DOJ awards $7.5M contract for residential and health services to CoreCivic, Inc. in San Diego County

Contract Overview

Contract Amount: $7,499,421 ($7.5M)

Contractor: Corecivic, Inc.

Awarding Agency: Department of Justice

Start Date: 2025-09-01

End Date: 2026-08-31

Contract Duration: 364 days

Daily Burn Rate: $20.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: SAN DIEGO COUNTY, CALIFORNIA FOR RRC AND HC SERVICES. OY4

Place of Performance

Location: BRENTWOOD, WILLIAMSON County, TENNESSEE, 37027

State: Tennessee Government Spending

Plain-Language Summary

Department of Justice obligated $7.5 million to CORECIVIC, INC. for work described as: SAN DIEGO COUNTY, CALIFORNIA FOR RRC AND HC SERVICES. OY4 Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration is one year, with a firm fixed price, indicating predictable costs. 3. CoreCivic, Inc. is the sole awardee, highlighting their role in providing these specific services. 4. The contract is for residential and health care services, indicating a focus on inmate welfare. 5. The award amount of $7.5 million falls within a moderate spending range for such services. 6. The contract is a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar framework.

Value Assessment

Rating: fair

The contract value of $7.5 million for a one-year period for residential and health services appears to be within a reasonable range for the scope of work. Benchmarking against similar contracts for correctional facility support or residential care services would provide a more precise value-for-money assessment. Without specific details on the number of individuals served or the exact nature of the health services, a definitive comparison is challenging. The firm fixed-price structure helps control costs but may limit flexibility if unforeseen service needs arise.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, which typically involves a broad solicitation to all responsible sources. The number of bidders is not specified, but this method generally fosters price discovery and encourages multiple companies to submit proposals. The level of competition directly influences the government's ability to secure favorable pricing and terms.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of receiving competitive pricing and innovative solutions, potentially leading to cost savings and better service delivery.

Public Impact

The primary beneficiaries are individuals requiring residential and health care services within the San Diego County area, likely inmates or detainees. The services delivered include residential support and healthcare, crucial for the well-being and management of the population served. The geographic impact is localized to San Diego County, California, where the services will be physically provided. Workforce implications may include job creation for healthcare professionals, support staff, and administrative personnel in the San Diego region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for over-reliance on a single contractor for critical services.
Ensuring consistent quality of care and adherence to health standards over the contract term.
Managing potential cost overruns if the fixed-price contract does not adequately account for all service needs.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Firm fixed-price contract provides cost certainty for the government.
Clear definition of services (residential and health care) suggests a focused scope of work.

Sector Analysis

This contract falls within the broader healthcare and social assistance sector, specifically focusing on residential care facilities. The North American Industry Classification System (NAICS) code 623990, 'Other Residential Care Facilities,' encompasses establishments providing residential care for individuals who need assistance with daily living activities but do not require the level of medical care provided by nursing homes. The market for correctional healthcare and residential services is significant, with government contracts forming a substantial portion.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While CoreCivic, Inc. is a large corporation, the contract does not explicitly mention subcontracting goals for small businesses. Further analysis would be needed to determine if subcontracting opportunities exist and if they are being utilized to engage the small business ecosystem.

Oversight & Accountability

Oversight for this contract would likely be managed by the contracting officer and program officials within the Department of Justice's Federal Prison System / Bureau of Prisons. Accountability measures are typically embedded in the contract terms and conditions, including performance standards and reporting requirements. Transparency is facilitated through contract award databases, though detailed performance metrics may not always be publicly available. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Prison System Healthcare Services
Bureau of Prisons Residential Services
Correctional Facility Support Contracts
Inmate Health and Welfare Programs
Residential Care Facility Contracts

Risk Flags

Contractor Performance History
Quality of Healthcare Services
Cost Reasonableness
Service Scope Definition
Geographic Concentration Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $7.5 million to CORECIVIC, INC.. SAN DIEGO COUNTY, CALIFORNIA FOR RRC AND HC SERVICES. OY4

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 $7.5 million.

