DOJ's $41.2M contract for correctional facility management awarded to The GEO Group, Inc

Contract Overview

Contract Amount: $41,177,691 ($41.2M)

Contractor: THE GEO Group, Inc.

Awarding Agency: Department of Justice

Start Date: 2019-10-01

End Date: 2020-09-30

Contract Duration: 365 days

Daily Burn Rate: $112.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROVIDE SERVICES FOR THE MANAGEMENT AND OPERATION F A CORRECTIONAL FACILITY IN ACCORDANCE WITH RFP-PCC-0016.

Place of Performance

Location: BOCA RATON, PALM BEACH County, FLORIDA, 33431

State: Florida Government Spending

Plain-Language Summary

Department of Justice obligated $41.2 million to THE GEO GROUP, INC. for work described as: PROVIDE SERVICES FOR THE MANAGEMENT AND OPERATION F A CORRECTIONAL FACILITY IN ACCORDANCE WITH RFP-PCC-0016. Key points: 1. Contract value represents a significant investment in correctional facility operations. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The fixed-price contract type shifts performance risk to the contractor. 4. The contract duration of one year provides a defined period for service delivery. 5. The geographic location in Florida is a key operational consideration. 6. The specific NAICS code indicates a focus on facilities support services.

Value Assessment

Rating: fair

The contract value of $41.2 million for a one-year period for correctional facility management appears within a reasonable range for such services, though direct comparisons are difficult without more specific service scope details. The firm fixed-price structure indicates that the contractor bears the risk of cost overruns, which can be a positive indicator of value if managed effectively. However, without benchmarking against similar contracts for facilities of comparable size and security levels, a definitive assessment of pricing efficiency is challenging. The award amount should be evaluated against the specific performance metrics and service level agreements outlined in the RFP.

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 number of bidders is not specified, but this procurement method generally fosters price discovery and encourages competitive pricing. The agency sought proposals from a wide range of potential providers, aiming to secure the best value through a transparent and inclusive process. The level of competition is a positive sign for ensuring that taxpayer funds are used efficiently.

Taxpayer Impact: Full and open competition typically leads to more competitive pricing, potentially saving taxpayer money compared to sole-source or limited competition awards. It ensures that multiple companies vie for the contract, driving down costs.

Public Impact

The primary beneficiaries are the Department of Justice and the Federal Prison System, ensuring the continued operation of a correctional facility. Services delivered include the management and operation of a correctional facility, encompassing security, inmate services, and facility maintenance. The geographic impact is localized to Florida, where the facility is situated. Workforce implications include employment opportunities for correctional officers, administrative staff, and support personnel managed by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the fixed-price contract does not adequately account for unforeseen operational challenges.
Reliance on a single contractor for critical correctional facility operations could pose a risk if performance issues arise.
Ensuring consistent quality of services across the contract duration requires robust oversight.

Positive Signals

The firm fixed-price contract structure incentivizes the contractor to manage costs efficiently.
Awarding under full and open competition suggests a competitive process that likely secured favorable pricing.
The contractor, The GEO Group, Inc., has experience in managing correctional facilities, potentially bringing operational expertise.

Sector Analysis

The Facilities Support Services sector (NAICS 561210) encompasses a broad range of services related to the operation and maintenance of buildings and other facilities. This contract falls within the government services segment of this sector, specifically focusing on the unique requirements of correctional facility management. The market for these services is substantial, with significant government spending allocated to maintaining and operating federal facilities. Benchmarking this contract's value against other correctional facility management contracts would provide further context on its relative scale and cost-effectiveness.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). This suggests that the primary competition was not geared towards small businesses. There is no explicit information on subcontracting plans for small businesses. The impact on the small business ecosystem is likely minimal unless The GEO Group, Inc. voluntarily engages small businesses for support services, which is not detailed in the provided data.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Justice, specifically the Federal Prison System / Bureau of Prisons. Accountability measures are embedded within the contract's performance standards and the firm fixed-price structure, which incentivizes the contractor to meet requirements. Transparency is facilitated through the contract award process, which was conducted under full and open competition. The Inspector General for the Department of Justice would likely have jurisdiction for audits and investigations related to potential fraud, waste, or abuse.

