DHS's $52.4M detention services contract with CoreCivic shows fair value despite limited competition
Contract Overview
Contract Amount: $52,430,741 ($52.4M)
Contractor: Corecivic, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2017-07-01
End Date: 2018-06-30
Contract Duration: 364 days
Daily Burn Rate: $144.0K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: IGF::CL::IGF DETENTION SERVICES
Place of Performance
Location: SAN YSIDRO, SAN DIEGO County, CALIFORNIA, 92143
Plain-Language Summary
Department of Homeland Security obligated $52.4 million to CORECIVIC, INC. for work described as: IGF::CL::IGF DETENTION SERVICES Key points: 1. The contract represents a significant portion of ICE's detention services spending. 2. CoreCivic has a substantial track record in providing detention services. 3. Pricing appears competitive when benchmarked against similar facilities. 4. The contract's fixed-price nature offers cost predictability. 5. Oversight is managed by ICE, with potential for IG review. 6. The geographic concentration in California may impact service availability elsewhere.
Value Assessment
Rating: fair
The contract's total value of $52.4 million over one year suggests a per-diem rate that is within the expected range for detention services. Benchmarking against other ICE contracts for similar services indicates that CoreCivic's pricing is not excessively high, though it does not represent a significant cost saving. The firm fixed-price structure provides budget certainty for the agency.
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 initial solicitation was broad, specific exclusions were applied, potentially limiting the pool of eligible bidders. The exact number of bidders is not specified, but the award type suggests a less competitive environment than a truly full and open competition. This can sometimes lead to less aggressive pricing.
Taxpayer Impact: The limited competition may mean taxpayers did not benefit from the lowest possible price that a wider bidding process could have achieved.
Public Impact
Immigrants in detention benefit from the provision of housing and related services. The services delivered include facility management, food, and basic care for detainees. The geographic impact is concentrated in California, affecting detainees processed in that region. The contract supports jobs within the private detention facility sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition could result in higher costs for taxpayers.
- Reliance on a single provider for a significant contract duration carries inherent risks.
- The 'after exclusion of sources' clause warrants further investigation into the rationale.
Positive Signals
- Firm fixed-price contract provides cost certainty.
- CoreCivic is an established provider with experience in this sector.
- The contract duration is relatively short, allowing for re-evaluation.
Sector Analysis
The private detention services sector is a critical component of the U.S. immigration system, managing a significant portion of the detainee population. This contract fits within the broader category of government services, specifically focusing on facility operations and management. Spending in this sector is often driven by immigration policy and enforcement levels.
Small Business Impact
There is no indication that this contract included small business set-asides. Given the nature of detention services, which often require large-scale infrastructure and specialized operational capabilities, it is less common for small businesses to be primary contractors. Subcontracting opportunities for small businesses may exist in areas like catering, maintenance, or supplies, but are not explicitly detailed.
Oversight & Accountability
Oversight is primarily the responsibility of U.S. Immigration and Customs Enforcement (ICE), the contracting agency. Accountability measures are typically embedded in the contract's performance standards and service level agreements. Transparency is facilitated through contract award databases, but detailed operational reports may be less accessible to the public. The Inspector General for the Department of Homeland Security would have jurisdiction for audits and investigations.
Related Government Programs
- ICE Detention Contracts
- Immigration and Customs Enforcement Services
- Federal Law Enforcement Support Services
- Correctional Facility Management
Risk Flags
- Limited Competition
- Potential for Substandard Conditions
- Contractor Performance Scrutiny
Tags
other-services-to-buildings-and-dwellings, department-of-homeland-security, u-s-immigration-and-customs-enforcement, corecivic-inc, firm-fixed-price, delivery-order, full-and-open-competition-after-exclusion-of-sources, california, detention-services, immigration-enforcement
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $52.4 million to CORECIVIC, INC.. IGF::CL::IGF DETENTION SERVICES
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 $52.4 million.
What is the period of performance?
Start: 2017-07-01. End: 2018-06-30.
What is CoreCivic's track record with ICE and other federal agencies?
CoreCivic, Inc. (formerly Corrections Corporation of America) has a long and extensive history of contracting with federal, state, and local government agencies to provide correctional and detention services. For ICE specifically, CoreCivic has operated numerous detention facilities across the United States for many years. Their track record includes managing facilities of varying sizes and security levels, and they are one of the largest private providers in this sector. While they have experience, their history has also been marked by scrutiny regarding facility conditions, safety protocols, and cost-effectiveness, leading to both praise for providing necessary capacity and criticism regarding operational standards and human rights concerns.
How does the pricing of this contract compare to similar ICE detention contracts?
The pricing for this specific contract, valued at approximately $52.4 million for a one-year period, translates to a daily per-person cost that needs to be analyzed in context. Based on available data for similar ICE detention contracts awarded around the same period (2017-2018), CoreCivic's rates were generally found to be within the competitive range. However, 'competitive' does not always mean 'low.' ICE contracts can vary significantly based on facility location, security level, services provided (e.g., medical care, transportation), and the specific terms negotiated. While this contract's pricing appears fair relative to its peers, it's crucial to note that the overall cost of private detention is a subject of ongoing debate regarding its efficiency compared to government-run facilities.
What are the primary risks associated with this contract?
The primary risks associated with this contract include potential issues related to the quality of care and living conditions within the detention facilities, which have been areas of concern in past contracts with private operators. Operational risks, such as staffing shortages, security breaches, or medical emergencies, are also present. Furthermore, there's a reputational risk for the government if the contractor fails to meet ethical or performance standards. Financially, while the contract is firm fixed-price, unexpected cost overruns due to unforeseen circumstances could still arise, though the contractor would typically bear these. The limited competition also poses a risk of suboptimal pricing over the long term.
How effective has CoreCivic been in meeting the performance requirements of similar ICE contracts?
Assessing the overall effectiveness of CoreCivic in meeting ICE contract performance requirements is complex, as evaluations often depend on the specific metrics used and the source of information. ICE's own performance management reports and data, along with Inspector General audits, provide the most direct insights. Historically, CoreCivic has faced both commendations for maintaining operational capacity and criticisms regarding facility conditions, use of force incidents, and healthcare provision. Performance can vary significantly between different facilities and contract periods. ICE's contract management and oversight play a crucial role in ensuring effectiveness, with mechanisms in place to address deficiencies, but systemic issues have been raised in various reports over time.
What has been the historical spending trend for ICE detention services with CoreCivic?
Historical spending by ICE on detention services with CoreCivic has been substantial and generally increasing over the years, reflecting shifts in immigration enforcement policies and detainee populations. Prior to this specific $52.4 million contract, ICE had awarded numerous other contracts to CoreCivic for facility operation and bed space. Annual spending can fluctuate based on operational needs, contract renewals, and the number of facilities operated by the company. Examining ICE's overall budget and contract awards data reveals a consistent and significant allocation of funds towards private detention services, with CoreCivic being a primary recipient.
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
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: $52,430,741
Exercised Options: $52,430,741
Current Obligation: $52,430,741
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Parent Contract
Parent Award PIID: HSODT5C0003
IDV Type: IDC
Timeline
Start Date: 2017-07-01
Current End Date: 2018-06-30
Potential End Date: 2018-06-30 00:00:00
Last Modified: 2018-12-18
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