DHS awarded $55.8M for detention services, with CoreCivic Inc. securing the contract

Contract Overview

Contract Amount: $55,825,013 ($55.8M)

Contractor: Corecivic, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2018-07-01

End Date: 2019-06-30

Contract Duration: 364 days

Daily Burn Rate: $153.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CL::IGF DETENTION SERVICES

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92154

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $55.8 million to CORECIVIC, INC. for work described as: IGF::CL::IGF DETENTION SERVICES Key points: 1. The contract value represents a significant investment in detention services. 2. CoreCivic, Inc. is the sole awardee, raising questions about competition. 3. The contract duration of one year suggests a need for ongoing services. 4. The fixed-price contract type aims to control costs for the government. 5. The geographic location in California may indicate specific operational needs. 6. The 'Other Services to Buildings and Dwellings' PSC code is broad and requires further clarification on specific services rendered.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific service details. The total award of $55.8 million over one year suggests a substantial per diem cost for detention services. Comparing this to similar contracts for detention facilities would require access to detailed service level agreements and pricing structures. The fixed-price nature provides some cost certainty, but the overall value for money depends heavily on the quality and efficiency of the services provided by CoreCivic.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which indicates that while the competition was intended to be open, certain sources were excluded. This suggests a limited competitive landscape. The specific reasons for excluding other sources are not detailed, but this approach can sometimes lead to higher prices or reduced innovation compared to truly full and open competition with all potential bidders considered.

Taxpayer Impact: A limited competition may result in less downward pressure on pricing, potentially costing taxpayers more than a fully open competition where a wider range of providers could submit bids.

Public Impact

The primary beneficiaries are U.S. Immigration and Customs Enforcement (ICE) and the Department of Homeland Security (DHS), receiving essential detention services. The services delivered are related to the operation and maintenance of detention facilities. The contract has a geographic impact in California, where the services are performed. The contract supports jobs within the private detention services industry, including operational staff, security personnel, and administrative roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition could lead to higher costs for taxpayers.
Lack of transparency regarding source exclusion raises concerns about fairness.
The broad PSC code makes it difficult to assess the specific services and their value.
Reliance on a single contractor for a significant duration may reduce flexibility.

Positive Signals

Fixed-price contract type helps control costs.
The contract duration indicates a stable, ongoing need for services.
Awarding to an established provider like CoreCivic may ensure operational continuity.

Sector Analysis

The private detention services sector is a critical component of the U.S. immigration system, providing facilities and services for individuals in federal custody. This contract falls within the broader 'Other Services to Buildings and Dwellings' category but specifically addresses the unique requirements of immigration detention. Spending in this sector is often influenced by immigration policy and enforcement levels. Comparable spending benchmarks would typically involve analyzing per diem rates across various detention facilities and providers.

Small Business Impact

There is no indication that this contract involved small business set-asides. CoreCivic, Inc. is a large corporation, suggesting that subcontracting opportunities for small businesses might be limited unless specifically mandated or pursued by the prime contractor. The absence of small business participation could mean missed opportunities to foster growth within the small business ecosystem in this sector.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of U.S. Immigration and Customs Enforcement (ICE) officials within DHS. Accountability measures would be defined in the contract's statement of work, including performance standards and reporting requirements. Transparency is often limited in detention contracts due to security and operational sensitivities, but contract awards and basic details are usually publicly available through federal procurement databases.

Related Government Programs

Immigration Detention Services
Correctional Facility Management
Secure Transportation Services
Detention Bed Capacity Contracts

Risk Flags

Limited competition raises concerns about potential overpricing.
Broad PSC code lacks specificity on services rendered.
Past controversies associated with CoreCivic's operations.
Potential for understaffing or inadequate service delivery.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $55.8 million to CORECIVIC, INC.. IGF::CL::IGF DETENTION SERVICES

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 $55.8 million.

What is the period of performance?

Start: 2018-07-01. End: 2019-06-30.

What specific services are included under the 'Other Services to Buildings and Dwellings' PSC code for this contract?

The Public Services Code (PSC) '561790 - Other Services to Buildings and Dwellings' is a broad category. For this specific contract with CoreCivic, Inc. by ICE, it is highly probable that the services encompass the full spectrum of operating and maintaining immigration detention facilities. This would include, but not be limited to, providing housing, food services, medical care, security, janitorial services, grounds maintenance, and potentially transportation of detainees within the facility. The exact scope would be detailed in the contract's Statement of Work (SOW), which is typically not publicly disclosed in full detail. Without the SOW, it's difficult to ascertain the precise service mix and associated costs per service.

How does the $55.8 million award compare to historical spending on detention services by ICE in California?

Comparing this $55.8 million award to historical spending requires a detailed analysis of ICE's procurement data specifically for detention services in California over previous fiscal years. ICE utilizes various contract types and durations, including indefinite-delivery/indefinite-quantity (IDIQ) contracts and specific delivery orders like this one. A preliminary assessment would involve looking at the total annual expenditure for detention services in California and identifying the proportion this single contract represents. If this contract covers a significant portion of ICE's detention capacity in the state for the awarded year, it suggests a substantial investment. However, without historical data broken down by region and contract type, a precise comparison is not feasible. It's also important to consider inflation and changes in operational costs over time.

What are the key performance indicators (KPIs) used to evaluate CoreCivic's performance under this contract?

Key Performance Indicators (KPIs) for detention service contracts typically focus on operational efficiency, safety, security, and detainee welfare. While the specific KPIs for this contract are not publicly detailed, common metrics include detainee-to-staff ratios, incident rates (e.g., assaults, escapes, medical emergencies), food service quality and compliance, facility maintenance standards, and timely processing of detainees. ICE would monitor these KPIs through regular inspections, audits, and performance reports submitted by CoreCivic. Failure to meet these KPIs could result in penalties, corrective action plans, or even contract termination, depending on the severity and frequency of non-compliance.

What is the typical profit margin for private detention service providers like CoreCivic?

Profit margins for private detention service providers can vary significantly based on contract specifics, operational efficiency, geographic location, and the level of services required. Industry analysts often estimate profit margins for large correctional service companies to be in the range of 10-20% on revenue. However, this is a gross estimate. Net profit margins, after accounting for all operational costs, administrative overhead, and taxes, are typically lower. Factors such as occupancy rates, labor costs, healthcare expenses, and regulatory compliance costs heavily influence profitability. Without access to CoreCivic's specific financial disclosures related to this contract, determining the exact profit margin is speculative.

Are there any known issues or controversies related to CoreCivic's past performance in providing detention services?

CoreCivic, Inc. (formerly Corrections Corporation of America) has faced scrutiny and controversy regarding its detention operations. Past issues have included allegations of understaffing, inadequate medical care, safety concerns, and instances of violence within facilities. Numerous reports from government watchdogs, advocacy groups, and media outlets have documented these concerns. While CoreCivic generally maintains that it operates in compliance with contractual obligations and government standards, these past controversies can influence public perception and potentially impact future contract awards or renewals. ICE's performance evaluations and any corrective actions taken against CoreCivic would be critical in assessing their track record for this specific contract.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Services to Buildings and Dwellings › Other Services to Buildings and Dwellings

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

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, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $55,825,013

Exercised Options: $55,825,013

Current Obligation: $55,825,013

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: HSODT5C0003

IDV Type: IDC

Timeline