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

State: California Government Spending

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

Positive Signals

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

Risk Flags

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 ServicesInvestigation and Security ServicesSecurity Guards and Patrol Services

Product/Service Code: UTILITIES AND HOUSEKEEPINGHOUSEKEEPING 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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