CoreCivic awarded $114M contract for detention services in San Diego, highlighting security guard needs

Contract Overview

Contract Amount: $114,347,554 ($114.3M)

Contractor: Corecivic, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2024-12-20

End Date: 2025-12-19

Contract Duration: 364 days

Daily Burn Rate: $314.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DETENTION SERVICES FOR SAN DIEGO AOR AT OTAY MESA

Place of Performance

Location: SAN YSIDRO, SAN DIEGO County, CALIFORNIA, 92143

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $114.3 million to CORECIVIC, INC. for work described as: DETENTION SERVICES FOR SAN DIEGO AOR AT OTAY MESA Key points: 1. The contract's value suggests a significant demand for detention services in the specified region. 2. The firm-fixed-price structure aims to control costs, but requires careful monitoring of service delivery. 3. Competition dynamics will be crucial in ensuring value for money over the contract term. 4. The duration of the contract (one year) indicates a need for ongoing, but potentially short-term, service provision. 5. Performance context is essential to understand if the services meet the government's detention and security requirements. 6. The sector positioning relates to the broader government's approach to immigration enforcement and detention infrastructure.

Value Assessment

Rating: fair

Benchmarking this contract's value is challenging without specific service level agreements and performance metrics. However, the $114 million award for a one-year period for detention services in a specific geographic area (San Diego AOR) suggests a substantial operational scale. Comparing it to similar contracts for detention facilities or immigration services would provide better context on whether the pricing reflects market rates for comparable services and security levels. The firm-fixed-price nature implies that the contractor bears the risk of cost overruns, which can be a positive indicator of value if services are delivered as specified.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This competitive process is generally expected to drive down prices and encourage innovation. The number of bidders and the specific evaluation criteria would further illuminate the intensity of the competition. A robust competition suggests that the government sought the best value proposition, potentially leading to more favorable terms for taxpayers.

Taxpayer Impact: Full and open competition increases the likelihood that taxpayer funds are used efficiently by fostering a competitive environment that can lead to lower prices and better service quality.

Public Impact

The primary beneficiaries are U.S. Immigration and Customs Enforcement (ICE) and the Department of Homeland Security, receiving essential detention and security services. The services delivered include the provision of detention facilities and security guard services within the San Diego Area of Responsibility. The geographic impact is concentrated in California, specifically the San Diego region, addressing federal detention needs there. Workforce implications include job creation for security personnel and support staff employed by the contractor, CoreCivic, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for over-reliance on a single contractor for critical detention services.
Ensuring consistent service quality and adherence to detention standards over the contract period.
Managing potential cost escalations if not adequately controlled by the firm-fixed-price structure.
The long-term implications of private sector involvement in detention services require ongoing scrutiny.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process.
Firm-fixed-price contract type helps to control costs and provides budget certainty.
CoreCivic, Inc. is an established provider of correctional and detention services.
The contract addresses a specific, defined need for detention services in a key geographic area.

Sector Analysis

This contract falls within the government services sector, specifically focusing on security and detention operations. The market for detention services is influenced by immigration policies and enforcement priorities. Comparable spending benchmarks would involve analyzing other federal contracts for similar detention facilities or immigration processing centers, considering factors like bed capacity, location, and service scope. The size of this award indicates a significant operational requirement for ICE in the San Diego region.

Small Business Impact

The data indicates that small business participation was not a primary focus for this specific award, as the contract was not set aside for small businesses and the prime contractor, CoreCivic, Inc., is a large corporation. There is no explicit mention of subcontracting requirements for small businesses within the provided data. This suggests that the primary focus was on the prime contractor's ability to meet the large-scale detention service requirements, potentially limiting opportunities for small businesses in this particular contract.

Oversight & Accountability

Oversight for this contract would primarily fall under U.S. Immigration and Customs Enforcement (ICE) within the Department of Homeland Security. Accountability measures would be defined in the contract's performance work statement, including service level agreements and reporting requirements. Transparency is facilitated through contract awards databases, but detailed operational oversight and inspector general jurisdiction would depend on specific ICE protocols and any ongoing investigations or audits related to detention facility operations.

