DOJ's $45M Detention Services Contract with CoreCivic Faces Scrutiny Over Competition and Value
Contract Overview
Contract Amount: $45,144,547 ($45.1M)
Contractor: Corecivic, Inc.
Awarding Agency: Department of Justice
Start Date: 2010-03-20
End Date: 2030-02-04
Contract Duration: 7,261 days
Daily Burn Rate: $6.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: DETENTION SERVICES - NASHVILLE, TN
Place of Performance
Location: NASHVILLE, DAVIDSON County, TENNESSEE, 37215
Plain-Language Summary
Department of Justice obligated $45.1 million to CORECIVIC, INC. for work described as: DETENTION SERVICES - NASHVILLE, TN Key points: 1. CoreCivic holds a significant contract for detention services in Nashville. 2. The contract has been awarded without competition, raising concerns about price discovery. 3. Long-term duration and firm fixed-price structure warrant close examination for potential risks. 4. The 'Other Justice, Public Order, and Safety Activities' sector sees substantial federal investment.
Value Assessment
Rating: questionable
The contract's value is substantial, but without competitive bidding, it's difficult to assess if the pricing is optimal compared to similar detention service contracts. The firm fixed-price structure may offer predictability but could also lead to overpayment if costs decrease.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This significantly limits price discovery and potentially leads to higher costs for taxpayers as there is no market pressure to offer the best price.
Taxpayer Impact: The lack of competition for this large contract likely results in a higher cost to taxpayers than if multiple providers had vied for the business.
Public Impact
Impacts individuals requiring detention services managed by the U.S. Marshals Service. Affects the local economy in Nashville, TN, through service provision and employment. Raises questions about the government's reliance on private entities for correctional services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Long contract duration
- Potential for cost overruns in fixed-price contracts
- Reliance on a single provider
Positive Signals
- Provides essential detention services
- Long-term planning and stability for service provision
Sector Analysis
This contract falls under 'Other Justice, Public Order, and Safety Activities,' a sector that includes a wide range of government functions. Federal spending in this area is often driven by public safety needs and can be substantial, with private sector involvement common for specific services like detention.
Small Business Impact
The contract data indicates that CoreCivic, Inc. is the awardee, and there is no indication of small business participation in this specific award. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses.
Oversight & Accountability
The U.S. Marshals Service is responsible for overseeing this contract. Given the sole-source nature and long duration, robust oversight is crucial to ensure service quality, cost-effectiveness, and adherence to all contractual terms and conditions.
Related Government Programs
- Other Justice, Public Order, and Safety Activities
- Department of Justice Contracting
- U.S. Marshals Service Programs
Risk Flags
- Sole-source award limits price competition.
- Long contract duration (ending 2030) may reduce flexibility.
- Firm fixed-price contract could lead to overpayment if costs are lower than anticipated.
- Potential for contractor lock-in due to lack of alternatives.
- Oversight needed to ensure service quality and cost-effectiveness.
Tags
other-justice-public-order-and-safety-ac, department-of-justice, tn, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $45.1 million to CORECIVIC, INC.. DETENTION SERVICES - NASHVILLE, TN
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 $45.1 million.
What is the period of performance?
Start: 2010-03-20. End: 2030-02-04.
What is the justification for the sole-source award, and have alternative competitive strategies been considered?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of market availability. For this detention services contract, understanding the specific reasons why it was not competed is crucial. Agencies should regularly reassess the market to identify opportunities for competition, even on existing contracts, to ensure taxpayer value and encourage innovation.
How does the per-unit cost compare to publicly operated detention facilities or other competitively sourced private contracts?
Benchmarking the per-unit cost against publicly operated facilities and competitively sourced private contracts is essential for assessing value. Without this comparison, it's difficult to determine if the $45M allocated is an efficient use of funds. A lack of competitive pressure can inflate costs, making such benchmarks critical for accountability.
What performance metrics and service level agreements are in place to ensure the effectiveness and quality of detention services?
Robust performance metrics and service level agreements are vital for ensuring the effectiveness and quality of detention services, especially under a long-term, sole-source contract. These should cover aspects like safety, security, inmate care, and operational efficiency. Regular reviews and audits are necessary to hold the contractor accountable and verify compliance.
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: ONLY ONE SOURCE
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: $62,508,647
Exercised Options: $62,508,647
Current Obligation: $45,144,547
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2010-03-20
Current End Date: 2030-02-04
Potential End Date: 2030-02-04 00:00:00
Last Modified: 2024-04-25
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