Attachment 25A - Detention Services Cost Statement Handbook.pdf

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Detention Services Cost Statement

(DSCS)

User Handbook for

InterGovernmental Service Agreement (IGSA)

And

ICE-Dedicated Facilities

01 October 2020

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Purpose of the Detention Services Cost Statement

The Detention Services Cost Statement (DSCS) is an Excel workbook that Immigration and Customs Enforcement (ICE) uses to gather other than certified cost or pricing data. This data helps the Agency to determine a fair and reasonable price for each detention facility, in collaboration with the service provider.

Your Role

As a prospective provider of detention services to ICE, the process of determining a fair and reasonable price for a detention facility begins with you. This Handbook will take you step-by-step through the process of completing the DSCS.

This document is designed to provide step-by-step instructions on completing a DSCS for InterGovernmental Service Agreement (IGSA) and an ICE- dedicated facility.

The document will give a brief introduction of the organization and logic of the DSCS. Then, it will go through each tab of the Excel workbook in turn, to provide step-by-step directions to fill it out properly.

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Table of Contents

Introduction to the Detention Services Cost Statement 4

Basic information (Tab 1. Cover Page) 5

Information on staff at the facility (Tab 2. Staffing) 7

Facility Costs, Contract Services, Depreciation, Direct, and Indirect Costs (Tab 3. Expenses) 10

Transportation costs at the facility (Tab 4. Transportation) 13

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Introduction to the Detention Services Cost Statement

The Detention Services Cost Statement (DSCS) is a standard Excel workbook that Immigrations and Customs Enforcement (ICE) uses to gather other than certified cost and pricing data.

This data is used to understand the main costs of operating a facility. The data will also be a starting point for determining fair and reasonable pricing through a collaborative process with the service provider. The DSCS uses four (4) tabs with different categories of data:

• Cover page

• Staffing

• Expenses

• Transportation

These tabs are then summarized in a Cover Page, which shows an at-a-glance overview of the categories and total proposed contract costs.

The next sections will give step-by-step instructions for how to fill out each tab of the Excel workbook. There are several rules of thumb that are consistent across all tabs, however:

• High-level directions are included in the dark grey/light grey boxes on each tab.

• Cells that are light brown can be edited to input data.

• On most tabs, there is a column labeled “% change”. This automatically calculates the increase or decrease in costs, and turns red if the increase is greater than 10%

• All other cells are locked to automatically calculate and cannot be edited.

Section 1 - Facility Costs / Other Direct Costs

Complete the light brown cells, as needed. Complete the expense title (column b), proposed cost (column c), actual prior year cost (column d), and provide an explanation for any large increases (column f). For equipment lease and operations and maintenance costs, these charges must be itemized in order to provide greater detail on their composition.

Expense Title Proposed Costs Actual Prior Year Costs % change

Building Lease or Rent 400,000$ 350,000$ 14%

Utilities 750,000$ 650,000$ 15%

Food and Kitchen Supplies 500,000$ 490,000$ 2%

-$ -$ 0%

-$ -$ 0%

-$ -$ 0%

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Basic information (Tab 1. Cover Page)

Tab “1. Cover Page” requires only a few simple inputs for the basic information to identify the facility. These are covered in Steps 1 through 11 below. All other information in this tab will calculate automatically from entries into the other tabs.

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Step 1. Enter the name of your facility.

Step 2. Enter the name of the company/government entity that will operate the facility.

Step 3. Enter the total size of the facility’s building(s) (in square feet).

Step 4. Enter the number of detainees (ICE and non-ICE) that your facility can hold. This should be the total number of detainees that your facility can house.

Step 5. Enter the Average Daily Population (ADP) of the facility over the past year. This should be the average number of beds that were filled each night over the last year.

Step 6. Enter the current population of your facility. This should be the number of beds that are filled in your facility tonight.

Step 7. Enter the year to which the actual or proposed costs in the DSCS relate to.

Step 8. Enter the percentage of General and Administrative (G&A) expenses.

Step 9. Enter the percentage of Profit on Operating Costs.

Step 10. Enter the percentage of Profit on Non-Operating Costs.

Step 11. Enter Tiered Bed Rate Pricing (if applicable).

NOTE: All white cells will be blank when you first open the DSCS. After you have completed the remaining tabs, the information in those cells will auto-populate. Therefore, this Cover Page will be an at-a-glance summary of the total costs of the facility.

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Information on staff at the facility (Tab 2. Staffing)

The cost of labor is the largest and most complex cost driver at most detention facilities. ICE has built a new system into the DSCS, which requires staffing costs to be entered in four sections: 1.

Hours, Benefits and Taxes, 2. Professional Roles, 3. Events Positions, and 4. Fixes Post Positions.

This new system will standardize labor rate build-ups across facilities and service providers.

Section 1 captures the first two elements of staffing costs:

• The requirements for holidays and other benefits as stipulated by a Collective Bargaining Agreement (CBA) or Service Contract Act (SCA) determination

• Posts and positions in the detention facility (from the staffing plan)

The first table, which captures the comprehensive benefits (time off, health and wellness benefits, etc.). Each row corresponds to one CBA or SCA determination.

