DOJ's $39M contract for prison phone services awarded to CoreCivic, Inc. shows fair value

Contract Overview

Contract Amount: $39,008,901 ($39.0M)

Contractor: Corecivic, Inc.

Awarding Agency: Department of Justice

Start Date: 2021-10-01

End Date: 2024-09-17

Contract Duration: 1,082 days

Daily Burn Rate: $36.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MCA OCT-DEC FY22 PHONE MINUTES FUNDING REQUEST

Place of Performance

Location: MC RAE, TELFAIR County, GEORGIA, 31055

State: Georgia Government Spending

Plain-Language Summary

Department of Justice obligated $39.0 million to CORECIVIC, INC. for work described as: MCA OCT-DEC FY22 PHONE MINUTES FUNDING REQUEST Key points: 1. Value for money appears reasonable given the duration and scope of services. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators are low, with a firm fixed-price contract type mitigating cost overrun risks. 4. Performance context is within the standard for facilities support services. 5. Sector positioning is within the government's correctional facilities support services. 6. The contract duration of over three years provides stability for service provision.

Value Assessment

Rating: good

The contract's total value of approximately $39 million over 1082 days (roughly 3 years) suggests an average annual spend of around $13 million. Benchmarking against similar contracts for telecommunication services within correctional facilities is challenging without more specific data on call volumes and service tiers. However, the firm fixed-price structure implies that the government has secured these services at a predetermined cost, which is generally favorable for budget predictability. The price appears to be within a reasonable range for the scale of services provided to a federal prison system.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but the nature of the competition suggests that multiple companies likely vied for this opportunity. A full and open competition generally fosters a more robust price discovery process, as contractors are incentivized to offer competitive pricing to win the award.

Taxpayer Impact: A full and open competition is beneficial for taxpayers as it increases the likelihood of securing services at the most competitive market rates, preventing potential overpayment and maximizing the value of federal dollars.

Public Impact

Inmates within the Federal Prison System will benefit from access to phone services. The services delivered include the provision and management of phone systems within correctional facilities. The geographic impact is concentrated within federal correctional facilities, specifically noted as being in Georgia (ST: GA, SN: GEORGIA). Workforce implications may include employment opportunities for CoreCivic, Inc. staff managing these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific bidder count limits full assessment of competitive intensity.
Detailed breakdown of per-minute costs or revenue sharing not available for granular value analysis.
Potential for price increases in future contract renewals if competition diminishes.

Positive Signals

Firm fixed-price contract type provides cost certainty for the government.
Full and open competition suggests a competitive bidding environment.
Long contract duration offers service stability and reduces frequent re-competition costs.

Sector Analysis

The telecommunications services sector within government contracts is substantial, encompassing a wide range of needs from basic phone services to complex network infrastructure. For correctional facilities, inmate phone systems are a critical component of operations, impacting inmate welfare, security, and family connections. This contract fits within the broader category of facilities support services, specifically focusing on communication infrastructure. Comparable spending benchmarks for inmate phone services can vary significantly based on the number of facilities, inmate population, and the specific service features required.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (SS: false, SB: false). CoreCivic, Inc. is a large corporation, and there is no explicit information provided regarding subcontracting opportunities for small businesses within this specific contract. Therefore, the direct impact on the small business ecosystem from this particular award is likely minimal, though larger prime contractors often have broader subcontracting programs.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Federal Prison System, a division of the Department of Justice. Accountability measures are inherent in the firm fixed-price contract type, requiring CoreCivic, Inc. to deliver the specified services within the agreed-upon budget. Transparency is facilitated through contract award databases, though detailed operational performance metrics may not be publicly disclosed. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Prison System Communications Contracts
Inmate Welfare Fund Services
Correctional Facility Operations Support
Telecommunications Services for Government Agencies

Risk Flags

Contract awarded to a large, established provider in the correctional services sector.
Potential for service disruptions if underlying infrastructure or operational support falters.
Need for ongoing monitoring to ensure compliance with telecommunication regulations and service level agreements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $39.0 million to CORECIVIC, INC.. MCA OCT-DEC FY22 PHONE MINUTES FUNDING REQUEST

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 $39.0 million.

What is the period of performance?

Start: 2021-10-01. End: 2024-09-17.

What is the historical spending pattern for inmate phone services by the Federal Prison System?

Historical spending on inmate phone services by the Federal Prison System (FPS) has been a significant area of focus, driven by the need to provide essential communication links for inmates while also generating revenue for inmate welfare programs. Over the years, contracts have evolved, with shifts in pricing structures and technology. Early contracts often involved revenue-sharing models where the provider paid a percentage of revenue back to the government. More recent trends have seen a move towards more regulated or capped rates for inmate calls, particularly following advocacy and legislative efforts to make calls more affordable. The total annual spending can fluctuate based on the number of facilities under contract, inmate population levels, and the specific terms negotiated. Data from previous years would show variations in total contract values and the number of active contracts, reflecting changes in procurement strategies and market conditions. For instance, the FPS manages a large and complex network of facilities, requiring consistent investment in communication infrastructure and services.

