DHS awarded $11.37M for detention services to CoreCivic, Inc. in Arizona

Contract Overview

Contract Amount: $11,371,000 ($11.4M)

Contractor: Corecivic, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2007-05-04

End Date: 2008-09-30

Contract Duration: 515 days

Daily Burn Rate: $22.1K/day

Competition Type: FOLLOW ON TO COMPETED ACTION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DETENTION SERVICES

Place of Performance

Location: FLORENCE, PINAL County, ARIZONA, 85132

State: Arizona Government Spending

Plain-Language Summary

Department of Homeland Security obligated $11.4 million to CORECIVIC, INC. for work described as: DETENTION SERVICES Key points: 1. CoreCivic, Inc. secured a contract for detention services, indicating a need for secure holding facilities. 2. The contract was a follow-on to a competed action, suggesting prior market engagement. 3. The firm fixed-price contract type aims to control costs by establishing a set price. 4. The contract duration was 515 days, providing a defined period for service delivery. 5. The services were delivered in Arizona, highlighting a specific geographic focus for detention operations.

Value Assessment

Rating: fair

The contract value of $11.37 million for approximately 17 months of service appears within a reasonable range for detention services, though specific per-bed rates or service inclusions are not detailed. Benchmarking against similar contracts for immigration detention facilities would provide a clearer picture of value for money. The firm fixed-price structure suggests an attempt to manage cost predictability for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract is described as a 'FOLLOW ON TO COMPETED ACTION,' which implies that the initial award was competed, but this specific action may have had limited competition. Without further details on the nature of the follow-on, it's difficult to ascertain the exact level of competition. If it was a sole-source follow-on or restricted competition, it could limit price discovery and potentially lead to higher costs.

Taxpayer Impact: Limited competition can mean taxpayers may not be getting the most cost-effective solution if alternative providers were not seriously considered or allowed to bid.

Public Impact

Immigrants in the U.S. immigration system benefit from the provision of detention services. The services delivered include the secure holding and management of individuals awaiting immigration proceedings. The geographic impact is concentrated in Arizona, where the detention facilities are located. The contract supports jobs within the private detention services industry, including security and support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for over-reliance on a single provider if competition was limited in follow-on actions.
Concerns about the quality of care and conditions in private detention facilities.
The firm fixed-price contract might incentivize cost-cutting that could impact service quality if not closely monitored.

Positive Signals

The contract was a follow-on to a competed action, suggesting a baseline of competition existed.
The firm fixed-price contract provides cost certainty for the government.
The contract specifies a defined period, allowing for reassessment of needs and competition at its conclusion.

Sector Analysis

The private detention services sector is a significant part of the correctional and immigration enforcement landscape. Companies like CoreCivic, Inc. provide essential infrastructure and services to government agencies managing detention populations. Spending in this sector is often driven by immigration policy and enforcement priorities. Benchmarks for per-diem rates in detention facilities vary widely based on location, security levels, and services provided.

Small Business Impact

There is no indication in the provided data that this contract involved small business set-asides or significant subcontracting opportunities for small businesses. CoreCivic, Inc. is a large corporation, and contracts of this nature are typically awarded to prime contractors capable of managing large-scale operations. Further investigation would be needed to determine if any small business participation was mandated or occurred.

Oversight & Accountability

Oversight for detention services contracts typically falls under the purview of the contracting agency, U.S. Immigration and Customs Enforcement (ICE), a component of the Department of Homeland Security. This includes monitoring facility conditions, adherence to performance standards, and financial accountability. The Inspector General for DHS would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Immigration Detention Services
Correctional Facility Management
Secure Holding Services
Federal Law Enforcement Support

Risk Flags

Follow-on action without clear competition details
Potential for cost inefficiencies in fixed-price contracts if scope changes
Reliance on private sector for essential government services

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $11.4 million to CORECIVIC, INC.. 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 $11.4 million.

What is the period of performance?

Start: 2007-05-04. End: 2008-09-30.

What was the specific nature of the 'competed action' that this contract followed?

The designation 'FOLLOW ON TO COMPETED ACTION' indicates that the original contract for these detention services was awarded through a competitive bidding process. However, the specifics of that initial competition, including the number of bidders and the evaluation criteria, are not provided in this data snippet. A follow-on action could imply a modification, extension, or a new contract awarded to the incumbent based on past performance or limited market options. Understanding the details of the original competition is crucial for assessing whether the follow-on action maintained adequate competition or represented a potential consolidation of services with a single provider.

How does the awarded amount compare to the estimated value or budget for this service period?

The awarded amount of $11.37 million for a contract duration of 515 days (approximately 17 months) provides a concrete figure for the services rendered. However, without access to the government's initial budget allocation or cost estimates for this specific requirement, it is difficult to definitively assess if the award represents a favorable or unfavorable outcome from a budgetary perspective. Comparing the average daily cost derived from this contract ($11,370,003.20 / 515 days ≈ $22,080 per day) to industry benchmarks for similar detention services in Arizona would be a more effective method for evaluating value for money.

What performance metrics or service level agreements were associated with this contract?

The provided data does not include details on the specific performance metrics or service level agreements (SLAs) tied to this detention services contract. Typically, such contracts would outline requirements related to facility safety, security, inmate care, staffing levels, and response times. The effectiveness of the contract is largely dependent on the government's ability to monitor and enforce these metrics. Without this information, it's challenging to evaluate the contractor's performance beyond the basic delivery of services and to determine if the government received the expected quality and standards of care.

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

CoreCivic, Inc. (formerly Corrections Corporation of America) is a major private operator of correctional and detention facilities in the United States. They have a long history of contracting with federal agencies, including the Department of Homeland Security (DHS) and the Federal Bureau of Prisons. Their track record often involves significant contract values and spans various types of detention and incarceration services. Publicly available information and contract databases would reveal numerous awards and performance reviews. Analyzing their past performance on similar DHS contracts, including any documented issues related to safety, security, or cost overruns, would provide crucial context for evaluating this specific award.

Were there any significant cost variations or overruns in the execution of this contract?

The data provided indicates a firm fixed-price contract type ('pt': 'FIRM FIXED PRICE'). This contract structure is designed to limit cost variations and overruns for the government, as the price is set at the outset. Unless there were change orders or contract modifications that altered the scope or price, the awarded amount of $11.37 million should represent the total cost. However, without access to the contract's full execution history, including any amendments or modifications, it's impossible to definitively state whether cost variations or overruns occurred. Firm fixed-price contracts generally place more risk on the contractor to manage costs.

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

The provided data snippet focuses on a single contract awarded in 2007. To understand historical spending trends for detention services by ICE in Arizona, a broader analysis of contracts over multiple years would be necessary. This would involve examining annual spending reports, contract databases (like FPDS or USASpending), and identifying all contracts awarded for detention services within Arizona, specifying the agencies involved (primarily ICE), the contractors, and the total amounts obligated. Such an analysis would reveal whether spending has increased, decreased, or remained stable, and identify key contractors and the types of services procured over time.

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: FOLLOW ON TO COMPETED ACTION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10 BURTON HILLS BLVD, NASHVILLE, TN, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $13,330,355

Exercised Options: $13,330,355

Current Obligation: $11,371,000

Parent Contract

Parent Award PIID: HSCEMS03D0013

IDV Type: IDC

Timeline