DOJ's $445M Detention Services Contract with CoreCivic Faces Scrutiny Over Value and Competition

Contract Overview

Contract Amount: $444,671,616 ($444.7M)

Contractor: Corecivic, Inc.

Awarding Agency: Department of Justice

Start Date: 2007-02-01

End Date: 2022-02-28

Contract Duration: 5,506 days

Daily Burn Rate: $80.8K/day

Competition Type: FOLLOW ON TO COMPETED ACTION

Number of Offers Received: 1

Pricing Type: COMBINATION (APPLIES TO AWARDS WHERE TWO OR MORE OF THE ABOVE APPLY)

Sector: Other

Official Description: DETENTION SERVICES.

Place of Performance

Location: LEAVENWORTH, LEAVENWORTH County, KANSAS, 66048

State: Kansas Government Spending

Plain-Language Summary

Department of Justice obligated $444.7 million to CORECIVIC, INC. for work described as: DETENTION SERVICES. Key points: 1. Significant spending on detention services highlights the ongoing need for correctional facilities. 2. CoreCivic, a major player, faces competition from other private prison operators. 3. The contract's long duration and follow-on nature raise questions about sustained cost-effectiveness. 4. Facilities Support Services sector is critical for government operations, but efficiency is key.

Value Assessment

Rating: fair

The contract value of $444.6 million over its extended period suggests substantial spending. Benchmarking against similar detention service contracts is necessary to determine if the pricing is competitive and reflects fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was a follow-on to a competed action, indicating initial competition. However, the long duration and potential for subsequent extensions warrant an analysis of whether ongoing competition is adequately maintained to ensure price discovery.

Taxpayer Impact: The substantial expenditure on detention services represents a significant allocation of taxpayer funds. Ensuring competitive pricing and efficient service delivery is crucial for maximizing the value of this investment.

Public Impact

Taxpayers fund the operation of detention facilities, impacting federal budgets. The contract's duration raises questions about long-term cost efficiency and potential for price creep. The private operation of detention centers involves ethical and operational considerations. The U.S. Marshals Service relies on these services, making contract performance critical.

Waste & Efficiency Indicators

Waste Risk Score: 80 / 10

Warning Flags

Long contract duration may reduce competitive pressure.
Potential for price increases over time.
Reliance on a single provider for extended periods.

Positive Signals

Follow-on to a competed action suggests initial competitive pricing.
Established provider may offer operational efficiencies.
Contract performance is critical for agency operations.

Sector Analysis

The Facilities Support Services sector, including detention operations, is a significant area of government spending. Benchmarks for per-unit costs and contract durations in this sector are essential for evaluating this specific award.

Small Business Impact

The provided data does not indicate any specific subcontracting goals or participation by small businesses in this contract. Further analysis would be needed to determine the extent of small business involvement.

Oversight & Accountability

The long-term nature of this contract necessitates robust oversight to ensure performance standards are met and costs remain reasonable. Regular reviews and performance evaluations are critical for accountability.

Related Government Programs

Facilities Support Services
Department of Justice Contracting
U.S. Marshals Service Programs

Risk Flags

Potential for price creep over extended contract duration.
Limited transparency on ongoing competition effectiveness.
Reliance on a single provider for essential services.
Need for updated market analysis to ensure fair pricing.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $444.7 million to CORECIVIC, INC.. DETENTION SERVICES.

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 $444.7 million.

What is the period of performance?

Start: 2007-02-01. End: 2022-02-28.

What is the current market rate for detention services of this scale and duration, and how does CoreCivic's pricing compare?

Determining the current market rate requires benchmarking against recent, similar contracts for detention services, considering factors like facility size, location, services provided, and contract length. A comparison would reveal if CoreCivic's pricing is competitive or if there's an opportunity for cost savings through renegotiation or re-competition.

What are the risks associated with a long-term, follow-on contract for detention services, particularly regarding service quality and cost escalation?

Long-term contracts can lead to complacency and reduced incentive for innovation or cost efficiency. Risks include potential degradation of service quality over time, difficulty in adapting to changing needs, and the possibility of price escalation not fully aligned with market shifts. Robust performance metrics and clear exit clauses are vital.

How effectively has the U.S. Marshals Service managed this contract to ensure optimal value and service delivery over its extended period?

Effectiveness can be assessed by reviewing performance reports, incident logs, and any documented disputes or contract modifications. Evaluating the agency's oversight mechanisms, including regular performance reviews and competitive re-procurement strategies, provides insight into how well taxpayer funds are being utilized for essential detention services.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FOLLOW ON TO COMPETED ACTION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COMBINATION (APPLIES TO AWARDS WHERE TWO OR MORE OF THE ABOVE APPLY) (2)

Evaluated Preference: NONE

Contractor Details

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

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $1,033,508,136

Exercised Options: $451,462,616

Current Obligation: $444,671,616

Actual Outlays: $73,602,683

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline