DHS awards $45.8M for detention facility security, raising questions on value and competition

Contract Overview

Contract Amount: $45,858,510 ($45.9M)

Contractor: Management & Training Corporation

Awarding Agency: Department of Homeland Security

Start Date: 2023-12-20

End Date: 2024-12-19

Contract Duration: 365 days

Daily Burn Rate: $125.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FUNDS FOR NEW TASK ORDER FOR IMPERIAL REGIONAL DETENTION FACILITY.

Place of Performance

Location: CENTERVILLE, DAVIS County, UTAH, 84014

State: Utah Government Spending

Plain-Language Summary

Department of Homeland Security obligated $45.9 million to MANAGEMENT & TRAINING CORPORATION for work described as: FUNDS FOR NEW TASK ORDER FOR IMPERIAL REGIONAL DETENTION FACILITY. Key points: 1. The contract's value appears high relative to its duration, suggesting a need for detailed cost justification. 2. Limited public information on performance metrics makes it difficult to assess the effectiveness of security services. 3. The firm-fixed-price structure shifts risk to the contractor but requires careful scope definition to avoid cost overruns. 4. This contract falls within the broader category of government security services, a consistently large spending area. 5. The award to Management & Training Corporation warrants scrutiny given its role in operating detention facilities.

Value Assessment

Rating: fair

The award of $45.8 million for a one-year contract for security services at the Imperial Regional Detention Facility appears substantial. Benchmarking against similar contracts for detention facility security is challenging without more specific service details and performance data. However, the per-diem cost implied by this contract, when considering the facility's capacity, warrants a closer look to ensure it aligns with industry standards and provides good value for taxpayer funds. The firm-fixed-price nature suggests a defined scope, but the overall cost necessitates a thorough review of the contractor's proposed pricing and operational efficiency.

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. The specific number of bidders is not provided, which limits a detailed analysis of the competitive landscape. However, a full and open competition is generally preferred as it allows for the widest possible range of offers and can lead to more competitive pricing. The absence of details on the bidding process means we cannot fully assess if the competition effectively drove down costs or ensured the best possible value.

Taxpayer Impact: A full and open competition is a positive signal for taxpayers, as it theoretically maximizes the chances of obtaining the best price and service through a broad market solicitation. It suggests that the government sought competitive offers, which can help prevent inflated pricing.

Public Impact

The primary beneficiaries are U.S. Immigration and Customs Enforcement (ICE) and the Department of Homeland Security (DHS), receiving security services for a detention facility. The contract delivers essential security guard and patrol services, contributing to the operational integrity and safety of the facility. The geographic impact is localized to the Imperial region of Utah, where the facility is located. The contract supports jobs in the security services sector, potentially benefiting local and regional workforces.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the scope of work is not precisely defined within the firm-fixed-price contract.
Lack of detailed performance metrics makes it difficult to independently verify the quality and effectiveness of the security services provided.
Reliance on a single contractor for critical security functions at a detention facility can create dependency and limit flexibility.
The substantial award amount necessitates rigorous oversight to ensure funds are used efficiently and effectively.

Positive Signals

Awarded through full and open competition, suggesting a broad market search for qualified vendors.
Firm-fixed-price contract structure shifts performance risk to the contractor, incentivizing efficient service delivery.
The contract duration of one year provides a defined period for service delivery and performance evaluation.
The contract is for essential security services, a critical function for government operations.

Sector Analysis

The government security services sector is a vast and critical component of federal spending, encompassing a wide range of needs from physical security to cybersecurity. This contract for detention facility security falls within the broader 'Security Guards and Patrol Services' category. Spending in this area is consistently high due to the government's extensive infrastructure and operational requirements. Comparable benchmarks for security services can vary significantly based on location, facility type, and the specific security measures required, making direct comparisons challenging without detailed context.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). This means the competition was open to all eligible firms, including large businesses. While this ensures broad competition, it may limit direct opportunities for small businesses unless they are prime contractors on other contracts or act as subcontractors. The impact on the small business ecosystem is neutral to potentially negative if large firms dominate the service provision without significant subcontracting to smaller entities.

