DHS awards $43.1M for Houston detention services, raising questions on value and competition

Contract Overview

Contract Amount: $43,135,404 ($43.1M)

Contractor: Corecivic, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2016-04-29

End Date: 2017-05-31

Contract Duration: 397 days

Daily Burn Rate: $108.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CL::IGF NEW TASK ORDER FOR DETENTION SERVICES FOR THE HOUSTON DETENTION FACILITY

Place of Performance

Location: HOUSTON, HARRIS County, TEXAS, 77032

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $43.1 million to CORECIVIC, INC. for work described as: IGF::CL::IGF NEW TASK ORDER FOR DETENTION SERVICES FOR THE HOUSTON DETENTION FACILITY Key points: 1. Contract value appears high relative to duration, suggesting potential for cost inefficiencies. 2. Full and open competition was utilized, but the number of bidders is not specified, impacting price discovery assessment. 3. Risk indicators are moderate, with a focus on service delivery for a critical government function. 4. Performance context involves detention services, a sensitive area requiring robust oversight. 5. Sector positioning is within government services, specifically immigration enforcement support. 6. The contract's fixed-price nature aims to control costs, but the overall value proposition needs further scrutiny.

Value Assessment

Rating: fair

The contract value of $43.1 million over approximately 13 months for detention services in Houston appears substantial. Benchmarking against similar contracts for detention facilities of comparable size and service scope is crucial to determine if this represents a fair price. Without more data on the specific services rendered and the number of individuals detained, a definitive value-for-money assessment is challenging. However, the per-month cost is significant, warranting a closer look at operational efficiencies and pricing structures.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which is generally positive for ensuring a competitive marketplace and potentially lower prices. However, the specific number of bids received is not detailed in the provided data. A high number of bidders typically indicates robust competition, leading to better price discovery. If only a few bids were submitted, even under full and open competition, the price discovery might be less effective.

Taxpayer Impact: Full and open competition is intended to provide the best value to taxpayers by encouraging multiple vendors to offer competitive pricing. The effectiveness of this mechanism depends on the actual level of participation from qualified bidders.

Public Impact

Benefits the Department of Homeland Security (DHS) by providing essential detention services for immigration enforcement operations. Services delivered include the housing, care, and security of individuals in immigration detention. Geographic impact is focused on the Houston, Texas area, supporting federal operations in that region. Workforce implications include employment opportunities for security personnel, support staff, and administrative roles within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if not managed tightly due to the significant contract value.
Ensuring consistent quality of care and security standards in detention facilities can be challenging.
Dependence on a single contractor for critical detention services may pose a risk if performance issues arise.

Positive Signals

Awarded under full and open competition, suggesting an effort to secure competitive pricing.
The firm-fixed-price contract type helps to define and control costs for the government.
The contract duration provides a defined period for service delivery, allowing for planning.

Sector Analysis

This contract falls within the government services sector, specifically supporting the Department of Homeland Security's immigration and customs enforcement functions. The market for detention services is specialized, often involving a limited number of large private contractors capable of meeting the stringent requirements. Comparable spending benchmarks would involve analyzing other contracts for detention facility operations across different federal agencies or regions, considering factors like bed capacity, service level agreements, and security protocols.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside for this contract. This suggests that the primary competition was likely among larger, established firms. There is no explicit information on subcontracting plans for small businesses, which could be an area for further investigation to understand the broader economic impact.

Oversight & Accountability

Oversight for this contract would typically fall under U.S. Immigration and Customs Enforcement (ICE), a component of DHS. Accountability measures would be defined in the contract's statement of work, performance standards, and payment clauses. Transparency is generally facilitated through contract award databases, but detailed operational oversight and Inspector General (IG) jurisdiction would focus on performance monitoring, compliance with regulations, and prevention of fraud, waste, and abuse.

