DHS awarded $23.8M contract for correctional services, with 2 bidders competing for the firm-fixed-price delivery order

Contract Overview

Contract Amount: $23,838,025 ($23.8M)

Contractor: Corrections Corporation of AME

Awarding Agency: Department of Homeland Security

Start Date: 2004-01-01

End Date: 2004-12-31

Contract Duration: 365 days

Daily Burn Rate: $65.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NOT AVAILABLE

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20202

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $23.8 million to CORRECTIONS CORPORATION OF AME for work described as: NOT AVAILABLE Key points: 1. The contract value of $23.8 million represents a significant investment in correctional services. 2. With two bidders, the competition level suggests a moderate degree of market interest. 3. The firm-fixed-price structure shifts cost risk to the contractor, potentially impacting final price. 4. The contract duration of one year provides a defined period for service delivery and performance evaluation. 5. The services are being delivered in the District of Columbia, indicating a specific geographic focus. 6. The award to a large corporation suggests a focus on established providers for these critical services.

Value Assessment

Rating: fair

Benchmarking this $23.8 million contract against similar correctional service contracts is challenging without more detailed service descriptions and performance metrics. However, the firm-fixed-price nature suggests an attempt to control costs upfront. The number of bidders (2) indicates some competition, but it's not robust enough to guarantee the lowest possible price. Further analysis would require comparing the specific services rendered and their outcomes against industry standards and other government contracts for comparable facilities or inmate populations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. With two bidders, the competition level is moderate. While this indicates some market interest, it does not necessarily guarantee the most competitive pricing achievable with a larger pool of bidders. The agency likely received proposals that were evaluated based on established criteria, but the limited number of participants might have reduced the downward pressure on price.

Taxpayer Impact: Taxpayers benefit from the assurance that the contract was offered broadly, but the moderate competition suggests that prices may not be as low as they could be with more robust bidding.

Public Impact

The primary beneficiaries are the U.S. Immigration and Customs Enforcement (ICE) and the Department of Homeland Security (DHS), receiving essential correctional services. The services delivered likely include detention, housing, and care for individuals in federal custody. The geographic impact is concentrated in the District of Columbia, serving federal needs in that region. The contract supports jobs within the correctional services industry, particularly in the D.C. metropolitan area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (2 bidders) may have resulted in a higher price than a more competitive scenario.
The firm-fixed-price contract shifts risk to the contractor, which could lead to cost-cutting measures impacting service quality if not closely monitored.
Lack of detailed service scope makes it difficult to assess value for money and compare against benchmarks.

Positive Signals

Awarded under full and open competition, ensuring a broad solicitation process.
Firm-fixed-price contract provides cost certainty for the government, assuming contractor performance meets expectations.
The contract duration of one year allows for a defined performance period and subsequent re-evaluation.

Sector Analysis

The correctional services sector is a critical component of the public safety and justice system, involving the management and care of individuals in custody. This contract falls within a niche but essential part of government contracting, often involving specialized facilities and personnel. Spending in this sector can fluctuate based on immigration policies, law enforcement priorities, and judicial caseloads. Comparable spending benchmarks would typically involve per diem rates for inmate housing and services, which vary significantly by location and service level.

Small Business Impact

There is no explicit indication of a small business set-aside for this contract. Given the nature and scale of correctional services, it is common for larger, specialized firms to dominate this market. The absence of small business participation suggests that subcontracting opportunities for smaller entities may be limited, unless the prime contractor actively seeks them out. This contract's structure likely favors established providers with the capacity and experience to manage large-scale correctional operations.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of U.S. Immigration and Customs Enforcement (ICE) program managers within DHS. Accountability measures would be defined in the contract's statement of work, performance standards, and payment clauses. Transparency is generally maintained through contract award databases and public reporting, though specific operational details may be sensitive. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse related to the contract.

Related Government Programs

Federal Bureau of Prisons Contracts
Immigration Detention Services
State and Local Correctional Facility Contracts
Homeland Security Contracts
Detention and Corrections Management

Risk Flags

Limited Competition
Potential for Service Quality Degradation under FFP
Lack of Detailed Performance Metrics in Summary Data

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $23.8 million to CORRECTIONS CORPORATION OF AME. NOT AVAILABLE

Who is the contractor on this award?

The obligated recipient is CORRECTIONS CORPORATION OF AME.

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 $23.8 million.

What is the period of performance?

Start: 2004-01-01. End: 2004-12-31.

What specific services are included in this $23.8 million contract for correctional services?

The provided data does not detail the specific services included in this $23.8 million contract. However, based on the awarding agency (U.S. Immigration and Customs Enforcement - ICE) and the nature of correctional services, these likely encompass a range of activities related to the detention and care of individuals in federal custody. This could include housing, food services, medical and mental health care, transportation, security, and case management. The firm-fixed-price nature suggests a defined scope of services for a set price, with the contractor bearing the risk of cost overruns. A comprehensive understanding would require reviewing the contract's statement of work.

How does the $23.8 million contract value compare to historical spending by ICE for similar services?

Without historical spending data specific to ICE's correctional services in the District of Columbia or for comparable contract types, a direct comparison is not possible. The $23.8 million figure represents the total value awarded for this specific delivery order, covering a one-year period. To assess historical trends, one would need to examine ICE's budget allocations and actual expenditures for detention and correctional services over multiple fiscal years, looking for patterns in contract values, service providers, and the number of contracts awarded. This would help determine if this award is an outlier, an increase, or consistent with past spending.

What are the key performance indicators (KPIs) used to evaluate the contractor's performance under this contract?

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. Typically, correctional service contracts include detailed performance standards related to areas such as inmate safety and security, health and medical services, sanitation, food quality, staff training, and timely reporting. Performance is often measured through site visits, audits, incident reports, and resident grievance data. The contract's statement of work and any associated performance-based payment clauses would outline these KPIs and the metrics used to assess compliance and quality of service delivery.

What is the risk profile associated with this contract, considering it's a firm-fixed-price award with limited competition?

This contract carries a moderate risk profile. The firm-fixed-price (FFP) structure shifts cost overrun risk to the contractor, which can be beneficial for the government in terms of budget certainty. However, it can also incentivize the contractor to cut corners on service quality or staffing to maintain profitability, especially if initial pricing was aggressive. The limited competition (2 bidders) increases the risk that the government may not have secured the most cost-effective solution, potentially leading to higher prices than if more bidders had participated. Additionally, reliance on a single contractor for essential services introduces operational risk if the contractor fails to perform adequately.

What is the track record of CORRECTIONS CORPORATION OF AMERICA (CO) in delivering similar correctional services to federal agencies?

CORRECTIONS CORPORATION OF AMERICA (CO) is a major private operator of correctional facilities in the United States. They have a long history of contracting with federal agencies, including the Federal Bureau of Prisons (BOP) and U.S. Immigration and Customs Enforcement (ICE), to manage and operate detention centers and provide related services. Their track record involves managing large populations and complex operational requirements. However, like many large private prison operators, CO has faced scrutiny and criticism regarding issues such as staffing levels, inmate safety, cost-effectiveness, and adherence to contractual obligations. A thorough assessment would require reviewing specific performance reviews, audit reports, and any litigation or disputes related to their federal contracts.

How does the per-unit cost of this contract compare to industry benchmarks for correctional services?

The provided data does not include sufficient detail to calculate a meaningful per-unit cost for comparison. To establish a per-unit cost, we would need to know the average daily population housed under this contract and divide the total contract value ($23.8 million) by the total number of 'inmate days' over the contract period (365 days). Even then, direct comparison to industry benchmarks is complex, as per diem rates vary significantly based on factors like geographic location, security levels required, specific services provided (e.g., medical care intensity), and the overall contract scope. Without these specifics, any per-unit cost derived would be a rough average and difficult to benchmark accurately against other facilities or providers.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

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

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $23,838,025

Exercised Options: $23,838,025

Current Obligation: $23,838,025

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: ACL0C0001

IDV Type: IDC

Timeline