DHS awarded $135.4M contract for detention services, with significant option periods driving total value

Contract Overview

Contract Amount: $44,898,062 ($44.9M)

Contractor: Corecivic, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2007-06-12

End Date: 2008-09-30

Contract Duration: 476 days

Daily Burn Rate: $94.3K/day

Competition Type: FOLLOW ON TO COMPETED ACTION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BASE YEAR - 36-MONTH CONTRACT COMMENCED ON JULY 1, 2005 3 YR BASE: BASE 3 OF 3 (JUL 1, 2007 - JUN 30, 2008): $28,479.973 YEAR 1 OF 3 JULY 1, 2005 JUNE 30, 2006 YEAR 2 OF 3 JULY 1, 2006 JUNE 30, 2007 YEAR 3 OF 3 JULY 1, 2007 JUNE 30, 2008 OPTION PERIOD I COMMENCES UPON EXPIRATION OF THE BASE AND EXTENDS FOR 36 MONTHS (3 YEARS) 3 YR OPT: OPT 1 (JUL 1, 2008 - JUN 30, 2011): $102,025,330.58 YEAR 1 OF 3 JULY 1, 2008 JUNE 30, 2009 YEAR 2 OF 3 JULY 1, 2009 JUNE 30, 2010 YEAR 3 OF 3 JULY 1, 2010 JUNE 30, 2011 OPTION PERIOD II - COMMENCES UPON EXPIRATION OF THE OPTION I AND EXTENDS FOR 36 MONTHS (3 YEARS) 3 YR OPT: OPT 2 (JUL 1, 2011 - JUN 30, 2014): $104,939,247.08 YEAR 1 OF 3 JULY 1, 2011 JUNE 30, 2012 YEAR 2 OF 3 JULY 1, 2012 JUNE 30, 2013 YEAR 3 OF 3 JULY 1, 2013 JUNE 30, 2014 OPTION PERIOD III - COMMENCES UPON EXPIRATION OF THE OPTION II AND EXTENDS FOR 36 MONTHS (3 YEARS) 3 YR OPT: OPT 3 (JUL 1, 2014 - JUN 30, 2017): $108,123,761.33 YEAR 1 OF 3 JULY 1, 2014 JUNE 30, 2015 YEAR 2 OF 3 JULY 1, 2015 JUNE 30, 2016 YEAR 3 OF 3 JULY 1, 2016 JUNE 30, 2017 OPTION PERIOD IV COMMENCES UPON EXPIRATION OF THE OPTION III AND EXTENDS FOR 36 MONTHS (3 YEARS) 3 YR OPT: OPT 4 (JUL 1, 2017 - JUN 30, 2020): $111,601,579.58 YEAR 1 OF 3 JULY 1, 2017 JUNE 30, 2018 YEAR 2 OF 3 JULY 1, 2018 JUNE 30, 2019 YEAR 3 OF 3 JULY 1, 2019 JUNE 30, 2020 OPTION PERIOD V COMMENCES UPON EXPIRATION OF THE OPTION IV AND EXTENDS FOR 36 MONTHS (3 YEARS) 3 YR OPT: OPT 5 (JUL 1, 2020 - JUN 30, 2023): $112,323,391.58 YEAR 1 OF 3 JULY 1, 2020 JUNE 30, 2021 YEAR 2 OF 3 JULY 1, 2021 JUNE 30, 2022 YEAR 3 OF 3 JULY 1, 2022 JUNE 30, 2023

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92101

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $44.9 million to CORECIVIC, INC. for work described as: BASE YEAR - 36-MONTH CONTRACT COMMENCED ON JULY 1, 2005 3 YR BASE: BASE 3 OF 3 (JUL 1, 2007 - JUN 30, 2008): $28,479.973 YEAR 1 OF 3 JULY 1, 2005 JUNE 30, 2006 YEAR 2 OF 3 JULY 1, 2006 JUNE 30, 2007 YEAR 3 OF 3 JULY 1, 2007 JUNE 30, 2008 OPTION PERIOD I COMMENCES UPON EXPIR… Key points: 1. The contract's value is heavily weighted towards option periods, suggesting long-term needs but also potential for cost escalation. 2. The initial base year was relatively small compared to subsequent option periods, indicating a ramp-up in service requirements or scope. 3. The contract type is Firm Fixed Price, which shifts cost overrun risk to the contractor. 4. The contract was a follow-on to a competed action, implying some level of prior competition and potential for established pricing benchmarks. 5. The services provided fall under 'Other Services to Buildings and Dwellings,' a broad category that may encompass facility management and support. 6. The contract duration is substantial, spanning over 4 years, indicating a sustained requirement for the services.

Value Assessment

Rating: fair

The total contract value, including all options, reaches approximately $135.4 million over its potential duration. The base year was significantly smaller ($28.5 million) than the option periods, which are valued at over $102 million and $104.9 million respectively. Without specific benchmarks for detention services or comparable contracts, it's difficult to definitively assess value for money. However, the substantial increase in value during option periods warrants scrutiny to ensure continued cost-effectiveness and alignment with evolving needs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The data indicates this was a 'FOLLOW ON TO COMPETED ACTION,' suggesting that the original contract was competed. However, the specific competition details for this particular delivery order or subsequent option periods are not provided. A follow-on action can sometimes indicate a streamlined process, but without knowing the number of bidders or the nature of the original competition, it's hard to assess its impact on price discovery.

Taxpayer Impact: The lack of detailed competition information for this specific award makes it difficult to ascertain if taxpayers received the best possible pricing through robust market engagement.

Public Impact

The primary beneficiaries are U.S. Immigration and Customs Enforcement (ICE) and the Department of Homeland Security (DHS), receiving detention services. The services delivered are related to facility operations and support for detention centers. The contract is geographically located in California, impacting the local economy and workforce in that region. The contract supports the government's immigration enforcement and detention policies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost creep in option periods if not closely managed.
Lack of detailed competition data for this specific award makes value assessment challenging.
Broad service category ('Other Services to Buildings and Dwellings') could obscure specific cost drivers.

Positive Signals

Firm Fixed Price contract structure shifts cost risk to the contractor.
Follow-on nature suggests potential for leveraging existing contractor knowledge and infrastructure.
Long-term contract provides stability for service delivery.

Sector Analysis

This contract falls within the broader 'Government Services' sector, specifically focusing on facility management and support for correctional or detention facilities. The market for such services is often characterized by specialized providers catering to government needs. Benchmarking would ideally involve comparing pricing for similar detention facility operations contracts across different agencies or jurisdictions, considering factors like capacity, location, and service scope.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions or subcontracting requirements for this contract. As a follow-on action to a competed contract, it's possible that small business participation was addressed in the original solicitation, but details are not available here. Further investigation would be needed to determine the extent of small business involvement.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security (DHS) and U.S. Immigration and Customs Enforcement (ICE). As a firm-fixed-price contract, performance monitoring is key to ensuring services meet contractual requirements. Transparency would be enhanced by public reporting of performance metrics and any modifications or task orders issued under the contract. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse.

Related Government Programs

DHS Detention Services Contracts
ICE Facility Management Contracts
Government Support Services Contracts
Correctional Facility Operations

Risk Flags

Potential for cost escalation in option periods.
Lack of detailed competition information for this specific award.
Broad service category may obscure specific cost drivers.
Need for detailed performance metrics to assess value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $44.9 million to CORECIVIC, INC.. BASE YEAR - 36-MONTH CONTRACT COMMENCED ON JULY 1, 2005 3 YR BASE: BASE 3 OF 3 (JUL 1, 2007 - JUN 30, 2008): $28,479.973 YEAR 1 OF 3 JULY 1, 2005 JUNE 30, 2006 YEAR 2 OF 3 JULY 1, 2006 JUNE 30, 2007 YEAR 3 OF 3 JULY 1, 2007 JUNE 30, 2008 OPTION PERIOD I COMMENCES UPON EXPIRATION OF THE BASE AND EXTENDS FOR 36 MONTHS (3 YEARS) 3 YR OPT: OPT 1 (JUL 1, 2008 - JUN 30, 2011): $102,025,330.58 YEAR 1 OF 3 JULY 1, 2008 JUNE 30, 2009 YEAR 2 OF 3 JULY 1, 2009 JUNE 30, 2010 YEAR 3 OF 3 JULY 1, 20

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 $44.9 million.

What is the period of performance?

Start: 2007-06-12. End: 2008-09-30.

What was the original competition for this contract, and how many bids were received?

The provided data states this is a 'FOLLOW ON TO COMPETED ACTION,' indicating that the initial contract was subject to competition. However, the specific details of that original competition, including the number of bids received and the winning contractor's proposal, are not included in this data extract. Understanding the original competitive landscape is crucial for assessing whether the current pricing reflects a competitive market. Without this information, it's difficult to determine if the follow-on award benefited from robust prior competition or if it represents a less competitive scenario.

How does the per-year cost of the option periods compare to the base year, and what might explain the difference?

The base year cost was approximately $28.5 million for a 12-month period (July 1, 2007 - June 30, 2008). Option Period I, spanning July 1, 2008 - June 30, 2011 (36 months), has a total value of $102,025,330.58, averaging roughly $34 million per year. Option Period II, from July 1, 2011 - June 30, 2014 (36 months), is valued at $104,939,247.08, averaging approximately $35 million per year. The option periods represent a significant increase in annual spending compared to the base year. This escalation could be due to increased service scope, inflation adjustments, expanded facility usage, or the addition of new service requirements not present in the initial base period. A detailed review of the contract modifications and statements of work for each period would be necessary to pinpoint the exact drivers of this cost increase.

What are the specific services included under 'Other Services to Buildings and Dwellings' for this contract?

The classification 'Other Services to Buildings and Dwellings' is quite broad and typically encompasses a range of facility-related support services beyond basic maintenance. For a contract with U.S. Immigration and Customs Enforcement (ICE), this could include, but is not limited to, custodial services, grounds maintenance, minor repairs and alterations, pest control, security system maintenance, waste management, and potentially specialized support for detention facility operations. The exact scope would be detailed in the contract's Statement of Work (SOW). Without the SOW, it's challenging to assess the efficiency or cost-effectiveness of specific service components.

What is the historical spending trend for this contract or similar contracts awarded by DHS/ICE?

The provided data shows a clear spending trend: a base year of approximately $28.5 million, followed by two option periods each valued significantly higher, around $102 million and $104.9 million respectively. This indicates a substantial increase in the contract's value over time, suggesting either an expansion of services, increased utilization, or potentially escalating costs. To understand the broader historical trend, one would need to examine spending on similar detention services contracts awarded by DHS and ICE over multiple fiscal years. This would help determine if this contract's growth is an anomaly or part of a larger pattern in federal detention operations spending.

What are the key performance indicators (KPIs) used to evaluate the contractor's performance?

The provided data does not specify the Key Performance Indicators (KPIs) used to evaluate CORECIVIC, INC.'s performance under this contract. Typically, for detention services, KPIs would focus on areas such as facility safety and security, inmate well-being (e.g., healthcare access, food services, sanitation), compliance with regulations, response times for incidents, and overall facility operational efficiency. The effectiveness of oversight mechanisms and the clarity of these KPIs are crucial for ensuring the government receives the contracted services adequately and that taxpayer funds are used appropriately. Without visibility into these KPIs, a thorough assessment of performance value is limited.

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: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FOLLOW ON TO COMPETED ACTION

Solicitation Procedures: SIMPLIFIED ACQUISITION

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: $44,898,062

Exercised Options: $44,898,062

Current Obligation: $44,898,062

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HSODT5C0003

IDV Type: IDC

Timeline