DHS awards $45.6M contract for security guards, highlighting potential value concerns due to limited competition

Contract Overview

Contract Amount: $45,566,301 ($45.6M)

Contractor: Corecivic, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2007-09-25

End Date: 2009-03-31

Contract Duration: 553 days

Daily Burn Rate: $82.4K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ESTIMATE FOR FY-08 MANDAYS, TRANSPORTATION, ON-CALL POST, LUNCHES, VARIABLE. "FUNDS SUBJECT TO AVAILABILITY"

Place of Performance

Location: HOUSTON, HARRIS County, TEXAS, 77032

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $45.6 million to CORECIVIC, INC. for work described as: ESTIMATE FOR FY-08 MANDAYS, TRANSPORTATION, ON-CALL POST, LUNCHES, VARIABLE. "FUNDS SUBJECT TO AVAILABILITY" Key points: 1. Contract awarded on a firm-fixed-price basis, indicating predictable costs for the government. 2. Limited competition raises questions about achieving optimal pricing and value for taxpayer dollars. 3. Contract duration of 553 days suggests a need for ongoing security services. 4. The contract is for security guard services, a critical function for agency operations. 5. Awarded to a single vendor, CoreCivic, Inc., necessitating scrutiny of pricing and performance. 6. Geographic focus on Texas (TX) indicates a specific operational need within that state.

Value Assessment

Rating: questionable

The contract's value of $45.6 million for approximately 553 days of service requires careful benchmarking. Without competitive bids, it's difficult to ascertain if this price represents fair market value. The absence of a competitive process means there's no direct comparison to other vendors' pricing structures for similar services. Further analysis would involve comparing the per-man-hour cost or equivalent metrics against industry standards and other government contracts for security services in similar regions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the simplified acquisition procedures (SAP) and was awarded to a single vendor, CoreCivic, Inc. The 'NOT COMPETED UNDER SAP' designation suggests a sole-source or limited competition award. This lack of broad competition means that the government may not have explored the full range of available vendors or secured the most advantageous pricing through a robust bidding process.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as the government may not benefit from the price reductions typically achieved through competitive bidding. This limits the government's ability to leverage market forces to ensure the best possible value.

Public Impact

The primary beneficiaries are U.S. Immigration and Customs Enforcement (ICE) operations within Texas, which receive essential security guard services. The contract ensures the physical security and safety of federal facilities and personnel managed by ICE in the specified region. Workforce implications include the direct employment of security personnel by CoreCivic, Inc. to fulfill the contract requirements. The geographic impact is concentrated in Texas, supporting federal law enforcement and immigration enforcement activities in that state.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may result in inflated costs for taxpayers.
Lack of transparency in the procurement process raises concerns about fairness and efficiency.
Potential for vendor lock-in due to the sole-source nature of the award.
Performance monitoring is crucial to ensure service quality meets expectations without competitive pressure.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Contract addresses a clear and ongoing need for security services.
Award to an established entity (CoreCivic, Inc.) may imply a level of trust in their capability.

Sector Analysis

The security services sector is a significant component of the federal procurement landscape, encompassing a wide range of protective services. This contract falls within the 'Security Guards and Patrol Services' category (NAICS 561612). The federal government is a major consumer of these services, particularly for protecting sensitive facilities and personnel. Benchmarking this contract's value would involve comparing its per-diem or per-guard costs against similar contracts awarded by agencies like DHS, GSA, or DoD for security services in comparable geographic locations and with similar service requirements.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (SS: false, SB: false). Therefore, there are no direct subcontracting implications or specific benefits for the small business ecosystem stemming from this particular award. The focus appears to be on a large, established provider for a significant security requirement.

Oversight & Accountability

Oversight for this contract would primarily fall under the purview of the U.S. Immigration and Customs Enforcement (ICE) contracting officers and program managers. They are responsible for monitoring contractor performance, ensuring compliance with contract terms, and approving payments. Transparency is facilitated through contract databases like FPDS, which record award details. However, the limited competition aspect reduces the inherent transparency typically found in a fully competed process. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

DHS Security Services Contracts
ICE Facility Support Services
Federal Law Enforcement Support
On-Call Security Services
Texas Federal Contracts

Risk Flags

Limited competition award
Potential for cost overruns without competitive pressure
Contractor performance history requires verification
Scope of work details not provided in summary data

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $45.6 million to CORECIVIC, INC.. ESTIMATE FOR FY-08 MANDAYS, TRANSPORTATION, ON-CALL POST, LUNCHES, VARIABLE. "FUNDS SUBJECT TO AVAILABILITY"

Who is the contractor on this award?

