USMS awards $4.18M for detention services in Montana, with CoreCivic Inc. as the primary contractor

Contract Overview

Contract Amount: $38,866,042 ($38.9M)

Contractor: Corecivic, Inc.

Awarding Agency: Department of Justice

Start Date: 2007-01-01

End Date: 2021-06-30

Contract Duration: 5,294 days

Daily Burn Rate: $7.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DETENTION SERVICES - FUNDED BY USMS - $4,175,600.00 (MONTANA)

Place of Performance

Location: ABSAROKEE, STILLWATER County, MONTANA, 59001

State: Montana Government Spending

Plain-Language Summary

Department of Justice obligated $38.9 million to CORECIVIC, INC. for work described as: DETENTION SERVICES - FUNDED BY USMS - $4,175,600.00 (MONTANA) Key points: 1. CoreCivic, Inc. has been a consistent provider of detention services for the U.S. Marshals Service (USMS) in Montana. 2. The contract spans a significant duration, indicating a long-term need for these services. 3. The award was made under full and open competition, suggesting a robust bidding process. 4. The firm-fixed-price contract type aims to provide cost certainty for the government. 5. Performance is geographically focused within Montana, serving a specific regional need. 6. The contract value represents a portion of the overall USMS budget for detention operations.

Value Assessment

Rating: fair

The contract value of approximately $4.18 million over its duration appears moderate for detention services. Benchmarking against similar contracts is challenging without more specific service details (e.g., per diem rates, facility capacity). However, the long duration suggests potential for economies of scale. The firm-fixed-price structure provides budget predictability, but the total cost over the contract's life needs to be assessed against the actual services rendered and compared to alternative providers or government-operated facilities.

Cost Per Unit: N/A

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 bids. The presence of multiple bidders, though not explicitly stated, is implied by this competition type. A competitive process generally leads to better price discovery and potentially more favorable terms for the government compared to sole-source or limited competition awards.

Taxpayer Impact: Full and open competition helps ensure that taxpayer dollars are used efficiently by driving down prices through market forces and encouraging a wider range of service providers to offer their best terms.

Public Impact

Inmates requiring detention services within the U.S. Marshals Service's jurisdiction in Montana benefit from the provision of secure facilities. The contract ensures the availability of essential detention infrastructure and operational support for federal law enforcement. The geographic impact is concentrated in Montana, addressing the specific needs of the USMS in that state. The contract supports jobs within the private corrections industry in Montana, contributing to the local economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could lead to complacency or reduced incentive for innovation if not actively managed.
Reliance on a single primary contractor for essential services may pose risks if performance issues arise.
The firm-fixed-price nature might not fully account for unforeseen operational cost fluctuations, potentially impacting service quality if margins are too thin.

Positive Signals

Awarded under full and open competition, suggesting a competitive market and potentially good value.
Firm-fixed-price contract provides cost certainty for the government, simplifying budget management.
The contract's long-term nature indicates a stable and reliable service provision for the USMS in Montana.

Sector Analysis

Detention services fall under the broader Facilities Support Services sector, which is a critical component of government operations, particularly for law enforcement and correctional agencies. The market for these services is substantial, driven by federal, state, and local government needs. This contract represents a specific instance of federal spending within this sector, contributing to the overall market dynamics and supporting private sector involvement in public safety functions. Comparable spending benchmarks would typically involve analyzing per diem rates and facility operational costs across different jurisdictions and providers.

Small Business Impact

The data indicates that small business participation was not a specific set-aside requirement for this contract (ss: false, sb: false). Therefore, the primary contractor, CoreCivic, Inc., is likely a large business. While there is no direct set-aside, the contract may still offer subcontracting opportunities for small businesses, depending on CoreCivic's procurement practices and the specific needs of the detention services. The impact on the small business ecosystem would be indirect, primarily through potential subcontracting relationships rather than direct awards.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Marshals Service contracting officers and program managers. Accountability measures are embedded within the contract terms, including performance standards and payment schedules tied to service delivery. Transparency is generally facilitated through contract award databases and public reporting mechanisms. The Department of Justice's Office of the Inspector General may also conduct audits or investigations into the contractor's performance and financial practices if concerns arise.

