DHS awarded $17.6M for detention services, with CoreCivic Inc. securing the contract

Contract Overview

Contract Amount: $17,617,207 ($17.6M)

Contractor: Corecivic, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2008-09-22

End Date: 2009-09-30

Contract Duration: 373 days

Daily Burn Rate: $47.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TO PROVIDE FUNDING FOR DETENTION SERVICES AT THE ELIZABETH DETENTION FACILILTY UNDER CONTRACT # ODT-5-C-0010 & HSCEOP-05-F-00473. PERIOD OF PERFORMANCE 10/01/2008 THRU 09/30/2009.

Place of Performance

Location: ELIZABETH, UNION County, NEW JERSEY, 07201

State: New Jersey Government Spending

Plain-Language Summary

Department of Homeland Security obligated $17.6 million to CORECIVIC, INC. for work described as: TO PROVIDE FUNDING FOR DETENTION SERVICES AT THE ELIZABETH DETENTION FACILILTY UNDER CONTRACT # ODT-5-C-0010 & HSCEOP-05-F-00473. PERIOD OF PERFORMANCE 10/01/2008 THRU 09/30/2009. Key points: 1. The contract focused on providing detention services, a critical component of immigration enforcement. 2. The award was made under a full and open competition, suggesting a competitive bidding process. 3. The period of performance was for one year, indicating a short-term operational need. 4. The contract type was firm-fixed-price, which shifts cost risk to the contractor. 5. The geographic location of the service is New Jersey. 6. The North American Industry Classification System (NAICS) code 922140 points to correctional institutions.

Value Assessment

Rating: fair

The total award amount of $17.6 million for a one-year period of performance for detention services appears to be within a reasonable range for such operations, though direct comparisons are difficult without more specific service level data. The firm-fixed-price structure suggests that the government has a predictable cost for the services rendered. Benchmarking against similar contracts for detention services in the same region would provide a clearer picture of value for money. The provided data does not allow for a detailed per-unit cost analysis.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The data shows 3 bids were received. This level of competition is generally favorable for price discovery and ensuring the government receives competitive pricing. The presence of multiple bidders suggests that the market for detention services is sufficiently robust to support competition.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

The primary beneficiaries are U.S. Immigration and Customs Enforcement (ICE) and the Department of Homeland Security (DHS), who receive essential detention services. The services delivered include the housing and care of individuals in detention. The geographic impact is localized to Elizabeth, New Jersey, where the detention facility is located. The contract supports jobs within the private correctional facility sector in New Jersey.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Reliance on private detention facilities can raise concerns about oversight and conditions of care.
The firm-fixed-price contract, while predictable, may not incentivize cost savings beyond the agreed-upon price.
The short one-year performance period might indicate a need for ongoing re-competition or potential instability in service provision.

Positive Signals

The use of full and open competition suggests a commitment to leveraging market forces for best value.
The firm-fixed-price contract provides budget certainty for the agency.
The contract is for a defined operational need, suggesting clear requirements.

Sector Analysis

The contract falls within the correctional services sector, a subset of the broader government services industry. This sector is characterized by government contracts for the management and operation of correctional facilities, including detention centers. The market size for such services is substantial, driven by federal, state, and local government needs for incarceration and detention. Comparable spending benchmarks would involve analyzing other contracts for detention services awarded by ICE and other federal agencies.

Small Business Impact

The 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 impacts on the small business ecosystem stemming from this particular award. The primary focus appears to be on larger, established providers in the correctional services industry.

Oversight & Accountability

Oversight for detention services is typically managed by the contracting agency, U.S. Immigration and Customs Enforcement (ICE), a component of the Department of Homeland Security. Accountability measures would be embedded within the contract's performance standards and terms. Transparency is generally facilitated through contract award databases and public reporting requirements. Inspector General jurisdiction would likely fall under the DHS Office of Inspector General, which investigates waste, fraud, and abuse in agency programs.

