DOJ's $39.1M contract for correctional facility management awarded to CoreCivic, Inc

Contract Overview

Contract Amount: $39,113,444 ($39.1M)

Contractor: Corecivic, Inc.

Awarding Agency: Department of Justice

Start Date: 2019-10-01

End Date: 2020-09-30

Contract Duration: 365 days

Daily Burn Rate: $107.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF:CL:IGF PROVIDE SERVICES FOR THE MANAGEMENT AND OPERATION OF A CORRECTIONAL FACILITY IN ACCORDANCE WITH RFP-PCC-0017.

Place of Performance

Location: MC RAE, TELFAIR County, GEORGIA, 31055

State: Georgia Government Spending

Plain-Language Summary

Department of Justice obligated $39.1 million to CORECIVIC, INC. for work described as: IGF:CL:IGF PROVIDE SERVICES FOR THE MANAGEMENT AND OPERATION OF A CORRECTIONAL FACILITY IN ACCORDANCE WITH RFP-PCC-0017. Key points: 1. Contract value represents a significant investment in correctional facility operations. 2. CoreCivic, Inc. is a major player in the private prison industry. 3. The contract was awarded under full and open competition, suggesting a competitive bidding process. 4. The firm-fixed-price structure shifts cost risk to the contractor. 5. Performance is tied to a specific correctional facility in Georgia. 6. The contract duration is one year, indicating a need for ongoing services.

Value Assessment

Rating: fair

The contract value of $39.1 million for a one-year correctional facility management contract appears within a reasonable range for the industry, though specific benchmarks are difficult without more granular data on facility size and services. The firm-fixed-price contract type suggests the government has negotiated a set price for the services, which can be advantageous if costs are well-managed by the contractor. However, without detailed performance metrics and comparisons to similar facilities managed by other entities or the government itself, a definitive value-for-money assessment is challenging. The provided data does not allow for a direct comparison of per-unit costs for inmate services or operational expenses.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. This suggests a robust bidding environment, which typically leads to better price discovery and potentially more competitive pricing for the government. The number of bidders is not specified, but the designation implies that the government actively sought multiple proposals to ensure a fair and competitive selection process. This approach is generally favored for ensuring the best value is obtained.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it increases the likelihood of securing services at a competitive market rate, preventing potential overpayment and encouraging efficiency from bidders.

Public Impact

The primary beneficiaries are the inmates housed within the correctional facility, who will receive services managed under this contract. The contract ensures the continued operation and management of a federal correctional facility, providing essential services such as housing, security, food, and healthcare. The geographic impact is localized to the specific facility in Georgia where the services are being delivered. The contract supports jobs within the correctional services sector, including correctional officers, administrative staff, and support personnel employed by CoreCivic, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if contractor's operational efficiency is low, despite fixed-price structure.
Reliance on a private contractor for essential government functions raises questions about accountability and public interest.
Contract performance monitoring is critical to ensure service quality and adherence to standards.
Limited transparency into the contractor's internal operations and cost structures.

Positive Signals

Awarded through full and open competition, suggesting a competitive market.
Firm-fixed-price contract shifts cost risk to the contractor.
Contract specifies services for correctional facility management, addressing a clear government need.
Contract duration of one year allows for regular performance review and potential re-competition.

Sector Analysis

The correctional services industry is a significant sector within the broader facilities support and government contracting landscape. Private companies play a substantial role in managing correctional facilities, often competing with government-run institutions. This contract falls within the 'Facilities Support Services' NAICS code (561210), which encompasses establishments primarily engaged in operating and maintaining buildings and other facilities on a contract or fee basis. Spending in this sector is driven by government needs for correctional services, detention facilities, and related operational support.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a large-scale correctional facility management contract, it is likely that the prime contractor, CoreCivic, Inc., is a large business. There is no explicit information regarding subcontracting plans or requirements for small business participation within this specific award. Therefore, the direct impact on the small business ecosystem from this particular contract is likely minimal unless subcontracting opportunities are pursued by the prime contractor.

Oversight & Accountability

Oversight for this contract would typically be managed by the Bureau of Prisons (BOP) within the Department of Justice. The contract likely includes performance standards, reporting requirements, and inspection protocols to ensure compliance. The firm-fixed-price nature of the contract means that the contractor bears the primary responsibility for managing costs and delivering services within the agreed-upon price. Transparency is generally maintained through contract award databases and performance reports, though detailed operational oversight specifics are often internal to the agency.

