DOJ's $18.7M prison services contract awarded to Community Education Centers, Inc. in Texas

Contract Overview

Contract Amount: $18,745,148 ($18.7M)

Contractor: Community Education Centers, Inc.

Awarding Agency: Department of Justice

Start Date: 2012-10-01

End Date: 2013-09-30

Contract Duration: 364 days

Daily Burn Rate: $51.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CL::IGF CLOSELY ASSOCIATED - TASK ORDER COVERING PRIVATIZED PRISON SERVICES FOR THE PERIOD OF 10/01/12 - 09/30/13.

Place of Performance

Location: GROESBECK, LIMESTONE County, TEXAS, 76642

State: Texas Government Spending

Plain-Language Summary

Department of Justice obligated $18.7 million to COMMUNITY EDUCATION CENTERS, INC. for work described as: IGF::CL::IGF CLOSELY ASSOCIATED - TASK ORDER COVERING PRIVATIZED PRISON SERVICES FOR THE PERIOD OF 10/01/12 - 09/30/13. Key points: 1. Contract value represents a significant investment in correctional facility operations. 2. Full and open competition suggests a potentially competitive bidding process. 3. Fixed-price contract type shifts performance risk to the contractor. 4. Contract duration of one year allows for periodic reassessment of needs and performance. 5. Awarded to a single entity, highlighting the specialized nature of prison management services. 6. Geographic focus on Texas indicates a specific regional operational requirement.

Value Assessment

Rating: fair

The contract value of $18.7 million for a one-year period for privatized prison services appears within a reasonable range for such operations, though specific benchmarks are difficult without detailed service scope. The firm-fixed-price structure is standard for services where scope is well-defined. Without comparative data on per-inmate costs or service levels from similar facilities, a precise value-for-money assessment is challenging. However, the number of bidders (6) suggests some level of market interest.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with six bidders participating. This indicates that the Bureau of Prisons actively sought proposals from a wide range of qualified vendors. The presence of multiple bidders generally supports price discovery and can lead to more competitive pricing. The specific details of the evaluation criteria and the winning bid's advantages are not provided, but the competitive process itself is a positive indicator.

Taxpayer Impact: A competitive bidding process for essential services like prison management helps ensure that taxpayer funds are used efficiently and that the government secures services at a reasonable cost.

Public Impact

The primary beneficiaries are the Federal Prison System and the Department of Justice, ensuring operational capacity for correctional facilities. Services delivered include the management and operation of a privatized correctional facility, encompassing security, inmate care, and facility maintenance. The geographic impact is concentrated in Texas, addressing federal correctional needs within that state. Workforce implications include employment opportunities for correctional officers, administrative staff, and support personnel within the contracted facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost-cutting measures impacting service quality or inmate welfare.
Reliance on a single contractor for critical correctional services carries inherent risks.
Ensuring consistent adherence to federal standards and regulations in a privatized setting requires robust oversight.

Positive Signals

Full and open competition suggests a potentially robust market for these services.
Firm-fixed-price contract shifts financial risk to the contractor.
Awarded by the Department of Justice, indicating a focus on federal correctional needs.

Sector Analysis

The correctional services industry is a significant sector within government contracting, focused on providing operational and management support for detention and correctional facilities. This contract fits within the broader Facilities Support Services category. Benchmarking against other federal or state correctional contracts would provide further context on pricing and service delivery models, but the market is characterized by specialized providers capable of meeting stringent security and operational requirements.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions or subcontracting requirements for this contract. As a full and open competition award, it is possible that small businesses could have participated as prime contractors or subcontractors, but their specific involvement is not detailed here. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Federal Bureau of Prisons (BOP), a component of the Department of Justice. The BOP is responsible for monitoring contractor performance, ensuring compliance with contract terms, and upholding federal standards for inmate care and facility operations. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse related to the contract.

Related Government Programs

Federal Prison System Operations
Correctional Facility Management
Facilities Support Services Contracts
Department of Justice Contracts

Risk Flags

Potential for service quality degradation due to cost pressures.
Ensuring consistent adherence to federal standards in a privatized environment.
Contractor's financial stability and operational capacity.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $18.7 million to COMMUNITY EDUCATION CENTERS, INC.. IGF::CL::IGF CLOSELY ASSOCIATED - TASK ORDER COVERING PRIVATIZED PRISON SERVICES FOR THE PERIOD OF 10/01/12 - 09/30/13.

