DHS's $34.7M contract for adult detention services in Houston awarded to CoreCivic, Inc

Contract Overview

Contract Amount: $34,709,533 ($34.7M)

Contractor: Corecivic, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2018-06-01

End Date: 2018-12-31

Contract Duration: 213 days

Daily Burn Rate: $163.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ADULT DETENTION SERVICES FOR THE HOUSTON DETENTION FACILITY

Place of Performance

Location: HOUSTON, HARRIS County, TEXAS, 77060

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $34.7 million to CORECIVIC, INC. for work described as: ADULT DETENTION SERVICES FOR THE HOUSTON DETENTION FACILITY Key points: 1. CoreCivic, Inc. secured a significant contract for adult detention services, highlighting the ongoing need for correctional facility operations. 2. The contract's firm fixed-price structure aims to provide cost certainty for the government. 3. The duration of the contract (213 days) suggests a need for short-term or interim capacity. 4. The award was made under full and open competition, indicating a potentially competitive bidding process. 5. The service category, Security Guards and Patrol Services, is critical for maintaining secure detention environments. 6. The geographic focus on Houston, Texas, points to specific regional demands for detention capacity.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more detailed service level agreements and operational metrics. The raw dollar amount of $34.7 million over approximately seven months suggests a substantial daily operational cost. Comparing this to similar contracts for detention services across different regions or for different facility sizes would be necessary to assess if the pricing is competitive. The firm fixed-price nature provides some predictability, but the ultimate value depends on the efficiency and effectiveness of the services provided by CoreCivic.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. This method is generally preferred as it allows for the widest possible pool of potential contractors, theoretically leading to better pricing and service options. The number of bidders is not specified, which limits a deeper analysis of the competitive intensity. However, the fact that it was competed openly is a positive indicator for price discovery.

Taxpayer Impact: A full and open competition process generally benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation among service providers.

Public Impact

Immigrants in the Houston area requiring detention services are the primary beneficiaries. The contract ensures the provision of secure and operational adult detention facilities. The services directly impact the U.S. Immigration and Customs Enforcement's (ICE) operational capacity in the Houston region. The contract supports jobs within the private correctional services industry in Texas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for over-reliance on private detention facilities, raising concerns about oversight and accountability.
The fixed-price nature might incentivize cost-cutting that could impact service quality or staffing levels if not closely monitored.
The specific needs and duration of this contract could indicate broader trends in immigration detention policy and capacity.

Positive Signals

Awarded through full and open competition, suggesting a fair and transparent procurement process.
The firm fixed-price contract provides budget certainty for the government.
The contract addresses a clear government need for detention services in a specific geographic area.

Sector Analysis

The private correctional services industry is a significant sector within the broader security and government services market. Companies like CoreCivic, Inc. operate detention facilities under contract with federal, state, and local governments. This contract represents a portion of the federal government's spending on detention and incarceration services, which is a recurring need driven by law enforcement and immigration policies. The market is characterized by large, established players and is subject to regulatory scrutiny and public debate regarding privatization.

Small Business Impact

Information regarding small business participation, including set-asides or subcontracting plans, was not provided in the data. As this appears to be a significant contract for detention services, it is possible that larger prime contractors are involved. Further investigation would be needed to determine if small businesses were involved in subcontracting opportunities or if any portion of the contract was specifically set aside for them.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Immigration and Customs Enforcement (ICE), a component of the Department of Homeland Security. ICE is responsible for monitoring contractor performance to ensure compliance with contract terms, service level agreements, and detention standards. Transparency regarding the specific oversight mechanisms, performance reviews, and any inspector general involvement would require access to contract performance reports and agency records.

Related Government Programs

Federal Bureau of Prisons Contracts
State and Local Government Detention Contracts
Immigration Detention Services
Private Correctional Facility Management

Risk Flags

Contract duration is relatively short, suggesting potential for follow-on contracts or a need for interim capacity.
Lack of detail on the number of bidders limits assessment of competitive intensity.
Potential for cost-saving measures impacting service quality due to fixed-price structure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $34.7 million to CORECIVIC, INC.. ADULT DETENTION SERVICES FOR THE HOUSTON DETENTION FACILITY

Who is the contractor on this award?

The obligated recipient is CORECIVIC, INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Immigration and Customs Enforcement).

What is the total obligated amount?

The obligated amount is $34.7 million.

What is the period of performance?

Start: 2018-06-01. End: 2018-12-31.

What is CoreCivic, Inc.'s track record with federal detention contracts?

CoreCivic, Inc. has a substantial history of operating correctional and detention facilities for federal, state, and local governments. As a major private prison operator, the company has managed numerous contracts with agencies such as the Federal Bureau of Prisons (BOP) and U.S. Immigration and Customs Enforcement (ICE). While specific performance details for each contract vary, CoreCivic has faced scrutiny and praise regarding operational efficiency, cost-effectiveness, and conditions within its facilities. Analyzing past performance reviews, government audits, and any litigation or disputes related to their federal contracts would provide a comprehensive view of their track record. Their experience suggests they possess the infrastructure and expertise to manage detention operations, but a detailed review of specific contract outcomes is crucial for a complete assessment.

How does the cost per detainee compare to other ICE detention facilities?

Determining the precise cost per detainee for this specific $34.7 million contract is not possible with the provided data, as the total number of detainees and the exact duration of service are not specified. However, industry reports and government watchdog analyses often provide benchmarks for per diem costs at ICE detention facilities, which can range significantly based on location, security levels, and services provided. Generally, private facilities can offer cost savings compared to government-run facilities, but this is often debated. To compare, one would need to calculate the daily cost based on the contract value and estimated detainee population and then benchmark this against publicly available data for similar ICE facilities, considering factors like staffing ratios, medical care, and food services.

What are the primary risks associated with this type of detention services contract?

The primary risks associated with this type of detention services contract include potential issues related to detainee welfare and safety, such as overcrowding, inadequate medical care, or security breaches. Operational risks involve contractor non-compliance with contract terms, staffing shortages, or facility maintenance failures. Financial risks could arise if the fixed-price contract does not adequately account for unforeseen operational costs or if performance penalties are incurred. Reputational risks are also significant, as private detention facilities often face public scrutiny regarding human rights, conditions, and the ethics of privatization. Furthermore, changes in immigration policy or enforcement priorities could impact the demand for and utilization of such facilities, creating demand fluctuation risks for the contractor and the government.

What is the historical spending trend for adult detention services by ICE in the Houston area?

Analyzing historical spending trends for adult detention services by ICE in the Houston area would require accessing multi-year contract award data for this specific service category and geographic region. This contract, valued at $34.7 million for a period of approximately seven months in 2018, represents a specific instance of spending. To understand trends, one would need to aggregate data on similar contracts awarded by ICE to various providers in the Houston field office's jurisdiction over several fiscal years. This would reveal whether spending has increased, decreased, or remained stable, potentially correlating with changes in immigration enforcement policies, detainee populations, or the availability of detention space. Such an analysis could highlight shifts towards or away from private detention contracts in the region.

How does the contract's firm fixed-price structure impact government flexibility?

A firm fixed-price (FFP) contract structure provides the government with significant cost certainty, as the contractor assumes most of the risk for cost overruns. This means the total price is fixed, regardless of the contractor's actual costs incurred. While this benefits the government by establishing a clear budget ceiling, it can reduce flexibility. If the scope of work needs to change significantly or unforeseen circumstances arise that genuinely increase the contractor's costs, the government may have limited ability to adjust the price without formal contract modifications, which can be complex. The contractor is incentivized to manage costs efficiently to maximize profit, but this could potentially lead to compromises in service quality if not rigorously monitored. Therefore, while FFP offers budget predictability, it requires careful scope definition upfront and robust performance monitoring to ensure value.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Guards and Patrol Services

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING 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: $34,709,533

Exercised Options: $34,709,533

Current Obligation: $34,709,533

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: HSCEDM09D00007

IDV Type: IDC

Timeline