DHS awards $27.8M contract to CoreCivic for detention services, raising concerns about competition and value
Contract Overview
Contract Amount: $27,800,500 ($27.8M)
Contractor: Corecivic, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2006-12-18
End Date: 2007-09-30
Contract Duration: 286 days
Daily Burn Rate: $97.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: OTHER (NONE OF THE ABOVE)
Sector: Other
Official Description: FUNDS FOR DETENTION, WAGES, MEALS AND MILEAGE REIMBURSEMENT- HOUSTON FIELD OFFICE
Place of Performance
Location: HOUSTON, HARRIS County, TEXAS, 77060
State: Texas Government Spending
Plain-Language Summary
Department of Homeland Security obligated $27.8 million to CORECIVIC, INC. for work described as: FUNDS FOR DETENTION, WAGES, MEALS AND MILEAGE REIMBURSEMENT- HOUSTON FIELD OFFICE Key points: 1. CoreCivic, a major private prison operator, secured a significant contract for detention services. 2. The contract was not competed, raising questions about price discovery and potential overpayment. 3. The high value of the contract warrants scrutiny regarding its necessity and efficiency. 4. The sector involves private provision of government services, often subject to oversight challenges.
Value Assessment
Rating: questionable
The contract value of $27.8M for detention services appears high, especially given the lack of competition. Benchmarking against similar contracts for detention operations is difficult without more data, but the absence of competitive bidding suggests potential for inflated pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was sole-sourced, meaning it was awarded directly to CoreCivic without seeking bids from other vendors. This significantly limits price discovery and may lead to less favorable terms for the government.
Taxpayer Impact: The lack of competition in this sole-source award means taxpayers may be paying more than necessary for these detention services.
Public Impact
The use of private companies for detention services raises ethical and accountability questions. Lack of competition in government contracting can lead to higher costs for taxpayers. The significant funds allocated could potentially be redirected to improve public services or alternative solutions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- High contract value
- Private detention services
- Lack of transparency in pricing
Positive Signals
- Contract awarded to established provider
Sector Analysis
This contract falls within the broader security and government services sector, specifically related to detention operations. Benchmarks for detention services can vary widely based on location, services provided, and contract structure, but significant sole-source awards warrant careful review.
Small Business Impact
The contract was awarded to CoreCivic, Inc., a large corporation, and there is no indication that small businesses were involved as subcontractors or partners in this specific award. The focus on a single large provider often bypasses opportunities for small business participation.
Oversight & Accountability
Sole-source contracts require robust oversight to ensure fair pricing and adequate service delivery. The Department of Homeland Security, specifically U.S. Immigration and Customs Enforcement, is responsible for overseeing this contract, but the lack of competition limits the usual oversight mechanisms tied to competitive bidding.
Related Government Programs
- Security Guards and Patrol Services
- Department of Homeland Security Contracting
- U.S. Immigration and Customs Enforcement Programs
Risk Flags
- Lack of competition
- Potential for overpricing
- Limited transparency
- Ethical concerns regarding private detention
- High contract value
Tags
security-guards-and-patrol-services, department-of-homeland-security, tx, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $27.8 million to CORECIVIC, INC.. FUNDS FOR DETENTION, WAGES, MEALS AND MILEAGE REIMBURSEMENT- HOUSTON FIELD OFFICE
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 $27.8 million.
What is the period of performance?
Start: 2006-12-18. End: 2007-09-30.
What was the justification for awarding this contract on a sole-source basis instead of competing it?
The justification for a sole-source award typically involves circumstances where only one responsible source can provide the required supplies or services. For detention services, this might be argued if a specific facility or location is uniquely suited or already operational, but such claims require rigorous documentation and justification to prevent potential abuse of the sole-source authority.
How does the per-unit cost of detention services under this contract compare to government-run facilities or competitively bid private contracts?
Without specific per-unit cost data (e.g., cost per detainee per day) and comparable benchmarks, it's impossible to definitively assess value. However, sole-source contracts are inherently at a disadvantage regarding price discovery. A thorough review would involve comparing the all-in cost of this contract against industry averages for similar services, adjusted for geographic location and specific service inclusions.
What mechanisms are in place to ensure the effectiveness and quality of detention services provided by CoreCivic under this contract, given the lack of competitive pressure?
Effectiveness and quality are typically ensured through detailed performance standards, service level agreements, and regular monitoring by the contracting agency (ICE). Despite the sole-source nature, ICE should have robust inspection protocols, performance metrics, and grievance procedures in place to hold CoreCivic accountable for meeting contractual obligations and maintaining humane standards.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: OTHER (NONE OF THE ABOVE) (3)
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: $27,800,500
Exercised Options: $27,800,500
Current Obligation: $27,800,500
Parent Contract
Parent Award PIID: HSACD3C0015
IDV Type: IDC
Timeline
Start Date: 2006-12-18
Current End Date: 2007-09-30
Potential End Date: 2007-09-30 00:00:00
Last Modified: 2010-03-13
More Contracts from Corecivic, Inc.
- TAS 151060 - Services for the Management and Operation of a Contractor-Owned, Contractor-Operated, Correctional Facility for 2,567 Beds in Adams County, Mississippi — $574.3M (Department of Justice)
- Detention Services - LAS Vergas, NV — $558.7M (Department of Justice)
- 151060 — $456.5M (Department of Justice)
- Detention Services — $444.7M (Department of Justice)
- 151060 — $395.4M (Department of Justice)
Other Department of Homeland Security Contracts
- THE United States Coast Guard HAS a Requirement to Procure UP to Twenty-Six (26) Fast Response Cutters (frcs) on a Firm Fixed Price (FFP) Basis With an Economic Price Adjustment (EPA). Phase II of the FRC Program Will Complete the Fleet for a Total of 58 Cutters — $2.1B (Bollinger Shipyards Lockport, L.L.C.)
- Design and Construct NEW Vertical Barrier and Power Distribution, Lighting, Cameras, Equipment Shelters and Linear Ground Detection System (lgds) in Hildago County, NM — $1.8B (Fisher Sand & Gravel CO)
- Production&delivery of National Security Cutter (NSC) 6 — $1.7B (Huntington Ingalls Incorporated)
- YUM-2 Vertical Border and Waterborne Barrier Construction — $1.7B (Fisher Sand & Gravel CO)
- Construct Vertical Border Barrier — $1.6B (Fisher Sand & Gravel CO)