DHS awarded $40.6M for detention services at Imperial Regional Detention Facility, with a high per-unit cost

Contract Overview

Contract Amount: $40,645,530 ($40.6M)

Contractor: Management & Training Corporation

Awarding Agency: Department of Homeland Security

Start Date: 2020-11-05

End Date: 2021-12-19

Contract Duration: 409 days

Daily Burn Rate: $99.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TO ESTABLISH A TASK ORDER FOR DETENTION SERVICES AT THE IMPERIAL REGIONAL DETENTION FACILITY (IRDF) (CALEXICO, CA).

Place of Performance

Location: CALEXICO, IMPERIAL County, CALIFORNIA, 92231

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $40.6 million to MANAGEMENT & TRAINING CORPORATION for work described as: TO ESTABLISH A TASK ORDER FOR DETENTION SERVICES AT THE IMPERIAL REGIONAL DETENTION FACILITY (IRDF) (CALEXICO, CA). Key points: 1. The contract for detention services at IRDF represents a significant investment in immigration enforcement infrastructure. 2. Competition dynamics suggest a potentially competitive award, though specific bidder numbers are not detailed. 3. Risk indicators include the potential for cost overruns and the need for robust oversight of detention conditions. 4. Performance context is critical, as the quality of detention services directly impacts individuals in custody. 5. Sector positioning places this contract within the broader landscape of government contracting for correctional and detention services.

Value Assessment

Rating: fair

The awarded amount of $40.6 million for approximately 13 months of service appears high when considering the daily per-person cost. Benchmarking against similar detention contracts is crucial to determine if this represents fair value for the services rendered. The fixed-price nature of the contract provides some cost certainty, but the overall cost-effectiveness hinges on the actual number of detainees served and the quality of care provided.

Cost Per Unit: The average daily cost per detainee is estimated to be around $100-$150, which is on the higher end compared to some publicly funded detention centers, but may be within range for private facilities depending on services included.

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors were likely invited to bid. While the specific number of bidders is not provided, this procurement method generally fosters price discovery and encourages competitive pricing. The agency sought proposals from qualified offerors, suggesting a focus on both cost and capability.

Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it aims to secure the best value by encouraging a wide range of offers and driving down prices through market forces.

Public Impact

Individuals in U.S. immigration custody benefit from the provision of detention services. The services delivered include housing, security, and potentially other support for detainees. The geographic impact is concentrated in Calexico, California, at the Imperial Regional Detention Facility. Workforce implications include employment opportunities for security personnel, administrative staff, and support services at the facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for high per-detainee costs requires careful monitoring.
Ensuring humane and adequate conditions of confinement is paramount.
Contractor performance must be rigorously evaluated to ensure compliance with standards.
The reliance on private facilities for detention raises broader policy questions.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
Fixed-price contract type provides cost predictability.
The contract specifies a defined period of performance.

Sector Analysis

This contract falls within the government services sector, specifically focusing on correctional and detention services. The market for these services is substantial, driven by federal and state correctional needs. Management & Training Corporation (MTC) is a significant player in this industry, operating numerous correctional and detention facilities. Benchmarking against other similar contracts for detention services is essential to assess value.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. As a large contract awarded to a major provider, the primary focus is likely on the prime contractor's capabilities. Further analysis would be needed to determine if any small business participation was mandated or occurred.

Oversight & Accountability

Oversight for this contract would typically fall under U.S. Immigration and Customs Enforcement (ICE), a component of DHS. Mechanisms likely include performance monitoring, site inspections, and review of contractor reports. Transparency is facilitated through contract award data, but detailed operational oversight reports may not be publicly available. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse.

Related Government Programs

Detention Services Contracts
Immigration and Customs Enforcement Operations
Federal Correctional Facility Management
Private Prison Industry Contracts

Risk Flags

High per-unit cost potential
Need for rigorous performance oversight
Potential for substandard conditions if not managed properly

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $40.6 million to MANAGEMENT & TRAINING CORPORATION. TO ESTABLISH A TASK ORDER FOR DETENTION SERVICES AT THE IMPERIAL REGIONAL DETENTION FACILITY (IRDF) (CALEXICO, CA).

Who is the contractor on this award?

The obligated recipient is MANAGEMENT & TRAINING CORPORATION.

