DOJ's $158.7M Contract for Corrections Facility Services Awarded to CoreCivic, Inc
Contract Overview
Contract Amount: $158,727,272 ($158.7M)
Contractor: Corecivic, Inc.
Awarding Agency: Department of Justice
Start Date: 2000-06-09
End Date: 2010-09-30
Contract Duration: 3,765 days
Daily Burn Rate: $42.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIXED PRICE INCENTIVE
Sector: Other
Official Description: 151060 - CONTRACTOR-OWNED AND OPERATED CORRECTRIONS FACILITY
Place of Performance
Location: MILAN, CIBOLA County, NEW MEXICO, 87021
Plain-Language Summary
Department of Justice obligated $158.7 million to CORECIVIC, INC. for work described as: 151060 - CONTRACTOR-OWNED AND OPERATED CORRECTRIONS FACILITY Key points: 1. CoreCivic, Inc. secured a significant contract for correctional facility operations. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The fixed-price incentive contract type aims to balance cost control with performance. 4. This spending falls within the Facilities Support Services sector, crucial for government operations.
Value Assessment
Rating: fair
The contract value of $158.7M over its duration appears substantial for facilities support services. Benchmarking against similar large-scale correctional facility contracts would be necessary to fully assess its pricing fairness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and allows the government to select the best value.
Taxpayer Impact: Taxpayer funds are being utilized for the operation of a correctional facility, with the expectation of efficient service delivery and cost-effectiveness through competitive procurement.
Public Impact
Ensures continued operation of federal correctional facilities, impacting inmate management and public safety. Supports government's role in justice system by providing essential infrastructure and services. Potential impact on local economies through job creation and resource utilization in New Mexico.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (over 10 years) may lead to price escalation risks.
- Fixed-price incentive contracts can sometimes lead to cost overruns if not managed carefully.
- Reliance on a single contractor for critical infrastructure raises concerns about service continuity.
Positive Signals
- Awarded through full and open competition, suggesting potential for good value.
- Contract type (fixed-price incentive) aims to align contractor performance with government objectives.
- Specific sector (Facilities Support Services) is essential for government operations.
Sector Analysis
This contract falls under Facilities Support Services, a broad category encompassing the operation and maintenance of government facilities. Spending in this sector is critical for ensuring the functionality of various government agencies and programs, including correctional services.
Small Business Impact
The data indicates that small business participation was not a stated factor (ss: false, sb: false). This suggests the contract was not specifically set aside for small businesses, and larger prime contractors likely managed the work.
Oversight & Accountability
Oversight would involve monitoring contractor performance against contract terms, service level agreements, and cost controls. The Bureau of Prisons would be responsible for ensuring accountability and adherence to regulations.
Related Government Programs
- Facilities Support Services
- Department of Justice Contracting
- Federal Prison System / Bureau of Prisons Programs
Risk Flags
- Potential for cost creep over the contract's long duration.
- Reliance on a single contractor for critical infrastructure.
- Lack of explicit small business participation noted.
- Complexity of managing incentive-based contracts effectively.
Tags
facilities-support-services, department-of-justice, nm, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $158.7 million to CORECIVIC, INC.. 151060 - CONTRACTOR-OWNED AND OPERATED CORRECTRIONS FACILITY
Who is the contractor on this award?
The obligated recipient is CORECIVIC, INC..
Which agency awarded this contract?
Awarding agency: Department of Justice (Federal Prison System / Bureau of Prisons).
What is the total obligated amount?
The obligated amount is $158.7 million.
What is the period of performance?
Start: 2000-06-09. End: 2010-09-30.
What was the specific performance criteria tied to the incentive portion of this fixed-price incentive contract, and how did it impact the final cost to taxpayers?
The incentive structure likely focused on operational efficiency, security metrics, or inmate satisfaction. If the contractor exceeded performance targets, taxpayers might have paid a premium, but potentially received superior service. Conversely, failing to meet targets could have resulted in reduced profit for the contractor, but the base price remained fixed. Detailed performance reports and final cost breakdowns are needed to fully assess the incentive's impact.
Given the long duration and significant value, what were the primary risks identified during the competition phase, and how were they mitigated?
Key risks likely included contractor default, cost overruns, security breaches, and service quality degradation. Mitigation strategies might have involved robust performance bonds, detailed service level agreements, regular audits, and contingency plans for contractor failure. The 'full and open competition' suggests that potential bidders were evaluated on their risk management approaches.
How does the per-unit cost of operating this contractor-owned facility compare to government-owned and operated facilities, considering all associated costs?
Direct comparison is challenging without detailed cost breakdowns for both models. Contractor-owned facilities may offer upfront cost savings or specialized expertise, but long-term operational costs, including profit margins and potential for price increases, need careful evaluation against government-run facilities. A comprehensive analysis would require data on staffing, maintenance, utilities, and administrative overhead for both scenarios.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services
Product/Service Code: SOCIAL SERVICES › SOCIAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: PCC-RFO-0005
Offers Received: 2
Pricing Type: FIXED PRICE INCENTIVE (L)
Contractor Details
Address: 10 BURTON HILLS BLVD STE 100, NASHVILLE, TN, 90
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $369,309,993
Exercised Options: $369,309,993
Current Obligation: $158,727,272
Contract Characteristics
Multi-Year Contract: Yes
Cost or Pricing Data: NO
Timeline
Start Date: 2000-06-09
Current End Date: 2010-09-30
Potential End Date: 2010-09-30 00:00:00
Last Modified: 2010-09-13
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