DOJ awards $255M contract to CoreCivic for business support services, highlighting long-term commitment
Contract Overview
Contract Amount: $255,455,025 ($255.5M)
Contractor: Corecivic, Inc.
Awarding Agency: Department of Justice
Start Date: 2003-05-15
End Date: 2008-05-03
Contract Duration: 1,815 days
Daily Burn Rate: $140.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Place of Performance
Location: ARIZONA
State: Arizona Government Spending
Plain-Language Summary
Department of Justice obligated $255.5 million to CORECIVIC, INC. for work described as: Key points: 1. Contract value of $255.46M indicates significant service provision. 2. CoreCivic, Inc. is the sole awardee, suggesting a specific capability or existing relationship. 3. The contract spans over 5 years, implying a need for sustained services. 4. Services fall under 'All Other Business Support Services', a broad category.
Value Assessment
Rating: fair
The contract value of $255.46M over 1815 days suggests a substantial per-day cost. Without specific service details or benchmarks for 'All Other Business Support Services', a precise value assessment is difficult. However, the duration and total value indicate a significant investment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is generally positive for price discovery. However, the long duration and specific nature of business support services may limit the number of truly competitive bids.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently. The final price reflects the outcome of this competitive process over a long contract term.
Public Impact
Impacts the Department of Justice's operational efficiency through outsourced business support. CoreCivic's role in providing these services affects its market position and revenue. Potential implications for other government agencies seeking similar support services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration may reduce flexibility and increase risk of price escalation.
- Broad service category makes it difficult to assess specific performance metrics and value.
- Sole awardee status, despite full and open competition, warrants scrutiny for potential future competition issues.
Positive Signals
- Awarded under full and open competition, promoting market fairness.
- Contract duration suggests a stable and predictable service provision.
- Clear awardee and agency demonstrate accountability.
Sector Analysis
This contract falls under business support services, a sector often characterized by a mix of large and small providers. Benchmarking is challenging due to the broad NAICS code (561499). Government spending in this area supports administrative functions across various agencies.
Small Business Impact
The data does not indicate if small businesses were involved as subcontractors. The primary awardee is CoreCivic, Inc., a large corporation, suggesting limited direct opportunities for small businesses in this specific prime contract.
Oversight & Accountability
The contract specifies a firm fixed price, which aids in budget predictability. Oversight would focus on CoreCivic's adherence to service level agreements and performance standards throughout the contract's five-year term.
Related Government Programs
- All Other Business Support Services
- Department of Justice Contracting
- Offices, Boards and Divisions Programs
Risk Flags
- Long contract duration (over 5 years).
- Broad service category (561499) lacks specificity.
- Sole awardee despite 'full and open competition' raises questions about market breadth.
- Significant contract value ($255M) requires diligent oversight.
Tags
all-other-business-support-services, department-of-justice, az, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $255.5 million to CORECIVIC, INC.. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is CORECIVIC, INC..
Which agency awarded this contract?
Awarding agency: Department of Justice (Offices, Boards and Divisions).
What is the total obligated amount?
The obligated amount is $255.5 million.
What is the period of performance?
Start: 2003-05-15. End: 2008-05-03.
What specific business support services are included under this contract, and how do they align with DOJ's core mission needs?
The contract covers 'All Other Business Support Services' under NAICS code 561499. This broad category could encompass a wide range of functions, from administrative support and call centers to mail processing and document management. Understanding the precise services is crucial to assess their alignment with the Department of Justice's specific operational requirements and whether they directly contribute to its mission objectives or are ancillary functions.
Given the 5-year duration and $255M value, what are the primary risks associated with service delivery and cost management for the DOJ?
The primary risks include potential service degradation over time, vendor lock-in, and the possibility of cost overruns if the firm fixed price doesn't adequately account for inflation or unforeseen operational challenges. Ensuring robust performance metrics and clear exit strategies are vital to mitigate these risks. The long duration also means the DOJ might miss out on more cost-effective solutions that emerge later in the contract period.
How effectively did the 'full and open competition' process ensure competitive pricing and optimal value for the taxpayer, considering the long contract term?
While 'full and open competition' is a positive indicator, its effectiveness in ensuring optimal value over a 5-year term depends on the number and quality of bids received. The broad service category might have deterred specialized bidders or led to generic proposals. The DOJ should have mechanisms to track market prices and potentially renegotiate or re-compete if significant value discrepancies arise, ensuring the initial competition remains beneficial throughout the contract's life.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Business Support Services › All Other Business Support Services
Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Address: 10 BURTON HILLS BLVD, NASHVILLE, TN, 90
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $423,991,485
Exercised Options: $165,634,135
Current Obligation: $255,455,025
Timeline
Start Date: 2003-05-15
Current End Date: 2008-05-03
Potential End Date: 2008-05-03 00:00:00
Last Modified: 2008-04-10
More Contracts from Corecivic, Inc.
- TAS 151060 - Services for the Management and Operation of a Contractor-Owned, Contractor-Operated, Correctional Facility for 2,567 Beds in Adams County, Mississippi — $574.3M (Department of Justice)
- Detention Services - LAS Vergas, NV — $558.7M (Department of Justice)
- 151060 — $456.5M (Department of Justice)
- Detention Services — $444.7M (Department of Justice)
- 151060 — $395.4M (Department of Justice)
Other Department of Justice Contracts
- Contractor Owned and Operated Existing Correctional Facility for Approximately 3,500 LOW Security Male Inmates — $794.5M (Cornell Companies, Inc.)
- Detention Services - SAN Diego — $776.9M (THE GEO Group, Inc.)
- CO: Telly Renfroe Award of NEW Task Order Base Year Initial Funding — $616.4M (AT&T Enterprises, LLC)
- TAS 151060 - Services for the Management and Operation of a Contractor-Owned, Contractor-Operated, Correctional Facility for 2,567 Beds in Adams County, Mississippi — $574.3M (Corecivic, Inc.)
- Provide Services for the Management and Operation of a Correctional Facility in Accordance With Rfp-Pcc-0014 — $568.9M (Cornell Companies, Inc.)