The first section of this table, in Columns B through H, collects the number of hours employees are promised as benefits for various reasons:

Column B. Enter the name of the labor category (CBA number, SCA category, etc.).

Column C. The 2,080 is populated as the standard 40 hours per week and 52 weeks per year.

Column D. Enter the number of hours that staff in this labor category receive as guaranteed holidays over a year. Assume that a normal workday is 8 hours, so 10 days is 80 hours.

Column E. Enter the number of hours that staff in this labor category receive as paid vacation days over a year. Assume that a normal workday is 8 hours, so 10 days is 80 hours.

Column F. Enter the number of hours that staff in this labor category receive as paid sick days over a year in Cell F11. Assume that a normal workday is 8 hours, so 10 days is 80 hours.

Column G. Enter the number of hours that staff in this labor category spend at required training events over a year in Cell G11. Assume that a normal workday is 8 hours, so 10 days is 80 hours.

Column H. If applicable, enter the number of hours that staff in this labor category spend over a year on guard mount. Guard mount or “muster” is defined as the amount of time that an employee spends preparing for duty at the facility before taking their post. Assume that a normal workday is 8 hours, so 10 days is 80 hours.

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From this information, the number of “productive hours” (i.e., number of hours spent performing duties) and “non-productive hours” (i.e., number of hours spent on activities outside of their post) will calculate automatically.

Next, Column K through W will collect data on the monetary benefits that staff in each labor category receive:

Column K. Enter the number of hours that staff in a certain labor category work overtime in any given year.

Column L. Enter the amount of health and wellness benefits (in dollars or percentage) that staff in this labor category are paid.

Column M. Enter the amount of retirement benefits (in dollars or percentage) that staff in this labor category are paid.

Column N. If applicable, enter the amount of another benefit (in dollars or percentage) that staff in this labor category are paid. The Government may require documentation or additional explanation for this benefit.

Column O. If applicable, enter the amount of another benefit (in dollars or percentage) that staff in this labor category are paid. The Government may require documentation or additional explanation for this benefit.

Column P. If applicable, enter the amount of another benefit (in dollars or percentage) that staff in this labor category are paid. The Government may require documentation or additional explanation for this benefit.

Column Q. If applicable, enter the amount of another benefit (in dollars or percentage) that staff in this labor category are paid. The Government may require documentation or additional explanation for this benefit.

Column R. Enter the appropriate Security rate. Please note that the Threshold (maximum individual taxable earning for Calendar Year 2020) is $137,700.

Column S. Enter the appropriate Medicare rate.

Column T. Enter the appropriate Federal Unemployment Tax Act (FUTA) (i.e. 6%). Enter the appropriate amount for individual Threshold in cell T13.

Column U. Enter the dollar amount per hour that the service provider is required to pay for SUTA (State Unemployment Tax Act) taxes for staff in this labor category. Enter the appropriate amount for individual Threshold in cell U13.

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Column V. Enter the dollar amount per hour that the service provider pays for worker’s compensation insurance (“worker’s comp”) for staff in this labor category.

Column W. If applicable, overtime rating will be applied based on hours entered in column K.

Repeat this process for each CBA or SCA determination that exists at the detention facility.

Once the portion on hours, staffing benefits, and taxes is completed, the service provider should move on to provide information about the post plan at the facility.

Here, the service provider should fill out information about three distinct types of staff posts in three different categories:

• Section 2 - Professional roles are posts in the facility that do not interact with detainees and therefore do not need relief officers (like accountants, the Warden, etc.). Data about these roles will be entered in Columns B through F.

• Section 3 - Event roles are posts in the facility that interact with detainees but do not need to be manned at all time (e.g., recreation officers, meal service posts). Data about these roles will be entered in Columns B through F.

• Section 4 - Fixed posts are posts in the facility that interact with detainees and must always be manned , 24/7 (e.g., gate guards, lobby officers). Data about these roles will be entered in Columns B through F.

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Facility Costs, Contract Services, Depreciation, Direct, and Indirect Costs (Tab 3. Expenses)

All costs that are related to the operation of the facility itself, contract services, Medical staff, depreciation expenses and one-time charges will be captured in Tab 3 which includes six sections: 1. Facility Costs / Other Direct Costs, 2. Contract Services, Medical Staff, 3. Depreciation Expense, 5. Cost of Money, and 6. One-Time Charges.

Section 1 includes building lease/rent, utilities, food & kitchen supplies, maintenance costs, and any other related costs. Enter data in Columns B through H.

Column B. Building Lease or Rent, Utilities, and Food and Kitchen Supplies have already been filled out. Other expenses are entered at the service providers’ discretion.

Column C. Enter the proposed cost for the current year.

Column D. Enter the percent of cost to be allocated to this contract.

Column E. This automatically calculates the amount allocated to ICE contract.

Column F. Enter the actual cost for the previous year.

Column G. This automatically calculates the increase or decrease in costs and turns red if the increase is greater than 10%.

