DOJ awards $4.1M for residential reentry services in San Francisco, with GEO Reentry Inc. securing the contract

Contract Overview

Contract Amount: $4,103,627 ($4.1M)

Contractor: GEO Reentry Inc

Awarding Agency: Department of Justice

Start Date: 2025-04-01

End Date: 2026-03-31

Contract Duration: 364 days

Daily Burn Rate: $11.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: RESIDENTIAL REENTRY AND HOME CONFINEMENT SERVICES IN THE SAN FRANCISCO, CA AREA. OY4

Place of Performance

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

State: Florida Government Spending

Plain-Language Summary

Department of Justice obligated $4.1 million to GEO REENTRY INC for work described as: RESIDENTIAL REENTRY AND HOME CONFINEMENT SERVICES IN THE SAN FRANCISCO, CA AREA. OY4 Key points: 1. The contract value of $4.1 million for a 364-day period suggests a daily rate of approximately $11,274. 2. This contract is for essential residential reentry and home confinement services, crucial for offender rehabilitation. 3. The award was made under full and open competition, indicating a potentially competitive bidding process. 4. The fixed-price contract type helps mitigate cost overrun risks for the government. 5. The services are geographically focused on the San Francisco, CA area, addressing a specific regional need. 6. The contractor, GEO Reentry Inc., has a significant presence in providing correctional and reentry services.

Value Assessment

Rating: fair

The daily rate of $11,274 appears high when considering the total contract value and duration. Benchmarking against similar residential reentry contracts, especially those not in high-cost-of-living areas, would be necessary to determine true value for money. Without more granular data on the scope of services provided per day (e.g., number of individuals served, specific support programs), a definitive assessment of cost-effectiveness is challenging. However, the fixed-price nature provides some cost certainty.

Cost Per Unit: Approximately $11,274 per day (total contract value / duration in days). This figure needs to be compared against per-diem rates for similar services in comparable geographic locations and for similar populations.

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors were eligible to bid. This process is designed to encourage a competitive environment, potentially leading to better pricing and service offerings. The number of bids received would provide further insight into the level of competition. A robust competition generally benefits the government by driving down costs and improving quality.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of obtaining services at competitive market rates, preventing potential overpricing that could occur with less competitive solicitations.

Public Impact

Individuals transitioning from incarceration will benefit from structured reentry services, aiding their reintegration into society. The services provided include residential housing, supervision, and support programs aimed at reducing recidivism. The geographic impact is concentrated in the San Francisco, CA area, addressing a specific correctional system need. The contract supports the operational needs of the Federal Prison System / Bureau of Prisons by providing essential post-release care.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High daily cost per individual may warrant further investigation into service scope and efficiency.
Reliance on a single large contractor for critical reentry services could pose a risk if performance falters.
Geographic concentration might limit scalability or responsiveness to needs in other regions.

Positive Signals

Awarded under full and open competition, suggesting a fair and transparent procurement process.
Fixed-price contract type offers cost predictability and limits the government's exposure to cost overruns.
Contract addresses a critical need for offender reentry services, contributing to public safety and rehabilitation goals.

Sector Analysis

The residential reentry and home confinement services sector is a critical component of the correctional system, focusing on the transition of individuals from incarceration back into the community. This market involves providing housing, supervision, and support services designed to reduce recidivism and promote successful reintegration. Spending in this area is driven by federal, state, and local correctional agency needs. Comparable spending benchmarks would involve analyzing per-diem rates and contract values for similar services across different jurisdictions and for different offender populations.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. The primary contractor, GEO Reentry Inc., is a large entity. There is no explicit information provided regarding subcontracting plans with small businesses. The impact on the small business ecosystem is likely minimal unless subcontracting opportunities are pursued and awarded.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of Justice, specifically the Bureau of Prisons. Accountability measures are embedded within the contract terms, including performance standards and reporting requirements. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Federal Prison System Operations
Offender Rehabilitation Programs
Community Corrections Services
Home Confinement Programs

Risk Flags

High Daily Cost
Potential for Performance Issues
Limited Small Business Participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $4.1 million to GEO REENTRY INC. RESIDENTIAL REENTRY AND HOME CONFINEMENT SERVICES IN THE SAN FRANCISCO, CA AREA. OY4

Who is the contractor on this award?

The obligated recipient is GEO REENTRY 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 $4.1 million.

What is the period of performance?

Start: 2025-04-01. End: 2026-03-31.

What is the track record of GEO Reentry Inc. in providing residential reentry services, particularly in the San Francisco area?

GEO Reentry Inc. is a subsidiary of The GEO Group, a major provider of correctional and community reentry services. They operate numerous facilities and programs across the United States and internationally. Their track record includes managing a wide range of services, from secure detention to community-based residential programs. While they have extensive experience, like any large provider, they have faced scrutiny regarding operational standards, staffing, and cost-effectiveness in various contracts. Specific performance data for their San Francisco operations would require a deeper dive into contract performance reports and any public records of complaints or commendations related to their services in that specific geographic area.

How does the daily cost of $11,274 for these reentry services compare to national averages or similar contracts in high-cost urban areas?

The calculated daily rate of approximately $11,274 per day (based on $4.1M over 364 days) appears exceptionally high when compared to typical per diem rates for residential reentry services, which often range from $75 to $200 per individual per day, depending on the level of service and location. Even in high-cost-of-living areas like San Francisco, this rate is significantly above benchmarks. This high figure could indicate that the contract covers a very broad scope of intensive services, serves a small number of individuals, or includes significant overhead not typical in standard reentry contracts. A detailed breakdown of services included in this daily rate is essential for a proper comparison and value assessment.

What are the specific services included in this contract, and how do they justify the contract's value?

The contract specifies 'RESIDENTIAL REENTRY AND HOME CONFINEMENT SERVICES.' This typically includes secure housing, meals, case management, counseling, job placement assistance, substance abuse treatment, and supervision. However, the high daily rate suggests these services might be exceptionally intensive, cater to a specialized population with complex needs (e.g., high-security risk individuals requiring more intensive monitoring), or include significant support infrastructure. Without a detailed service delivery plan and a breakdown of the number of individuals served daily, it is difficult to definitively justify the contract's value. Further analysis would require examining the Performance Work Statement (PWS) to understand the exact scope and intensity of services.

What is the historical spending pattern for residential reentry services in the San Francisco area by the Department of Justice?

Analyzing historical spending for residential reentry services in the San Francisco area by the Department of Justice (DOJ) is crucial for context. This would involve reviewing past contracts awarded by the Bureau of Prisons (BOP) or other relevant DOJ components for similar services in that region. Understanding trends in contract values, durations, and the number of providers over time can reveal whether current spending is an anomaly or part of a consistent pattern. It can also highlight any significant increases or decreases in demand or cost. Without access to historical contract data specific to this region and service type, it's challenging to establish a precise historical spending pattern.

What are the potential risks associated with GEO Reentry Inc. as the contractor for these critical services?

Potential risks associated with GEO Reentry Inc. include performance issues, such as failure to meet service delivery standards, inadequate staffing, or security lapses within residential facilities. Given their size, there's also a risk of over-reliance on a single large provider, which could reduce flexibility and bargaining power for the government. Past criticisms or legal challenges faced by GEO Group or its subsidiaries regarding operational quality or labor practices in other locations could also represent a reputational or performance risk. Ensuring robust oversight and clear performance metrics are key to mitigating these risks.

Industry Classification

NAICS: Health Care and Social Assistance › Other Residential Care Facilities › Other Residential Care Facilities

Product/Service Code: SOCIAL SERVICES › SOCIAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 15BRRC20R00000271

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: THE GEO Group, Inc.

Address: 4955 TECHNOLOGY WAY, BOCA RATON, FL, 33431

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

Financial Breakdown

Contract Ceiling: $4,103,627

Exercised Options: $4,103,627

Current Obligation: $4,103,627

Actual Outlays: $1,780,807

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NOT OBTAINED - WAIVED

Parent Contract

Parent Award PIID: 15BRRC21D00000271

IDV Type: IDC

Timeline