DHS awarded $24.4M for detainee housing services to CoreCivic, Inc. in Arizona

Contract Overview

Contract Amount: $24,442,990 ($24.4M)

Contractor: Corecivic, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2015-07-01

End Date: 2016-07-31

Contract Duration: 396 days

Daily Burn Rate: $61.7K/day

Competition Type: FOLLOW ON TO COMPETED ACTION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CT::IGF DETAINEE HOUSING

Place of Performance

Location: PHOENIX, MARICOPA County, ARIZONA, 85004

State: Arizona Government Spending

Plain-Language Summary

Department of Homeland Security obligated $24.4 million to CORECIVIC, INC. for work described as: IGF::CT::IGF DETAINEE HOUSING Key points: 1. CoreCivic, Inc. has been awarded a significant contract for detainee housing, indicating a reliance on established providers for essential services. 2. The contract's fixed-price nature suggests a degree of cost certainty for the government, though potential for cost overruns exists if service needs escalate. 3. The award follows a previously competed action, implying a potential for competitive pricing, but the specific competition dynamics for this follow-on order require further scrutiny. 4. The geographic concentration in Arizona highlights the regional focus of this particular detainee housing requirement. 5. The contract duration of 396 days provides a stable period for service delivery, but also necessitates ongoing monitoring of performance. 6. The absence of small business set-aside flags suggests this contract was not specifically targeted to small business participation.

Value Assessment

Rating: fair

The contract value of $24.4 million for approximately 13 months of service appears to be within a reasonable range for detainee housing services, given the specialized nature of such facilities and the associated operational costs. Benchmarking against similar contracts for detention services would provide a more precise assessment of value for money. However, without detailed service level agreements and performance metrics, a definitive value assessment is challenging. The firm fixed-price structure offers some predictability, but the total cost is contingent on the number of detainees housed and the duration of their stay.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a follow-on to a competed action, suggesting that the initial award was subject to a competitive bidding process. However, the specifics of the competition for this particular delivery order are not detailed. It is unclear if other vendors were solicited or if this was a sole-source continuation based on the prior competition. A full and open competition typically involves broad solicitation, leading to a wider range of proposals and potentially more competitive pricing. The level of competition for this follow-on order will influence whether the government is achieving the best possible price and service.

Taxpayer Impact: The fact that this is a follow-on to a competed action is positive, as it implies the initial award was likely competitive. However, the lack of detail on the current competition level means taxpayers may not be benefiting from the most aggressive pricing possible if the follow-on was not re-competed broadly.

Public Impact

Immigrants and individuals in federal custody requiring detention services are the primary beneficiaries of this contract. The services delivered include housing, security, and potentially other support functions for detainees. The geographic impact is concentrated in Arizona, where the detention facilities are located. The contract supports jobs within the private corrections industry, contributing to the workforce in the correctional services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for over-reliance on a single contractor for critical detention services.
Ensuring consistent quality of care and adherence to detention standards over the contract period.
Managing fluctuations in detainee populations and their impact on service delivery and costs.

Positive Signals

Award follows a previously competed action, suggesting a foundation of competitive pricing.
Firm fixed-price contract provides cost predictability for the government.
Contract duration offers stability for service provision and operational planning.

Sector Analysis

The federal government utilizes private contractors for a range of correctional and detention services, particularly for immigration and customs enforcement. This sector involves significant spending on facility management, security, and detainee care. The market is characterized by a few large, established players who manage numerous facilities across the country. Spending benchmarks for detainee housing can vary widely based on location, security levels, and the scope of services provided, making direct comparisons crucial for assessing value.

Small Business Impact

The data indicates that this contract was not awarded as a small business set-aside, nor does it explicitly mention subcontracting goals for small businesses. This suggests that the primary award went to a large business, CoreCivic, Inc. The absence of specific small business provisions means that opportunities for small businesses to participate in this contract, either as prime contractors or subcontractors, may be limited. This could impact the broader small business ecosystem within the federal contracting landscape for detention services.

Oversight & Accountability

Oversight of 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 defined in the contract's statement of work, including performance standards, reporting requirements, and potential penalties for non-compliance. Transparency is facilitated through contract award databases, but detailed operational oversight and inspector general reviews are crucial for ensuring proper service delivery and preventing waste, fraud, and abuse.

