DOJ contract for detention services awarded to The GEO Group, Inc. for over $42.8 million

Contract Overview

Contract Amount: $42,825,214 ($42.8M)

Contractor: THE GEO Group, Inc.

Awarding Agency: Department of Justice

Start Date: 2022-01-04

End Date: 2023-09-30

Contract Duration: 634 days

Daily Burn Rate: $67.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PRIVATE DETENTION SERVICES FOR CENTRAL VALLEY DETENTION FACILITY

Place of Performance

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

State: Florida Government Spending

Plain-Language Summary

Department of Justice obligated $42.8 million to THE GEO GROUP, INC. for work described as: PRIVATE DETENTION SERVICES FOR CENTRAL VALLEY DETENTION FACILITY Key points: 1. Contract value appears reasonable given the duration and scope of detention services. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. No specific risk indicators are immediately apparent from the provided data. 4. Performance context is limited without details on service quality or facility operations. 5. This contract falls within the security and correctional services sector.

Value Assessment

Rating: good

The contract value of approximately $42.8 million over 21 months for detention services is within a typical range for such operations. Benchmarking against similar contracts for federal prisoner detention would provide a more precise value-for-money assessment. The firm fixed-price structure helps control costs for the government, assuming the contractor can manage operational expenses effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The 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 government likely received multiple proposals, allowing for selection of the best value.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a wider range of potential service providers, ultimately aiming for better value.

Public Impact

The U.S. Marshals Service benefits from secure and operational detention facilities. Services delivered include the housing, care, and security of detainees. The geographic impact is localized to Florida, where the Central Valley Detention Facility is located. Workforce implications include employment for security personnel, administrative staff, and support services at the facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if operational demands exceed projections under a fixed-price contract.
Dependence on a single contractor for critical detention services.
Ensuring consistent service quality and adherence to detention standards over the contract period.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
Firm fixed-price contract type helps to control costs.
Contract duration provides a period of stable service provision.

Sector Analysis

This contract operates within the correctional services industry, a niche within the broader security sector. The market for private detention services is influenced by federal and state correctional policies, incarceration rates, and government contracting trends. Spending in this sector is driven by the need for facility management, inmate care, and security personnel. Comparable spending benchmarks would involve analyzing other contracts for similar detention facilities managed by private entities for federal agencies.

Small Business Impact

The provided data does not indicate any small business set-aside provisions for this contract. As a result, small businesses are unlikely to be direct beneficiaries of this award. There is no information on subcontracting plans, so the impact on the small business ecosystem is not directly assessable from this data alone.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Marshals Service contracting officer and contract specialists. Accountability measures are embedded in the contract terms, including performance standards and payment schedules. Transparency is facilitated through contract award databases, though detailed operational performance data may not be publicly available. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

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

Risk Flags

Contractor Performance History
Potential for Service Quality Issues
Reliance on Private Sector for Core Government Function

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $42.8 million to THE GEO GROUP, INC.. PRIVATE DETENTION SERVICES FOR CENTRAL VALLEY 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 $42.8 million.

What is the period of performance?

Start: 2022-01-04. End: 2023-09-30.

What is the historical spending pattern for detention services by the U.S. Marshals Service with The GEO Group, Inc. or similar providers?

Analyzing historical spending requires access to detailed contract databases beyond the scope of this single award. However, the U.S. Marshals Service (USMS) is a significant procurer of detention services, often relying on private facilities due to capacity constraints in federal prisons. The GEO Group, Inc. is one of the largest private prison operators in the U.S. and has a long-standing relationship with various federal agencies, including the USMS. Past spending patterns would likely show consistent, substantial investment in detention services, with fluctuations based on policy changes, inmate populations, and competition. Understanding the historical cost per diem and overall contract values for similar services would be crucial for a comprehensive value assessment.

How does the per-diem rate for this contract compare to other federal detention facilities?

Determining the exact per-diem rate requires dividing the total contract value by the estimated number of detainee days, which is not explicitly provided. However, based on the total award of $42,825,214.12 over approximately 634 days (from Jan 4, 2022, to Sep 30, 2023), the average daily cost per detainee would depend heavily on the average daily population housed. Private detention facility per-diem rates can vary significantly based on location, services provided (e.g., medical care, programming), and contract terms. Generally, rates can range from $70 to over $150 per detainee per day. Without the average daily population, a direct comparison is difficult, but the overall contract value suggests a significant operational scale.

What are the key performance indicators (KPIs) used to evaluate The GEO Group's performance under this contract?

Key performance indicators for detention service contracts typically focus on safety, security, health, and operational efficiency. Specific KPIs would likely include metrics related to inmate-to-staff ratios, incident rates (e.g., assaults, escapes, contraband seizures), health services availability and response times, facility maintenance and cleanliness, compliance with detention standards, and timely transportation of detainees. The contract documents would detail these KPIs, along with the methods for measurement and reporting. Performance evaluations would assess the contractor's adherence to these standards, potentially impacting payment or renewal.

What is the track record of The GEO Group, Inc. in managing federal detention contracts, particularly concerning compliance and safety?

The GEO Group, Inc. has a substantial track record in managing federal detention contracts, including those with the U.S. Marshals Service, Immigration and Customs Enforcement (ICE), and the Federal Bureau of Prisons (BOP). The company operates numerous facilities nationwide. Its track record is complex, marked by both operational successes and significant controversies. Reports from government watchdogs, news investigations, and advocacy groups have raised concerns regarding staffing levels, use of force, inmate safety, and healthcare provision in some of its facilities. Conversely, the company often highlights its compliance with contractual obligations and its role in providing necessary detention capacity. A thorough assessment would require reviewing specific facility inspection reports and incident data related to the Central Valley Detention Facility.

Are there any specific risks associated with relying on private entities for federal detention services, as highlighted by this contract?

Relying on private entities for federal detention services introduces several potential risks. These include the profit motive potentially conflicting with optimal care and safety standards, challenges in ensuring consistent oversight and accountability compared to government-run facilities, potential for contractor understaffing or cost-cutting measures that compromise security, and the risk of service disruptions if a contractor faces financial difficulties or legal challenges. Furthermore, the privatization of detention can raise ethical concerns regarding the government's core responsibilities. This contract, like others of its kind, necessitates robust government oversight to mitigate these inherent risks and ensure that public safety and detainee welfare remain paramount.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Guards and Patrol Services

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

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: 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: $42,825,214

Exercised Options: $42,825,214

Current Obligation: $42,825,214

Actual Outlays: $32,785,189

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70CDCR20D00000008

IDV Type: IDC

Timeline