DOJ awards $93M for detention services, raising questions on value and competition

Contract Overview

Contract Amount: $92,950,211 ($93.0M)

Contractor: THE GEO Group, Inc.

Awarding Agency: Department of Justice

Start Date: 2020-10-30

End Date: 2022-06-30

Contract Duration: 608 days

Daily Burn Rate: $152.9K/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: BOCA RATON, PALM BEACH County, FLORIDA, 33431

State: Florida Government Spending

Plain-Language Summary

Department of Justice obligated $93.0 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 of $93M over two years suggests significant operational costs. 2. Limited competition data available for this specific award. 3. Potential for cost overruns or inefficiencies given the nature of detention services. 4. Performance context is crucial for assessing the effectiveness of these services. 5. Sector positioning within government facilities management and support services. 6. Focus on Western Region Detention Facility highlights specific geographic needs.

Value Assessment

Rating: fair

The contract value of $93M for approximately two years of detention services appears substantial. Benchmarking against similar contracts for detention facilities is challenging without more specific service details and geographic comparisons. The firm-fixed-price structure provides some cost certainty, but the overall value for money depends heavily on the quality and efficiency of the services delivered. Without detailed performance metrics or comparisons to other facilities, assessing true value is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The contract was competed under Simplified Acquisition Procedures (SAP), which typically implies a smaller dollar value or a less complex procurement. The specific number of bidders is not provided, but SAP competition can sometimes be less robust than full and open competition. This could potentially lead to less aggressive pricing and fewer innovative solutions compared to a broader competition.

Taxpayer Impact: For taxpayers, competition under SAP may mean less assurance of the best possible price and service, as the pool of potential offerors is often smaller.

Public Impact

Benefits federal agencies requiring detention services, specifically the U.S. Marshals Service. Delivers essential detention and facility support services for the Western Region Detention Facility. Geographic impact is concentrated in Florida, where the facility is located. Workforce implications include employment for facility staff and support personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of transparency on the number of bidders under SAP.
Potential for cost escalation if service demands exceed initial estimates.
Dependence on contractor performance for critical public safety functions.

Positive Signals

Firm-fixed-price contract provides cost predictability.
Contract duration of approximately two years allows for stable service provision.
Awarded to a known entity in the corrections and detention services sector.

Sector Analysis

This contract falls within the Facilities Support Services sector, specifically focusing on detention operations. The market for government detention services is significant, often involving specialized providers. Comparable spending benchmarks would require analyzing other contracts for similar facilities managed by federal agencies like the Bureau of Prisons or Immigration and Customs Enforcement. The market is characterized by stringent regulatory requirements and security protocols.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (sb: false) and the contractor is not a small business. There is no information provided on subcontracting plans. This suggests that larger, established companies are likely the primary recipients of such contracts, with limited direct opportunities for small businesses unless they are part of a larger subcontracting team.

Oversight & Accountability

Oversight would typically be managed by the U.S. Marshals Service contracting officer and program managers. Accountability measures are embedded in the firm-fixed-price contract terms and performance expectations outlined in the Statement of Work. Transparency is limited by the nature of SAP procurements, which do not always require extensive public disclosure of the competitive process. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Bureau of Prisons Detention Contracts
Immigration and Customs Enforcement Detention Services
Federal Law Enforcement Facility Management
Correctional Services Contracts

Risk Flags

Limited competition transparency
Potential for cost overruns
Performance monitoring challenges

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $93.0 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 $93.0 million.

What is the period of performance?

Start: 2020-10-30. End: 2022-06-30.

What is the historical spending pattern for detention services at the Western Region Detention Facility?

Analyzing historical spending for the Western Region Detention Facility requires access to prior contract awards for this specific location. Without that data, it's impossible to determine if the current $93M award represents an increase, decrease, or stable level of spending. Generally, detention facility costs can fluctuate based on inmate population, service level agreements, and inflation. A trend analysis of past contracts, if available, would reveal if this award is consistent with previous investments or indicates a significant shift in resource allocation for this facility.

How does the per-unit cost of detention services in this contract compare to industry benchmarks?

Determining the per-unit cost (e.g., cost per inmate per day) for this contract requires breaking down the total award value by the expected number of inmates and the contract duration. The provided data does not include inmate population figures or specific service metrics that would allow for such a calculation. Industry benchmarks for detention services vary widely based on facility type (e.g., minimum, medium, maximum security), location, and the specific services included (e.g., healthcare, food, transportation). Without these details, a direct comparison to industry benchmarks is not feasible.

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

The GEO Group, Inc. is a major private operator of correctional and detention facilities in the United States and internationally. They have a significant history of holding contracts with federal agencies, including the U.S. Marshals Service, Immigration and Customs Enforcement (ICE), and the Federal Bureau of Prisons (BOP). Their track record includes managing numerous facilities, but also instances of scrutiny regarding operational conditions, costs, and contract compliance. A thorough assessment would involve reviewing past performance evaluations, any significant contract disputes, and public reports related to their federal contracts.

What are the key performance indicators (KPIs) used to evaluate the contractor's performance?

The Statement of Work (SOW) attached to the contract would typically detail the Key Performance Indicators (KPIs) used to evaluate The GEO Group, Inc.'s performance. Common KPIs for detention services include inmate safety and security metrics, facility maintenance standards, response times for incidents, compliance with regulatory requirements (e.g., health, fire safety), and adherence to population management protocols. The firm-fixed-price nature of the contract implies that meeting these KPIs is essential for successful contract execution and payment.

What is the potential risk associated with the firm-fixed-price contract type for these services?

A firm-fixed-price (FFP) contract aims to provide price certainty for the government. However, for complex services like detention operations, there can be risks. If the contractor underestimates costs or faces unforeseen operational challenges (e.g., unexpected security incidents, higher utility costs), they may struggle to maintain profitability, potentially leading to corners being cut on service quality or safety. Conversely, if the contractor significantly overestimates costs, taxpayers may be overpaying. The government's risk is mitigated by robust performance monitoring and clear contract terms.

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: $106,686,352

Exercised Options: $104,972,102

Current Obligation: $92,950,211

Actual Outlays: $48,383,167

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15M40018DA3500001

IDV Type: IDC

Timeline