In 1998, the Department of Justice Management of the Ministry (“JMD”) examined the effects of Section 4006 (i.e. prior to the adoption of Section 119 of Public Law 106-553 in 2000). See memorandum for Janis Sposato, Deputy Attorney General, Justice Management Division, by Stuart Frisch, General Counsel, Justice Management Division, Re: USMS Agreements and Contracts for Detention and Subsistancence Under 18 U.S.C. 4006 (21 April 1998) (“JMD Memo”). JMD considered whether Section 4006 limited the USMS to the “reimbursement” of prisoners` subsistence contracts or whether it allowed other types of contractual agreements, such as fixed-price contracts. JMD concluded that Section 4006 did not limit the USMS to cost reimbursement agreements. JMD Memo, the 1st JMD, based its conclusion primarily on its interpretation of the concept of indefinite “actual costs” in Section 4006. In particular, JMD stated that the term “actual costs” could have one of three meanings: “the actual price calculated for the goods and/or services, the actual cost to the supplier of production of such goods or services, or the actual selling price after mark-up.” Id. at 3. After receiving and reviewing electronic eIGA applications from the OFDT, they are forwarded to the USMS for further review, negotiation and allocation using the automated e-IGA electronic processes. The eIGA system is not used for IGAs located on non-CONUS sites, Limited Use Agreements (LUAs), youth facilities, special medical rates and some administrative changes.

Local governments will continue to complete and forward a USM-243 to the district for IGA “exempt” measures, with a Form USM-242, Request for Detention Services, to the Programs and Assistance Branch (PAB) for processing, as before. Below are examples of cost categories that can be invoked on the cost sheet. Amounts incurred to support lawsuits and/or district courts are not allowed. All direct costs must be reasonable and eligible in accordance with OMB Circular A-87 guidelines and must be borne by paid invoices and transaction lists or master entries. The operating costs of separate detention centers that are not used by federal prisoners are immeasurable costs, including work-free facilities. Established and activated in September 2001 at the direction of Congress, the Federal Detention Trustee ensures that federal authorities involved in detention provide safe and humane accommodation for persons in U.S. custody pending trial or immigration proceedings. The coordination of detention activities by the Federal Detention Trustee includes the supervision, management and expenditure of funds used by federal law enforcement agencies.

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