DHS awarded $20.9M for detention services, with CoreCivic Inc. securing the contract

Contract Overview

Contract Amount: $20,943,015 ($20.9M)

Contractor: Corecivic, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2010-06-04

End Date: 2011-09-30

Contract Duration: 483 days

Daily Burn Rate: $43.4K/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 & GUARD SERVICES AT ELIZABETH DETENTION FACILITY UNDER CONTRACT NO. DJJODT-5-C-0010.

Place of Performance

Location: NEWARK, ESSEX County, NEW JERSEY, 07102

State: New Jersey Government Spending

Plain-Language Summary

Department of Homeland Security obligated $20.9 million to CORECIVIC, INC. for work described as: TO PROVIDE FUNDING FOR DETENTION & GUARD SERVICES AT ELIZABETH DETENTION FACILITY UNDER CONTRACT NO. DJJODT-5-C-0010. Key points: 1. The contract value of $20.9 million for detention and guard services represents a significant investment in correctional facility operations. 2. CoreCivic, Inc. was awarded this contract, indicating their established presence and capabilities in providing detention services. 3. The contract duration of 483 days suggests a medium-term operational need for these services. 4. The award was made under a full and open competition, implying a robust bidding process. 5. The fixed-price contract type suggests that the government has a clear understanding of the costs involved. 6. The geographic location in New Jersey places the facility within a key operational area for immigration enforcement.

Value Assessment

Rating: fair

The total award of $20.9 million for approximately 16 months of service needs further benchmarking against similar contracts for detention and guard services. Without specific per-unit costs or detailed service scopes, a precise value-for-money assessment is challenging. However, the firm-fixed-price structure suggests a degree of cost certainty for the government. The base contract value of $4.3 million for the initial period provides a starting point for comparison, but the full value reflects the potential for task orders and extensions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, meaning that all responsible sources were permitted to submit a bid. The presence of 3 bidders indicates a moderate level of competition for this specific requirement. While competition is generally positive for price discovery, the specific number of bidders does not inherently guarantee the lowest possible price without further analysis of bid amounts and technical proposals.

Taxpayer Impact: A full and open competition is beneficial for taxpayers as it encourages multiple companies to vie for the contract, potentially driving down costs and improving service quality through competitive pressure.

Public Impact

The primary beneficiaries are U.S. Immigration and Customs Enforcement (ICE) and the Department of Homeland Security (DHS), who receive essential detention and guard services. The services delivered include the operation and management of the Elizabeth Detention Facility, ensuring secure housing for detainees. The geographic impact is concentrated in New Jersey, supporting federal law enforcement operations in the region. The contract supports jobs within the private correctional services industry, contributing to the workforce in the sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if not managed tightly under the fixed-price structure.
Dependence on a single contractor for critical detention services raises concerns about service continuity.
Ensuring consistent quality of care and security standards across the contract duration.

Positive Signals

Awarded through full and open competition, suggesting a fair and transparent process.
Firm-fixed-price contract type provides cost predictability for the government.
The contractor, CoreCivic, Inc., has experience in providing similar services.

Sector Analysis

The private detention services sector is a significant component of the broader correctional and security industry. This contract falls within the government services sub-sector, specifically focusing on detention operations. The market is characterized by a few large, established providers like CoreCivic, Inc. and GEO Group, who compete for government contracts. Spending in this area is often driven by immigration policies and enforcement priorities. Benchmarking this contract's value against similar facilities operated by different entities would provide further insight into its market competitiveness.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary focus would be on the prime contractor's subcontracting plan, if any, to engage small businesses. Without explicit information on subcontracting goals or achievements, the direct impact on the small business ecosystem is unclear, though large contracts often have indirect benefits through the supply chain.

