DHS awarded CoreCivic $23M for detention services in Tennessee, a follow-on to a competed action

Contract Overview

Contract Amount: $23,084,957 ($23.1M)

Contractor: Corecivic, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2017-06-27

End Date: 2018-06-30

Contract Duration: 368 days

Daily Burn Rate: $62.7K/day

Competition Type: FOLLOW ON TO COMPETED ACTION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF CORECIVIC FLORENCE CORRECTION FACILITY DETENTION SERVICES

Place of Performance

Location: NASHVILLE, DAVIDSON County, TENNESSEE, 37215

State: Tennessee Government Spending

Plain-Language Summary

Department of Homeland Security obligated $23.1 million to CORECIVIC, INC. for work described as: IGF::OT::IGF CORECIVIC FLORENCE CORRECTION FACILITY DETENTION SERVICES Key points: 1. The contract represents a significant investment in detention services, highlighting the ongoing need for such facilities. 2. CoreCivic, a major player in private corrections, holds a substantial portion of the detention services market. 3. The fixed-price nature of the contract provides some cost certainty, but requires careful monitoring of service delivery. 4. The follow-on nature suggests a degree of contractor familiarity and established operational processes. 5. Geographic concentration in Tennessee may indicate specific regional immigration enforcement priorities. 6. The contract's duration and value warrant scrutiny for potential cost efficiencies and performance outcomes.

Value Assessment

Rating: fair

The awarded amount of $23,084,956.66 for detention services over approximately 368 days appears to be within a reasonable range for large-scale detention operations. Benchmarking against similar contracts for correctional facility management and detention services would provide a clearer picture of value for money. However, without specific per-detainee-per-day cost data or comparisons to publicly operated facilities, a definitive assessment of cost-effectiveness is challenging. The firm-fixed-price structure helps control costs but relies heavily on the contractor's operational efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a follow-on to a competed action, indicating that the initial award was subject to a competitive bidding process. While the specific details of the original competition are not provided, the 'follow-on' designation suggests that the current award may have been made to the incumbent contractor based on performance or through a streamlined process. The level of competition for the original award would have been crucial in determining price discovery and ensuring the government received the best value.

Taxpayer Impact: A competitive initial award generally benefits taxpayers by driving down prices and encouraging innovation. The follow-on nature, if not re-competed, could potentially lead to less aggressive pricing compared to a new full and open competition.

Public Impact

Immigrants in U.S. Immigration and Customs Enforcement (ICE) custody in Tennessee benefit from the provision of detention services. The contract ensures the availability of secure facilities for the housing and management of detainees. The geographic impact is concentrated in Tennessee, supporting federal immigration enforcement operations within that region. The contract supports jobs within the private corrections industry, specifically at the Florence Correction Facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for over-reliance on a single provider for critical detention services.
Ensuring consistent adherence to humane treatment and care standards within detention facilities.
Monitoring contractor performance to prevent service degradation over the contract term.
Assessing the long-term cost-effectiveness compared to alternative detention models or publicly run facilities.

Positive Signals

Follow-on award suggests satisfactory performance on the previous contract.
Firm-fixed-price contract provides cost predictability for the government.
The contract is for a defined period, allowing for periodic re-evaluation of needs and contractor performance.
Awarded by a major federal agency (DHS) indicates adherence to established procurement processes.

Sector Analysis

The detention services sector is a significant part of the broader private corrections industry, which manages correctional facilities and provides related services for government agencies. This contract fits within the 'Other Justice, Public Order, and Safety Activities' category, reflecting the government's need for specialized facilities to manage individuals in immigration proceedings. Spending in this sector is often influenced by immigration policies, enforcement priorities, and judicial backlogs. Comparable spending benchmarks would involve analyzing the per-diem costs of other ICE or BOP detention contracts.

Small Business Impact

This contract was not specifically set aside for small businesses, and the prime contractor, CoreCivic, Inc., is a large corporation. There is no explicit information provided regarding subcontracting plans or goals for small businesses within this specific award. The impact on the small business ecosystem is likely minimal unless CoreCivic actively engages small businesses for support services related to facility operations or maintenance.

Oversight & Accountability

Oversight for this contract would primarily fall under U.S. Immigration and Customs Enforcement (ICE), a component of the Department of Homeland Security (DHS). ICE contracting officers and program managers are responsible for monitoring contractor performance, ensuring compliance with contract terms, and verifying service delivery. Transparency is facilitated through contract award databases like FPDS. While specific Inspector General (IG) jurisdiction for this particular contract isn't detailed, the DHS Office of Inspector General generally has oversight over DHS spending and operations, including those related to detention services.

Related Government Programs

Immigration and Customs Enforcement (ICE) Operations
Detention and Removal Operations
Federal Bureau of Prisons (BOP) Contracts
Department of Justice (DOJ) Contracts
Secure Facility Management Services

Risk Flags

Contract Type: Firm Fixed Price
Contracting Agency: Department of Homeland Security
Contracting Component: U.S. Immigration and Customs Enforcement
Follow-on Action
Private Detention Facility Operation

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $23.1 million to CORECIVIC, INC.. IGF::OT::IGF CORECIVIC FLORENCE CORRECTION FACILITY 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 $23.1 million.

What is the period of performance?

Start: 2017-06-27. End: 2018-06-30.

What is CoreCivic's track record with ICE and DHS regarding detention services?

CoreCivic, Inc. has a long-standing and extensive track record of providing detention and correctional services to various government agencies, including U.S. Immigration and Customs Enforcement (ICE) and the Federal Bureau of Prisons (BOP). They operate numerous facilities across the United States under various contract types. While their history includes significant contract awards, it has also been marked by scrutiny and criticism related to facility conditions, inmate safety, and cost-effectiveness. ICE and DHS performance evaluations, available through contract data systems, would provide specific metrics on CoreCivic's performance under this and similar contracts, including compliance with standards, incident rates, and responsiveness to issues. Publicly available information and IG reports often detail specific concerns or commendations related to their operations.

How does the per-diem cost of this contract compare to other ICE detention facilities?

Determining the exact per-diem cost for this specific contract requires dividing the total award amount ($23,084,956.66) by the estimated number of detainee days over the contract period (approximately 368 days). Without knowing the average daily population housed at the Florence Correction Facility under this contract, a precise per-diem rate cannot be calculated. However, ICE detention per-diem rates can vary significantly based on facility type, location, services provided, and contract terms. Historically, per-diem rates for ICE detention have ranged from approximately $100 to over $200 per detainee per day. To benchmark this contract, one would need to compare its calculated per-diem rate against the rates of other ICE-contracted facilities of similar size and service level, as well as against publicly operated facilities, to assess value for money.

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

The primary risks associated with relying on private contractors for immigration detention include potential conflicts of interest (profit motive versus humane care), challenges in ensuring consistent quality of care and adherence to standards, difficulties in oversight and accountability, and the potential for higher costs if not managed effectively. Critics often point to instances of understaffing, inadequate medical care, and safety concerns within privately operated facilities. Furthermore, the "revolving door" phenomenon, where former government officials move into high-paying positions within contracting companies, can raise concerns about undue influence. Ensuring robust contract management, independent oversight, and clear performance metrics are crucial to mitigating these risks.

What is the historical spending trend for immigration detention services by DHS?

Historical spending by the Department of Homeland Security (DHS) on immigration detention services has shown a significant upward trend over the past two decades, largely driven by increased numbers of border apprehensions and evolving immigration policies. Both U.S. Immigration and Customs Enforcement (ICE) and U.S. Customs and Border Protection (CBP) contract for detention space. Spending fluctuates based on enforcement priorities, judicial decisions, and political directives. While specific year-over-year figures require detailed analysis of DHS budget appropriations and contract databases, the overall trajectory indicates a substantial and growing reliance on both government-run and privately-operated facilities to manage the detainee population. This trend has led to increased scrutiny of the costs, conditions, and effectiveness of these detention operations.

How does the 'follow-on to competed action' designation impact transparency and competition?

The 'follow-on to competed action' designation indicates that the initial contract was awarded through a competitive process, but the current award is a subsequent action, potentially to the same contractor. This can impact transparency and competition in several ways. While the initial competition likely provided a baseline for price and performance, a follow-on action might not undergo the same rigorous, full-and-open competition. Depending on the specific procurement regulations and the nature of the follow-on action (e.g., options, modifications, or new task orders), the level of competition could be limited or even non-existent if it's a sole-source extension based on the original competition's success. This can reduce opportunities for new vendors to enter the market and potentially limit price reductions that might occur in a fresh competitive bidding environment. Transparency is maintained through public contract databases, but the nuances of the follow-on process might obscure the full competitive landscape.

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: $23,084,957

Exercised Options: $23,084,957

Current Obligation: $23,084,957

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: DJJODT9C0001

IDV Type: IDC

Timeline