US Marshals Service awards $24.4M contract for detention and transportation services to CoreCivic, Inc

Contract Overview

Contract Amount: $24,393,821 ($24.4M)

Contractor: Corecivic, Inc.

Awarding Agency: Department of Justice

Start Date: 2023-12-20

End Date: 2024-10-31

Contract Duration: 316 days

Daily Burn Rate: $77.2K/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 12/20/2023 - 12/19/2024 AGAINST IMMIGRATIONS AND CUSTOMS ENFORCEMENT (ICE) IDIQ CONTRACT NUMBER 70CDCR20D00000007

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Department of Justice obligated $24.4 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 12/20/2023 - 12/19/2024 AGAINST IMMIGRATIONS AND CUSTOMS ENFORCEMENT (ICE) IDIQ CONTRACT NUMBER 70CDCR20D00000007 Key points: 1. CoreCivic, Inc. secured a significant contract for detention and transportation services, indicating a substantial need for these services. 2. The contract was awarded under a full and open competition, suggesting a competitive bidding process. 3. The contract's value of approximately $24.4 million for a period of less than a year warrants scrutiny of cost-effectiveness. 4. The services provided fall under security guards and patrol, a critical component of law enforcement operations. 5. The contract is a delivery order against an existing IDIQ contract, suggesting a pre-established relationship and framework. 6. The geographic focus is California, highlighting regional demands for detention and transportation services.

Value Assessment

Rating: fair

The contract value of $24.4 million for approximately 10 months of service appears to be within a reasonable range for large-scale detention and transportation operations, given the complexity and security requirements. Benchmarking against similar contracts for detention services is challenging due to the specialized nature and varying service levels. However, the firm fixed-price structure provides cost certainty for the government. Further analysis would require detailed service level agreements and comparison with other providers in similar geographic areas.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that multiple bidders were likely considered. The specific number of bidders is not provided, but the designation suggests a robust process aimed at achieving competitive pricing. The existence of a competitive process is generally positive for price discovery and ensuring the government receives value for its money.

Taxpayer Impact: A full and open competition is beneficial for taxpayers as it increases the likelihood of securing services at a competitive rate, potentially leading to cost savings compared to sole-source or limited competition awards.

Public Impact

The primary beneficiaries are the U.S. Marshals Service, who will receive essential detention and transportation services. The contract ensures the secure holding and movement of individuals under federal jurisdiction. Services are geographically focused on California, impacting local law enforcement and judicial support within the state. The contract supports jobs within the private corrections and security sector in California.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Reliance on a single contractor for critical detention and transportation services can create dependency and potential leverage for the contractor.
The firm fixed-price nature, while providing cost certainty, could lead to contractor incentives to minimize service quality if not rigorously monitored.
The contract is a delivery order against an IDIQ, which may limit the scope for re-competition and innovation if not managed proactively.

Positive Signals

Awarded through full and open competition, suggesting a competitive market and fair pricing potential.
The firm fixed-price contract type offers predictable costs for the government.
The contract supports a critical government function, ensuring the continuity of law enforcement operations.

Sector Analysis

The detention and transportation services sector is a critical component of the broader criminal justice and law enforcement industry. This contract falls under the security and guard services NAICS code (561612). The market for these services is substantial, driven by federal, state, and local government needs. Spending in this sector can fluctuate based on policy changes, judicial backlogs, and enforcement priorities. This specific contract represents a portion of the U.S. Marshals Service's overall operational budget for managing detainees.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a large corporation, CoreCivic, Inc. The absence of small business set-asides means that opportunities for smaller entities within this specific contract are likely limited, potentially impacting the broader small business ecosystem in this service area.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Marshals Service, the contracting agency. As a delivery order against an IDIQ contract, the terms and conditions are likely established in the parent contract. Accountability measures would include performance monitoring, adherence to service level agreements, and potential penalties for non-compliance. Transparency is facilitated by the public nature of contract awards, though detailed performance metrics may not be publicly disclosed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Immigration and Customs Enforcement (ICE) Detention Services
Federal Bureau of Prisons (BOP) Contracts
State and Local Detention Facility Contracts
Private Correctional Facility Management

Risk Flags

Contract Performance Risk
Cost Overrun Potential
Staffing Level Adequacy
Security Protocol Compliance
Medical Care Standards

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $24.4 million to CORECIVIC, INC.. DETENTION AND TRANSPORTATION SERVICES AT OTAY MESA DETENTION CENTER FOR UNITED STATES MARSHALS SERVICE FOR THE PERIOD OF PERFORMANCE 12/20/2023 - 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 $24.4 million.

