DHS awarded $31.4M for detention services to CoreCivic, Inc. in California

Contract Overview

Contract Amount: $31,411,319 ($31.4M)

Contractor: Corecivic, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2010-07-01

End Date: 2011-06-30

Contract Duration: 364 days

Daily Burn Rate: $86.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DETENTION SERVICES

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $31.4 million to CORECIVIC, INC. for work described as: DETENTION SERVICES Key points: 1. CoreCivic, Inc. secured a significant contract for detention services, indicating a reliance on established providers for this specialized need. 2. The contract's full and open competition after exclusion of sources suggests a deliberate procurement strategy to ensure fair opportunity while potentially managing specific requirements. 3. The firm fixed-price contract type implies that the contractor bears the primary risk for cost overruns, which can incentivize efficiency. 4. The duration of 364 days suggests a short-term or bridging requirement for detention services. 5. The contract was awarded to a single offeror, raising questions about the extent of competition and potential price discovery. 6. The geographic focus on California highlights the regional demand for these services.

Value Assessment

Rating: fair

The contract value of $31.4 million for 364 days of detention services appears substantial. Benchmarking against similar contracts for detention services is crucial to assess value for money. Without specific per-unit cost data or comparisons to other facilities, it is difficult to definitively state if this represents excellent value. However, the firm fixed-price nature suggests a degree of cost control expected from the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This procurement method indicates that while the competition was initially open, certain sources were excluded, potentially due to specific qualifications or prior performance. The award to a single entity suggests that only one offeror met all the stringent requirements or was deemed the most advantageous. This limited competition may impact the government's ability to secure the lowest possible price.

Taxpayer Impact: The limited competition may result in higher costs for taxpayers compared to a scenario with multiple responsive bidders actively vying for the contract.

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 provision and management of detention facilities. The geographic impact is concentrated in California, addressing detention needs within that state. Workforce implications include employment opportunities for staff at the detention facility operated by CoreCivic, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition raises concerns about potential price inflation and reduced incentive for cost efficiency.
The exclusion of sources, while potentially justified, warrants scrutiny to ensure it did not unduly restrict competition.
Lack of detailed performance metrics makes it difficult to assess the quality and effectiveness of the services provided.
The contract's short duration might indicate a stop-gap measure, potentially leading to recurring procurement costs and instability.

Positive Signals

The firm fixed-price contract structure places cost risk on the contractor, encouraging efficient operations.
The use of a specific NAICS code (561790) suggests adherence to established industry classifications for service procurement.
The contract was awarded by a major federal agency (DHS), indicating a level of established process and oversight.

Sector Analysis

The detention services sector is a critical component of national security and immigration enforcement. This contract falls under the broader 'Other Services to Buildings and Dwellings' category, but specifically addresses the unique requirements of correctional and detention facility management. The market for these services is often characterized by a limited number of specialized providers capable of meeting stringent government regulations and operational demands. Comparable spending benchmarks would involve analyzing other ICE or DHS contracts for similar detention capacity and service levels across different geographic regions.

Small Business Impact

There is no indication from the provided data that this contract included small business set-asides or subcontracting requirements. The award to CoreCivic, Inc., a large corporation, suggests that the primary focus was on the capacity and qualifications of the prime contractor rather than fostering small business participation. This contract does not appear to directly benefit the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of U.S. Immigration and Customs Enforcement (ICE), a component of DHS. Accountability measures would be embedded in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is facilitated through contract databases like FPDS, which provide public access to contract awards. The Inspector General for the Department of Homeland Security would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Immigration Detention Services
Correctional Facility Management
Secure Facility Operations
Federal Law Enforcement Support Services
Department of Homeland Security Contracts
U.S. Immigration and Customs Enforcement Operations

Risk Flags

Limited Competition
Single Source Award
Potential for Price Inflation
Contractor Dependency Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $31.4 million to CORECIVIC, INC.. DETENTION SERVICES

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 $31.4 million.

What is the period of performance?

