DOJ's $31.3M Contract for Privately Operated Federal Prison Facility Raises Questions on Value and Oversight
Contract Overview
Contract Amount: $31,260,127 ($31.3M)
Contractor: Corecivic, Inc.
Awarding Agency: Department of Justice
Start Date: 2017-12-01
End Date: 2019-02-08
Contract Duration: 434 days
Daily Burn Rate: $72.0K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: IGF::CL::IGF - OPERATION OF PRIVATIZED CORRECTIONAL FACILITY
Place of Performance
Location: MC RAE, TELFAIR County, GEORGIA, 31055
State: Georgia Government Spending
Plain-Language Summary
Department of Justice obligated $31.3 million to CORECIVIC, INC. for work described as: IGF::CL::IGF - OPERATION OF PRIVATIZED CORRECTIONAL FACILITY Key points: 1. The contract awarded to CoreCivic, Inc. for operating a privatized correctional facility represents a significant expenditure for the Federal Prison System. 2. While the contract was awarded under full and open competition, the effectiveness and cost-efficiency of privatized correctional facilities remain a subject of ongoing debate. 3. Potential risks include ensuring consistent service quality, inmate welfare, and accountability compared to government-run facilities. 4. The sector of facilities support services is crucial for government operations, but privatization introduces unique oversight challenges.
Value Assessment
Rating: fair
The contract's value of $31.3M over its period needs to be benchmarked against similar privatized correctional facility operations. Without specific per-unit cost data for inmate housing or services, a precise value assessment is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a competitive bidding process. However, the impact of this competition on price discovery for long-term correctional facility operations requires further analysis.
Taxpayer Impact: Taxpayer funds are utilized for this contract, and ensuring cost-effectiveness and value for money is paramount to responsible fiscal management.
Public Impact
Impacts federal inmate housing capacity and management strategies. Raises questions about the role and effectiveness of private sector involvement in corrections. Affects the budget of the Federal Prison System and the Department of Justice.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in long-term operations.
- Ensuring consistent quality of care and security standards.
- Accountability and transparency in privatized operations.
Positive Signals
- Leverages private sector expertise in facility management.
- Potentially offers flexibility in meeting fluctuating inmate population needs.
Sector Analysis
The operation of privatized correctional facilities falls under facilities support services. Benchmarking against government-run facilities or other privatized contracts is essential to gauge cost-effectiveness and service delivery.
Small Business Impact
This contract does not appear to involve significant subcontracting opportunities for small businesses, as the primary awardee is a large corporation. Further analysis would be needed to confirm any small business participation.
Oversight & Accountability
Oversight of privatized correctional facilities is critical to ensure compliance with contractual obligations, safety standards, and inmate welfare. The Bureau of Prisons must maintain robust monitoring mechanisms.
Related Government Programs
- Facilities Support Services
- Department of Justice Contracting
- Federal Prison System / Bureau of Prisons Programs
Risk Flags
- Potential for cost escalation over contract duration.
- Ensuring consistent service quality and adherence to standards.
- Accountability and transparency in operations.
- Effectiveness of inmate management and rehabilitation programs.
- Potential impact on staff retention and training.
Tags
facilities-support-services, department-of-justice, ga, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $31.3 million to CORECIVIC, INC.. IGF::CL::IGF - OPERATION OF PRIVATIZED CORRECTIONAL FACILITY
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 $31.3 million.
What is the period of performance?
Start: 2017-12-01. End: 2019-02-08.
What is the cost per inmate per day compared to federal facilities?
Determining the precise cost per inmate per day is crucial for assessing the value of this privatized contract. Without this specific metric, it's challenging to definitively state if taxpayers are receiving a better deal than with government-operated facilities. Comparisons should account for all associated costs, including oversight and potential hidden fees.
What are the key performance indicators (KPIs) for inmate safety and rehabilitation?
Key performance indicators for inmate safety and rehabilitation are vital for evaluating the effectiveness of the privatized facility. These should include metrics on assaults, contraband, recidivism rates, and access to programs. Consistent monitoring and reporting against these KPIs are essential for accountability and ensuring the contract meets its intended objectives.
How does the contract address potential conflicts of interest between profit motives and inmate welfare?
Addressing potential conflicts of interest requires clear contractual language and stringent oversight. The contract should outline specific safeguards to ensure that profit maximization does not compromise inmate safety, humane treatment, or rehabilitation efforts. Independent audits and regular performance reviews are necessary to verify that the operator prioritizes welfare over profit.
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: $31,260,127
Exercised Options: $31,260,127
Current Obligation: $31,260,127
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
Start Date: 2017-12-01
Current End Date: 2019-02-08
Potential End Date: 2019-02-08 00:00:00
Last Modified: 2019-02-08
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