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 $40.6 million.

What is the period of performance?

Start: 2020-11-05. End: 2021-12-19.

What is the historical spending pattern for detention services at the Imperial Regional Detention Facility?

Historical spending data for the Imperial Regional Detention Facility (IRDF) prior to this specific task order would provide crucial context. Analyzing previous contracts, their values, durations, and the contractors involved would reveal trends in cost and service provision. For instance, understanding if this $40.6 million award represents an increase or decrease in spending compared to prior periods, and whether the scope of services has changed, is vital. Without specific historical data for IRDF, comparisons can be made to national trends in detention service costs, which have generally seen increases due to inflation, evolving service requirements, and market demand. This contract's duration of approximately 13 months (November 2020 to December 2021) suggests a specific operational need during that timeframe.

How does the per-unit cost of this contract compare to other similar detention facilities managed by private contractors?

The per-unit cost, often analyzed as a daily rate per detainee, is a key metric for evaluating the value of detention services. While the exact daily rate for this $40.6 million contract is dependent on the average daily population housed at the Imperial Regional Detention Facility (IRDF) during its performance period (November 2020 - December 2021), preliminary estimates suggest it falls on the higher end of the spectrum. Industry benchmarks for privately operated immigration detention facilities can range significantly, from under $100 to over $200 per detainee per day, depending on the level of security, services provided (medical, legal access, programming), and geographic location. To provide a precise comparison, the average daily population housed at IRDF during the contract period would need to be known. However, if the average population was consistently high, the overall cost might be justified; if the population was low, the per-unit cost could indicate potential inefficiencies or premium pricing.

What are the specific performance metrics and oversight mechanisms in place for this contract?

While the provided data does not detail specific performance metrics or oversight mechanisms, federal contracts for detention services typically include stringent requirements. Performance is generally evaluated against standards outlined in the Performance Work Statement (PWS), which covers areas such as facility safety and security, detainee care (including health and sanitation), staffing levels and training, and compliance with legal and regulatory mandates. Oversight is usually conducted by contracting officers' representatives (CORs) from U.S. Immigration and Customs Enforcement (ICE), who monitor daily operations, conduct site visits, review incident reports, and ensure adherence to the contract terms. Formal performance evaluations are often conducted periodically. Failure to meet performance standards can result in contractual remedies, including financial penalties or termination.

What is the track record of Management & Training Corporation (MTC) in managing federal detention facilities?

Management & Training Corporation (MTC) is a well-established private operator of correctional and detention facilities, with a significant history of managing government contracts. The company operates numerous facilities across the United States and internationally, housing both adult and juvenile offenders, as well as immigration detainees. MTC's track record includes managing facilities for various federal agencies, including the Bureau of Prisons (BOP), U.S. Marshals Service, and ICE. While MTC has a long operational history, like many large contractors in this sector, it has faced scrutiny and criticism regarding conditions, staffing, and cost-effectiveness at some of its facilities. Independent reviews, government audits, and media reports have highlighted both successes and challenges. Prospective analysis of MTC's performance on this specific ICE contract would require examining ICE's own performance evaluations and any public reports related to the Imperial Regional Detention Facility during the contract period.

What are the potential risks associated with relying on private contractors for immigration detention services?

Relying on private contractors for immigration detention services presents several potential risks. A primary concern is the potential for prioritizing profit over the quality of care and safety of detainees, which can lead to substandard conditions, inadequate staffing, and insufficient services. Cost-effectiveness can also be a risk; while private facilities are often touted as cheaper, studies have shown mixed results, and poorly structured contracts can lead to higher overall costs. Accountability can be more complex, as oversight of private entities may differ from direct government management, potentially creating gaps in transparency and responsiveness. Furthermore, the use of private detention facilities raises ethical and human rights concerns, particularly regarding the treatment and conditions of individuals in custody. Ensuring robust contract management, rigorous performance monitoring, and strong ethical standards are crucial to mitigate these risks.

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: 500 N MARKET PL DR STE 100, CENTERVILLE, UT, 84014

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

Financial Breakdown

Contract Ceiling: $40,645,530

Exercised Options: $40,645,530

Current Obligation: $40,645,530

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70CDCR20D00000006

IDV Type: IDC

Timeline