Related Government Programs

Immigration and Customs Enforcement (ICE) Operations
Detention Facility Management
Federal Law Enforcement Support Services
Secure Transportation Services
Immigration Processing Centers

Risk Flags

Potential for service quality degradation under fixed-price pressure.
Risk of non-compliance with detention standards.
Reputational risk associated with private detention facilities.
Dependence on a single large contractor for critical services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $114.3 million to CORECIVIC, INC.. DETENTION SERVICES FOR SAN DIEGO AOR AT OTAY MESA

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 $114.3 million.

What is the period of performance?

Start: 2024-12-20. End: 2025-12-19.

What is CoreCivic, Inc.'s track record with federal detention contracts, particularly with ICE?

CoreCivic, Inc. has a substantial history of contracting with federal agencies, including ICE, for the provision of detention and correctional services. The company operates numerous facilities across the United States, housing various populations including immigration detainees. Their track record involves managing large-scale operations, adhering to government standards, and navigating complex regulatory environments. However, like many large contractors in this sector, CoreCivic has also faced scrutiny and criticism regarding facility conditions, staffing levels, and the overall impact of private detention on detainees' rights and well-being. Analyzing past performance reviews, any contract disputes, or government audits related to their previous ICE contracts would provide a more comprehensive understanding of their reliability and effectiveness.

How does the cost per detainee compare to other ICE detention facilities?

Determining the precise cost per detainee for this $114 million contract requires more granular data than what is provided, specifically the average daily population housed at the facility. However, industry benchmarks and publicly available data on ICE contracts suggest that per-diem costs for detention services can vary significantly based on location, facility type, security level, and services provided (e.g., medical care, transportation). Generally, costs can range from $100 to over $200 per detainee per day. To assess value for money, this contract's total cost would need to be divided by the average number of detainees served over its duration and compared against these benchmarks and other ICE contracts for similar services in comparable regions. Without the average daily population, a direct per-unit cost comparison is not feasible.

What are the primary risks associated with this detention services contract?

Key risks associated with this detention services contract include operational failures leading to security breaches or detainee safety issues, potential non-compliance with federal detention standards and regulations, and reputational damage to the government and contractor due to incidents within the facility. There's also the risk of cost overruns if the firm-fixed-price contract doesn't adequately account for unforeseen operational challenges or changes in service requirements. Furthermore, potential litigation arising from detainee grievances or civil rights claims represents a significant legal and financial risk. Ensuring adequate staffing, proper training, and robust oversight are critical to mitigating these risks.

How effective is the firm-fixed-price contract type in ensuring performance and value for this service?

The firm-fixed-price (FFP) contract type is generally favored for services where the scope of work is well-defined and risks can be reasonably estimated, as it places the cost burden on the contractor. For detention services, an FFP contract can provide budget certainty for the government and incentivize the contractor to operate efficiently to maximize profit. However, it can also lead to potential issues if the contractor cuts corners on service quality or staffing to maintain profitability, especially if oversight is insufficient. The effectiveness hinges on the clarity of the performance work statement, the robustness of government monitoring, and the contractor's commitment to meeting all contractual obligations beyond just cost containment.

What is the historical spending trend for detention services in the San Diego AOR?

Analyzing historical spending trends for detention services specifically within the San Diego Area of Responsibility (AOR) would require access to detailed federal procurement data over several fiscal years. This contract award of $114 million for one year suggests a significant and potentially consistent need for these services in the region, likely driven by immigration enforcement activities. Past awards to CoreCivic or other providers for similar services in this AOR would indicate whether this level of spending is typical, an increase, or a decrease. Fluctuations in spending could be linked to changes in immigration policy, border apprehension rates, and the government's overall strategy for managing detained populations.

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: $114,347,554

Exercised Options: $114,347,554

Current Obligation: $114,347,554

Actual Outlays: $68,178,820

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70CDCR20D00000007

IDV Type: IDC

Timeline