Related Government Programs

Immigration Detention Services
Federal Law Enforcement Support Contracts
Correctional Facility Management
Department of Homeland Security Contracts
Immigration and Customs Enforcement Operations

Risk Flags

High contract value relative to duration requires scrutiny for cost-effectiveness.
Need for detailed information on the number of bidders to fully assess competition impact.
Potential for performance variability in sensitive detention services.
Lack of explicit small business subcontracting details.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $43.1 million to CORECIVIC, INC.. IGF::CL::IGF NEW TASK ORDER FOR DETENTION SERVICES FOR THE HOUSTON DETENTION FACILITY

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 $43.1 million.

What is the period of performance?

Start: 2016-04-29. End: 2017-05-31.

What is the historical spending pattern for detention services by U.S. Immigration and Customs Enforcement (ICE) in the Houston area?

Analyzing historical spending patterns for ICE detention services in the Houston area is crucial for contextualizing the $43.1 million award. This involves examining previous contracts awarded for similar services, including their duration, value, and the contractors involved. A trend of increasing costs, a rise in the number of contracts, or a shift towards specific types of facilities (e.g., private vs. government-run) could indicate evolving needs or market dynamics. Understanding past spending helps identify if this current award represents a significant deviation, a continuation of established trends, or a response to changing operational requirements. It also aids in assessing whether previous contracts delivered value for money and if lessons learned have been incorporated into the current award.

How does the per-day cost of detention under this contract compare to national averages or similar facilities in Texas?

To assess the value for money, a comparison of the per-day cost of detention under this $43.1 million contract against national averages and similar facilities in Texas is essential. The contract value of $43.1 million over approximately 13 months suggests a daily rate that needs to be calculated and benchmarked. Factors influencing this rate include the level of services provided (e.g., medical care, food, security), the capacity of the facility, and the specific security classifications of detainees housed. If the calculated per-day cost significantly exceeds benchmarks, it could indicate potential inefficiencies, higher operational expenses for the contractor, or a less competitive bidding process than anticipated. Conversely, a rate below average might suggest cost savings or a highly efficient operation.

What specific performance metrics are included in the contract, and how are they monitored by ICE?

The effectiveness and value of this detention services contract are heavily reliant on the specific performance metrics established and the rigor of their monitoring by ICE. Key metrics likely include detainee safety and security incident rates, health and medical care standards, food service quality, compliance with facility regulations, and timely transportation. ICE's oversight mechanism would involve regular inspections, audits, and performance reviews. The contract should clearly define acceptable performance levels and the consequences of failing to meet them, such as financial penalties or contract termination. Understanding these metrics and the monitoring process is vital to ensure the contractor is delivering the required services effectively and responsibly, safeguarding both detainees and taxpayer funds.

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

CoreCivic, Inc. is a major private prison and detention facility operator, and its track record with similar federal detention service contracts, especially with DHS and ICE, is a critical factor in assessing this award. Examining past performance, including the number and duration of previous contracts, their values, and any documented instances of contract disputes, performance failures, or positive performance reviews, provides insight into the company's reliability and capability. ICE would have likely reviewed CoreCivic's past performance during the procurement process. A history of successful contract execution, adherence to standards, and effective cost management would support the current award, while a pattern of issues could raise concerns about the long-term viability and value of this contract.

Were there any significant challenges or disputes during the performance of this contract, given its duration and value?

Investigating potential challenges or disputes during the performance of this $43.1 million contract is important for understanding its execution and overall success. Contracts of this magnitude and duration, particularly in sensitive areas like detention services, can encounter various issues, including scope changes, unforeseen operational costs, disputes over service quality, or compliance problems. Information regarding any formal disputes, contract modifications, or negative performance reviews would provide a more complete picture of the contractor's adherence to terms and ICE's oversight effectiveness. The absence of reported disputes could indicate smooth operations, but it could also suggest a lack of robust dispute resolution mechanisms or insufficient oversight.

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: $43,135,404

Exercised Options: $43,135,404

Current Obligation: $43,135,404

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: HSCEDM09D00007

IDV Type: IDC

Timeline