How does the pricing of this contract compare to other federal or state correctional facility phone service contracts?

Directly comparing the pricing of this specific $39 million contract for Federal Prison System phone services to other federal or state correctional facility contracts is complex without granular data on call volumes, per-minute rates, connection fees, and revenue-sharing agreements. However, the contract's firm fixed-price nature for a duration of over three years suggests a degree of price certainty for the government. Historically, inmate phone services have been a source of significant revenue for providers, often leading to high per-minute charges. Regulatory efforts, such as those by the FCC, have aimed to cap these rates. If this contract adheres to or is influenced by such caps, its pricing might be considered more reasonable than older, unregulated contracts. Benchmarking would ideally involve analyzing the effective per-minute cost across all call types and durations, factoring in any administrative fees or service charges, and comparing this to similar-sized facilities or inmate populations in other jurisdictions. The fact that it was awarded through full and open competition provides some assurance that the price was deemed competitive at the time of award.

What are the key performance indicators (KPIs) for this contract, and how is CoreCivic, Inc. measured against them?

While the specific Key Performance Indicators (KPIs) for this contract are not detailed in the provided data, typical KPIs for inmate phone services contracts include metrics related to service availability, call quality, response times for technical issues, and compliance with regulatory requirements (e.g., FCC regulations on call rates and transparency). For a firm fixed-price contract, the primary measure is the successful delivery of the contracted services as specified. CoreCivic, Inc. would likely be evaluated on factors such as uptime of the phone systems, the clarity and reliability of calls, the speed at which reported technical problems are resolved, and adherence to any mandated reporting or security protocols. Performance reviews would occur periodically throughout the contract's duration, potentially involving site visits, user feedback (from facility staff), and analysis of system logs. Failure to meet critical KPIs could result in contractual remedies, although the specifics would depend on the contract's terms and conditions.

What is CoreCivic, Inc.'s track record with federal contracts, particularly for telecommunications or facilities management?

CoreCivic, Inc. has a substantial track record with federal contracts, primarily in the areas of correctional facility management and services. As a major private prison operator, they have held numerous contracts with the Federal Bureau of Prisons (BOP), Immigration and Customs Enforcement (ICE), and U.S. Marshals Service. These contracts often encompass a wide range of services, including housing, food services, healthcare, and, relevantly, telecommunications. Their experience with federal agencies suggests familiarity with federal procurement processes, regulations, and performance expectations. While specific details on their telecommunications performance across all contracts are not readily available in this dataset, their continued success in securing large federal contracts indicates a generally satisfactory performance history in meeting government requirements. However, like many large government contractors, they may have faced scrutiny or performance challenges on specific contracts, which would be detailed in contract performance databases or Inspector General reports.

What is the potential impact of this contract on inmate communication and family reunification efforts?

This contract directly impacts inmate communication by ensuring the provision and maintenance of phone services within federal correctional facilities. Reliable and accessible phone services are crucial for inmates to maintain contact with family, friends, legal counsel, and support networks. Such connections are widely recognized as vital for inmate rehabilitation, reducing recidivism rates, and facilitating successful reintegration into society upon release. By providing these communication channels, the contract supports family reunification efforts, allowing inmates to stay connected during their period of incarceration. The quality, cost, and availability of these services, as managed under this contract, will influence the extent to which inmates can leverage these tools for personal and social support, ultimately contributing to their well-being and post-release outcomes.

Are there any known risks associated with CoreCivic, Inc. as a contractor for essential services like telecommunications?

CoreCivic, Inc., as a large private correctional facility operator, has faced public scrutiny and legal challenges related to various aspects of its operations, including safety, staffing, and cost-effectiveness. While this specific contract is for telecommunications, which is distinct from facility management, potential risks could include service disruptions due to operational issues, data security breaches related to inmate communication records, or concerns about the pricing structure if it deviates significantly from market norms or regulatory guidance. Past criticisms or investigations into CoreCivic's broader operations might raise concerns for some stakeholders regarding their overall reliability and ethical practices. However, for a telecommunications service contract awarded through full and open competition with a firm fixed-price structure, the direct financial risks to the government are generally mitigated, provided the service is delivered as agreed.

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: $39,748,089

Exercised Options: $39,748,089

Current Obligation: $39,008,901

Actual Outlays: $39,042,616

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: DJB1PC016

IDV Type: IDC

Timeline