DHS awards $73.9M task order to CoreCivic for detention services at Otay Mesa

Contract Overview

Contract Amount: $73,919,248 ($73.9M)

Contractor: Corecivic, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2021-12-20

End Date: 2022-12-19

Contract Duration: 364 days

Daily Burn Rate: $203.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FUNDING NEW TASK ORDER FOR DETENTION SERVICES AT THE OTAY MESA DETENTION CENTER

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $73.9 million to CORECIVIC, INC. for work described as: FUNDING NEW TASK ORDER FOR DETENTION SERVICES AT THE OTAY MESA DETENTION CENTER Key points: 1. Contract focuses on essential detention services, indicating a need for ongoing operational support. 2. The firm-fixed-price structure aims to control costs, but requires careful monitoring of service delivery. 3. Competition was full and open, suggesting a potentially competitive bidding process for this service. 4. The contract duration of one year provides a defined period for service provision and performance evaluation. 5. Services are geographically concentrated in California, impacting local workforce and community. 6. This award falls under security guard and patrol services, a critical component of immigration enforcement.

Value Assessment

Rating: fair

The awarded amount of $73.9 million for a one-year detention services contract appears substantial. Benchmarking against similar contracts for detention facilities is crucial to assess value for money. Without specific details on the scope of services and the number of individuals to be detained, a precise value assessment is difficult. However, the firm-fixed-price contract type suggests an attempt to cap costs, which is a positive indicator if services are delivered as specified.

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 likely invited to bid. This approach generally promotes a competitive environment, which can lead to better pricing and service quality. The number of bidders and the specific evaluation criteria would provide further insight into the intensity of the competition and its impact on the final award.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple vendors to offer their best prices and services, potentially leading to cost savings and improved service delivery.

Public Impact

The primary beneficiaries are U.S. Immigration and Customs Enforcement (ICE) through the provision of essential detention services. The contract ensures the continued operation of the Otay Mesa Detention Center, facilitating the processing and holding of individuals within the immigration system. Services are geographically focused in San Diego, California, potentially creating or sustaining local employment opportunities in security and support roles. The contract supports the federal government's immigration enforcement and processing functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if service scope expands beyond initial estimates.
Reliance on a single contractor for critical detention services raises concerns about service continuity and potential disruptions.
The firm-fixed-price contract may incentivize cost-cutting that could impact service quality if not closely monitored.

Positive Signals

The use of full and open competition suggests a deliberate effort to secure competitive pricing.
The firm-fixed-price contract provides cost certainty for the government, assuming services are delivered as agreed.
The contract is for a defined period, allowing for performance review and potential re-competition.

Sector Analysis

This contract falls within the broader security and protective services sector, specifically related to government contracting for detention facilities. The market for such services is often characterized by specialized providers with experience in handling secure environments and adhering to strict regulatory requirements. Comparable spending benchmarks would involve analyzing other ICE or DHS contracts for similar detention operations, considering factors like facility size, location, and service scope.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. Given the scale and nature of detention services, it is possible that larger, specialized firms are the primary participants in this market. Further analysis would be needed to determine if small businesses have opportunities to participate as subcontractors.

Oversight & Accountability

Oversight for this contract would typically fall under U.S. Immigration and Customs Enforcement (ICE), a component of the Department of Homeland Security (DHS). ICE's contracting officers and program managers are responsible for monitoring performance, ensuring compliance with contract terms, and addressing any issues that arise. Transparency would be enhanced by public reporting of performance metrics and any audits or reviews conducted by DHS's Office of Inspector General.

Related Government Programs

Immigration detention services
Correctional facility management
Security guard services
Federal law enforcement support services

Risk Flags

Contract performance risk
Cost control risk
Service quality risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $73.9 million to CORECIVIC, INC.. FUNDING NEW TASK ORDER FOR DETENTION SERVICES AT THE OTAY MESA DETENTION CENTER

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 $73.9 million.

What is the period of performance?

Start: 2021-12-20. End: 2022-12-19.

What is the historical spending pattern for detention services at the Otay Mesa Detention Center by CoreCivic, Inc.?

To assess historical spending, one would need to examine previous contracts awarded to CoreCivic, Inc. for the Otay Mesa Detention Center. This would involve searching federal procurement databases for prior awards, including their value, duration, and the specific services provided. Analyzing these past awards would reveal trends in spending, identify any significant increases or decreases in contract value over time, and provide context for the current $73.9 million award. It would also help determine if this is a renewal of an existing service or a new requirement. Without access to specific historical contract data for this facility and contractor, it is difficult to provide precise figures, but such an analysis is crucial for understanding long-term financial commitments and potential cost efficiencies.

How does the per-unit cost of detention services under this contract compare to industry benchmarks or similar government contracts?

Determining the per-unit cost requires knowing the average daily population or the total number of bed-days provided under this contract, which is not explicitly stated in the provided data. If, for example, the contract covers an average of 1,000 detainees for 365 days, the approximate daily cost per detainee would be $73,919,247.62 / (1,000 detainees * 365 days) ≈ $202.52 per detainee per day. This figure can then be compared to publicly available data on per-diem costs for immigration detention facilities operated by other agencies (like the Bureau of Prisons) or by private contractors in different locations. Benchmarking against these figures would help ascertain if the pricing is competitive and reflects fair market value for the services rendered, considering factors like facility standards, location, and service scope.

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

The provided data does not detail the specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. However, for detention services, typical KPIs and SLAs would likely focus on areas such as detainee safety and well-being (e.g., incident rates, medical care response times), facility security (e.g., escape prevention, contraband control), staff training and conduct, food services, sanitation, and timely transportation. Adherence to these metrics is crucial for ensuring the contract's objectives are met and for holding the contractor accountable. The firm-fixed-price nature of the contract implies that meeting these defined standards is a condition of full payment, and deviations could lead to penalties or corrective actions.

What is CoreCivic, Inc.'s track record in managing federal detention contracts, particularly with ICE?

CoreCivic, Inc. is a major private operator of correctional and detention facilities in the United States and has a significant history of contracting with federal agencies, including U.S. Immigration and Customs Enforcement (ICE). Their track record involves managing numerous detention centers across the country. Performance reviews and public records often highlight both successes in providing necessary capacity and criticisms related to conditions of confinement, staffing levels, and cost-effectiveness. Analyzing past performance evaluations, any issued notices of deficiency, or litigation involving CoreCivic's federal contracts would provide a comprehensive view of their reliability and effectiveness in fulfilling government requirements for detention services.

Are there any specific risks identified by the DHS or ICE regarding the performance of CoreCivic, Inc. under this contract?

The provided data does not explicitly list identified risks associated with CoreCivic's performance for this specific task order. However, general risks associated with private detention contracts often include concerns about the quality of care, potential for overcrowding, staffing issues, and ensuring compliance with evolving detention standards and legal requirements. ICE and DHS would typically have internal risk assessments and oversight mechanisms in place. Any past performance issues, negative audit findings, or significant incidents at facilities managed by CoreCivic could be considered relevant risk factors. The agency's contracting officers would monitor these aspects closely throughout the contract's duration.

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: 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: $73,919,248

Exercised Options: $73,919,248

Current Obligation: $73,919,248

Actual Outlays: $23,764,383

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70CDCR20D00000007

IDV Type: IDC

Timeline