DHS awarded $32.2M for detention and food services, with a high per-unit cost for a single delivery order

Contract Overview

Contract Amount: $32,232,868 ($32.2M)

Contractor: Corecivic, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2012-07-01

End Date: 2013-06-30

Contract Duration: 364 days

Daily Burn Rate: $88.6K/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: "CRITICAL FUNCTION" - IGF::CT::IGF. DETENTION&TRANSPORTATION AND FOOD SERVICES OTAY MESA CDF, SAN DIEGO, CA.

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $32.2 million to CORECIVIC, INC. for work described as: "CRITICAL FUNCTION" - IGF::CT::IGF. DETENTION&TRANSPORTATION AND FOOD SERVICES OTAY MESA CDF, SAN DIEGO, CA. Key points: 1. The contract's value of $32.2 million for a one-year period suggests a significant operational cost. 2. Competition was full and open after exclusion of sources, indicating a deliberate procurement strategy. 3. The fixed-price contract type aims to control costs, but the per-unit cost warrants scrutiny. 4. Performance is tied to detention and transportation, as well as food services, critical for ICE operations. 5. The single delivery order for the entire period may limit flexibility and potentially increase risk. 6. The contractor, CoreCivic, Inc., is a major player in correctional and detention services. 7. Geographic concentration in San Diego, CA, highlights specific operational needs in that region.

Value Assessment

Rating: questionable

The contract's total value of $32.2 million for a single year of operation, encompassing detention, transportation, and food services, appears high. Benchmarking against similar contracts for correctional facility support is crucial. The fixed-price nature suggests cost certainty for the government, but the absence of detailed cost breakdowns makes a precise value-for-money assessment difficult without further data. The high per-unit cost, as indicated by the benchmark, raises concerns about efficiency and potential overspending.

Cost Per Unit: $885,520 per unit (based on 364 days)

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This specific procurement method suggests that while the competition was intended to be broad, certain sources were excluded, possibly due to specific requirements or prior performance issues. The exact number of bidders is not provided, but the 'exclusion of sources' clause implies a potentially narrowed field compared to a truly unrestricted full and open competition. This could impact price discovery and the government's ability to secure the most competitive pricing.

Taxpayer Impact: The limited competition, even if initially broad, may have resulted in less aggressive pricing than a fully open process, potentially costing taxpayers more. Understanding the rationale for excluding sources is key to assessing if this limitation was justified and did not unduly inflate costs.

Public Impact

Immigrants in detention facilities in the San Diego area benefit from essential services. The contract ensures the provision of food services, a critical component of detention operations. Transportation services for detainees are also covered, facilitating movement within the judicial and immigration system. The contract supports jobs within the private corrections and services industry in California. Operational continuity for U.S. Immigration and Customs Enforcement (ICE) in the San Diego region is maintained.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High per-unit cost suggests potential for cost inefficiencies.
Limited competition after exclusion of sources may have reduced price competitiveness.
Single delivery order for the entire duration could limit flexibility and increase risk if needs change.
Reliance on a single contractor for critical detention and food services concentrates risk.

Positive Signals

Fixed-price contract type provides cost certainty for the government.
Full and open competition, even with exclusions, aims for a competitive award.
Contract addresses essential services for a critical government function (detention and transportation).

Sector Analysis

This contract falls within the broader government services sector, specifically focusing on correctional and detention support. The market for these services is dominated by a few large private sector companies, including CoreCivic, Inc. Spending in this area is driven by federal immigration policies and enforcement priorities. Comparable spending benchmarks would typically involve analyzing contracts for similar detention facility operations, food services, and transportation for detainees across different federal agencies and geographic locations. The size of this contract is substantial for a single-year delivery order.

Small Business Impact

The provided data does not indicate any small business set-aside provisions for this contract, nor does it specify subcontracting goals for small businesses. Given the nature of the services (detention and food services for a federal agency) and the size of the contract, it is likely that the prime contractor, CoreCivic, Inc., is a large business. Further investigation would be needed to determine if any subcontracting opportunities exist for small businesses within the scope of this award and if such opportunities were actively pursued or mandated.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Immigration and Customs Enforcement (ICE), a component of the Department of Homeland Security. ICE contracting officers and program managers are responsible for monitoring contractor performance, ensuring compliance with contract terms, and verifying the quality of services delivered. The Department of Homeland Security's Office of Inspector General (OIG) also has jurisdiction to conduct audits and investigations into DHS contracts to ensure accountability and identify potential waste, fraud, or abuse. Transparency is facilitated through contract databases like FPDS, though detailed performance reports are often internal.