Related Government Programs

Federal Bureau of Prisons Contracts
U.S. Marshals Service Detention Contracts
Immigration and Customs Enforcement Detention Services
Correctional Facility Management Contracts

Risk Flags

Potential for cost overruns if not managed tightly.
Risk of service quality issues impacting detainee welfare.
Contractor performance monitoring is critical.
Reliance on a single large provider.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $24.4 million to CORECIVIC, INC.. IGF::CT::IGF DETAINEE HOUSING

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 $24.4 million.

What is the period of performance?

Start: 2015-07-01. End: 2016-07-31.

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

CoreCivic, Inc. (formerly Corrections Corporation of America) is a major private prison operator with a long history of contracting with federal agencies, including the Department of Homeland Security (DHS) and its predecessor agencies, as well as the Federal Bureau of Prisons and the U.S. Marshals Service. The company has managed numerous detention facilities across the United States. Its track record includes managing facilities for immigration detention, federal inmate housing, and other correctional services. However, CoreCivic has also faced scrutiny and criticism regarding facility conditions, staffing levels, and instances of violence or escapes at facilities it operates. Evaluating their performance on specific contracts requires examining past performance reviews, any imposed sanctions, and compliance with contractual obligations and detention standards.

How does the awarded price compare to similar detainee housing contracts?

Comparing the awarded price of approximately $24.4 million for a 13-month period requires detailed analysis of the contract's scope of work, including the number of beds, services provided (e.g., food, medical, security), and location-specific operational costs. Without this granular detail, a direct comparison is difficult. However, the per diem rates for federal detainee housing can range significantly, often from $70 to over $150 per inmate per day, depending on the facility's security level and services. If this contract supports a substantial number of detainees, the total value suggests a significant operational scale. Benchmarking against other ICE or BOP contracts for similar services in comparable geographic regions would be necessary to determine if this represents good value for money.

What are the primary risks associated with this contract for the government?

The primary risks associated with this contract include potential issues with the quality of care and living conditions for detainees, which can lead to legal challenges and reputational damage for the government. There's also a risk of contractor non-compliance with contractual terms, security breaches, or operational failures that could disrupt detention operations. Cost overruns are a risk, particularly if the firm fixed-price contract does not adequately account for fluctuations in detainee populations or unforeseen operational challenges. Furthermore, reliance on a single large provider like CoreCivic can reduce flexibility and bargaining power in future contract negotiations.

What is the historical spending pattern for detainee housing services by DHS?

The Department of Homeland Security (DHS), primarily through U.S. Immigration and Customs Enforcement (ICE), has consistently spent billions of dollars annually on detainee operations and detention services. This spending encompasses the operation of detention facilities, transportation of detainees, and related support services. Historical data shows a significant and often increasing trend in this spending over the past decade, driven by immigration policies and enforcement efforts. The government utilizes a mix of its own facilities and contracts with private companies like CoreCivic and GEO Group to meet its detention capacity needs. Analyzing historical spending patterns reveals a substantial and ongoing federal commitment to detention infrastructure and services.

What are the implications of this contract being a 'follow-on to competed action'?

The designation 'follow-on to competed action' indicates that the original contract for these services was awarded through a competitive bidding process. This is generally a positive sign, as it suggests that the initial award was based on merit and competitive pricing. However, for this specific delivery order, it implies that the government may have chosen to continue with the incumbent contractor without a full re-competition. While this can offer efficiency and continuity, it raises questions about whether the government is still achieving the best possible value and pricing compared to a fresh, open competition. The level of competition for the original action and the terms of the follow-on are critical factors in assessing its impact.

How does the geographic location (Arizona) influence the cost and service delivery?

The geographic location in Arizona can influence the cost and service delivery of detainee housing contracts due to several factors. Labor costs for staff, including security personnel and support services, can vary significantly by region. The availability of qualified personnel and the cost of real estate for facility operations also play a role. Furthermore, proximity to immigration processing centers, courts, and transportation hubs can impact logistical costs and efficiency. Arizona's specific regulatory environment for detention facilities and its role as a border state may also influence the demand for and nature of detention services, potentially affecting contract terms and pricing.

Industry Classification

NAICS: Public Administration › Justice, Public Order, and Safety Activities › Other Justice, Public Order, and Safety Activities

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FOLLOW ON TO COMPETED ACTION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

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: $24,442,990

Exercised Options: $24,442,990

Current Obligation: $24,442,990

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: DJJODT9C0001

IDV Type: IDC

Timeline