Related Government Programs

Federal Bureau of Prisons Contracts
Immigration and Customs Enforcement Detention Contracts
State and Local Government Detention Agreements
Correctional Facility Management Services

Risk Flags

Long-term contract duration
Private contractor reliance for essential services
Potential for cost-cutting impacting service quality

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $38.9 million to CORECIVIC, INC.. DETENTION SERVICES - FUNDED BY USMS - $4,175,600.00 (MONTANA)

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 $38.9 million.

What is the period of performance?

Start: 2007-01-01. End: 2021-06-30.

What is the historical spending trend for detention services by the U.S. Marshals Service in Montana?

Analyzing historical spending for USMS detention services in Montana requires access to detailed contract databases beyond this single award. This specific contract, valued at approximately $4.18 million, covers a period from 2007 to 2021. To understand the trend, one would need to examine all prior and subsequent contracts awarded by the USMS for detention services within Montana, noting the award amounts, contract durations, and awarded contractors. This would reveal whether spending has increased, decreased, or remained stable over time, and identify any shifts in contracting patterns or major providers. Without this broader dataset, it's difficult to establish a definitive spending trend for the region.

How does the per-unit cost of detention services under this contract compare to national averages or similar contracts in other states?

Determining the per-unit cost (e.g., per inmate per day) requires detailed operational data not present in the provided summary. The total contract value of $4.18 million over its duration (approximately 14 years) and the number of inmates served are necessary to calculate this metric. If we assume an average daily population, we could derive a per diem rate. However, without knowing the average daily population or specific service inclusions (like medical care, transportation), a direct comparison to national averages or similar contracts in other states is speculative. Generally, costs can vary significantly based on geographic location, labor costs, facility type, and the level of services provided.

What is CoreCivic, Inc.'s track record with the U.S. Marshals Service and other federal agencies regarding detention services?

CoreCivic, Inc. (formerly Corrections Corporation of America) is a major private prison operator with extensive experience contracting with federal agencies, including the U.S. Marshals Service (USMS), Immigration and Customs Enforcement (ICE), and the Federal Bureau of Prisons (BOP). Their track record is extensive, encompassing numerous facilities and contracts across the country. Reviews of their performance often highlight both operational efficiency and concerns related to safety, staffing levels, and inmate welfare, as documented in various government reports and media investigations. Analyzing specific contract performance data, such as compliance with service level agreements and any penalties incurred, would provide a more granular assessment of their track record with the USMS.

What are the primary risks associated with relying on a private contractor like CoreCivic for detention services?

Key risks associated with relying on private contractors for detention services include potential compromises in inmate safety and welfare due to cost-cutting measures, difficulties in ensuring consistent adherence to government standards and regulations, and challenges in maintaining adequate staffing levels and training. There can also be reputational risks for the government if the contractor experiences significant operational failures or scandals. Furthermore, the profit motive inherent in private contracting can sometimes create a misalignment of incentives compared to a government-run facility focused solely on public safety and rehabilitation. Contract management and robust oversight are critical to mitigating these risks.

How has the U.S. Marshals Service's approach to contracting detention services evolved over the period of this contract (2007-2021)?

Over the period of this contract (2007-2021), the USMS, like other federal agencies, has faced increasing scrutiny regarding the use of private detention facilities. This era saw fluctuations in the debate over privatization, with periods of increased reliance followed by calls for reduced use, particularly under different administrations. The USMS has likely adapted its contracting strategies to address evolving legal requirements, performance standards, and public perception. This might include more stringent performance metrics, increased emphasis on competition, and potentially a greater focus on ensuring humane conditions and cost-effectiveness, although the fundamental need for contracted capacity has persisted.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10 BURTON HILLS BLVD, NASHVILLE, TN, 37215

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $39,292,359

Exercised Options: $39,292,359

Current Obligation: $38,866,042

Actual Outlays: $5,234,880

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline