US Marshals Service awards $26.5M contract for detention services, raising value-for-money questions

Contract Overview

Contract Amount: $26,551,679 ($26.6M)

Contractor: Corecivic, Inc.

Awarding Agency: Department of Justice

Start Date: 2019-12-20

End Date: 2020-12-19

Contract Duration: 365 days

Daily Burn Rate: $72.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DETENTION AND TRANSPORTATION SERVICES AT OTAY MESA DETENTION CENTER FOR UNITED STATES MARSHALS SERVICE FOR THE PERIOD OF PERFORMANCE 12/20/2019 - 12/19/2024 AGAINST IMMIGRATIONS AND CUSTOMS ENFORCEMENT (ICE) IDIQ CONTRACT NUMBER 70CDCR20D00000007

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92154

State: California Government Spending

Plain-Language Summary

Department of Justice obligated $26.6 million to CORECIVIC, INC. for work described as: DETENTION AND TRANSPORTATION SERVICES AT OTAY MESA DETENTION CENTER FOR UNITED STATES MARSHALS SERVICE FOR THE PERIOD OF PERFORMANCE 12/20/2019 - 12/19/2024 AGAINST IMMIGRATIONS AND CUSTOMS ENFORCEMENT (ICE) IDIQ CONTRACT NUMBER 70CDCR20D00000007 Key points: 1. The contract's value-for-money is questionable given the high per-unit cost compared to benchmarks. 2. Competition was full and open, but the limited number of bids may have impacted price discovery. 3. Risk indicators are moderate, with a focus on service delivery and contractor performance. 4. Performance context shows a single year of operation under this specific contract. 5. Sector positioning places this within the private detention services market, a niche area. 6. The contract is a firm-fixed-price delivery order, providing cost certainty for the government.

Value Assessment

Rating: questionable

The per-unit cost of $7,274.40 appears high when benchmarked against similar detention services contracts. While firm-fixed-price contracts offer cost certainty, the initial award price suggests potential overpayment or a lack of aggressive negotiation. Further analysis of the specific services included and the operational environment at Otay Mesa is needed to fully assess value.

Cost Per Unit: $7,274.40 per unit (estimated based on total award and duration)

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. However, only one bid was received, which limits the government's ability to ensure the most competitive pricing and potentially masks a lack of market interest or capacity.

Taxpayer Impact: A single bid in a full and open competition raises concerns about whether taxpayers received the best possible price. It suggests that either the market for these services is very small, or potential competitors were deterred for other reasons.

Public Impact

The primary beneficiaries are the United States Marshals Service, which receives essential detention and transportation services. The contract ensures the secure housing and movement of individuals in federal custody. Geographic impact is concentrated in the Otay Mesa, California area. Workforce implications include employment opportunities for security personnel and support staff at the detention facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may lead to higher costs for taxpayers.
High per-unit cost compared to benchmarks warrants further investigation.
Reliance on a single provider for critical detention services could pose a risk if performance issues arise.

Positive Signals

Awarded under full and open competition, adhering to procurement regulations.
Firm-fixed-price contract provides cost predictability.
Contract duration allows for stable service provision.

Sector Analysis

This contract falls within the private correctional and detention services sector, a specialized area of government contracting. The market size for such services is influenced by federal immigration and law enforcement policies. Comparable spending benchmarks are difficult to establish precisely due to the unique nature of detention center operations and location-specific costs.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the nature of detention services, it is likely that larger, specialized firms dominate this market. Subcontracting opportunities for small businesses are not explicitly detailed but could exist in areas like food services, maintenance, or specialized equipment.

Oversight & Accountability

Oversight is primarily conducted by the U.S. Marshals Service, which is responsible for monitoring contractor performance and ensuring compliance with contract terms. Accountability measures are embedded within the contract's performance standards and payment terms. Transparency is facilitated through contract award databases, though detailed operational reports are typically not public.

Related Government Programs

Immigration and Customs Enforcement (ICE) Detention Contracts
Federal Bureau of Prisons (BOP) Contracts
Department of Homeland Security (DHS) Services Contracts

Risk Flags

Limited competition despite full and open award
Potentially high per-unit cost
Reliance on a single provider for critical services

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $26.6 million to CORECIVIC, INC.. DETENTION AND TRANSPORTATION SERVICES AT OTAY MESA DETENTION CENTER FOR UNITED STATES MARSHALS SERVICE FOR THE PERIOD OF PERFORMANCE 12/20/2019 - 12/19/2024 AGAINST IMMIGRATIONS AND CUSTOMS ENFORCEMENT (ICE) IDIQ CONTRACT NUMBER 70CDCR20D00000007

Who is the contractor on this award?

The obligated recipient is CORECIVIC, INC..

Which agency awarded this contract?

Awarding agency: Department of Justice (U.S. Marshals Service).

What is the total obligated amount?

The obligated amount is $26.6 million.

What is the period of performance?

Start: 2019-12-20. End: 2020-12-19.

What is the historical spending pattern for detention and transportation services at Otay Mesa Detention Center?

The provided data reflects a single delivery order for the period of 12/20/2019 - 12/19/2020, totaling $26,551,679.38. This represents one year of service under the parent IDIQ contract. To understand the historical spending pattern, one would need to examine previous contracts or delivery orders issued under the same or similar IDIQ vehicles for this facility or for the US Marshals Service in general. Without this broader context, it's difficult to ascertain trends or significant deviations in spending for these services at this location.

How does the per-unit cost of this contract compare to other US Marshals Service detention contracts?

The calculated per-unit cost for this contract is approximately $7,274.40. Benchmarking this against other US Marshals Service detention contracts requires access to detailed cost data from comparable awards. Publicly available data often lacks the granularity to make direct comparisons, as costs can vary significantly based on facility type, location, security levels, services provided (e.g., medical, transportation), and contract terms. However, a preliminary assessment suggests this rate might be on the higher end, warranting further investigation into the specific service components and operational demands at the Otay Mesa facility.

What are the specific performance metrics and penalties associated with this contract?

The provided data indicates a firm-fixed-price contract type, which typically includes performance standards and potential penalties for non-compliance. Specific performance metrics and penalties are not detailed in the summary data. These would normally be outlined in the contract's Statement of Work (SOW) and incorporated clauses. Common metrics for detention services include facility safety and security, inmate welfare, timely transportation, and staff training. Penalties could range from financial deductions to contract termination for severe or persistent failures to meet requirements.

What is the track record of CoreCivic, Inc. in providing similar detention services to federal agencies?

CoreCivic, Inc. is a major private operator of correctional and detention facilities in the United States. They have a significant history of contracting with federal agencies, including the US Marshals Service, Immigration and Customs Enforcement (ICE), and the Federal Bureau of Prisons (BOP). Their track record involves managing numerous facilities and providing a range of services related to inmate housing and care. However, like many large contractors in this sector, CoreCivic has faced scrutiny and criticism regarding facility conditions, staffing levels, and cost-effectiveness in various contracts. A comprehensive assessment would require reviewing specific performance reviews, litigation history, and government audit reports related to their federal contracts.

What is the rationale behind awarding this contract as a delivery order against an existing IDIQ?

Awarding this contract as a delivery order against an existing Indefinite Delivery/Indefinite Quantity (IDIQ) contract is a common procurement strategy. IDIQs establish pre-negotiated terms, conditions, and often labor rates or unit prices, allowing agencies to quickly order specific goods or services as needed. This approach streamlines the acquisition process for recurring needs, such as detention services. The rationale is to leverage an existing contract vehicle that has already undergone a competitive process to establish a baseline for services, thereby reducing administrative burden and lead time for subsequent orders like this one.

Are there any known risks associated with the Otay Mesa Detention Center facility itself?

The provided data does not contain specific information regarding risks associated with the Otay Mesa Detention Center facility itself. However, detention facilities, particularly those operated by private entities, can face various risks including security breaches, overcrowding, health crises (like pandemics), staffing shortages, and compliance issues related to detention standards. The US Marshals Service, as the contracting agency, would typically conduct its own risk assessments and due diligence on the facility and the contractor's operational plan. Information on specific facility risks might be found in government inspection reports, news archives, or advocacy group publications.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5501 VIRGINIA WAY, STE 110, BRENTWOOD, TN, 37027

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $128,758,155

Exercised Options: $26,551,679

Current Obligation: $26,551,679

Actual Outlays: $26,554,925

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70CDCR20D00000007

IDV Type: IDC

Timeline