DHS awards $47.2M contract for detention services to Management & Training Corporation, extending services for one year

Contract Overview

Contract Amount: $47,203,837 ($47.2M)

Contractor: Management & Training Corporation

Awarding Agency: Department of Homeland Security

Start Date: 2024-12-20

End Date: 2025-12-19

Contract Duration: 364 days

Daily Burn Rate: $129.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DETENTION SERVICES

Place of Performance

Location: CENTERVILLE, DAVIS County, UTAH, 84014

State: Utah Government Spending

Plain-Language Summary

Department of Homeland Security obligated $47.2 million to MANAGEMENT & TRAINING CORPORATION for work described as: DETENTION SERVICES Key points: 1. Contract value represents a significant investment in immigration detention infrastructure. 2. The award to a single incumbent contractor suggests potential for stable service delivery but warrants scrutiny of competitive dynamics. 3. Performance history of the contractor in similar roles is a key indicator of future success. 4. The fixed-price contract type aims to control costs, but requires careful monitoring for scope creep. 5. Geographic focus on Utah highlights regional needs for detention services. 6. The duration of the contract is relatively short, suggesting potential for re-competition or adjustments.

Value Assessment

Rating: fair

The contract value of $47.2 million for one year of detention services appears substantial. Benchmarking against similar contracts for detention services across the U.S. is crucial to assess value for money. Without specific per-unit cost data or comparisons to other facilities of similar size and service scope, it is difficult to definitively assess pricing efficiency. However, the fixed-price nature suggests an attempt to cap costs, which can be a positive indicator if managed effectively.

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 number of bidders is not specified, but this approach generally promotes price discovery and encourages competitive pricing. The fact that it was competed suggests that the agency sought the best value through a market-driven process.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it is intended to drive down costs through market forces and ensure the government receives competitive pricing.

Public Impact

The primary beneficiaries are U.S. Immigration and Customs Enforcement (ICE) and the Department of Homeland Security (DHS), who receive essential detention services. The services delivered include the operation and management of detention facilities, ensuring the secure housing of individuals in immigration proceedings. The geographic impact is concentrated in Utah, addressing specific regional needs for detention capacity. Workforce implications include the creation or maintenance of jobs for security guards, administrative staff, and support personnel within the contractor's organization in Utah.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for complacency from an incumbent contractor, leading to reduced innovation or efficiency.
Risk of cost overruns if the fixed-price contract does not adequately account for unforeseen operational challenges.
Dependence on a single provider for critical detention services could pose a risk if performance issues arise.
Limited transparency into the day-to-day operational quality and adherence to standards without robust oversight.

Positive Signals

Awarded through full and open competition, suggesting a competitive process was undertaken.
Fixed-price contract type helps to establish cost certainty for the government.
Incumbent contractor likely possesses established operational knowledge and infrastructure, potentially leading to smoother service transitions.
Clear performance standards and oversight mechanisms are expected to be in place to ensure service quality.

Sector Analysis

The detention services sector is a critical component of the U.S. immigration system, involving significant government spending. This contract fits within the broader landscape of government contracting for correctional and detention facilities. Comparable spending benchmarks would involve analyzing the per-diem rates and operational costs of similar facilities managed by other government contractors or government-run facilities, which can vary widely based on location, security levels, and services provided.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract, nor does it detail subcontracting plans. Therefore, the direct impact on the small business ecosystem is unclear. However, large contracts like this often involve opportunities for small businesses to participate as subcontractors, providing specialized services or supplies.

Oversight & Accountability

Oversight for this contract would typically be managed by U.S. Immigration and Customs Enforcement (ICE) contracting officers and program managers. Accountability measures would be defined in the contract's performance work statement, with potential penalties for non-compliance. Transparency is generally maintained through contract award databases and public reporting, though specific operational details may be sensitive.

Related Government Programs

Immigration Detention Services
Correctional Facility Management
Secure Housing Services
Federal Law Enforcement Support Contracts

Risk Flags

Incumbent contractor award
Fixed-price contract type
Detention services sector sensitivity

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $47.2 million to MANAGEMENT & TRAINING CORPORATION. DETENTION SERVICES

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 $47.2 million.

What is the period of performance?

Start: 2024-12-20. End: 2025-12-19.

What is the historical performance record of Management & Training Corporation with ICE and DHS for detention services?

Management & Training Corporation (MTC) has a long history of operating correctional and detention facilities for various government agencies, including ICE and DHS. Their track record includes managing facilities of varying sizes and security levels across the United States. While MTC has generally fulfilled its contractual obligations, like any large contractor, it has faced scrutiny and criticism regarding operational standards, staffing levels, and inmate welfare in some of its facilities. Specific performance metrics and any past performance evaluations related to this particular contract or similar ICE contracts would provide a more detailed understanding of their reliability and effectiveness in delivering detention services.

How does the awarded amount compare to previous contract values for similar detention services in Utah?

To assess the value for money, a comparison of the $47.2 million annual contract value with previous awards for similar detention services in Utah is necessary. This would involve examining historical contract data for ICE detention facilities in the region to identify trends in pricing and service scope. Factors such as inflation, changes in service requirements, and the number of beds contracted can significantly influence contract values over time. Without access to this specific historical data, it is challenging to determine if the current award represents an increase, decrease, or stable pricing compared to prior agreements.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

The key performance indicators (KPIs) and service level agreements (SLAs) for this detention services contract are crucial for ensuring the quality and effectiveness of the services provided by Management & Training Corporation. While not detailed in the provided data, typical KPIs for such contracts often include metrics related to facility safety and security (e.g., incident rates, escapes), detainee welfare (e.g., access to medical care, food quality, legal access), staff training and retention, and compliance with detention standards. SLAs would outline specific requirements and expectations for response times, reporting, and operational procedures. Robust KPIs and SLAs, coupled with diligent government oversight, are essential for holding the contractor accountable.

Are there any specific risk indicators or concerns associated with Management & Training Corporation's operations in detention facilities?

Management & Training Corporation, like other private prison operators, has faced public scrutiny and criticism regarding various aspects of its operations. Concerns often raised include staffing levels, staff training, the quality of medical care provided to detainees, and adherence to humane treatment standards. Reports from oversight bodies, advocacy groups, and media investigations have sometimes highlighted issues within MTC-operated facilities. While the government's contracting process aims to mitigate these risks through performance standards and oversight, potential risks associated with contractor performance, cost management, and ethical considerations are inherent in the detention services sector.

What is the typical duration and value range for ICE detention services contracts of this nature?

Contracts for immigration detention services can vary significantly in duration and value, influenced by factors such as the number of beds required, the scope of services, and the specific needs of U.S. Immigration and Customs Enforcement (ICE) in a given region. Typical contract durations can range from one to five years, often with options for extensions. Annual values can range from several million to tens or even hundreds of millions of dollars, depending on the scale of operations. The $47.2 million award for a one-year term for detention services in Utah falls within a common range for such contracts, particularly for facilities of moderate size or specific service requirements.

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

Solicitation ID: 70CDCR20R00000002

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: $47,203,837

Exercised Options: $47,203,837

Current Obligation: $47,203,837

Actual Outlays: $24,672,793

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70CDCR20D00000006

IDV Type: IDC

Timeline