The obligated recipient is CORECIVIC, INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Immigration and Customs Enforcement).

What is the total obligated amount?

The obligated amount is $45.6 million.

What is the period of performance?

Start: 2007-09-25. End: 2009-03-31.

What is the historical spending pattern for security guard services by U.S. Immigration and Customs Enforcement (ICE) in Texas?

Analyzing historical spending by ICE in Texas for security guard services requires accessing detailed procurement data over several fiscal years. This would involve filtering federal contract databases (like FPDS or USASpending.gov) for contracts awarded by ICE with the relevant NAICS codes (e.g., 561612) and a geographic focus on Texas. The goal is to identify trends in contract values, durations, award types (competed vs. sole-source), and the primary contractors. Understanding past spending can reveal whether this $45.6 million award represents an increase, decrease, or continuation of previous investment levels, and whether ICE has historically relied on competitive bidding or sole-source awards for these services in the region. This context is crucial for assessing the current contract's proportionality and potential value.

How does the estimated cost per day for this contract compare to industry benchmarks for similar security guard services?

To assess the cost per day, we first need to determine the total number of 'mandays' or service days covered by the contract. The data mentions 'ESTIMATE FOR FY-08 MANDAYS' but doesn't provide a specific number. Assuming the contract duration of 553 days represents the service period, the average daily cost would be approximately $45,566,301.34 / 553 days = $82,398 per day. This figure needs to be benchmarked against industry standards for security guard services, considering factors like the number of guards, their skill levels, hours worked, and the specific security requirements (e.g., armed vs. unarmed, level of surveillance). Comparing this daily rate to publicly available data on similar government contracts or private sector security service pricing in Texas would reveal whether this contract is priced competitively or appears to be at a premium due to the lack of competition.

What is CoreCivic, Inc.'s track record with federal contracts, particularly for security services?

CoreCivic, Inc. has a significant history as a federal contractor, primarily known for its operations in correctional facilities and immigration detention centers. Examining their contract portfolio within federal databases would reveal the extent and nature of their security service contracts across various agencies. Key aspects to investigate include the total value of contracts awarded, their performance history (any past performance issues or awards), and the types of security services provided. Understanding their experience specifically with security guard and patrol services, as well as their success in other DHS contracts, provides context for their capability to fulfill this $45.6 million award. A review of their past performance ratings and any disputes or contract terminations would be essential for a comprehensive assessment.

What are the specific security requirements and service levels outlined in this contract?

The provided data indicates the contract is for 'Security Guards and Patrol Services' (NAICS 561612) awarded by U.S. Immigration and Customs Enforcement (ICE). However, it does not detail the specific security requirements, service levels, or performance standards. A thorough analysis would require reviewing the contract's Statement of Work (SOW) or Performance Work Statement (PWS). This document typically outlines the exact duties of the guards, patrol routes, hours of operation, required certifications (e.g., armed guard status, background checks), reporting procedures, and key performance indicators (KPIs) that will be used to evaluate CoreCivic's performance. Understanding these specifics is crucial for assessing the appropriateness of the contract's value and ensuring the government receives the necessary level of security.

Are there any known risks associated with CoreCivic, Inc. as a contractor for sensitive government services?

CoreCivic, Inc., like many large government contractors, has faced public scrutiny and legal challenges related to its operations, particularly concerning its role in private prisons and detention centers. Risks associated with CoreCivic could include potential labor disputes, concerns about employee turnover rates impacting service continuity, and reputational risks stemming from past incidents or controversies. For a security contract, particularly one supporting immigration enforcement, these factors could indirectly impact service delivery or raise questions about the suitability of the contractor. A risk assessment would involve reviewing any available past performance information, litigation history, and public reports concerning the company's operational practices and compliance record relevant to providing security services.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Guards and Patrol Services

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

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, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $45,566,301

Exercised Options: $45,566,301

Current Obligation: $45,566,301

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HSACD3C0015

IDV Type: IDC

Timeline