DHS's $39.7M detention bed contract with CoreCivic shows fair value but limited competition

Contract Overview

Contract Amount: $39,710,739 ($39.7M)

Contractor: Corecivic, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2015-07-01

End Date: 2016-06-30

Contract Duration: 365 days

Daily Burn Rate: $108.8K/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: IGF::CL::IGF DETENTION BEDS FOR SAN DIEGO, CA

Place of Performance

Location: SAN YSIDRO, SAN DIEGO County, CALIFORNIA, 92143

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $39.7 million to CORECIVIC, INC. for work described as: IGF::CL::IGF DETENTION BEDS FOR SAN DIEGO, CA Key points: 1. The contract's value appears reasonable when benchmarked against similar detention services. 2. Competition was limited, raising questions about optimal price discovery for taxpayer funds. 3. The fixed-price structure offers some cost certainty, but potential for cost overruns exists. 4. Performance context is crucial, as service quality directly impacts detainee welfare and agency operations. 5. This contract falls within the broader 'Other Services' category, lacking specific sector benchmarks. 6. The duration of the contract (1 year) suggests a need for ongoing market assessment.

Value Assessment

Rating: fair

The contract's total value of $39.7 million for one year of detention services in San Diego appears to be within a reasonable range when compared to publicly available data for similar services. However, without detailed breakdowns of per-diem rates and service inclusions, a precise value-for-money assessment is challenging. The fixed-price nature of the contract provides some predictability, but it's essential to monitor service delivery to ensure quality and prevent potential cost creep if unforeseen issues arise.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while the process was intended to be competitive, certain sources were excluded. The specific reasons for exclusion are not detailed in the provided data. A limited competition scenario can sometimes lead to higher prices than a fully open competition with multiple bidders, as it restricts the pool of potential offerors. Further investigation into the exclusion criteria would be necessary to fully understand the impact on price discovery.

Taxpayer Impact: The limited competition may have resulted in a higher price for taxpayers than could have been achieved through a broader, more inclusive bidding process. This underscores the importance of ensuring that exclusion criteria are justified and do not unduly restrict market participation.

Public Impact

Immigrants detained in San Diego, CA, benefit from the provision of essential services and shelter. U.S. Immigration and Customs Enforcement (ICE) receives critical support for its detention operations. The contract impacts the local economy in San Diego, CA, through employment and resource utilization. The services provided ensure compliance with detention standards and facilitate immigration processing.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition could lead to suboptimal pricing for taxpayers.
Lack of detailed service metrics makes performance monitoring difficult.
Potential for over-reliance on a single provider for critical services.

Positive Signals

Fixed-price contract offers cost predictability.
Contract duration is relatively short, allowing for reassessment.
Awarded by a major federal agency (DHS).

Sector Analysis

This contract falls under the broad category of 'Other Services to Buildings and Dwellings,' which is not a distinct industry sector with readily available benchmarks. The private detention services market is a significant component of the correctional and immigration enforcement landscape. Spending in this area is influenced by immigration policy, border security efforts, and judicial processing of immigration cases. Comparable spending would typically be assessed against other government contracts for detention facilities and related services.

Small Business Impact

The provided data indicates that small business participation was not a stated requirement or outcome for this contract (ss: false, sb: false). There is no information on subcontracting plans or performance related to small businesses. Therefore, the impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily engages small businesses in its supply chain.

Oversight & Accountability

Oversight for this contract would primarily fall under the purview of U.S. Immigration and Customs Enforcement (ICE), a component of the Department of Homeland Security (DHS). ICE is responsible for monitoring contractor performance, ensuring compliance with contract terms and detention standards, and managing payments. While the contract data does not specify Inspector General (IG) jurisdiction, DHS's Office of Inspector General typically has oversight over DHS contracts to identify waste, fraud, and abuse. Transparency is facilitated through contract awards databases, but detailed performance reports are often internal.

Related Government Programs

Immigration and Customs Enforcement Operations
Detention Services Contracts
Federal Law Enforcement Support Services
Homeland Security Contracts

Risk Flags

Limited Competition
Potential for Profit Over Care
Oversight Challenges in Private Facilities

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $39.7 million to CORECIVIC, INC.. IGF::CL::IGF DETENTION BEDS FOR 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 $39.7 million.

What is the period of performance?

Start: 2015-07-01. End: 2016-06-30.

What is the historical spending pattern for detention bed services by ICE in the San Diego region?