Related Government Programs

Federal Detention Services
Immigration and Customs Enforcement Contracts
Correctional Facility Management
Government Food Services Contracts
Detainee Transportation Services

Risk Flags

High per-unit cost
Limited competition after source exclusion
Potential for cost inefficiencies
Lack of detailed cost breakdown

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $32.2 million to CORECIVIC, INC.. "CRITICAL FUNCTION" - IGF::CT::IGF. DETENTION&TRANSPORTATION AND FOOD SERVICES OTAY MESA CDF, SAN DIEGO, CA.

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 $32.2 million.

What is the period of performance?

Start: 2012-07-01. End: 2013-06-30.

What is the track record of CoreCivic, Inc. in providing detention and food services to federal agencies, and have there been any significant performance issues or disputes on past contracts?

CoreCivic, Inc. is a major private operator of correctional and detention facilities in the United States. The company has a long history of contracting with federal, state, and local governments. While generally fulfilling its contractual obligations, CoreCivic has faced scrutiny and criticism regarding conditions in its facilities, staffing levels, and cost-effectiveness. Past performance reviews and contract disputes can vary significantly. For instance, some contracts may have been renewed without issue, while others might have experienced challenges related to inmate safety, healthcare provision, or operational efficiency. A thorough review of specific past performance evaluations and any documented disputes related to similar detention and food service contracts would be necessary to fully assess their track record for this specific award.

How does the per-unit cost of $885,520 for this contract compare to industry benchmarks for similar detention and food services over a one-year period?

The per-unit cost of approximately $885,520 for this one-year contract is notably high. Benchmarking this figure requires careful comparison with contracts for similar services, considering factors like facility size, location, security levels, and the specific scope of services (detention, transportation, food). Generally, per-diem costs for detention services can range significantly, but a total annual cost of this magnitude for a single 'unit' (which appears to represent the daily operational cost over the contract duration) suggests a premium price. Without knowing the exact capacity or daily population served, a precise comparison is difficult. However, this figure warrants further investigation to determine if it reflects unique operational complexities, high security requirements, or potential inefficiencies compared to other government or private sector contracts for comparable services.

What were the specific reasons for excluding certain sources during the 'full and open competition after exclusion of sources' procurement process?

The solicitation method 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates that the agency, U.S. Immigration and Customs Enforcement (ICE), initially intended to solicit offers from all responsible sources but subsequently decided to exclude specific ones. The reasons for such exclusions are typically documented in the contract file and procurement records. Common justifications include: prior unsatisfactory performance by a potential bidder, failure to meet specific technical qualifications or security requirements, or a determination that certain sources were not capable of meeting the unique needs of the requirement. In some cases, exclusions might be related to specific legal or regulatory mandates. Understanding these specific exclusions is critical for assessing whether the competition was genuinely robust or if it unduly limited the pool of potential offerors, potentially impacting the final price and value received by the government.

What is the expected daily population or capacity of the detention facility being supported by this contract, and how does this influence the overall cost-effectiveness?

The provided data does not specify the expected daily population or the capacity of the detention facility supported by this contract. This information is crucial for a comprehensive cost-effectiveness analysis. The total contract value of $32.2 million, when divided by the duration (364 days), yields a daily operational cost. However, without knowing the number of detainees served, it's impossible to calculate a meaningful per-detainee cost. A higher per-detainee cost could indicate a less cost-effective operation, or it could be justified by specialized services, high security needs, or a low occupancy rate that still incurs significant fixed operational expenses. Clarifying the facility's capacity and average daily population is essential for benchmarking and assessing value for money.

Are there any performance metrics or service level agreements (SLAs) associated with this contract, and how is compliance monitored by DHS?

The provided data does not detail the specific performance metrics or service level agreements (SLAs) tied to this contract. However, contracts for detention and food services typically include stringent requirements regarding the quality of food, timely transportation, facility maintenance, safety protocols, and staff conduct. U.S. Immigration and Customs Enforcement (ICE) would be responsible for monitoring the contractor's adherence to these requirements. This monitoring usually involves regular inspections, performance reviews, and potentially the use of government-furnished data. Failure to meet established metrics or SLAs could result in contractual remedies, such as penalties or termination. The effectiveness of oversight and the clarity of performance standards are key indicators of contract management quality.

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, 37215

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $32,232,868

Exercised Options: $32,232,868

Current Obligation: $32,232,868

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: HSODT5C0003

IDV Type: IDC

Timeline