USMS awards $40.6M contract for detention services to CoreCivic, Inc. in California

Contract Overview

Contract Amount: $313,369,468 ($313.4M)

Contractor: Corecivic, Inc.

Awarding Agency: Department of Justice

Start Date: 2005-07-01

End Date: 2020-06-30

Contract Duration: 5,478 days

Daily Burn Rate: $57.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DETENTION SERVICES (OTAY MESA DETENTION CENTER)- FUNDED BY USMS - $40,605,970.00

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92101

State: California Government Spending

Plain-Language Summary

Department of Justice obligated $313.4 million to CORECIVIC, INC. for work described as: DETENTION SERVICES (OTAY MESA DETENTION CENTER)- FUNDED BY USMS - $40,605,970.00 Key points: 1. CoreCivic, Inc. has been awarded a significant contract for detention services, indicating a substantial need for these facilities. 2. The contract duration spans over 15 years, suggesting long-term reliance on the provider. 3. The award was made under full and open competition, implying a robust bidding process. 4. The fixed-price nature of the contract provides cost certainty for the government. 5. The services are categorized under 'Other Justice, Public Order, and Safety Activities,' highlighting their role in the broader justice system. 6. The contract's value of $40.6 million represents a considerable investment in detention infrastructure and operations.

Value Assessment

Rating: fair

The contract value of $40.6 million over a 15-year period averages approximately $2.7 million annually. Benchmarking this against similar detention service contracts is challenging without more specific service level agreements and facility capacities. However, the duration suggests a potentially stable, albeit long-term, cost for the government. The firm-fixed-price structure offers predictability, but the extended term could obscure opportunities for cost savings if market rates decrease over time. Further analysis would require comparing per-bed costs or per-day rates to industry averages.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through a full and open competition process, suggesting that multiple vendors were invited to bid. The number of bidders is not specified, but this method generally promotes a competitive environment, allowing the government to solicit proposals from a wide range of qualified contractors. This approach is intended to ensure fair pricing and access to the best available services.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it typically drives down costs through competitive bidding and encourages a wider pool of providers to offer their services, potentially leading to better value.

Public Impact

The primary beneficiaries are the U.S. Marshals Service (USMS), which requires detention facilities for individuals in federal custody. The contract delivers essential detention services, ensuring the secure housing and management of detainees. The geographic impact is focused on California, where the Otay Mesa Detention Center is located. The contract supports jobs within the private detention industry, contributing to the local and national workforce in this sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long-term contract duration (15 years) may limit flexibility to adapt to changing needs or market conditions.
Reliance on a single provider for a critical service like detention raises concerns about service continuity and potential vendor lock-in.
The private detention industry has faced scrutiny regarding operational standards and human rights, requiring robust oversight.

Positive Signals

Awarded through full and open competition, indicating a competitive process that should yield fair pricing.
Firm-fixed-price contract provides cost certainty for the USMS, simplifying budget management.
The contract supports the critical mission of the USMS in managing federal detainees.

Sector Analysis

This contract falls within the broader 'Justice, Public Order, and Safety Activities' sector, specifically focusing on private detention services. The market for private correctional facilities is significant, driven by government needs for capacity and specialized services. This contract with CoreCivic, Inc. represents a substantial portion of spending within this niche, reflecting the ongoing demand for outsourced detention solutions. Comparable spending benchmarks would involve analyzing other large-scale detention contracts awarded by federal, state, and local agencies.

Small Business Impact

The data indicates that small business participation was not a stated requirement or focus for this particular contract (ss: false, sb: false). Therefore, there are no direct set-aside provisions for small businesses. The implications for the small business ecosystem are minimal in terms of direct subcontracting opportunities stemming from this specific award, as the prime contractor is a large corporation. The focus appears to be on securing the necessary detention services through a large-scale provider.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Marshals Service, the contracting agency. As a firm-fixed-price contract, performance standards and service level agreements are crucial for ensuring accountability. Transparency is facilitated by the contract's public award information. While specific Inspector General jurisdiction is not detailed, the Department of Justice's Office of the Inspector General typically oversees federal law enforcement and correctional operations for waste, fraud, and abuse.

Related Government Programs

Federal Bureau of Prisons Contracts
Immigration and Customs Enforcement Detention Contracts
State and Local Government Detention Contracts
Private Prison Industry Spending

Risk Flags

Long contract duration
Private detention facility operations
Potential for service quality issues
Reliance on a single provider

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $313.4 million to CORECIVIC, INC.. DETENTION SERVICES (OTAY MESA DETENTION CENTER)- FUNDED BY USMS - $40,605,970.00

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 $313.4 million.

What is the period of performance?

Start: 2005-07-01. End: 2020-06-30.

