DOJ's $200M detention contract with CoreCivic shows long-term reliance on a single provider

Contract Overview

Contract Amount: $200,597,467 ($200.6M)

Contractor: Corecivic, Inc.

Awarding Agency: Department of Justice

Start Date: 2009-03-01

End Date: 2021-02-28

Contract Duration: 4,382 days

Daily Burn Rate: $45.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DETENTION SERVICE - YOUNGSTOWN OHIO

Place of Performance

Location: YOUNGSTOWN, MAHONING County, OHIO, 44501

State: Ohio Government Spending

Plain-Language Summary

Department of Justice obligated $200.6 million to CORECIVIC, INC. for work described as: DETENTION SERVICE - YOUNGSTOWN OHIO Key points: 1. The contract's substantial value over its duration suggests a significant, ongoing need for detention services. 2. A sole-source award indicates a lack of competitive bidding, potentially impacting cost-effectiveness. 3. The extended contract period (over 12 years) raises questions about flexibility and adaptation to changing needs. 4. Performance context is limited without specific metrics on detention quality or operational efficiency. 5. This contract falls within the 'Other Justice, Public Order, and Safety Activities' category, highlighting a specific government function. 6. The firm fixed-price structure provides cost certainty but may limit incentives for efficiency gains. 7. The absence of small business participation is noted, suggesting limited opportunities for smaller entities in this specific award.

Value Assessment

Rating: fair

Benchmarking the value of this detention service contract is challenging without comparable data for similar facilities in the Youngstown, Ohio area. The total value of over $200 million spread across more than a decade suggests a consistent, albeit potentially high, per-year cost. Without specific performance metrics or comparisons to government-operated facilities, it's difficult to definitively assess value for money. The firm fixed-price nature provides budget predictability for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when a specific vendor is uniquely qualified or when circumstances necessitate a direct award. The lack of competition means that the government did not benefit from the price discovery and potential cost savings that can arise from a competitive bidding process.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no market pressure to drive down prices. It also limits the government's ability to explore alternative solutions or providers that might offer better value.

Public Impact

The U.S. Marshals Service benefits from the provision of detention services, ensuring capacity for individuals in federal custody. The contract delivers essential detention services, likely including housing, security, and basic care for detainees. The geographic impact is localized to Youngstown, Ohio, where the detention facility is presumably located. Workforce implications include employment opportunities at the CoreCivic facility in Ohio.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Long contract duration may reduce flexibility and responsiveness to changing needs.
Lack of transparency on specific performance metrics makes value assessment difficult.
No indication of small business subcontracting opportunities.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Consistent service delivery over a long period suggests operational stability.
Contract addresses a clear government need for detention capacity.

Sector Analysis

This contract falls under the broader 'Justice, Public Order, and Safety Activities' sector, specifically related to correctional and detention services. The private prison industry is a significant segment within this sector, with several large providers competing for government contracts. The market is influenced by federal, state, and local government needs for correctional capacity. Benchmarking spending in this area is complex due to variations in service levels, facility types, and geographic locations.

Small Business Impact

This contract does not appear to have a small business set-aside component, nor is there explicit information regarding subcontracting to small businesses. The nature of large-scale detention services often involves significant infrastructure and operational scale, which may favor larger, established corporations. This suggests limited direct opportunities for small businesses within this specific contract's framework.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Marshals Service, the contracting agency. Accountability measures would be defined in the contract terms, likely including performance standards and reporting requirements. Transparency is often limited in sole-source contracts, but the Department of Justice generally has Inspector General oversight for its programs and contracts, which could investigate issues of waste, fraud, or abuse.

Related Government Programs

Federal Bureau of Prisons Contracts
Immigration and Customs Enforcement Detention Contracts
State and Local Government Detention Contracts
Private Correctional Facility Management

Risk Flags

Sole Source Award
Long Contract Duration
Lack of Competition
Limited Performance Data Available

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $200.6 million to CORECIVIC, INC.. DETENTION SERVICE - YOUNGSTOWN OHIO

Who is the contractor on this award?

The obligated recipient is CORECIVIC, INC..

Which agency awarded this contract?

Awarding agency: Department of Justice (U.S. Marshals Service).

What is the total obligated amount?

The obligated amount is $200.6 million.

What is the period of performance?

Start: 2009-03-01. End: 2021-02-28.

What is the historical spending trend for detention services by the U.S. Marshals Service in Ohio?

Analyzing historical spending trends for detention services by the U.S. Marshals Service in Ohio requires access to detailed procurement data beyond this single contract. However, the award of a $200 million contract to CoreCivic for services in Youngstown from 2009 to 2021 indicates a substantial and sustained investment in this region. Generally, federal agencies like the Marshals Service utilize a mix of government-owned facilities and contracted private facilities to manage detention populations. Spending patterns can fluctuate based on judicial caseloads, sentencing trends, and immigration enforcement policies. A comprehensive analysis would involve examining all contracts awarded by the Marshals Service in Ohio over a significant period, looking for patterns in contract types (e.g., firm fixed-price, cost-plus), competition levels, and average per diem rates to understand the overall fiscal commitment to detention services in the state.

How does the per diem rate for this CoreCivic contract compare to other federal detention facilities?

Determining the exact per diem rate for this specific CoreCivic contract is not possible with the provided data, as only the total contract value and duration are available. However, the total value of approximately $200.6 million over roughly 12 years (March 2009 - February 2021) suggests an average annual cost of about $16.7 million. To compare this to other federal detention facilities, one would need to know the average daily population housed under this contract and then calculate the per diem. Generally, per diem rates for private detention facilities can vary significantly based on location, security levels, services provided (medical, transportation, etc.), and market competition. Without these specifics, a direct comparison is speculative. However, reports and analyses of federal detention costs often show a wide range, with some per diem rates potentially falling between $70 and $150 or higher, depending on the factors mentioned.

What are the specific performance metrics and quality standards outlined in the contract?

The provided data does not include the specific performance metrics or quality standards outlined in the contract between the U.S. Marshals Service and CoreCivic. Typically, such contracts would detail requirements related to facility safety, security protocols, detainee care (including medical and mental health services), food services, staffing levels, and emergency preparedness. Performance would likely be monitored through regular inspections, audits, and reporting by the contractor. The absence of this information in the summary data makes it difficult to assess the contractor's performance or the quality of services delivered. A full review of the contract document would be necessary to ascertain these details.

What was the justification for awarding this contract on a sole-source basis?

The justification for awarding this contract on a sole-source basis is not provided in the summary data. Generally, sole-source awards are made when only one responsible source is available or capable of meeting the government's needs. This could be due to unique capabilities, specialized equipment, proprietary technology, or urgent and compelling circumstances where competition is not feasible. For detention services, a sole-source award might be considered if a specific facility was already in place and met unique geographic or operational requirements of the U.S. Marshals Service, and transitioning to a new provider would be excessively costly or disruptive. A formal justification document, often required for sole-source procurements, would detail the specific reasons.

What is CoreCivic's overall track record with federal contracts, particularly with the Department of Justice?

CoreCivic (formerly Corrections Corporation of America) has a long and extensive history of contracting with federal agencies, including the Department of Justice (DOJ) and its components like the U.S. Marshals Service and the Federal Bureau of Prisons. The company operates numerous correctional and detention facilities across the United States. Its track record is complex and has been subject to scrutiny regarding operational practices, safety standards, and cost-effectiveness. While CoreCivic has consistently secured significant federal contracts, indicating a perceived ability to meet government needs, it has also faced criticism and legal challenges related to conditions within its facilities, staffing levels, and instances of violence or escapes. Evaluating CoreCivic's overall track record requires examining performance reviews, litigation history, and government oversight reports across its portfolio of contracts.

Are there any known risks associated with this specific contract or CoreCivic's operations in Youngstown?

Without specific performance data or incident reports tied directly to this contract, identifying unique risks is challenging. However, risks associated with private detention contracts generally include potential issues with detainee safety and well-being, staffing shortages or turnover, escapes, and compliance with contractual standards. CoreCivic, as a large operator, has faced public scrutiny and legal challenges in various locations related to these types of risks. For this specific contract, the sole-source nature itself can be considered a risk factor, as it removes the competitive pressure that might otherwise drive efficiency and cost savings. Furthermore, the long duration of the contract could mean that the facility and its operations may not have kept pace with evolving best practices or regulatory requirements without significant oversight.

Industry Classification

NAICS: Public Administration › Justice, Public Order, and Safety Activities › Other Justice, Public Order, and Safety Activities

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

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: $200,597,467

Exercised Options: $200,597,467

Current Obligation: $200,597,467

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline