DOJ's $52.2M contract for detention services awarded to The GEO Group, Inc. for Western Region Facility

Contract Overview

Contract Amount: $52,235,990 ($52.2M)

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: $143.1K/day

Competition Type: COMPETED UNDER SAP

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CONTRACTOR SHALL PERFORM DETENTION SERVICES AS DESCRIBED IN THE STATEMENT OF WORK (ATTACHED) FOR WESTERN REGION DETENTION FACILITY

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92101

State: California Government Spending

Plain-Language Summary

Department of Justice obligated $52.2 million to THE GEO GROUP, INC. for work described as: CONTRACTOR SHALL PERFORM DETENTION SERVICES AS DESCRIBED IN THE STATEMENT OF WORK (ATTACHED) FOR WESTERN REGION DETENTION FACILITY Key points: 1. Contract value represents a significant investment in detention services for the Western Region. 2. The GEO Group, Inc. is a major player in the private detention facility market. 3. The contract was competed under SAP, suggesting a streamlined procurement process. 4. The firm-fixed-price structure aims to control costs for the government. 5. Performance period of one year indicates a focus on immediate operational needs. 6. The contract is for facilities support services, a critical component of correctional operations.

Value Assessment

Rating: fair

The contract value of $52.2 million for one year of detention services appears to be within a reasonable range for a facility of this nature, though specific benchmarks are difficult without detailed service level agreements and per-inmate-day costs. Comparing this to other contracts for similar services by the U.S. Marshals Service would provide better context. The firm-fixed-price nature of the contract suggests an attempt to manage cost predictability, but it's essential to ensure the price reflects the actual operational costs and avoids excessive profit margins for the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under SAP (Simplified Acquisition Procedures), which is typically used for purchases below the simplified acquisition threshold. This suggests a competitive process, though the exact number of bidders is not specified. Competition under SAP can still yield good value, but it may not be as robust as full and open competition for larger contracts. The specific details of the SAP competition would determine the extent of price discovery.

Taxpayer Impact: Competition under SAP generally aims to ensure fair pricing for taxpayers, but the limited scope of SAP may mean that a wider range of potential offerors were not solicited, potentially impacting the lowest possible price.

Public Impact

The primary beneficiaries are the U.S. Marshals Service, ensuring detention capacity for individuals in their custody. The contract delivers essential detention facility operations and support services. The geographic impact is focused on the Western Region of the United States. The contract supports jobs within the private correctional facility sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen operational issues arise under a fixed-price contract.
Reliance on a single contractor for critical detention services could pose a risk if performance falters.
Ensuring adequate staffing levels and quality of care within the facility requires ongoing oversight.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Competition under SAP suggests an effort to obtain value for money.
The contract is for a defined period, allowing for re-evaluation of needs and contractor performance.

Sector Analysis

The detention services sector is a significant part of the government contracting landscape, particularly for agencies like the U.S. Marshals Service that require temporary holding facilities. This contract falls within the Facilities Support Services NAICS code (561210). The market for detention services is often dominated by a few large private prison companies, and contracts can range from short-term housing to long-term facility management. Benchmarking would involve comparing per-diem rates and operational costs against similar facilities in the region and nationally.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (sb: false). While the primary contract may not have a small business set-aside, the prime contractor, The GEO Group, Inc., may engage small businesses for subcontracting opportunities related to facility maintenance, supplies, or specialized services. The extent of small business subcontracting would need further investigation to assess its impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Marshals Service, which is responsible for ensuring the contractor meets all performance standards outlined in the Statement of Work. Accountability measures would be tied to the firm-fixed-price contract terms, with potential penalties for non-performance. Transparency is generally maintained through contract award data, but detailed operational reports and audits are typically internal to the agency and contractor.

Related Government Programs

Federal Bureau of Prisons Contracts
Immigration and Customs Enforcement Detention Contracts
State and Local Government Detention Contracts

Risk Flags

Contractor Performance Risk
Operational Security Risk
Cost Management Risk
Staffing and Training Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $52.2 million to THE GEO GROUP, INC.. CONTRACTOR SHALL PERFORM DETENTION SERVICES AS DESCRIBED IN THE STATEMENT OF WORK (ATTACHED) FOR WESTERN REGION DETENTION FACILITY

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 (U.S. Marshals Service).

What is the total obligated amount?

The obligated amount is $52.2 million.

What is the period of performance?

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

What is the historical spending pattern of the U.S. Marshals Service on detention services in the Western Region?

Analyzing historical spending by the U.S. Marshals Service (USMS) on detention services in the Western Region reveals a consistent need for outsourced detention capacity. Prior to this $52.2 million contract awarded in late 2019, the USMS likely engaged in similar contracts, potentially with the same or different providers, to manage inmate populations. Spending patterns are influenced by factors such as fluctuating arrest rates, judicial backlogs, and the availability of federal detention space. A review of previous contract awards for similar services in the region would show whether this $52.2 million figure represents an increase, decrease, or stable level of expenditure compared to prior years. It's also important to consider if the duration and scope of services have changed, impacting the overall dollar value. Understanding these historical trends provides context for the current contract's value and the ongoing reliance on private sector detention facilities.

How does the per-inmate-day cost of this contract compare to industry benchmarks?

Determining the precise per-inmate-day cost for this $52.2 million contract requires knowing the average daily population housed at the Western Region Detention Facility during the contract period (October 1, 2019, to September 30, 2020). Without this specific population data, a direct comparison to industry benchmarks is challenging. However, industry reports and government audits often provide average per-diem rates for different types of correctional facilities (e.g., minimum, medium, maximum security) and by region. If, for example, the average daily population was 1,000 inmates, the per-diem cost would be approximately $143 ($52,235,990 / 365 days / 1000 inmates). This figure would then be compared to national averages and rates charged by similar facilities in California or the Western Region. Variations can be significant based on the level of security required, services provided (medical, food, programming), and the contractor's operational efficiency. A higher-than-average per-diem cost might indicate a need for further negotiation or a review of the services included.

What is The GEO Group, Inc.'s track record with the U.S. Marshals Service and other federal agencies?

The GEO Group, Inc. has a substantial and long-standing track record as a provider of correctional and detention services to various federal agencies, including the U.S. Marshals Service (USMS), Immigration and Customs Enforcement (ICE), and the Federal Bureau of Prisons (BOP). Their history with the USMS involves managing numerous detention facilities across the country, often through competitive bidding processes similar to the one used for this contract. While GEO is a major player, its track record is also marked by scrutiny regarding operational standards, staffing levels, and cost-effectiveness. Past performance reviews, contract compliance records, and any documented instances of contract disputes or corrective actions with federal agencies are critical components of assessing their reliability. Investors and government oversight bodies often review GEO's performance metrics, including occupancy rates, incident reports, and compliance with detention standards, to gauge their overall effectiveness and suitability for continued federal contracts.

What are the key performance indicators (KPIs) for this detention services contract?

Key Performance Indicators (KPIs) for a detention services contract like this one are crucial for ensuring the U.S. Marshals Service receives the expected level of service and maintains safety and security. While not explicitly detailed in the provided data, typical KPIs would include metrics related to facility safety and security (e.g., number of escapes, assaults, contraband seizures), inmate welfare (e.g., timely medical care, food service quality, sanitation), staff performance (e.g., staff-to-inmate ratios, training compliance, staff turnover rates), and operational efficiency (e.g., facility cleanliness, maintenance response times). The contract's Statement of Work (SOW) would define these KPIs, along with acceptable performance levels and potential remedies for non-compliance. Performance evaluations would likely occur regularly, possibly quarterly, to assess the contractor's adherence to these standards and ensure the facility operates effectively and humanely.

Were there any significant risks identified during the procurement or performance of this contract?

During the procurement and performance of detention services contracts, several significant risks are commonly identified. For this specific contract with The GEO Group, Inc., potential risks could include operational failures leading to security breaches or inmate safety issues, fluctuations in inmate population impacting staffing and resource allocation, and potential cost overruns if the firm-fixed-price model does not adequately account for unforeseen operational demands. Contractor performance issues, such as inadequate staffing, insufficient training, or failure to meet facility standards, are also a persistent risk. Furthermore, public and political scrutiny of private detention facilities can pose reputational risks for both the contractor and the contracting agency. The U.S. Marshals Service would have conducted risk assessments during procurement, likely evaluating the contractor's past performance, financial stability, and proposed operational plan to mitigate these potential issues.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

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: $98,992,716

Exercised Options: $52,235,990

Current Obligation: $52,235,990

Actual Outlays: $52,236,634

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15M40018DA3500001

IDV Type: IDC

Timeline