capacity detention facilities. His immediate boss at the time was Tae Johnson, who has since been promoted to become the acting director of ICE and would have the final say on the $87 million contract.
The senator’s letters can be found here and here as well as below.
April 14, 2021
The Honorable Xavier Becerra Secretary
Department of Health and Human Services 200 Independence Avenue, SW Washington, DC 20201
Dear Secretary Becerra:
I write today regarding the Biden administration’s decision to award a contract worth as much as $529.5 million to the nonprofit, Family Endeavors.1 According to recent media reports, Health and Human Services (HHS) awarded the no-bid contract to the Texas nonprofit, Family Endeavors, after the group “hired a Biden transition official.”2 This no-bid contract is reportedly “the second largest ever awarded by [HHS] overseeing the migrant child program.”3
To better understand the reasons why HHS unilaterally awarded this contract to Family Endeavors, please provide the following material no later than April 28, 2021:
- All emails regarding HHS’s review of and decision on this contract. Please include any communications between and among HHS employees and employees or representatives of Family Endeavors.
- HHS’s justification for why it did not compete the contract that it ultimately awarded to Family Endeavors.
Thank you for your attention to this matter.
Sincerely,
Ron Johnson Ranking Member
Permanent Subcommittee on Investigations
1 Lachlan Markay and Stef W. Kight, Exclusive: Texas nonprofit got massive border contract after hiring Biden official, AXIOS (April 13, 2021) https://www.axios.com/texas-nonprofit-border-contract-biden-official-23a493f4- 6779-44f0-a5d4-db8690f11aec.html?utm_campaign=organic&utm_medium=socialshare&utm_source=twitter.
2 Id.
3 Id.
April 14, 2021
Mr. Tae D. Johnson Acting Director
Immigration and Customs Enforcement Department of Homeland Security
500 12th Street, SW Washington, DC 20536
Dear Acting Director Johnson:
I write today regarding the Biden administration’s decision to award an $86 million contract to the nonprofit, Family Endeavors.1 Recent media reports allege that Immigration and Customs Enforcement (ICE) “did not solicit bids” for this contract “whose leadership [Family Endeavors] has ties to the White House.”2 In response to media attention on the contract, ICE cited “unusual and compelling urgency” as justification to award the no-bid contract.3
To better understand the reasons why ICE unilaterally awarded this contract to Family Endeavors, please provide the following material no later than April 28, 2021:
- All emails regarding ICE’s review of and decision on this contract. Please include any communications between and among ICE employees and employees or representatives of Family Endeavors.
- All materials that support the claim that “unusual and compelling urgency” led to the no-bid contract to Family Endeavors.
- The required justification and approval document for this contract notes that “Family Endeavors, Inc. is the only known source that is presently capably of meeting the Government’s urgent requirement[s]” on this matter.4 Please explain how ICE made this determination.
Thank you for your attention to this matter.
Sincerely,
Ron Johnson Ranking Member
Permanent Subcommittee on Investigations
1 Stef W. Kight, Scoop: ICE securing hotel rooms to hold growing number of migrant families, AXIOS (March 20, 2021) https://www.axios.com/ice-hotel-rooms-border-migrant-families-7682092b-952c-428e-ae3b- f8b2d4072c0a.html.
2 Anna Giaritelli, Exclusive: ICE gave $87M no-bid contract to business with Biden ties, raising conflict of interest questions, Wash. Examiner, (April 7, 2021) https://www.washingtonexaminer.com/news/biden-ice-gave-87m-no- bid-contract-conflict-of-interest.
3 Id.
4 Justification for other than full and open competition, J&A-21-0066, Mar. 29, 2021, available at
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