Two Arkansas nonprofits are continuing their fight to keep a contract to operate seven youth lockups, challenging the state's steadfast intention to award a more expensive, private Indiana-based firm a $160 million contract to manage the facilities.
Last month, Youth Opportunities Investments LLC of Carmel, Ind., secured the bid for a second time, after evaluators scored the company's proposal above separate plans submitted by Jonesboro-based Consolidated Youth Services Inc. and South Arkansas Youth Services of Magnolia.
Executives for the two nonprofits describe Youth Opportunities' proposal as "meager" and "canned" to look good on paper or a "fancy website."
The decision to go with the for-profit is a "disservice to Arkansans," they say.
The selection process for the new contract has been stalled since August, when the Department of Human Services first announced that Youth Opportunities was the successful bidder.
Consolidated Youth and South Arkansas Youth Services claimed the state's evaluation was unfair and questioned the quality of the for-profit's services.
The department agreed to re-score all submitted proposals with a new set of evaluators.
But the results, announced in November, were the same.
Since August, Youth Opportunities' top management has changed. Michael Dempsey, who had been hired as president and chief operating officer, left in October and was replaced by Brian Neupaver, who also has a history in Arkansas.
Neupaver previously was vice president of operations for Tampa-based G4S Youth Services, which operated the Arkansas Juvenile Assessment and Treatment Center near Alexander.
There were reports of misconduct and increased violence at the Alexander facility during G4S management, which began in 2007.
G4S' parent company also faced nationwide scrutiny when it was discovered that it employed Orlando nightclub shooter Omar Mateen.
In July, G4S lost a bid to keep operating the site to Rite of Passage, a private firm out of Nevada.
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Rite of Passage has had problems -- riots, brawls and fires set by children -- at facilities in its home state in 2014.
If Youth Opportunities' selection stands, it would take over all seven Arkansas sites on Jan. 1 and be responsible for housing, educating and treating children in state custody who have been adjudicated as delinquent.
"It's unfortunate that this protest process continues to detract the state's time and energy away from the inevitable task at hand," Youth Opportunities Vice President Nicole Geller said Tuesday.
"More than anything, we all want to be focused on the future of quality services for youth in Arkansas and at a savings to taxpayers."
Geller defended the programs at Youth Opportunities, which runs facilities in Indiana, Michigan, Texas, Florida and Tennessee.
She pointed to the company's scholarships for youths exiting the juvenile justice system, its meeting of national performance-based standards and its use of digital learning programs that can be tailored for all types of learners.
On Monday, both Arkansas providers issued more protest letters to officials, raising mostly familiar concerns.
"The sums are too large, and the cuts in service too deep to have the appearance of an honest procurement," wrote attorney Joel Landreneau on behalf of South Arkansas Youth Services.
Youth Opportunities was more expensive and offered less, both letters asserted.
Emails between Youth Opportunities and state officials show that the company slashed services contained in its original proposal during post-bid conversations, reducing educational staff and sex-offender treatment, after the proposal was evaluated.
For instance, a comparison of Youth Opportunities' first proposal its and final cost plan shows that the company will spend $479,211 less than it had originally proposed on therapy, substance-abuse programs and sex-offender treatments at facilities in Colt and Harrisburg.
Yet, the final Youth Opportunities plan is still more costly than both nonprofit groups' proposals.
Executive directors Bonnie Boon of Consolidated Youth Services and Jerry Walsh of South Arkansas Youth Services said they would continue fighting for the contract even if their protests are overruled.
"I would hope somebody at some point would put a stop to this, but it doesn't look like that will happen," Boon said. "We would go to court over this."
The state's response to the latest round of protests has been minimal so far.
The Human Services Department sent a letter on Tuesday to the Office of State Procurement asking for a "swift and complete" determination of the protests.
Representatives from both agencies confirmed that they thought the selection process would be concluded promptly.
Once the Office of Procurement rules on the protests, the contract goes to lawmakers. The Arkansas Legislative Council's Joint Review Committee is set to discuss the contract during its Dec. 13 meeting.
Metro on 12/07/2016