Related Government Programs

Federal Prison System / Bureau of Prisons Operations
Correctional Facility Management Contracts
Government Facilities Support Services
Private Correctional Facility Operations

Risk Flags

Contractor Performance Risk
Cost Control and Efficiency
Inmate Welfare and Safety Standards
Transparency and Oversight Challenges
Staffing and Retention Issues

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $39.1 million to CORECIVIC, INC.. IGF:CL:IGF PROVIDE SERVICES FOR THE MANAGEMENT AND OPERATION OF A CORRECTIONAL FACILITY IN ACCORDANCE WITH RFP-PCC-0017.

Who is the contractor on this award?

The obligated recipient is CORECIVIC, INC..

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Prison System / Bureau of Prisons).

What is the total obligated amount?

The obligated amount is $39.1 million.

What is the period of performance?

Start: 2019-10-01. End: 2020-09-30.

What is CoreCivic, Inc.'s track record with the federal government, particularly with the Department of Justice?

CoreCivic, Inc. (formerly Corrections Corporation of America) has a long history of contracting with federal, state, and local governments for correctional services. With the Department of Justice, CoreCivic has managed numerous detention and correctional facilities. Their track record includes both successful contract fulfillments and instances of scrutiny regarding operational standards, safety, and cost-effectiveness. Analyzing their past performance on similar DOJ contracts, including any reported deficiencies or successes by the Inspector General or GAO, would provide crucial context for this specific award. Their extensive experience suggests a capacity to manage such facilities, but also highlights the importance of rigorous oversight due to the sensitive nature of correctional operations.

How does the cost of this contract compare to similar correctional facility management contracts awarded by the DOJ or other federal agencies?

Benchmarking the cost of this $39.1 million, one-year contract requires detailed comparison with similar facilities in terms of size (inmate capacity), location, security level, and the scope of services provided (e.g., healthcare, education, food services). Without this granular data, a direct cost comparison is difficult. However, the firm-fixed-price structure suggests the government aimed to lock in costs. Generally, private correctional facilities can offer cost savings compared to government-run facilities, but this is often debated and depends heavily on contract terms and oversight. Examining the per-inmate-per-day cost, if derivable, against industry averages would be a more precise method for value assessment.

What are the primary risks associated with contracting out correctional facility management to private entities like CoreCivic, Inc.?

Key risks include potential compromises in inmate welfare and safety due to cost-cutting measures, as private entities are profit-driven. There's also a risk of reduced transparency and accountability compared to government-operated facilities, making oversight more challenging. Staffing issues, such as high turnover or inadequate training, can impact facility security and operations. Furthermore, ethical concerns surrounding the privatization of incarceration and potential lobbying efforts to maintain high incarceration rates are often raised. Ensuring robust contract terms, stringent performance standards, and diligent government oversight are critical to mitigating these risks.

How effective is the firm-fixed-price contract type in ensuring value for money in correctional facility management?

The firm-fixed-price (FFP) contract type is generally considered effective in controlling costs for the government, as it shifts the risk of cost overruns to the contractor. For correctional facility management, this means CoreCivic, Inc. is responsible for delivering the specified services within the agreed-upon $39.1 million budget for the year. This structure incentivizes the contractor to operate efficiently. However, the effectiveness in ensuring value for money also depends on the clarity and comprehensiveness of the contract's performance standards. If performance is subpar, the government may still not receive good value despite the fixed price, necessitating strong performance monitoring and potential remedies for deficiencies.

What is the historical spending trend for correctional facility management services by the Department of Justice?

Historical spending by the Department of Justice (DOJ) on correctional facility management, particularly through the Bureau of Prisons (BOP), has been substantial and has seen fluctuations over the years. The trend reflects shifts in federal sentencing policies, inmate populations, and the utilization of private correctional facilities. While the DOJ aims to manage its own facilities, contracts with private providers like CoreCivic are often used to supplement capacity, manage specific populations, or provide services in locations where government facilities are unavailable or insufficient. Analyzing past budgets and contract awards for similar services would reveal trends in reliance on private sector partners and overall expenditure in this area.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: SOCIAL SERVICES › SOCIAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10 BURTON HILLS BLVD, NASHVILLE, TN, 37215

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $39,113,444

Exercised Options: $39,113,444

Current Obligation: $39,113,444

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: DJB1PC016

IDV Type: IDC

Timeline