DOJ's $31M correctional facility management contract awarded to CoreCivic, Inc. for services in Georgia

Contract Overview

Contract Amount: $31,086,873 ($31.1M)

Contractor: Corecivic, Inc.

Awarding Agency: Department of Justice

Start Date: 2015-12-01

End Date: 2019-02-08

Contract Duration: 1,165 days

Daily Burn Rate: $26.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CL::IGF = CLOSELY RELATED: PROVIDE SERVICES FOR MANAGEMENT AND OPERATION OF A CORRECTIONAL FACILITY FOR BASE YEAR FOUR - DECEMBER 2015 - SEPTEMBER 2016.

Place of Performance

Location: MC RAE, TELFAIR County, GEORGIA, 31055

State: Georgia Government Spending

Plain-Language Summary

Department of Justice obligated $31.1 million to CORECIVIC, INC. for work described as: IGF::CL::IGF = CLOSELY RELATED: PROVIDE SERVICES FOR MANAGEMENT AND OPERATION OF A CORRECTIONAL FACILITY FOR BASE YEAR FOUR - DECEMBER 2015 - SEPTEMBER 2016. Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1165 days indicates a significant, long-term service requirement. 3. Fixed-price contract type aims to control costs by establishing a set payment amount. 4. The services provided are for the management and operation of a correctional facility. 5. The award was a Delivery Order, implying it was part of a larger contract vehicle.

Value Assessment

Rating: fair

The contract's value of approximately $31 million over roughly three years for correctional facility management appears within a reasonable range for such services. Benchmarking against similar contracts for facility operations would provide a clearer picture of value for money. The firm fixed-price structure suggests an attempt to manage cost predictability, but the actual value is contingent on the efficiency of operations and the specific services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but this method generally promotes price discovery and allows the government to select the most advantageous offer. The open competition suggests a healthy market for correctional facility management services.

Taxpayer Impact: Taxpayers benefit from the competitive process, which is intended to drive down costs and ensure the government receives the best possible value for its investment in correctional services.

Public Impact

The primary beneficiaries are the Federal Prison System and the Bureau of Prisons, receiving essential operational support for a correctional facility. Services delivered include the management and operation of a correctional facility, ensuring security, housing, and inmate services. The geographic impact is localized to Georgia, where the correctional facility is situated. Workforce implications include employment opportunities for facility staff, security personnel, and administrative support within the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if operational efficiencies are not maintained under the fixed-price contract.
Reliance on a single contractor for critical facility operations could pose risks if performance issues arise.
The long-term nature of the contract may limit flexibility to adapt to changing correctional needs or policies.

Positive Signals

Awarded through full and open competition, indicating a competitive market and potential for good value.
Firm fixed-price contract type provides cost certainty for the government.
The contract addresses a core government function, ensuring continuity of essential services.

Sector Analysis

The correctional services industry is a significant sector within government contracting, encompassing facility management, security, and inmate services. This contract fits within the broader Facilities Support Services (NAICS 561210) category. Spending in this area is driven by the need to manage federal inmate populations, and contracts can range from short-term support to long-term facility operations. Market size is substantial, reflecting the ongoing demand for correctional infrastructure and management.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. Analysis of subcontracting opportunities for small businesses would require further investigation into the contractor's practices and any flow-down requirements. Without explicit set-asides, the direct impact on the small business ecosystem may be limited unless CoreCivic, Inc. actively engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Justice's Bureau of Prisons, with potential involvement from the Office of the Inspector General. Accountability measures are inherent in the contract terms, including performance standards and payment schedules. Transparency is generally maintained through contract award databases, though detailed operational performance metrics may not always be publicly disclosed.

Related Government Programs

Federal Prison System Operations
Bureau of Prisons Contracts
Correctional Facility Management
Facilities Support Services
Department of Justice Contracts

Risk Flags

Contract Performance Risk
Cost Management
Operational Continuity
Security and Safety Standards

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $31.1 million to CORECIVIC, INC.. IGF::CL::IGF = CLOSELY RELATED: PROVIDE SERVICES FOR MANAGEMENT AND OPERATION OF A CORRECTIONAL FACILITY FOR BASE YEAR FOUR - DECEMBER 2015 - SEPTEMBER 2016.

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 $31.1 million.

What is the period of performance?

Start: 2015-12-01. End: 2019-02-08.

What is CoreCivic, Inc.'s track record with the Federal Bureau of Prisons?

CoreCivic, Inc. (formerly Corrections Corporation of America) has a long-standing history of contracting with federal, state, and local governments to manage correctional facilities. Within the Federal Bureau of Prisons (BOP) specifically, CoreCivic has operated numerous facilities over the years. Their track record includes managing facilities of varying sizes and security levels. However, like many large private prison operators, CoreCivic has also faced scrutiny and criticism regarding operational standards, inmate safety, staffing levels, and cost-effectiveness. Publicly available data and Inspector General reports sometimes highlight specific issues or commendations related to their performance in BOP facilities. A comprehensive review would involve examining specific contract performance evaluations, any litigation, and BOP's internal assessments of their facilities.

How does the $31 million contract value compare to similar correctional facility management contracts?

The $31 million contract value for approximately 3.2 years of service (1165 days) translates to an average annual cost of roughly $9.7 million. This figure needs to be contextualized by the size, security level, and specific services required for the correctional facility in Georgia. Contracts for managing federal correctional facilities can vary significantly. For instance, contracts for large, high-security facilities or those requiring specialized medical or mental health services would naturally command higher prices. Conversely, smaller, lower-security facilities or those with fewer comprehensive services would cost less. Without knowing the specific capacity and service scope of this particular facility, a direct comparison is challenging. However, the annual average suggests it is a moderately sized operation within the federal correctional system.

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

The primary risks for the government in this contract revolve around contractor performance and cost control. A key risk is the potential for CoreCivic, Inc. to underperform in managing the facility, leading to issues with security, inmate welfare, or operational efficiency. This could result in negative publicity, increased oversight burden, or even the need to terminate the contract. Another risk is related to cost. Although it's a firm fixed-price contract, unforeseen circumstances or inadequate operational planning by the contractor could lead to challenges in meeting service level agreements without compromising quality. Furthermore, reliance on a private entity for a core government function like incarceration carries inherent risks related to accountability and alignment with public correctional policies and values.

What is the historical spending pattern for correctional facility management by the Federal Prison System?

The Federal Prison System (FPS), primarily managed by the Bureau of Prisons (BOP), has historically spent billions of dollars on operating correctional facilities, both government-owned and privately managed. Spending on private facilities has been a significant component, driven by the need to manage inmate populations that exceed federal capacity. Over the past two decades, there have been fluctuations in the reliance on private prisons, influenced by policy shifts, budget allocations, and public debate. While spending on private facilities has seen periods of increase, recent trends have shown a move towards reducing reliance on them, particularly under certain administrations. The total spending encompasses contracts for facility management, construction, and related services, making it a substantial and dynamic area of federal expenditure.

How does the 'Facilities Support Services' classification impact the scope of this contract?

The classification 'Facilities Support Services' (NAICS code 561210) is broad and encompasses a wide range of activities related to the operation and maintenance of buildings and infrastructure. For a correctional facility, this typically includes, but is not limited to, physical plant operations (HVAC, plumbing, electrical), maintenance and repair, groundskeeping, custodial services, security systems management, and potentially food services and laundry. It implies that the contractor is responsible for ensuring the facility is functional, safe, and maintained according to specified standards. The specific details within the contract statement of work would further define the exact services required, but the NAICS code provides a general framework for the operational and upkeep responsibilities.

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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10 BURTON HILLS BLVD, NASHVILLE, TN, 37215

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $31,086,873

Exercised Options: $31,086,873

Current Obligation: $31,086,873

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: DJB1PC016

IDV Type: IDC

Timeline