DHS awards $43.3M contract for detention services in Texas, raising value-for-money questions

Contract Overview

Contract Amount: $43,343,653 ($43.3M)

Contractor: Corecivic, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2023-08-18

End Date: 2024-08-17

Contract Duration: 365 days

Daily Burn Rate: $118.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: HOUSTON CDF DETENTION SERVICES

Place of Performance

Location: HOUSTON, HARRIS County, TEXAS, 77032

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $43.3 million to CORECIVIC, INC. for work described as: HOUSTON CDF DETENTION SERVICES Key points: 1. Contract value appears high relative to duration and service type. 2. Limited public data hinders comprehensive value assessment. 3. Sole provider for a critical service raises potential risk. 4. Performance context is essential for understanding service quality. 5. Sector positioning is within government contracting for essential services.

Value Assessment

Rating: questionable

The contract's total value of $43.3 million over one year for security guard and patrol services seems high. Benchmarking against similar contracts for detention facility security is difficult without more specific service details. The firm-fixed-price structure suggests cost certainty, but the overall value proposition requires deeper analysis of the services rendered and their necessity.

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 had the opportunity to bid. However, the number of bidders is not specified, which limits the assessment of the competitive landscape. A robust competition typically drives down prices and improves service quality.

Taxpayer Impact: While full and open competition is generally favorable for taxpayers, the lack of specific bidder numbers prevents a definitive conclusion on whether the best possible price was achieved.

Public Impact

Benefits individuals in U.S. Immigration and Customs Enforcement (ICE) custody. Ensures security and operational continuity at a detention facility. Geographic impact is concentrated in Texas. Workforce implications include employment for security personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High contract value for a single year of service.
Lack of transparency on the number of bidders.
Potential for over-reliance on a single contractor for critical services.

Positive Signals

Awarded through full and open competition.
Firm-fixed-price contract provides cost certainty.

Sector Analysis

This contract falls within the government services sector, specifically focusing on security and detention operations. The market for these services is substantial, driven by federal agency needs. Comparable spending benchmarks are difficult to ascertain without detailed service scope, but government contracting for security is a significant segment.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This suggests that the primary award went to a larger entity, potentially limiting opportunities for smaller firms in this specific contract.

Oversight & Accountability

Oversight is likely managed by U.S. Immigration and Customs Enforcement (ICE) through contract performance monitoring. Accountability measures would be tied to performance metrics and service level agreements. Transparency is limited by the lack of detailed public reporting on performance and specific competition outcomes.

Related Government Programs

Immigration Detention Services
Federal Law Enforcement Support Services
Government Security Contracting

Risk Flags

High contract value
Potential for service quality issues
Limited transparency on competition details

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $43.3 million to CORECIVIC, INC.. HOUSTON CDF DETENTION SERVICES

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 $43.3 million.

What is the period of performance?

Start: 2023-08-18. End: 2024-08-17.

What is the specific scope of services provided under this contract?

The contract is for 'Security Guards and Patrol Services' (NAICS code 561612). This typically includes providing personnel to monitor facilities, control access, patrol premises, and respond to security incidents. For a detention facility, this would involve ensuring the safety and security of detainees, staff, and the facility itself, adhering to strict protocols and regulations set forth by ICE. The exact duties, staffing levels, and specific security measures would be detailed in the contract's statement of work, which is not publicly available in this data snippet.

How does the $43.3 million award compare to historical spending for similar services by ICE?

Without specific historical data for this exact facility or service scope, a direct comparison is challenging. However, $43.3 million for one year of security and patrol services at a detention facility represents a significant investment. ICE's overall budget for detention operations is in the billions annually, covering a wide range of services including facility management, healthcare, and transportation. This single contract's value suggests it pertains to a substantial facility or a comprehensive security package. Further analysis would require examining ICE's historical contract awards for detention security services in Texas or comparable regions.

What are the key performance indicators (KPIs) for this contract, and how is performance monitored?

Key performance indicators for security guard and patrol services typically include response times to incidents, adherence to post orders, personnel reliability, incident reporting accuracy, and compliance with facility security protocols. Performance monitoring is usually conducted by the contracting officer's representative (COR) from ICE, who would regularly review reports, conduct site visits, and assess contractor performance against the contract's requirements and service level agreements. Failure to meet KPIs could result in penalties or contract termination.

What is the track record of CoreCivic, Inc. in providing detention services to the federal government?

CoreCivic, Inc. is a major private operator of correctional and detention facilities for federal, state, and local governments. They have a long history of contracting with agencies like ICE and the Federal Bureau of Prisons. Their track record includes managing numerous facilities and providing related services. However, like many large government contractors in this sector, CoreCivic has faced scrutiny and criticism regarding facility conditions, staffing levels, and cost-effectiveness in various contracts. A thorough assessment would involve reviewing past performance evaluations, any litigation, and government audit reports related to their federal contracts.

Are there any specific risks associated with relying on a private contractor for detention services?

Yes, there are inherent risks. These include potential compromises in security or detainee welfare due to cost-cutting measures, difficulties in ensuring consistent service quality across different facilities and contract periods, ethical concerns related to profiting from incarceration, and challenges in maintaining adequate government oversight. Furthermore, contractor performance can be impacted by labor disputes, financial stability issues, or reputational damage. The government must maintain robust oversight mechanisms to mitigate these risks and ensure that contract objectives are met without compromising public safety or human rights.

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: $43,343,653

Exercised Options: $43,343,653

Current Obligation: $43,343,653

Actual Outlays: $43,343,657

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70CDCR20D00000014

IDV Type: IDC

Timeline