Related Government Programs

Immigration Detention Services
Correctional Facility Operations
Federal Law Enforcement Support Services

Risk Flags

Potential for cost overruns if not managed tightly under fixed-price.
Concerns regarding conditions of care and oversight in private detention facilities.
Short performance period may indicate uncertainty or need for frequent re-evaluation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $17.6 million to CORECIVIC, INC.. TO PROVIDE FUNDING FOR DETENTION SERVICES AT THE ELIZABETH DETENTION FACILILTY UNDER CONTRACT # ODT-5-C-0010 & HSCEOP-05-F-00473. PERIOD OF PERFORMANCE 10/01/2008 THRU 09/30/2009.

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 $17.6 million.

What is the period of performance?

Start: 2008-09-22. End: 2009-09-30.

What is the historical spending trend for detention services at the Elizabeth Detention Facility?

The provided data only reflects a single contract award for the period of October 1, 2008, through September 30, 2009, totaling $17,617,207.07. To understand historical spending trends, one would need to access data for previous and subsequent contract periods for this specific facility or for similar detention services managed by U.S. Immigration and Customs Enforcement (ICE). Analyzing a longer time series of awards, including their values, durations, and awarded contractors, would be necessary to identify any patterns of increasing or decreasing expenditure, changes in contractor selection, or shifts in contract values over time. Without this broader historical context, it is impossible to determine spending trends.

How does the per-unit cost of detention services under this contract compare to national averages or similar facilities?

The provided data does not include sufficient detail to calculate a meaningful per-unit cost for detention services. Key metrics such as the average daily population housed, the specific services provided per detainee (e.g., medical care, meals, programming), and the total number of detainee-days are missing. While the total contract value is $17.6 million for approximately one year, this figure alone does not allow for a per-unit comparison. To perform such an analysis, one would need to know the average number of individuals detained daily and the specific services included in the contract price. Benchmarking would then involve comparing this calculated per-diem rate against publicly available data for similar ICE-contracted detention facilities or national averages for detention costs, which can vary significantly based on location, security levels, and service inclusions.

What is CoreCivic, Inc.'s track record with federal detention contracts, particularly with ICE?

CoreCivic, Inc. (formerly Corrections Corporation of America) has a significant and long-standing track record of operating correctional and detention facilities under contract with federal agencies, including U.S. Immigration and Customs Enforcement (ICE) and the Federal Bureau of Prisons. The provided data shows CoreCivic was awarded this specific contract. A comprehensive review of their federal contract history would reveal numerous awards for detention services across various locations. Analyzing this history would involve examining contract values, performance evaluations, any instances of contract disputes or penalties, and the duration of their partnerships with agencies like ICE. Their extensive involvement suggests substantial experience but also subjects them to scrutiny regarding operational standards, cost-effectiveness, and compliance with detention standards.

What are the key performance indicators (KPIs) typically associated with federal detention service contracts?

Key performance indicators (KPIs) for federal detention service contracts, particularly those managed by U.S. Immigration and Customs Enforcement (ICE), typically revolve around safety, security, humane care, and operational efficiency. These often include metrics related to the number of safety or security incidents (e.g., assaults, escapes), compliance with detention standards (e.g., ICE Performance-Based National Detention Standards), provision of adequate medical and mental health care (measured by response times and patient satisfaction), quality and nutritional value of food, cleanliness of facilities, and timely processing of detainees. Contract performance is often evaluated through regular inspections, audits, and reviews by the contracting agency. Failure to meet these KPIs can result in corrective action plans, financial penalties, or even contract termination.

What is the typical duration and value range for ICE detention service contracts awarded through full and open competition?

The duration and value range for ICE detention service contracts awarded through full and open competition can vary significantly based on the facility's size, location, security requirements, and the specific services contracted. Contracts often have an initial base period, typically one to five years, with options for extensions. The value is directly tied to the number of beds and the per diem rate, which can range from approximately $100 to over $200 per detainee per day, depending on the services included (e.g., medical care, transportation). Contracts awarded through full and open competition aim to secure competitive pricing, but the overall value can still reach tens or hundreds of millions of dollars over the contract's life, especially for large facilities or long-term agreements. The provided contract, valued at $17.6 million for one year, represents a moderate-sized award for a single facility.

Industry Classification

NAICS: Public Administration › Justice, Public Order, and Safety Activities › Correctional Institutions

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

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: $17,617,207

Exercised Options: $17,617,207

Current Obligation: $17,617,207

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: DJJODT05C0010

IDV Type: IDC

Timeline