Oversight & Accountability

Oversight for this contract would primarily fall under U.S. Immigration and Customs Enforcement (ICE) within the Department of Homeland Security. As a delivery order under a larger contract, the existing oversight mechanisms for the parent contract would apply. Transparency is dependent on the public release of performance reports and any associated Inspector General audits. The effectiveness of accountability measures relies on robust contract management, performance monitoring, and clear procedures for addressing any deficiencies or disputes.

Related Government Programs

Department of Homeland Security Contracts
Immigration and Customs Enforcement Contracts
Federal Security Services Contracts
Detention Facility Operations Contracts
Government Contract Delivery Orders

Risk Flags

High contract value for a one-year term requires justification.
Limited public performance data hinders effectiveness assessment.
Contractor's role in detention operations warrants scrutiny.
Potential for scope creep in firm-fixed-price contracts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $45.9 million to MANAGEMENT & TRAINING CORPORATION. FUNDS FOR NEW TASK ORDER FOR IMPERIAL REGIONAL DETENTION FACILITY.

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 $45.9 million.

What is the period of performance?

Start: 2023-12-20. End: 2024-12-19.

What is the track record of Management & Training Corporation in providing security services for detention facilities?

Management & Training Corporation (MTC) is a private prison company that operates correctional and detention facilities for various government agencies, including ICE. Their experience is primarily in facility management, which inherently includes security services. However, the specific performance history related to guard and patrol services, as distinct from overall facility operations, requires a deeper dive into contract performance evaluations and any reported incidents or deficiencies. Publicly available data often focuses on broader operational metrics, making it difficult to isolate the effectiveness of their security guard services specifically. A review of past performance reviews and any corrective actions taken against MTC for security-related issues would be necessary for a comprehensive assessment.

How does the cost of this contract compare to similar detention facility security contracts?

Directly comparing the cost of this $45.8 million contract for one year is challenging without detailed service level agreements and facility specifics. However, the implied daily cost per facility is substantial. Benchmarking requires access to data on contracts for facilities of similar size, security level, and geographic location. Factors such as the number of guards required, the technology employed, and the specific security protocols mandated by ICE significantly influence pricing. Without these comparative data points, it's difficult to definitively state whether this contract represents excellent, fair, or questionable value. A detailed analysis would involve comparing the cost per guard, cost per bed, or cost per square foot against a validated set of similar contracts.

What are the primary risks associated with this contract for the government and taxpayers?

The primary risks include potential cost overruns if the firm-fixed-price scope is not meticulously managed, leading to scope creep or change orders. There's also a risk of inadequate service delivery if performance monitoring is weak, potentially compromising facility security and safety. Over-reliance on a single contractor for critical security functions can create vulnerabilities. Furthermore, the substantial financial commitment necessitates robust oversight to ensure accountability and prevent misuse of funds. The effectiveness of the security services directly impacts the government's ability to manage detention populations safely and securely, so any lapse in performance carries significant operational and reputational risk.

How effective are the security services likely to be given the contract's structure and duration?

The effectiveness of the security services will largely depend on the clarity of the contract's statement of work, the rigor of ICE's performance monitoring, and the contractor's operational capabilities. The firm-fixed-price structure incentivizes the contractor to deliver services within budget, but it requires precise definition of duties to avoid gaps or over-servicing. A one-year duration provides a defined period but may not be long enough to fully assess long-term effectiveness or build deep institutional knowledge. Success hinges on strong contract management, clear performance standards, and timely feedback mechanisms to address any shortcomings promptly. Without specific performance metrics and historical data, predicting effectiveness is speculative.

What are the historical spending patterns for security services at this specific detention facility or similar ICE facilities?

Historical spending data for the Imperial Regional Detention Facility or similar ICE-operated or contracted facilities would provide crucial context for evaluating the current $45.8 million award. Analyzing past expenditures on security services, including contract values, durations, and any adjustments, can reveal trends in cost escalation, changes in service requirements, or shifts in contracting strategies. Understanding whether this award represents an increase, decrease, or stable spending level compared to previous periods is vital for assessing value and identifying potential anomalies. Access to historical contract databases and agency budget reports would be necessary to conduct this analysis.

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: $45,858,510

Exercised Options: $45,858,510

Current Obligation: $45,858,510

Actual Outlays: $45,875,369

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70CDCR20D00000006

IDV Type: IDC

Timeline