What is the period of performance?

Start: 2023-12-20. End: 2024-10-31.

What is the historical spending pattern of the U.S. Marshals Service on detention and transportation services, and how does this award compare?

The U.S. Marshals Service (USMS) is the primary federal agency responsible for providing secure custody, court transportation, and housing of federal prisoners. Historically, the USMS has relied on a mix of federal facilities, intergovernmental agreements, and contracts with private entities for detention services. Annual spending on these services can fluctuate significantly based on factors such as the number of detainees, judicial processing times, and policy shifts affecting detention populations. For instance, in fiscal year 2022, the USMS reported spending over $1 billion on detention operations. This specific $24.4 million award for a single facility for approximately 10 months represents a notable, but not exceptionally large, portion of the USMS's overall detention budget. It aligns with the agency's ongoing need to secure contracted services to manage its operational capacity, especially in regions with high detainee populations or limited federal facility space. Comparing this award requires looking at the per diem rates and total contract values for similar services provided by other contractors or facilities to the USMS or other federal agencies.

How does the pricing of this contract compare to similar detention and transportation service contracts?

Determining the precise value-for-money for this $24.4 million contract requires a detailed comparison with similar contracts, which is often challenging due to proprietary information and varying service scopes. However, the contract is a Firm Fixed Price (FFP) award, which shifts the risk of cost overruns to the contractor, CoreCivic, Inc. This pricing structure is common for services where the scope is well-defined. To benchmark, one would typically look at the per diem rate per detainee and compare it to other USMS contracts or contracts awarded by agencies like ICE or the Bureau of Prisons for similar facilities in comparable geographic locations. Factors influencing price include the level of security required, staffing ratios, medical services provided, and the duration of the contract. Without access to these specific details and comparative contract data, it's difficult to definitively state if this price is high or low. However, the fact that it was awarded under full and open competition suggests that the pricing was deemed acceptable within the competitive landscape.

What are the potential risks associated with this contract for the U.S. Marshals Service?

Several potential risks are associated with this contract. Firstly, there's the risk of contractor performance issues. CoreCivic, Inc., like any large service provider, could face challenges in maintaining adequate staffing levels, ensuring security protocols are strictly followed, or providing timely and safe transportation. Incidents such as escapes, violence, or inadequate medical care could lead to significant reputational damage and operational disruptions for the USMS. Secondly, there's the risk of cost escalation if the contract terms are not sufficiently robust or if unforeseen circumstances require additional services not fully covered by the fixed price. Thirdly, reliance on a single private contractor for essential services can create a dependency that might limit the government's flexibility in the future. Finally, there are always risks related to compliance with evolving legal and ethical standards in detention management, which could lead to legal challenges or require costly adjustments.

What is CoreCivic, Inc.'s track record with government contracts, particularly with the U.S. Marshals Service?

CoreCivic, Inc. is a major private prison and detention services company with a long history of contracting with federal, state, and local governments. The company has been a significant provider of detention and correctional services to the U.S. Marshals Service for many years, operating numerous facilities under various contracts. Historically, CoreCivic has faced scrutiny and criticism regarding conditions within its facilities, staffing levels, and instances of violence or inmate deaths. However, it has also been awarded substantial contracts, indicating that, from a government perspective, it often meets the required performance standards or is among the most competitive bidders. The USMS manages its contracts through performance monitoring and compliance checks. This specific award suggests continued confidence or competitive advantage for CoreCivic within the USMS contracting process, despite potential past controversies or challenges common in the private corrections industry.

How does the geographic location (Otay Mesa, California) influence the contract's scope and cost?

The location of the Otay Mesa Detention Center in California significantly influences the contract's scope and cost. California, particularly Southern California, has a high cost of living and operating expenses, which generally translates to higher labor costs for staffing security personnel, administrative staff, and support services. Furthermore, the proximity to the U.S.-Mexico border likely means a higher volume of detainees requiring services, potentially increasing the operational demands on the facility and the contractor. Regulatory requirements and state-specific laws regarding detention standards can also be more stringent in California, potentially adding to operational complexity and costs. The transportation aspect of the contract may also be influenced by the geographic spread of judicial districts or federal facilities within California that require services. Therefore, the location is a key factor contributing to the overall contract value.

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: $35,368,310

Exercised Options: $35,368,310

Current Obligation: $24,393,821

Actual Outlays: $17,225,498

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70CDCR20D00000007

IDV Type: IDC

Timeline