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

Historical spending data for detention services by the U.S. Marshals Service (USMS) in California, prior to or alongside this specific $40.6 million contract, would reveal trends in demand, pricing, and provider reliance. Analyzing past contracts, including their duration, value, and competition levels, would provide context for the current award. For instance, understanding if the USMS has consistently relied on private detention facilities in the region, and whether spending has increased or decreased over time, is crucial. This $40.6 million contract, awarded in 2005 and ending in 2020, represents a significant, long-term commitment. Without access to detailed historical contract databases for the USMS in California, it's difficult to provide precise figures. However, the sheer duration and value of this single contract suggest a substantial and sustained requirement for detention services in the state, likely reflecting federal judicial and law enforcement activities in the region.

How does the per-diem cost of this contract compare to other federal detention facilities?

To compare the per-diem cost of this contract, we first need to estimate it. The contract value is $40,605,970.00 over a duration of 5478 days (approximately 15 years). This yields an average daily cost of roughly $7,412.00 per day for the entire facility's operation. To derive a per-diem cost per detainee, we would need the average daily population housed at the Otay Mesa Detention Center under this contract. Without that figure, a direct per-diem comparison is impossible. However, reports and analyses of federal detention costs often place per-diem rates for similar facilities (e.g., those operated by ICE or BOP, or other USMS contracts) in a range that can vary significantly, from under $100 to over $200 per detainee per day, depending on security levels, services provided, and location. If the average daily population was, for example, 500 detainees, the per-diem cost per detainee would be approximately $14.82 ($7412 / 500), which would be exceptionally low compared to industry benchmarks. If the population was closer to 100 detainees, the per-diem would be around $74.12, which is more aligned with some lower-end benchmarks. The actual comparison hinges critically on the facility's occupancy rate.

What are the key performance indicators (KPIs) used to evaluate CoreCivic's performance under this contract?

Key Performance Indicators (KPIs) for detention service contracts like this one typically revolve around operational efficiency, safety, security, and compliance. While specific KPIs are not detailed in the provided data, common metrics would include: 1. **Inmate Safety and Security:** Rates of assaults (inmate-on-inmate, staff-on-inmate), escapes, contraband seizures, and use-of-force incidents. 2. **Health Services:** Timeliness and quality of medical and mental health care provided, adherence to healthcare standards. 3. **Facility Maintenance:** Response times for maintenance requests, cleanliness of living areas, and overall facility upkeep. 4. **Staffing Levels and Training:** Ensuring adequate qualified personnel are on duty and properly trained. 5. **Compliance:** Adherence to all federal regulations, performance work statement requirements, and any specific contractual clauses related to detainee rights and conditions. The USMS would likely conduct regular inspections, audits, and performance reviews to ensure CoreCivic meets these KPIs. Failure to meet critical KPIs could result in penalties, corrective action plans, or even contract termination.

What is the track record of CoreCivic, Inc. in managing federal detention facilities?

CoreCivic, Inc. (formerly Corrections Corporation of America - CCA) has a long and extensive track record in managing correctional and detention facilities for federal, state, and local governments across the United States. They are one of the largest private prison companies in the country. Their history includes managing numerous facilities for the Federal Bureau of Prisons (BOP), U.S. Marshals Service (USMS), and U.S. Immigration and Customs Enforcement (ICE). While CoreCivic has consistently secured and managed large government contracts, its history has also been marked by significant public scrutiny and controversy. Criticisms have often focused on issues related to safety, staffing levels, inmate conditions, and allegations of cost-cutting measures impacting service quality. Numerous reports, lawsuits, and government audits have examined their operations. Despite these challenges, CoreCivic remains a primary contractor for federal detention services, indicating that, from the government's perspective, they continue to meet contractual obligations, albeit often under intense oversight and public attention.

What are the potential risks associated with a 15-year contract for detention services?

A 15-year contract for detention services presents several potential risks. **Price Volatility:** While firm-fixed-price offers cost certainty initially, over such a long period, market conditions for labor, supplies, and utilities can change significantly. The government might end up paying above market rates if costs decrease, or the contractor might face financial strain if costs escalate beyond projections (though less likely with fixed price). **Operational Stagnation:** A long-term contract can reduce the incentive for the contractor to innovate or improve services beyond the minimum required, as there is less pressure from potential new competitors. **Changing Needs:** The government's requirements for detention capacity or services might evolve over 15 years due to policy changes, shifts in judicial practices, or demographic trends. A rigid, long-term contract may not easily accommodate these changes. **Contractor Performance Decline:** Over an extended period, a contractor's commitment to quality or compliance could wane, especially if oversight is not consistently rigorous. **Reputational Risk:** The private detention industry is often subject to public criticism regarding conditions and ethics. A long-term association with a contractor can expose the government agency to reputational damage if the contractor faces significant negative publicity or incidents.

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: FULL AND OPEN COMPETITION

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: $354,531,623

Exercised Options: $354,531,623

Current Obligation: $313,369,468

Actual Outlays: $11,452,725

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline