DHS awards $41.2M task order for detention services in California, raising value-for-money questions

Contract Overview

Contract Amount: $41,214,863 ($41.2M)

Contractor: Management & Training Corporation

Awarding Agency: Department of Homeland Security

Start Date: 2021-12-20

End Date: 2022-12-19

Contract Duration: 364 days

Daily Burn Rate: $113.2K/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 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 $41.2 million to MANAGEMENT & TRAINING CORPORATION for work described as: FUNDING NEW TASK ORDER FOR DETENTION SERVICES AT THE IMPERIAL REGIONAL DETENTION FACILITY (IRDF) (CALEXICO, CA) Key points: 1. The contract's value is significant for security guard services, warranting scrutiny of cost-effectiveness. 2. Full and open competition was utilized, suggesting a potentially competitive pricing environment. 3. The fixed-price contract type may limit contractor risk but could also lead to less flexibility. 4. Performance duration of one year requires monitoring for service continuity and quality. 5. The contractor has a substantial history with federal agencies, indicating operational experience. 6. Geographic concentration in California may reflect specific operational needs or market conditions.

Value Assessment

Rating: fair

The $41.2 million award for a one-year detention services contract appears substantial for security guard services. Benchmarking against similar contracts for detention facility operations is crucial to assess value for money. While the firm fixed-price structure provides cost certainty, it's important to ensure the price reflects competitive market rates and doesn't include excessive profit margins. Without detailed cost breakdowns or comparisons to other facilities of similar size and scope, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The number of bidders is not specified, but this method generally promotes a competitive environment, which can lead to better pricing and service offerings for the government. The agency's commitment to open competition suggests an effort to secure the best possible value.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing and a wider pool of qualified contractors vying for the work, which can drive down costs and improve service quality.

Public Impact

Immigrants in detention facilities managed by U.S. Immigration and Customs Enforcement (ICE) will receive security services. The contract ensures the operational security and management of the Imperial Regional Detention Facility (IRDF) in Calexico, California. The primary beneficiaries are federal agencies responsible for immigration enforcement and detention. The contract supports jobs in the security and facility management sectors within California.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the fixed-price contract does not adequately account for all operational variables.
Ensuring consistent service quality and adherence to detention standards throughout the contract period.
Monitoring contractor performance to prevent any lapses in security or facility management.
Assessing the long-term sustainability and cost-effectiveness of outsourcing detention services.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process.
Firm fixed-price contract provides budget certainty for the agency.
Contractor has experience in providing similar services, indicating a degree of reliability.
Clear performance period allows for focused oversight and evaluation.

Sector Analysis

The detention services sector is a critical component of the U.S. immigration system, involving significant government spending. This contract falls within the broader security and facility management industry. Comparable spending benchmarks for detention operations vary widely based on facility size, location, and service requirements. The market includes specialized contractors experienced in managing and securing detention centers, often competing for multi-year government contracts.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears limited unless the prime contractor voluntarily engages small businesses for subcontracting opportunities. Further analysis would be needed to determine if small businesses are involved in the supply chain or as subcontractors.

Oversight & Accountability

Oversight for this contract would primarily fall under U.S. Immigration and Customs Enforcement (ICE), a component of the Department of Homeland Security. Accountability measures are typically embedded in the contract's performance standards and reporting requirements. Transparency is facilitated through contract award databases, though detailed operational performance metrics may not always be publicly disclosed. Inspector General oversight from DHS would also be applicable.

Related Government Programs

Federal Detention Center Operations
Immigration and Customs Enforcement Contracts
Private Prison and Detention Facility Management
Government Security Services Contracts

Risk Flags

Contractor performance history requires review for compliance and quality.
Potential for service quality issues under fixed-price contracts.
Geographic concentration may limit alternative options in emergencies.
Public scrutiny of detention facility operations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $41.2 million to MANAGEMENT & TRAINING CORPORATION. FUNDING NEW 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 $41.2 million.

What is the period of performance?

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

What is the track record of Management & Training Corporation (MTC) in providing detention services to federal agencies?

Management & Training Corporation (MTC) has a significant track record in managing correctional and detention facilities for federal, state, and local governments. They operate numerous facilities across the United States and internationally. MTC's experience includes providing a range of services such as housing, food, healthcare, and security for detainees and inmates. While they have a long history, like many large contractors in this sector, they have also faced scrutiny and criticism regarding facility conditions, staffing levels, and operational practices in some of their managed facilities. Their performance history with federal agencies, particularly ICE, is extensive, suggesting familiarity with requirements but also necessitating ongoing performance monitoring.

How does the cost of this contract compare to similar detention services contracts awarded by ICE?

Directly comparing the cost of this $41.2 million, one-year task order to other ICE detention services contracts requires access to detailed contract data, including facility capacity, service scope, and geographic location. However, the per diem cost per detainee is a common metric for comparison. Without knowing the average daily population at the Imperial Regional Detention Facility (IRDF) during the contract period, it's difficult to establish a precise per-day or per-person cost. Generally, costs can range significantly, influenced by labor rates, security requirements, medical services provided, and the overall operational environment. Given the firm fixed-price nature, ICE likely aimed for a competitive bid that reflected market rates for the specified services and security levels.

What are the primary risks associated with this contract for the Department of Homeland Security?

The primary risks for DHS associated with this contract include potential disruptions to detention operations if the contractor fails to meet performance standards, leading to negative impacts on immigration processing and detainee welfare. There's also a risk of negative public relations or legal challenges stemming from incidents within the facility, such as security breaches, escapes, or issues related to detainee treatment or healthcare, which can reflect poorly on ICE and DHS. Furthermore, cost overruns, although mitigated by the fixed-price structure, could still occur if unforeseen circumstances require additional government intervention or if the initial pricing did not fully account for all operational complexities. Ensuring consistent compliance with evolving legal and policy mandates within detention facilities also presents an ongoing risk.

How effective are firm fixed-price contracts in ensuring value for money in detention services?

Firm fixed-price (FFP) contracts are intended to provide cost certainty for the government, shifting the risk of cost overruns to the contractor. In detention services, this can be effective if the scope of work is well-defined and stable. It encourages the contractor to manage costs efficiently to maximize profit. However, FFP contracts can sometimes lead to a contractor cutting corners on quality or service to maintain profitability, especially if oversight is insufficient. For detention services, where quality of care, security, and compliance are paramount, the effectiveness of FFP hinges on robust performance metrics, clear service level agreements, and diligent government oversight to ensure that cost savings do not compromise essential standards.

What is the historical spending trend for detention services by U.S. Immigration and Customs Enforcement?

U.S. Immigration and Customs Enforcement (ICE) has historically spent billions of dollars annually on detention services, including the operation of detention facilities, transportation, and related services. Spending in this area has fluctuated based on immigration policies, enforcement priorities, and court decisions affecting detention levels. The trend has generally shown significant and often increasing expenditures over the past two decades, reflecting the scale of immigration enforcement operations. The reliance on both government-run and privately-operated facilities means that contracts with companies like Management & Training Corporation represent a substantial portion of ICE's operational budget. Analyzing year-over-year spending reveals the dynamic nature of resource allocation driven by policy shifts and operational demands.

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: $41,214,863

Exercised Options: $41,214,863

Current Obligation: $41,214,863

Actual Outlays: $12,407,427

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70CDCR20D00000006

IDV Type: IDC

Timeline