DHS awards $87.9M for Otay Mesa detention services to CoreCivic, Inc
Contract Overview
Contract Amount: $87,937,059 ($87.9M)
Contractor: Corecivic, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2022-12-20
End Date: 2023-12-19
Contract Duration: 364 days
Daily Burn Rate: $241.6K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: NEW TASK ORDER FOR DETENTION SERVICES AT THE OTAY MESA DETENTION CENTER
Place of Performance
Location: SAN YSIDRO, SAN DIEGO County, CALIFORNIA, 92143
Plain-Language Summary
Department of Homeland Security obligated $87.9 million to CORECIVIC, INC. for work described as: NEW TASK ORDER FOR DETENTION SERVICES AT THE OTAY MESA DETENTION CENTER Key points: 1. CoreCivic, Inc. secured a significant contract for detention services. 2. The contract value is substantial at $87.9 million. 3. Competition method was full and open, suggesting potential for competitive pricing. 4. The sector is related to security and government services.
Value Assessment
Rating: fair
The contract value of $87.9 million for a 364-day duration appears high for security guard services. Benchmarking against similar detention facility contracts is needed for a precise assessment.
Cost Per Unit: $241,585 (annualized)
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically allows for a broad range of bidders and can lead to better price discovery. However, the specific pricing outcomes require further analysis.
Taxpayer Impact: Taxpayer funds are being used for detention services, with the cost effectiveness dependent on the efficiency and necessity of the services provided.
Public Impact
Impacts individuals in immigration detention. Affects local economy in Otay Mesa, California through employment and services. Reflects ongoing federal policy and resource allocation for immigration enforcement.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High contract value for security services.
- Potential for cost overruns in detention operations.
Positive Signals
- Awarded through full and open competition.
- Clear contract duration and delivery order.
Sector Analysis
This contract falls within the government services sector, specifically related to correctional and detention facilities. Spending in this area is often driven by immigration policy and enforcement levels.
Small Business Impact
The contract was not awarded to a small business. Further analysis would be needed to determine if small businesses had an opportunity to participate as subcontractors.
Oversight & Accountability
Oversight is managed by U.S. Immigration and Customs Enforcement (ICE). The effectiveness of oversight will depend on contract performance monitoring and adherence to service level agreements.
Related Government Programs
- Security Guards and Patrol Services
- Department of Homeland Security Contracting
- U.S. Immigration and Customs Enforcement Programs
Risk Flags
- High contract value.
- Potential for cost overruns.
- Reliance on a single large contractor.
- Lack of detailed performance metrics in award notice.
Tags
security-guards-and-patrol-services, department-of-homeland-security, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $87.9 million to CORECIVIC, INC.. 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 $87.9 million.
What is the period of performance?
Start: 2022-12-20. End: 2023-12-19.
What is the historical cost per detainee for these services?
Historical cost per detainee data is not provided in this award notice. To assess value, a comparison of the cost per detainee under this contract against previous contracts or similar facilities would be necessary. This would offer a clearer picture of efficiency and potential savings or overspending.
Are there specific performance metrics tied to this contract?
The award notice does not detail specific performance metrics. Effective oversight requires clearly defined metrics for service quality, safety, and operational efficiency. Without these, it is difficult to assess if the contractor is meeting expectations or if the pricing is justified by performance.
What is the government's contingency plan if CoreCivic fails to perform?
The award notice does not specify contingency plans. In the event of contractor failure, the government typically has options such as contract termination and re-competition, or potentially bringing services in-house if feasible. The specific recourse would depend on the contract's terms and conditions.
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: $87,937,059
Exercised Options: $87,937,059
Current Obligation: $87,937,059
Actual Outlays: $87,937,059
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 70CDCR20D00000007
IDV Type: IDC
Timeline
Start Date: 2022-12-20
Current End Date: 2023-12-19
Potential End Date: 2023-12-19 00:00:00
Last Modified: 2025-04-09
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