DOJ awards $262.5M for Texas correctional facility operations to CoreCivic, Inc
Contract Overview
Contract Amount: $262,493,700 ($262.5M)
Contractor: Corecivic, Inc.
Awarding Agency: Department of Justice
Start Date: 2007-01-17
End Date: 2017-04-30
Contract Duration: 3,756 days
Daily Burn Rate: $69.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIXED PRICE AWARD FEE
Sector: Other
Official Description: 151060 CONTRACTOR OWNED AND OPERATED EXISTING CORRECTIONAL FACILITY FOR APPROXIMATELY 1500 LOW SECURITY MALE INMATES.
Place of Performance
Location: EDEN, CONCHO County, TEXAS, 76837
State: Texas Government Spending
Plain-Language Summary
Department of Justice obligated $262.5 million to CORECIVIC, INC. for work described as: 151060 CONTRACTOR OWNED AND OPERATED EXISTING CORRECTIONAL FACILITY FOR APPROXIMATELY 1500 LOW SECURITY MALE INMATES. Key points: 1. CoreCivic, Inc. secured a significant contract for correctional facility management. 2. The contract was awarded under full and open competition. 3. Potential risks include long-term operational costs and inmate welfare. 4. The sector is government services, specifically correctional facilities.
Value Assessment
Rating: fair
The fixed-price award fee structure suggests some cost control, but the total award of $262.5M over nearly 10 years indicates substantial expenditure. Benchmarking against similar facilities is crucial to assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, which generally promotes competitive pricing. However, the long duration and specialized nature of correctional facility operation may limit the number of truly competitive bids.
Taxpayer Impact: Taxpayers are funding the operation of a federal correctional facility, with costs spread over a decade. The competitive award aims to ensure reasonable pricing, but the overall expense is significant.
Public Impact
Ensures continued operation of a federal prison, impacting inmate housing and rehabilitation programs. Supports jobs in Texas related to facility management and security. Represents a substantial government expenditure on incarceration services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long-term contract duration
- Potential for cost overruns
- Reliance on a single contractor for essential services
Positive Signals
- Awarded through full and open competition
- Fixed price award fee structure
Sector Analysis
This contract falls within the government services sector, specifically the operation and management of correctional facilities. Spending in this area is driven by federal and state incarceration policies and prison populations.
Small Business Impact
The contract data indicates that CoreCivic, Inc. is the prime contractor and that small business participation was not a stated factor (ss: false, sb: false). This suggests limited direct opportunities for small businesses within this specific contract award.
Oversight & Accountability
The Bureau of Prisons within the Department of Justice is responsible for overseeing this contract. Accountability would involve monitoring operational performance, inmate safety, and adherence to contractual terms and conditions.
Related Government Programs
- Facilities Support Services
- Department of Justice Contracting
- Federal Prison System / Bureau of Prisons Programs
Risk Flags
- High contract value
- Long contract duration
- Potential for operational inefficiencies
- Reliance on private sector for public service
- Limited transparency on performance metrics
Tags
facilities-support-services, department-of-justice, tx, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $262.5 million to CORECIVIC, INC.. 151060 CONTRACTOR OWNED AND OPERATED EXISTING CORRECTIONAL FACILITY FOR APPROXIMATELY 1500 LOW SECURITY MALE INMATES.
Who is the contractor on this award?
The obligated recipient is CORECIVIC, INC..
Which agency awarded this contract?
Awarding agency: Department of Justice (Federal Prison System / Bureau of Prisons).
What is the total obligated amount?
The obligated amount is $262.5 million.
What is the period of performance?
Start: 2007-01-17. End: 2017-04-30.
What is the cost per inmate per year, and how does it compare to national averages for similar low-security federal facilities?
The total contract value is $262,493,700.22 over approximately 3756 days (about 10.3 years). This averages to roughly $25.5 million per year. For 1500 inmates, this is approximately $17,000 per inmate per year. This figure needs to be compared against national averages for similar facilities to determine if it represents good value.
What are the key performance indicators (KPIs) for this contract, and how is CoreCivic, Inc. being held accountable for meeting them?
The contract type is 'FIXED PRICE AWARD FEE,' implying that performance metrics are tied to fee adjustments. Specific KPIs would likely include inmate safety and security, facility maintenance, healthcare provision, and program delivery. Accountability is managed by the Department of Justice through contract surveillance and performance reviews, impacting the 'award fee' component.
What is the long-term strategy for federal inmate housing, and how does this contract align with or deviate from it?
This contract represents a commitment to private sector operation of a federal correctional facility for a significant duration. The long-term strategy might involve a mix of public and private facilities, or a shift towards reducing incarceration rates. The existence of such long-term contracts suggests a continued reliance on existing capacity, potentially impacting future infrastructure investments or policy changes.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services
Product/Service Code: SOCIAL SERVICES › SOCIAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: RFP-PCC-0010
Offers Received: 5
Pricing Type: FIXED PRICE AWARD FEE (M)
Evaluated Preference: NONE
Contractor Details
Address: 10 BURTON HILLS BLVD, NASHVILLE, TN, 37215
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $1,418,083,036
Exercised Options: $335,269,920
Current Obligation: $262,493,700
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2007-01-17
Current End Date: 2017-04-30
Potential End Date: 2017-04-30 00:00:00
Last Modified: 2017-06-30
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