Start: 2010-07-01. End: 2011-06-30.

What is the historical spending pattern for detention services by ICE in California?

Analyzing historical spending patterns for detention services by ICE in California requires access to comprehensive contract data over multiple fiscal years. Generally, ICE's detention spending fluctuates based on immigration flows, policy changes, and available appropriations. Contracts can range from short-term facility leases to long-term management agreements. Historically, ICE has relied on both government-owned facilities and contracts with private entities like CoreCivic and GEO Group to meet detention capacity needs. Spending in California is often significant due to the state's proximity to the border and its role in processing immigration cases. Detailed analysis would involve examining the number of contracts awarded, their values, durations, and the specific services rendered to identify trends in cost, provider reliance, and geographic distribution of detention resources.

How does the per-unit cost of detention services in this contract compare to national averages or other ICE contracts?

Determining the precise per-unit cost requires specific data on the number of detainees housed and the total cost over the contract period. The provided data does not include the average daily population or a clear per-diem rate. However, industry reports and government watchdog analyses often benchmark detention costs. For instance, per-diem rates can vary significantly based on facility type, location, and services provided, often ranging from $100 to over $200 per detainee per day. Without the specific operational metrics for this $31.4 million contract, a direct comparison is challenging. Generally, contracts awarded under limited competition or to established providers might reflect higher per-unit costs compared to those with robust competition or in regions with lower operational expenses.

What specific criteria led to the exclusion of other potential sources in this 'Full and Open Competition After Exclusion of Sources' award?

The 'Full and Open Competition After Exclusion of Sources' (FOUCAS) procurement method implies that the solicitation was initially broad, but specific criteria were established that led to the exclusion of certain offerors from the competitive range. These exclusions are typically based on stringent requirements outlined in the solicitation, such as demonstrated experience in managing detention facilities of a certain size, specific security clearances, geographic proximity to operational needs, or possession of particular certifications. For this detention services contract, ICE likely required bidders to meet rigorous standards related to facility infrastructure, staffing qualifications, compliance with detention standards (e.g., Performance-Based National Detention Standards), and potentially prior successful performance with federal agencies. The exclusion of sources suggests that only CoreCivic, Inc. demonstrably met all these critical, potentially unique, prerequisites.

What is CoreCivic, Inc.'s track record with DHS and ICE for similar detention services contracts?

CoreCivic, Inc. (formerly Corrections Corporation of America) has a long and extensive history of contracting with federal agencies, including DHS and its component ICE, for the provision of detention and correctional services. The company operates numerous facilities across the United States that house immigration detainees. Their track record includes managing large-scale detention centers and providing a range of services related to detainee care, transportation, and facility operations. While CoreCivic has been a primary contractor for ICE for many years, its performance has also been subject to scrutiny and criticism from oversight bodies and advocacy groups regarding facility conditions, cost-effectiveness, and adherence to standards. Examining specific past performance evaluations and any disputes or corrective actions related to previous ICE contracts would provide a more detailed assessment of their track record for this particular award.

What are the potential risks associated with relying on a single provider for essential detention services in California?

Relying on a single provider, even after a form of open competition, introduces several risks. Firstly, it can lead to reduced negotiating leverage for the government, potentially resulting in higher costs over time as the provider faces less pressure to offer competitive pricing. Secondly, it creates a dependency; if the sole provider experiences operational failures, staffing shortages, or faces legal challenges, it could disrupt essential detention services, leading to capacity issues or emergency procurements. Thirdly, a lack of ongoing competition can diminish the incentive for the provider to innovate or continuously improve service quality beyond the minimum contractual requirements. Finally, it concentrates oversight responsibilities, requiring diligent monitoring to ensure compliance and prevent potential abuses or substandard conditions.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Services to Buildings and Dwellings › Other Services to Buildings and Dwellings

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

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, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $31,411,319

Exercised Options: $31,411,319

Current Obligation: $31,411,319

Parent Contract

Parent Award PIID: HSODT5C0003

IDV Type: IDC

Timeline