Historical spending data for ICE detention bed services in the San Diego region reveals a consistent need for such facilities to manage immigration flows. Prior to and following this specific $39.7 million contract with CoreCivic, Inc. (2015-2016), ICE has awarded numerous contracts for detention space across the country, including in California. These contracts vary in duration, capacity, and cost, influenced by fluctuating immigration policies and enforcement priorities. Analyzing past contracts would show trends in per-diem rates, provider consolidation, and the overall budget allocated to detention. For instance, examining contracts awarded in the years immediately preceding and succeeding this one could indicate whether pricing has increased or decreased, and if the number of awarded contracts has changed, suggesting shifts in market dynamics or agency strategy. This context is crucial for understanding if the $39.7 million represented a typical, elevated, or reduced expenditure for the services rendered.

How does the per-unit cost of this contract compare to other ICE detention contracts nationwide?

A precise per-unit cost comparison for this $39.7 million contract is challenging without knowing the exact number of bed-days or the average daily population housed. However, if we assume a standard per-diem rate typical for such facilities, which can range from $100 to $200 or more depending on services included (medical care, transportation, etc.), we can infer a potential range. For example, if the average per-diem was $150, this contract would cover approximately 264,000 bed-days. Benchmarking this against other ICE contracts nationwide requires access to detailed contract line-item data and average daily population figures for comparable facilities. Generally, contracts in high-cost-of-living areas like San Diego might command higher rates. Furthermore, the level of competition and the specific services mandated by ICE significantly influence per-unit costs across different contracts.

What are the specific performance metrics and quality standards associated with this detention services contract?

The provided data does not detail the specific performance metrics or quality standards for this detention services contract. Typically, such contracts include requirements related to detainee safety, health services, food quality, facility maintenance, staffing levels, and compliance with ICE Performance-Based National Detention Standards (PBNDS). Performance is usually monitored through regular site visits, audits, and reporting by ICE officials. Failure to meet these standards can result in corrective action plans, financial penalties, or contract termination. Without access to the contract's statement of work (SOW) and any associated performance work statements (PWS), a thorough assessment of the contractor's adherence to quality and service delivery expectations is not possible.

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

CoreCivic, Inc. (formerly Corrections Corporation of America) has a long and extensive history of operating correctional and detention facilities for federal, state, and local governments, including significant contracts with U.S. Immigration and Customs Enforcement (ICE). The company manages a large portfolio of detention centers across the United States. Its track record is marked by both substantial operational capacity and, at times, significant controversy. Critics and oversight bodies have raised concerns regarding safety conditions, staffing levels, and the quality of care provided in some of its facilities. Conversely, CoreCivic highlights its compliance with government standards and its role in providing necessary detention infrastructure. Evaluating CoreCivic's performance on this specific $39.7 million contract would require reviewing ICE's performance evaluations, any issued notices of deficiency, and public reports concerning the San Diego facility during the contract period.

What are the risks associated with relying on private contractors for immigration detention services?

Relying on private contractors like CoreCivic for immigration detention services presents several risks. A primary concern is the potential for prioritizing profit over the well-being of detainees, which can lead to inadequate staffing, substandard living conditions, and insufficient medical care. Oversight can be challenging, as government monitoring may not always detect systemic issues within facilities. Furthermore, the use of private detention centers can create a profit motive for maintaining high occupancy rates, potentially influencing immigration enforcement policies. There are also risks related to transparency and accountability, as private companies may be less forthcoming with information than government agencies. Finally, contractor performance can be inconsistent, leading to disruptions in service delivery or necessitating costly contract modifications or terminations.

How did the 'exclusion of sources' clause impact the competitive landscape and final pricing for this contract?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' clause indicates that while the solicitation was intended to be open, specific potential bidders were deliberately excluded. The reasons for such exclusions are critical to understanding the impact. If sources were excluded based on objective criteria related to capability, past performance, or security, it might be justifiable. However, if exclusions were arbitrary or based on criteria that unduly limited competition, it could lead to a less competitive environment. A reduced number of bidders typically results in less downward pressure on pricing, potentially leading to a higher contract award price than if all capable sources had been allowed to compete. Without knowing who was excluded and why, it's difficult to quantify the precise impact on the $39.7 million award, but it inherently restricts the market and may have diminished the opportunity for the government to secure the best possible value.

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: $39,710,739

Exercised Options: $39,710,739

Current Obligation: $39,710,739

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: HSODT5C0003

IDV Type: IDC

Timeline