CoreCivic's $21.4M detention services contract awarded by DHS highlights security guard needs

Contract Overview

Contract Amount: $21,424,370 ($21.4M)

Contractor: Corecivic, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2005-11-08

End Date: 2006-09-30

Contract Duration: 326 days

Daily Burn Rate: $65.7K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: DETENTION SERVICES

Place of Performance

Location: HOUSTON, HARRIS County, TEXAS, 77032

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $21.4 million to CORECIVIC, INC. for work described as: DETENTION SERVICES Key points: 1. The contract value of $21.4 million for detention services indicates a significant investment in managing detention facilities. 2. CoreCivic, Inc. is the sole awardee, suggesting a potential lack of broad market engagement for this specific requirement. 3. The contract was not competed under SAP, raising questions about the process for awarding this significant sum. 4. The 'Security Guards and Patrol Services' NAICS code points to a focus on personnel for facility security. 5. The 'Time and Materials' contract type can introduce cost uncertainty if not carefully managed. 6. The relatively short duration of 326 days may indicate a need for interim services or a pilot program.

Value Assessment

Rating: questionable

Benchmarking the value of this specific detention services contract is challenging without more detailed service scope and performance metrics. However, the $21.4 million award for a period of 326 days suggests a substantial per diem cost for detention services. The 'Time and Materials' pricing structure, while flexible, can lead to higher costs if not tightly controlled, especially when compared to fixed-price contracts. Without comparable contract data for similar detention services, it's difficult to definitively assess value for money, but the lack of competition raises concerns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as 'NOT COMPETED UNDER SAP,' which typically implies a sole-source or limited competition scenario. The data indicates only one awardee, CoreCivic, Inc., reinforcing the sole-source nature. This lack of competition means that the government did not explore the full range of potential providers, which could limit price discovery and potentially lead to less favorable pricing than if multiple bids were solicited.

Taxpayer Impact: The absence of a competitive bidding process for this $21.4 million contract means taxpayers may not have received the most cost-effective solution available in the market.

Public Impact

The primary beneficiaries are U.S. Immigration and Customs Enforcement (ICE) and the Department of Homeland Security (DHS), who receive detention services. The services delivered include security guard and patrol functions essential for maintaining order and safety within detention facilities. The contract is geographically located in Texas (TX), impacting local workforce and service providers in that region. The contract supports the workforce involved in providing security and operational support for detention centers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition for a significant contract value raises concerns about potential overpayment and limited innovation.
The 'Time and Materials' contract type can lead to cost overruns if not meticulously managed and monitored.
The sole-source award suggests a potential over-reliance on a single contractor for critical services.

Positive Signals

The award addresses a clear need for detention services by a federal agency.
The contract specifies a defined period of performance, allowing for reassessment and potential future competition.
The NAICS code 'Security Guards and Patrol Services' indicates a focus on established security protocols.

Sector Analysis

The detention services sector is a critical component of the U.S. immigration and law enforcement infrastructure. This contract falls under the broader 'Security and Support Services' industry, which includes a range of services for government facilities. The market for detention services is often characterized by specialized providers and can be influenced by government policy and demand. Comparable spending benchmarks would typically involve analyzing per diem rates for similar detention facilities across different regions and contract types.

Small Business Impact

The provided data does not indicate any small business set-aside or subcontracting requirements for this contract. As a sole-source award to a large corporation (CoreCivic, Inc.), it is unlikely to have direct positive implications for the small business ecosystem in terms of prime contract awards. Subcontracting opportunities, if any, would depend on CoreCivic's internal procurement practices and would need to be specifically investigated.

Oversight & Accountability

Oversight for this contract would primarily fall under the purview of U.S. Immigration and Customs Enforcement (ICE) within the Department of Homeland Security. Accountability measures would be defined by the contract terms, including performance standards and reporting requirements. Transparency is often limited for sole-source contracts, especially those related to sensitive operations like detention services. The Inspector General for DHS would have jurisdiction to investigate potential fraud, waste, or abuse.

Related Government Programs

Immigration Detention Services
Correctional Facility Management
Private Prison Contracts
Homeland Security Contracts
Federal Law Enforcement Support

Risk Flags

Lack of Competition
Cost Uncertainty (Time and Materials)
Potential for Overpricing
Contractor Performance Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $21.4 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 Homeland Security (U.S. Immigration and Customs Enforcement).

What is the total obligated amount?

The obligated amount is $21.4 million.

What is the period of performance?

Start: 2005-11-08. End: 2006-09-30.

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

CoreCivic, Inc. has a substantial history of providing detention and correctional services to federal, state, and local governments. As a major private prison operator, the company has been involved in numerous contracts with agencies like ICE and the Federal Bureau of Prisons. Their track record includes managing large-scale facilities and providing a range of services, from housing inmates to providing security and support staff. However, their history has also been marked by scrutiny regarding facility conditions, cost-effectiveness, and labor practices. Analyzing specific past performance on similar ICE contracts would provide a clearer picture of their reliability and efficiency in delivering detention services.

How does the $21.4 million value compare to similar detention services contracts?

The $21.4 million value for a 326-day contract period suggests a significant daily operational cost. To compare effectively, one would need to analyze the per diem rate per detainee and the average daily population housed under this contract. ICE utilizes a variety of detention facilities, including those operated by private contractors and government-owned facilities. Contracts can range from short-term emergency placements to long-term management agreements. Without knowing the specific capacity and services included in this $21.4 million award, a direct comparison is difficult. However, given the duration, it represents a substantial investment in detention capacity within Texas.

What are the primary risks associated with a sole-source 'Time and Materials' contract for detention services?

The primary risks associated with a sole-source 'Time and Materials' (T&M) contract for detention services are twofold. Firstly, the sole-source nature means the government did not benefit from competitive bidding, potentially leading to inflated prices and reduced incentive for the contractor to offer the most cost-effective solution. Secondly, the T&M pricing structure, while offering flexibility, carries inherent risks of cost overruns. The contractor is reimbursed for actual labor hours and material costs, plus a fee. If labor hours are not efficiently managed or material costs escalate unexpectedly, the total contract cost can exceed initial estimates. Robust oversight and detailed cost tracking are crucial to mitigate these risks.

How effective are security guard and patrol services in ensuring the safety and security of detention facilities?

The effectiveness of security guard and patrol services in detention facilities is paramount to maintaining safety and security. These services are the first line of defense against escapes, contraband introduction, and internal disturbances. Well-trained, adequately staffed, and properly supervised guards are essential for enforcing rules, monitoring detainee movement, responding to incidents, and ensuring the overall security perimeter. However, effectiveness is contingent on the quality of training, the number of personnel relative to the detainee population, the effectiveness of supervision, and the integration of these human resources with technological security measures. Inadequate staffing or training can significantly compromise facility security.

What is the historical spending trend for detention services by U.S. Immigration and Customs Enforcement?

U.S. Immigration and Customs Enforcement (ICE) has historically spent billions of dollars annually on detention services. This spending has been driven by fluctuating immigration policies, increased border apprehensions, and the need to detain individuals pending immigration proceedings. The agency relies on a network of government-owned and contractor-operated facilities. Spending trends have generally shown an increase over the past two decades, although year-to-year fluctuations occur based on operational needs and budget allocations. Analyzing historical ICE detention spending reveals a significant and consistent demand for these services, often leading to substantial contracts with private providers like CoreCivic.

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: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

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: $21,424,370

Exercised Options: $21,424,370

Current Obligation: $21,424,370

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HSACD3C0015

IDV Type: IDC

Timeline