Oversight & Accountability

Oversight for this contract would typically be managed by U.S. Immigration and Customs Enforcement (ICE) contracting officers and program managers. Accountability measures are embedded within the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract award databases like FPDS. 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

Federal Prison System Operations
Immigration Detention Services
Correctional Facility Management
Secure Transportation Services

Risk Flags

Potential for cost overruns
Service continuity risk
Quality of care concerns
Contractor performance variability

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $20.9 million to CORECIVIC, INC.. TO PROVIDE FUNDING FOR DETENTION & GUARD SERVICES AT ELIZABETH DETENTION FACILITY UNDER CONTRACT NO. DJJODT-5-C-0010.

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 $20.9 million.

What is the period of performance?

Start: 2010-06-04. End: 2011-09-30.

What is the historical spending pattern for detention and guard services at the Elizabeth Detention Facility prior to this award?

Analyzing historical spending for the Elizabeth Detention Facility prior to the June 4, 2010 award requires access to prior contract data. This specific award (DJJODT-5-C-0010) covers the period from June 2010 to September 2011. To understand historical patterns, one would need to examine contracts awarded to previous or incumbent providers for the same facility. This would involve searching contract databases for awards related to the Elizabeth Detention Facility under agencies like ICE or its predecessors. Without that specific historical data, it's difficult to establish a trend or benchmark the $20.9 million award against past expenditures. However, the duration of 483 days and the firm-fixed-price nature suggest a defined scope and budget for this period.

How does the per-diem cost of detention under this contract compare to other ICE-contracted facilities?

To compare the per-diem cost of detention under this contract (DJJODT-5-C-0010) with other ICE-contracted facilities, we would need to calculate the average daily cost. The total award is $20,943,015.01 over a period of 483 days. This yields an approximate average daily cost of $43,360.61. To make a meaningful comparison, this figure would need to be divided by the average daily population housed at the facility during the contract period. Without the average daily population data, a direct per-diem cost cannot be calculated. Furthermore, comparisons should be made with facilities of similar size, security levels, and service scope, as well as considering regional cost variations. Publicly available reports from ICE or oversight bodies often provide aggregated per-diem cost data for comparison.

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

CoreCivic, Inc. (formerly Corrections Corporation of America) has a substantial track record of providing detention and correctional services to federal agencies, including DHS and ICE. They have historically operated numerous detention facilities under various contracts. Examining their performance on prior ICE contracts would involve reviewing past performance evaluations, any documented disputes or contract modifications, and their history of compliance with detention standards. Given their significant presence in the sector, it is likely that ICE has extensive data on CoreCivic's performance. This specific contract (DJJODT-5-C-0010) represents one of many engagements between CoreCivic and the government for detention services, suggesting a level of established capability and familiarity with government requirements.

What are the key performance indicators (KPIs) used to evaluate the contractor's performance under this contract?

Key Performance Indicators (KPIs) for detention and guard services contracts typically focus on operational safety, security, and humane treatment of detainees. Specific KPIs would likely include metrics related to incident rates (e.g., assaults, escapes, use of force), detainee health and welfare (e.g., access to medical care, food quality), facility maintenance and cleanliness, staff training and retention, and compliance with ICE Performance-Based National Detention Standards (PBNDS). The contract document itself would detail these KPIs, along with the methodology for measuring performance and any associated incentive or penalty clauses. Regular performance reviews and site visits by government officials are standard oversight mechanisms.

Were there any significant contract modifications or disputes during the performance of this contract?

To determine if there were significant contract modifications or disputes during the performance of contract DJJODT-5-C-0010, one would need to access the contract's official modification history and any records of formal disputes or claims filed. Contract modification data is typically available through federal procurement databases. Significant modifications could involve changes in scope, duration, or price. Disputes often arise from disagreements over contract terms, performance, or payment. Without direct access to these specific contract records, it's impossible to definitively state whether modifications or disputes occurred. However, for a contract of this value and duration, some level of modification is not uncommon.

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: $20,943,015

Exercised Options: $20,943,015

Current Obligation: $20,943,015

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: DJJODT05C0010

IDV Type: IDC

Timeline