In a post on X (formerly Twitter), the Department of Government Efficiency (DOGE) said the Department of Health and Human Services had terminated a contract paying Family Endeavors $18 million a month to operate an empty facility in West Texas.
A former ICE employee and Biden transition team member (Andrew Lorenzen-Strait) joined Family Endeavors in early 2021 and helped secure a sole-source HHS contract for overflow housing from licensed care facilities. This means there was no open bid for the facility, and no other companies were allowed to bid on the contract.
As a result, Family Endeavors’ cash and portfolio of investments grew from $8.3M in 2020 to $520.4M in 2023.
Since March 2024, HHS has paid ~$18M/month to keep the Pecos facility open despite sitting empty.
With national licensed facility occupancy now below 20%, HHS was able to terminate this contract, saving taxpayers over $215M annually.
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