Who is the contractor on this award?

The obligated recipient is COMMUNITY EDUCATION CENTERS, 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 $18.7 million.

What is the period of performance?

Start: 2012-10-01. End: 2013-09-30.

What is the historical spending pattern for privatized prison services by the Federal Bureau of Prisons?

The Federal Bureau of Prisons (BOP) has a long history of utilizing privatized correctional facilities to manage inmate populations, particularly to alleviate overcrowding and manage costs. Spending in this area fluctuates based on inmate population trends, congressional appropriations, and policy decisions regarding the use of private facilities. Historically, the BOP has awarded numerous contracts for facility operation and management, with annual spending varying significantly year over year. Analyzing historical BOP budgets and contract awards for privatized facilities would reveal trends in contract values, durations, and the number of facilities operated under private management. This specific contract for $18.7 million in FY2013 represents one component of the BOP's broader strategy to manage its correctional infrastructure.

How does the per-inmate cost of this contract compare to other federal or state correctional facilities?

A direct comparison of the per-inmate cost for this contract is challenging without knowing the exact inmate capacity and the specific services included in the $18.7 million price tag for the one-year period. However, the average per-inmate cost in federal prisons can range widely, often between $25,000 to $40,000 annually, depending on security levels, location, and services provided. Privatized facilities often aim to offer cost savings compared to government-run institutions, but this is not always realized. To benchmark effectively, one would need to calculate the per-diem or annual per-inmate cost for this specific contract (Total Contract Value / (Average Daily Population * Contract Duration in Days)) and compare it against similar facilities (same security level, geographic region, and service scope) operated by the BOP or state correctional agencies.

What are the key performance indicators (KPIs) typically used to evaluate the performance of privatized prison management contracts?

Key performance indicators (KPIs) for privatized prison management contracts are crucial for ensuring accountability and service quality. Common KPIs include inmate safety and security metrics (e.g., assaults per 100 inmates, contraband seizures, escapes), health services quality (e.g., response times to medical emergencies, availability of healthcare staff), facility maintenance and cleanliness standards, staff training and retention rates, compliance with federal regulations and accreditation standards, and inmate disciplinary infraction rates. Performance is often evaluated against a Performance Work Statement (PWS) that details specific requirements and standards. Failure to meet these KPIs can result in contractually defined remedies, such as financial penalties or corrective action plans.

What is the track record of Community Education Centers, Inc. in managing federal correctional facilities?

Community Education Centers, Inc. (CEC) has a history of operating correctional and detention facilities, including those under contract with federal agencies like the Bureau of Prisons (BOP) and U.S. Immigration and Customs Enforcement (ICE). Their track record involves managing various types of facilities, from low-security correctional centers to detention centers. Reviews of their performance have varied, with some contracts meeting expectations and others facing scrutiny regarding operational efficiency, staffing levels, and adherence to specific contractual obligations. It is important to examine specific contract performance reports, any issued notices of deficiency, or IG audits related to CEC's past federal contracts to gain a comprehensive understanding of their reliability and effectiveness in managing correctional operations.

What are the potential risks associated with a firm-fixed-price contract for correctional services?

A firm-fixed-price (FFP) contract for correctional services, while providing cost certainty for the government, carries inherent risks for the contractor. The primary risk is that the contractor may incur costs exceeding the agreed-upon price due to unforeseen circumstances, such as unexpected increases in utility costs, labor disputes, or security incidents requiring additional resources. If the contractor cannot manage these costs effectively, it could lead to financial losses or pressure to cut corners on essential services like staffing, healthcare, or maintenance, potentially impacting safety and security. Conversely, if the contractor is highly efficient, they can achieve significant profit margins. The government's risk is primarily related to ensuring that cost savings do not compromise the quality of services or adherence to contractual standards.

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

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 35 FAIRFIELD PLACE, WEST CALDWELL, NJ, 11

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

Financial Breakdown

Contract Ceiling: $18,745,148

Exercised Options: $18,745,148

Current Obligation: $18,745,148

Contract Characteristics

Multi-Year Contract: Yes

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DJB1PC014

IDV Type: IDC

Timeline