DHS awarded CoreCivic $57.18M for detention services in California, raising value-for-money questions

Contract Overview

Contract Amount: $57,177,504 ($57.2M)

Contractor: Corecivic, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2019-12-20

End Date: 2020-12-09

Contract Duration: 355 days

Daily Burn Rate: $161.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DETENTION SERVICES FOR SAN DIEGO AOR AT OTAY MESA DETENTION CENTER COR: PERRY WEIDMAN, 619-436-0255

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92101

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $57.2 million to CORECIVIC, INC. for work described as: DETENTION SERVICES FOR SAN DIEGO AOR AT OTAY MESA DETENTION CENTER COR: PERRY WEIDMAN, 619-436-0255 Key points: 1. The contract's value is substantial, representing a significant investment in detention infrastructure. 2. Competition dynamics for detention services can be limited due to facility location and specialized requirements. 3. Performance context is crucial; the quality and cost-effectiveness of detention services directly impact operational efficiency. 4. Sector positioning: This contract falls within the broader government services sector, specifically supporting immigration enforcement. 5. Risk indicators may include potential overruns, service quality issues, and the long-term cost of outsourced detention.

Value Assessment

Rating: fair

The awarded amount of $57.18 million for a one-year contract for detention services appears high when considering the duration and scope. Benchmarking against similar contracts for detention facilities of comparable size and service level is necessary to determine true value for money. Without detailed performance metrics and cost breakdowns, it is difficult to definitively assess if the pricing is competitive or if taxpayers are receiving optimal value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors were eligible to bid. However, the specific number of bidders and the details of the bidding process are not provided. For detention services, the number of qualified bidders can be constrained by geographic location, existing infrastructure, and regulatory compliance, potentially limiting the extent of price discovery despite open competition.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple vendors to offer competitive pricing. However, the actual savings realized depend on the number of responsive bids and the specific market conditions for detention services.

Public Impact

Immigrants in the San Diego area requiring detention services benefit from the provision of secure facilities. The contract supports U.S. Immigration and Customs Enforcement (ICE) operations in California. Geographic impact is concentrated in the San Diego operational area, specifically at the Otay Mesa Detention Center. Workforce implications include employment opportunities for security, administrative, and support staff at the detention facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for high per-diem costs compared to government-run facilities.
Concerns regarding the quality of care and living conditions in private detention centers.
Contract duration and potential for follow-on funding could create long-term reliance on private providers.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process.
Contract is for a defined period, allowing for re-evaluation of needs and providers.
Clear agency (ICE) and defined service area (San Diego AOR) provide focus.

Sector Analysis

This contract operates within the government services sector, specifically focusing on correctional and detention services. The market for detention services is influenced by immigration policy, law enforcement needs, and the availability of suitable facilities. While private companies like CoreCivic play a role, government-run facilities also exist, creating a mixed market. Benchmarking against other government contracts for similar services is essential for assessing value.

Small Business Impact

The data indicates that small business participation was not a primary focus for this contract, as the awardee is a large corporation and there is no indication of small business set-asides or significant subcontracting plans. This suggests that the primary competition was among larger entities capable of managing such extensive detention operations. The impact on the small business ecosystem is likely minimal, as the contract does not appear to be structured to foster small business involvement.

Oversight & Accountability

Oversight for this contract would primarily fall under U.S. Immigration and Customs Enforcement (ICE), the contracting agency. Accountability measures are typically embedded within the contract's performance standards and reporting requirements. Transparency is often limited in detention contracts due to security and operational sensitivities, though contract awards and basic terms are publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Immigration and Customs Enforcement Operations
Federal Detention Center Management
Correctional Services Contracts
Homeland Security Contracts
Private Prison Industry Contracts

Risk Flags

Potential for service quality issues.
High cost relative to duration.
Limited transparency in operations.
Dependence on private sector for essential government function.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $57.2 million to CORECIVIC, INC.. DETENTION SERVICES FOR SAN DIEGO AOR AT OTAY MESA DETENTION CENTER COR: PERRY WEIDMAN, 619-436-0255

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 $57.2 million.

