DHS Awards $57M for Alien Detention and Transportation Services to CoreCivic, Inc
Contract Overview
Contract Amount: $56,983,382 ($57.0M)
Contractor: Corecivic, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2025-09-01
End Date: 2026-08-31
Contract Duration: 364 days
Daily Burn Rate: $156.5K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: THE PURPOSE OF THIS TASK ORDER IS FOR COMPREHENSIVE DETENTION AND TRANSPORTATION SERVICES FOR HOUSING CRIMINAL ALIENS AT CALIFORNIA CITY DETENTION CENTER IN CALIFORNIA CITY, CA.
Place of Performance
Location: CALIFORNIA CITY, KERN County, CALIFORNIA, 93505
Plain-Language Summary
Department of Homeland Security obligated $57.0 million to CORECIVIC, INC. for work described as: THE PURPOSE OF THIS TASK ORDER IS FOR COMPREHENSIVE DETENTION AND TRANSPORTATION SERVICES FOR HOUSING CRIMINAL ALIENS AT CALIFORNIA CITY DETENTION CENTER IN CALIFORNIA CITY, CA. Key points: 1. CoreCivic, Inc. secures a significant contract for detention and transportation services. 2. The contract is for housing criminal aliens, a critical but sensitive service. 3. The award is a Firm Fixed Price, indicating clear cost expectations. 4. The North American Industry Classification System (NAICS) code 561612 points to Security Guards and Patrol Services.
Value Assessment
Rating: questionable
The contract value of $56,983,382.25 for 364 days appears high for security and patrol services. Benchmarking against similar detention and transportation contracts is needed to assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, suggesting a sole-source or limited competition award. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these essential services.
Public Impact
Impacts the management and processing of criminal aliens within the U.S. immigration system. Affects the operational capacity of U.S. Immigration and Customs Enforcement (ICE) in California. Raises questions about the cost-effectiveness and transparency of privatized detention services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- High contract value for the service type
- Potential for cost overruns in fixed-price contracts with complex services
Positive Signals
- Clear contract duration and pricing structure
- Specific service requirement addressed
Sector Analysis
The security and patrol services sector, particularly for government contracts, is highly competitive. However, specialized services like detention and transportation for specific populations can sometimes lead to limited competition due to facility requirements and operational expertise.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. Further investigation is needed to determine if opportunities were missed.
Oversight & Accountability
The non-competed nature of this award warrants close oversight by ICE and DHS to ensure the contractor is meeting all performance requirements and that the pricing remains fair.
Related Government Programs
- Security Guards and Patrol Services
- Department of Homeland Security Contracting
- U.S. Immigration and Customs Enforcement Programs
Risk Flags
- Lack of competitive bidding
- Potential for inflated costs due to sole-source award
- High contract value for security services
- Limited transparency in pricing
- No small business participation identified
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 $57.0 million to CORECIVIC, INC.. THE PURPOSE OF THIS TASK ORDER IS FOR COMPREHENSIVE DETENTION AND TRANSPORTATION SERVICES FOR HOUSING CRIMINAL ALIENS AT CALIFORNIA CITY DETENTION CENTER IN CALIFORNIA CITY, CA.
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 $57.0 million.
What is the period of performance?
Start: 2025-09-01. End: 2026-08-31.
What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair pricing without competition?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of other qualified sources. Without competition, price discovery is limited. Agencies should provide detailed documentation justifying the sole-source decision and evidence of price reasonableness analysis, such as comparison to historical pricing or market research, to ensure taxpayer funds are used efficiently.
How does the per-unit cost of detaining and transporting aliens under this contract compare to similar contracts or government-operated facilities?
Benchmarking the per-unit cost is crucial for assessing value. This involves comparing the contract's rates for housing, transportation, and associated services against industry standards, other government contracts for similar services, and potentially the cost of government-run facilities. Significant deviations could indicate overpricing or inefficiencies that warrant further investigation.
What performance metrics and oversight mechanisms are in place to ensure CoreCivic, Inc. provides effective and humane detention and transportation services?
Effective oversight requires clearly defined performance standards, regular monitoring, and robust reporting mechanisms. ICE should have established protocols for evaluating the quality of care, transportation safety, and adherence to all legal and ethical guidelines. Independent audits and site visits would further enhance accountability and ensure the contractor meets its obligations.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 5501 VIRGINIA WAY, 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: $56,983,382
Exercised Options: $56,983,382
Current Obligation: $56,983,382
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 70CDCR25D00000010
IDV Type: IDC
Timeline
Start Date: 2025-09-01
Current End Date: 2026-08-31
Potential End Date: 2026-08-31 00:00:00
Last Modified: 2026-03-06
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