What is the period of performance?

Start: 2025-09-01. End: 2026-08-31.

What is the track record of CoreCivic, Inc. in providing similar residential and health services to federal agencies?

CoreCivic, Inc. has a substantial history of contracting with federal, state, and local governments to provide correctional services, including housing, healthcare, and rehabilitation programs. They operate numerous facilities across the United States. Their track record includes managing large-scale correctional operations, which inherently involves providing residential support and health services. However, like many large government contractors, CoreCivic has faced scrutiny and criticism regarding the quality of care, staffing levels, and cost-effectiveness in some of its facilities. A detailed review of past performance evaluations, any contract disputes, and specific outcomes related to health services provided under federal contracts would be necessary for a comprehensive assessment.

How does the awarded price compare to market rates for similar residential and health services in San Diego County?

Benchmarking the awarded price of $7.5 million against market rates for similar services in San Diego County requires detailed service specifications and volume data, which are not fully provided. However, the firm fixed-price nature of the contract suggests that the government has negotiated a set cost for a defined scope of work. To compare effectively, one would need to analyze the per-diem rates, healthcare service packages, and staffing models typically employed by private providers and public entities in the region for comparable populations (e.g., inmates, individuals in residential treatment). Without this granular data, a precise comparison is difficult, but the full and open competition suggests an attempt to achieve competitive market pricing.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential deficiencies in the quality of healthcare services, operational failures leading to security breaches or disruptions, and cost overruns if the fixed-price contract doesn't cover all contingencies. Mitigation strategies typically involve robust performance standards outlined in the contract, regular site inspections and audits by the contracting agency, performance bonds, and clear penalties for non-compliance. The government's ability to monitor service delivery, enforce contract terms, and potentially terminate the contract for cause are also critical mitigation factors. The firm fixed-price structure itself mitigates the risk of cost escalation for the government, provided the scope is well-defined.

What is the historical spending pattern for residential and health services by the Federal Prison System in this region?

Analyzing historical spending patterns for the Federal Prison System (FPS) in the San Diego County region for residential and health services would require access to detailed historical contract data. This contract, valued at $7.5 million for one year, represents a specific instance of spending. To understand patterns, one would need to examine previous contracts awarded to CoreCivic or other providers for similar services in the same geographic area over several fiscal years. This would reveal trends in contract values, service scope, and the prevalence of full and open competition versus other procurement methods. Such analysis could highlight any significant increases or decreases in spending and identify potential shifts in service providers or contract structures.

How does the contract's duration and delivery order structure impact flexibility and long-term planning?

The contract has a duration of 364 days (one year), which is relatively short-term. As a delivery order, it implies it might be issued under a broader IDIQ contract or a similar framework agreement. This structure offers some flexibility; the government can issue multiple delivery orders under a parent contract, potentially adjusting scope or quantity as needs evolve. However, a one-year term limits long-term planning certainty for both the government and the contractor. It necessitates frequent re-competition or extension processes, which can be administratively burdensome and may not incentivize long-term investment in service quality or infrastructure by the contractor. The short duration also means the government must be vigilant in monitoring performance to inform decisions about future contract awards.

Industry Classification

NAICS: Health Care and Social Assistance › Other Residential Care Facilities › Other Residential Care Facilities

Product/Service Code: SOCIAL SERVICES › SOCIAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 15BRRC20R00000282

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5501 VIRGINIA WAY, STE 110, BRENTWOOD, TN, 37027

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

Financial Breakdown

Contract Ceiling: $7,499,421

Exercised Options: $7,499,421

Current Obligation: $7,499,421

Actual Outlays: $3,557,419

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NOT OBTAINED - WAIVED

Parent Contract

Parent Award PIID: 15BRRC21D00000282

IDV Type: IDC

Timeline