DHS awarded $38.5M for detainee wages and postage, with CoreCivic Inc. securing the contract

Contract Overview

Contract Amount: $38,519,790 ($38.5M)

Contractor: Corecivic, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2014-04-30

End Date: 2015-03-30

Contract Duration: 334 days

Daily Burn Rate: $115.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CL::IGF FUNDING FOR DETAINEE WAGES AND POSTAGE

Place of Performance

Location: HOUSTON, HARRIS County, TEXAS, 77032

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $38.5 million to CORECIVIC, INC. for work described as: IGF::CL::IGF FUNDING FOR DETAINEE WAGES AND POSTAGE Key points: 1. The contract's value of $38.5 million for detainee wages and postage suggests a significant operational cost. 2. CoreCivic, Inc., a major private prison operator, was awarded this contract, raising questions about potential conflicts of interest. 3. The contract duration of 334 days indicates a short-term need for these services. 4. The fixed-price nature of the contract aims to control costs, but the specific services provided warrant further scrutiny. 5. The absence of small business involvement suggests this contract did not prioritize small business participation. 6. The contract was awarded under full and open competition, implying a broad search for qualified bidders.

Value Assessment

Rating: fair

The contract value of $38.5 million for detainee wages and postage is substantial. Benchmarking this against similar contracts for detention facility operations is difficult without more granular service details. However, the per-day cost appears high, suggesting potential inefficiencies or a broad scope of services included under 'wages and postage'. Further analysis of the specific wage rates and postage volumes would be needed for a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that multiple bidders were likely considered. This approach is generally favorable for price discovery and ensuring the government receives competitive pricing. The fact that only one award was made suggests that CoreCivic, Inc. was the most competitive bidder based on the criteria set forth in the solicitation.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process which should theoretically lead to more cost-effective service delivery and prevent price gouging.

Public Impact

Detainees benefit from wages for labor performed and postage services, potentially improving their living conditions and ability to communicate. The services delivered are essential for the day-to-day operations of immigration detention facilities. The contract's geographic impact is concentrated in Texas, where the contractor operates facilities. Workforce implications include employment for detainees in various roles and potential administrative staff for managing these programs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for inflated costs associated with detainee wages and postage services.
Lack of transparency in how detainee wages are calculated and disbursed.
Limited oversight on the actual services provided under the broad 'wages and postage' category.
CoreCivic's significant role in private detention could lead to concerns about profit motives influencing service delivery.

Positive Signals

Awarded through full and open competition, suggesting a fair process.
Fixed-price contract type helps to establish cost certainty.
Services provided are essential for detainee welfare and facility operations.

Sector Analysis

This contract falls within the government services sector, specifically related to correctional and detention facility support. The market for private prison management and related services is substantial, with several large players like CoreCivic and GEO Group dominating. Spending in this area is often driven by immigration policy and enforcement levels. Comparable spending benchmarks would typically involve looking at per-diem costs for detention operations and associated support services.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This suggests that the primary focus was on securing services from large, established providers capable of managing detention facility operations. The impact on the small business ecosystem is likely minimal for this specific contract.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of U.S. Immigration and Customs Enforcement (ICE) within the Department of Homeland Security. Accountability measures would be outlined in the contract's statement of work, performance standards, and payment clauses. Transparency is often limited in detention facility contracts due to security concerns, but contract awards and basic details are usually publicly available through federal procurement databases.

Related Government Programs

Detention Facility Operations
Immigration and Customs Enforcement Contracts
Private Prison Services
Government Support Services

Risk Flags

Potential for cost overruns if not closely monitored
Contractor's profit motive may conflict with optimal service delivery
Limited transparency in service provision and cost allocation

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $38.5 million to CORECIVIC, INC.. IGF::CL::IGF FUNDING FOR DETAINEE WAGES AND POSTAGE

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 $38.5 million.

What is the period of performance?

Start: 2014-04-30. End: 2015-03-30.

What is the historical spending pattern for detainee wages and postage services by DHS or ICE?

Analyzing historical spending patterns for detainee wages and postage services by DHS or ICE requires access to detailed procurement data over several fiscal years. Generally, spending in this category can fluctuate based on detainee populations, policy changes, and the number of facilities under contract. Contracts for detention services often include provisions for detainee welfare, which can encompass wages for work performed within facilities and communication services like postage. Without specific historical data for this particular service line, it's difficult to establish a precise trend. However, overall spending on immigration detention has been a significant and often debated aspect of the federal budget, suggesting a consistent, albeit variable, need for related services.

How does the per-day cost of this contract compare to industry benchmarks for detainee support services?

Determining the precise per-day cost for detainee support services under this $38.5 million contract requires knowing the average daily detainee population served over the contract's 334-day duration. If we assume a hypothetical average population, we could calculate a rough per-day figure. However, comparing this to industry benchmarks is challenging without more specific details on what 'detainee wages and postage' entails. Industry benchmarks for detention services often focus on the overall per-diem cost of housing a detainee, which includes security, food, medical care, and staffing. Wages and postage are typically a smaller component. If this contract solely covers these specific items, the per-day cost could be relatively high compared to the portion of overall detention costs dedicated to these services, suggesting potential for cost efficiencies or a very comprehensive definition of 'wages and postage'.

What are the specific services included under 'detainee wages and postage' and how are they monitored?

The specific services included under 'detainee wages and postage' are not detailed in the provided data. Typically, 'detainee wages' would refer to payments made to detainees for work performed within the detention facility, such as cleaning, kitchen duties, or other operational support roles. 'Postage' would likely cover the cost of mailing letters and packages for detainees. Monitoring these services would fall under the responsibility of the contracting officer's representative (COR) at ICE. The COR would be tasked with ensuring that the contractor, CoreCivic, Inc., adheres to the contract's statement of work, including accurate calculation and disbursement of wages, and appropriate provision of postage services. Performance metrics and regular reporting would likely be stipulated in the contract to ensure compliance and proper service delivery.

What is CoreCivic, Inc.'s track record with similar government contracts, particularly concerning cost management and service delivery?

CoreCivic, Inc. (formerly Corrections Corporation of America) has a long and extensive track record of operating correctional and detention facilities for federal, state, and local governments. As one of the largest private prison companies in the U.S., they manage numerous contracts. Their track record is complex and has faced scrutiny regarding cost management, staffing levels, and the quality of services provided. Reports from government watchdogs and media investigations have sometimes highlighted concerns about cost-cutting measures impacting inmate safety and care. However, they also consistently win and retain significant government contracts, indicating they meet minimum performance requirements and are often competitive on price. For this specific contract, the fixed-price nature and full and open competition suggest a focus on defined deliverables, but ongoing performance monitoring by ICE would be crucial.

What is the rationale behind awarding a contract for detainee wages and postage to a private entity rather than managing it internally?

The rationale for awarding contracts for services like detainee wages and postage to private entities often stems from a combination of factors, including perceived cost savings, specialized expertise, and the desire to outsource non-core functions. Private contractors like CoreCivic, Inc. may argue they can achieve economies of scale and operational efficiencies in managing these specific aspects of detention facility operations. For ICE, outsourcing these tasks can allow them to focus resources on core law enforcement and detention management responsibilities. Furthermore, the fluctuating nature of detainee populations might make it more efficient to contract for variable services rather than maintain a permanent internal workforce for tasks that may not be consistently needed at full capacity across all facilities.

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: FULL AND OPEN COMPETITION

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, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $38,519,790

Exercised Options: $38,519,790

Current Obligation: $38,519,790

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: HSCEDM09D00007

IDV Type: IDC

Timeline