What is the period of performance?

Start: 2019-12-20. End: 2020-12-09.

What is the historical spending pattern for detention services in the San Diego AOR by ICE?

Analyzing historical spending for detention services in the San Diego AOR by ICE is crucial for understanding trends and identifying potential cost efficiencies or escalations. While specific historical data for this precise AOR and contract type is not provided in the current data, ICE has historically awarded significant contracts for detention services across various regions. These contracts often involve substantial annual outlays, reflecting the ongoing demand for detention capacity. Factors influencing historical spending include changes in immigration enforcement policies, border apprehension rates, and the availability of government-owned versus contract facilities. A detailed review of past ICE solicitations and awards in the San Diego region would reveal if spending has been consistent, increasing, or decreasing, and whether this $57.18 million award represents a typical, elevated, or reduced expenditure compared to previous periods.

How does the per-unit cost of detention under this contract compare to other ICE contracts or government-run facilities?

A key analytical question is how the per-unit cost of detention under this CoreCivic contract compares to other ICE contracts or government-run facilities. Without specific per-diem rates or detailed cost breakdowns from the contract, a direct comparison is challenging. However, the total award of $57.18 million over approximately one year suggests a significant daily operational cost. Generally, private detention facilities can sometimes have higher per-diem rates than government-run facilities due to profit margins and overhead, though this is not always the case and depends heavily on contract specifics and operational efficiencies. Benchmarking against publicly available per-diem rates for similar ICE contracts, or against the operational costs of comparable federal or state correctional facilities, would be necessary to assess if this contract represents a cost-effective solution for ICE.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this detention services contract?

The effectiveness and value of this detention services contract are intrinsically linked to its Key Performance Indicators (KPIs) and Service Level Agreements (SLAs). While not detailed in the provided data, typical KPIs for such contracts would likely include metrics related to facility safety and security (e.g., incident rates, escapes), detainee welfare (e.g., access to medical care, legal services, food quality), operational efficiency (e.g., bed occupancy rates, staffing levels), and compliance with regulatory standards. SLAs would define the expected standards for these KPIs and outline remedies or penalties for non-performance. Robust KPIs and SLAs are critical for ensuring that ICE receives the contracted services effectively and that taxpayer funds are used appropriately, providing a basis for performance evaluation and accountability.

What is CoreCivic's track record with ICE and other government agencies regarding detention services?

CoreCivic, Inc. (formerly Corrections Corporation of America) has a long and extensive track record of providing detention and correctional services to federal, state, and local government agencies, including U.S. Immigration and Customs Enforcement (ICE). The company operates numerous facilities across the United States. Its track record is often subject to public scrutiny and debate, with both praise for providing necessary capacity and criticism regarding facility conditions, safety incidents, and cost-effectiveness. ICE has been a major client for CoreCivic, awarding numerous contracts over the years. Evaluating CoreCivic's performance on this specific contract would require examining past performance evaluations, any documented compliance issues, and its overall reputation within the corrections and detention industry, particularly concerning its work with ICE.

Are there any specific risks or concerns associated with the Otay Mesa Detention Center or CoreCivic's operations there?

Assessing specific risks associated with the Otay Mesa Detention Center and CoreCivic's operations there is vital. Private detention facilities, including those operated by CoreCivic, have historically faced scrutiny regarding conditions, staffing levels, and incidents of violence or medical neglect. Reports and lawsuits concerning conditions at various CoreCivic facilities, including potentially Otay Mesa, may highlight risks related to detainee welfare, staff training, and compliance with detention standards. Furthermore, changes in immigration policy or legal challenges to detention practices can introduce operational and financial risks. A thorough risk assessment would involve reviewing past inspection reports, litigation history, and any public or governmental critiques of the facility's management and operations.

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

Solicitation ID: 70CDCR20R00000002

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: $57,177,504

Exercised Options: $57,177,504

Current Obligation: $57,177,504

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70CDCR20D00000007

IDV Type: IDC

Timeline