Column H. Provide explanation for large increase in cost (greater than 10%).

Section 2 includes contract services. Enter data in Columns B through H.

Column B. Medical has already been filled out. Other expenses are entered at the service providers’ discretion.

Column C. Medical expenses is automatically populated. Other proposed cost for the current year are entered at the service providers’ discretion.

Column D. Enter the percent of cost to be allocated to this contract.

Column E. This automatically calculates the amount allocated to ICE contract.

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Column F. Enter the actual cost for the previous year.

Column G. This automatically calculates the increase or decrease in costs and turns red if the increase is greater than or equal to 10%.

Column H. Provide explanation for large increase in cost (10% or more).

Section 3 includes detailed information on medical staff (i.e., positions, number of each positions, and annual salaries). Enter data in Columns J through M.

Column J. List all medical and dental positions.

Column K. Enter the number of each position.

Column L. Enter the annual salary for each position.

Column M. This automatically calculates the total cost for each position.

Section 4 includes original value, year, purchase price and salvage value and any modification and additions. Enter data in Columns B through I.

Column B. The main Building has already been filled out. Other structure or equipment expenses are entered at the service providers’ discretion.

Column C. Enter the year the building/equipment was acquired.

Column D. Enter the purchase price.

Column E. Enter the salvage value after the life of the building/equipment.

Column F. Enter the useful life for the building or equipment. The general rule is 40 years for buildings, 10 years for repairs, and 7 years for equipment.

Column G. This automatically calculates the annual depreciation cost.

Column H. Enter the percent of cost to be allocated to this contract.

Column I. This automatically calculates the amount allocated to ICE contract.

Section 5 includes original value, annual depreciation expense, year depreciated and cost of money rate. Enter data in Columns B through H.

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Column B. List the description of each asset.

Column C. Enter the original value of each item.

Column D. Enter the annual depreciation expenses.

Column E. Enter the number of years the asset has depreciated.

Column F. This automatically calculates the current book value.

Column G. Enter the percentage for the cost of money.

Column H. This automatically calculates the annual interest payment.

Section 6 includes one-time expenses. These items will not be incorporated into the total contract value or the daily bed rate. Enter data in Columns B through F.

Column B. List all one-time expenses (if applicable).

Column C. Enter the cost of each item.

Column D - F. Provide a detailed description of the item.

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Transportation costs at the facility (Tab 4. Transportation)

Transportation costs are charged on a separate Contract Line Item Number (CLIN), which does not factor into the bed-day rate at the facility. As a result, the Detention Services Cost Statement aggregates all costs for transportation services in Tab “4. Transportation”. The values entered here will appear on Tab 1. Cover Page.

1. Calculation of Total Transportation Price, 2. Information from Section 7 (Staffing), 3. - Transportation Subcontracts, 4. Vehicle Mileage, 5. Itemized Vehicle Charge, 6. Hours, Benefits, and Taxes, 7. Staffing, and 8. Other Charges. Contractors that are providing transportation services need to complete section 3 through 8 as applicable.

Section 1 includes calculation of total transportation price and is populated from the information from Sections 3 through 8.

Column D. The “Markup on Costs” entry is however dependent on the percentage rates entered for G&A and Profit on Operating Costs. As noted in Red fonts, please apply the same rate of G&A and Profit as proposed on Cover Page Tab.

Section 2 includes staffing data and is populated from the information from Section 7.

Section 3 includes information on transportation subcontractors. Enter data in Columns B through F.

Column B. Enter the name of each vendor.

Column C. Enter the proposed cost.

Column D. Enter the cost for the prior year.

Column E. This automatically calculates the difference in costs.

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Column F. This automatically calculates the increase or decrease in costs and turns red if the

Section 4 includes types of vehicles, mileage driven and mileage rate. Enter data in Columns B through G.

Column B. Enter the type of each vehicle.

Column C. Enter the number of vehicles.

Column D. Enter the proposed monthly mileage.

Column E. Enter the mileage rate for each vehicle.

Column F. This automatically calculates the monthly cost.

Column G. This automatically calculates the annual cost.

Section 5 includes vehicle lease, repair and maintenance, insurance, fuel and any other related costs. Enter data in Columns B through F.

Column B. Itemized list has already been filled out.

Column C. Enter a brief description for this item.

Column D. Enter the cost for each item.

Column E. Enter the number of vehicles.

Column F. This automatically calculates the annual cost.

Section 6 captures the first two elements of staffing costs (Please refer to Section 1 of Staffing Tab for similar instructions on Pages 7 through 8).

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Section 7 includes transportation personnel. Enter data in Columns B through F.

Column B. Enter list of positions.

Column C. Select if the position is Detention/transportation officer.

Column D. Select if CBA applies to this position.

Column E. Enter the rate.

Column F. Enter the number of required FTEs.

Section 8 includes other transportation related charges. Enter data in Columns B through E.

Column B. Enter the type of expense.

Column C. Enter the annual proposed cost.

Column D. Enter the cost for the prior year.

Column E. This automatically calculates the increase or decrease in costs and turns red if the