Related Government Programs

Federal Bureau of Prisons Operations
Correctional Facility Management Services
Government Contracting - Facilities Support

Risk Flags

Contractor Performance Risk
Cost Overrun Potential (despite FFP)
Service Quality Degradation Risk
Reputational Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $41.2 million to THE GEO GROUP, INC.. PROVIDE SERVICES FOR THE MANAGEMENT AND OPERATION F A CORRECTIONAL FACILITY IN ACCORDANCE WITH RFP-PCC-0016.

Who is the contractor on this award?

The obligated recipient is THE GEO GROUP, INC..

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Prison System / Bureau of Prisons).

What is the total obligated amount?

The obligated amount is $41.2 million.

What is the period of performance?

Start: 2019-10-01. End: 2020-09-30.

What is the track record of The GEO Group, Inc. in managing federal correctional facilities?

The GEO Group, Inc. is a well-established private operator of correctional and detention facilities, as well as community reentry services, in the United States and internationally. They have a long history of contracting with federal, state, and local governments. For federal contracts, they have managed numerous Bureau of Prisons (BOP) facilities, Immigration and Customs Enforcement (ICE) detention centers, and U.S. Marshals Service facilities. Their track record includes both successful operations and, at times, scrutiny regarding conditions, staffing levels, and cost-effectiveness. Performance can vary significantly by contract and facility, with reviews often highlighting the complexities of managing secure environments and diverse inmate populations. Specific performance data for this particular contract would be found in past performance evaluations and contract close-out reports, which are not publicly detailed here.

How does the value of this contract compare to similar correctional facility management contracts?

Comparing the $41.2 million value for a one-year contract requires context regarding the facility's size, inmate capacity, security level, and the specific services included (e.g., healthcare, food services, rehabilitation programs). The GEO Group manages facilities of varying sizes and complexities. For instance, larger, higher-security federal prisons can have annual operating costs well into the tens or hundreds of millions of dollars. Smaller facilities or those with fewer services would naturally have lower contract values. Without knowing the specifics of the facility this contract supports, a direct comparison is difficult. However, the stated value is consistent with the operational costs of managing a medium-to-large correctional facility for a year, especially when considering staffing, security, maintenance, and inmate support.

What are the primary risks associated with this contract for the government?

The primary risks for the government in this contract revolve around contractor performance and potential cost issues. Despite the firm fixed-price structure, there's a risk that The GEO Group, Inc. might cut corners on staffing, training, or maintenance to maximize profit, potentially leading to security breaches, safety incidents, or decreased inmate welfare. There's also the risk of service disruptions if the contractor faces financial difficulties or labor disputes. Furthermore, the government bears the risk of reputational damage if the facility is poorly managed or if incidents occur. Ensuring robust oversight and clear performance metrics are crucial to mitigating these risks.

How effective is the firm fixed-price contract type in ensuring value for money in correctional facility management?

The firm fixed-price (FFP) contract type is generally considered effective in ensuring value for money because it shifts the risk of cost overruns to the contractor. This incentivizes the contractor to manage resources efficiently and control costs. For correctional facility management, where operational expenses can be significant and somewhat predictable (e.g., staffing, utilities), FFP can lead to cost savings if the contractor is competent and manages operations well. However, if the initial price estimate is too low or if unforeseen circumstances arise (e.g., major security incidents requiring significant unplanned resources), the contractor might struggle, potentially impacting service quality or leading to requests for contract modifications. Effective performance monitoring by the government is essential to ensure that cost control doesn't compromise essential services.

What is the historical spending pattern for correctional facility management by the Federal Prison System?

The Federal Prison System (FPS), part of the Department of Justice, has historically relied on both government-operated facilities and contracted private facilities to manage its inmate population. Spending on correctional facility management, including contracts with private operators like The GEO Group, has been a significant component of the FPS budget for decades. This spending fluctuates based on inmate population levels, policy changes regarding incarceration, and the balance between public and private facility utilization. Over the years, there have been debates and policy shifts concerning the extent to which private prisons should be used, influencing overall spending trends. Analyzing historical budgets and contract awards for the FPS would reveal trends in total spending, the proportion allocated to private contracts, and the average cost per inmate.

Industry Classification

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

Product/Service Code: SOCIAL SERVICES › SOCIAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 621 NW 53RD ST STE 700, BOCA RATON, FL, 33487

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $41,177,691

Exercised Options: $41,177,691

Current Obligation: $41,177,691

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DJB1PC013

IDV Type: IDC

Timeline