DOJ's $54.5M contract for detention services awarded to The GEO Group, Inc. for Western Region Facility

Contract Overview

Contract Amount: $54,552,306 ($54.6M)

Contractor: THE GEO Group, Inc.

Awarding Agency: Department of Justice

Start Date: 2022-10-01

End Date: 2023-09-30

Contract Duration: 364 days

Daily Burn Rate: $149.9K/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 $54.6 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 facility operations. 2. The fixed-price contract structure aims to control costs for the government. 3. Performance is tied to a detailed Statement of Work, indicating specific service requirements. 4. The contract duration of one year suggests a focus on immediate operational needs. 5. The award was made under Simplified Acquisition Procedures, implying a streamlined procurement process. 6. The geographic location in Florida is noted, potentially impacting local workforce and resources.

Value Assessment

Rating: fair

The contract value of $54.5 million for one year of detention services appears substantial. Benchmarking against similar contracts for detention facilities is crucial to assess value for money. Without specific performance metrics or comparisons to other providers in the Western Region, it's difficult to definitively assess if this represents excellent value. The firm fixed-price nature provides cost certainty, but the overall efficiency and quality of services rendered will ultimately determine the true value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under Simplified Acquisition Procedures (SAP), which typically allows for a broader range of competition than micro-purchases but is less formal than full and open competition for larger contracts. The number of bidders is not specified, but SAP is designed to encourage competition among qualified sources. This method aims to balance efficiency with the need for competitive pricing.

Taxpayer Impact: Competition under SAP generally leads to better price discovery than sole-source awards, potentially saving taxpayer dollars by ensuring the government receives competitive bids.

Public Impact

The primary beneficiaries are the U.S. Marshals Service and the Department of Justice, ensuring the availability of detention facilities. Services delivered include the operation and management of a detention facility for individuals in federal custody. The geographic impact is concentrated in Florida, where the Western Region Detention Facility is located. Workforce implications include employment opportunities for facility staff, security personnel, and support services within the local Florida economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen operational issues arise that are not adequately covered by the fixed-price structure.
Dependence on a single contractor for critical detention services raises concerns about service continuity and quality.
The specific performance metrics and penalties for non-performance are not detailed, which could limit accountability.

Positive Signals

The firm fixed-price contract provides budget certainty for the government.
The use of Simplified Acquisition Procedures suggests an effort to procure services efficiently.
The contract is tied to a detailed Statement of Work, ensuring clarity on expected services.

Sector Analysis

The Facilities Support Services sector, classified under NAICS code 561210, encompasses a broad range of services related to the operation and maintenance of facilities. This contract falls within the government's significant spending on correctional and detention services. Comparable spending benchmarks would involve analyzing other contracts for similar detention facility operations across different federal agencies and regions to gauge pricing and service levels.

Small Business Impact

The provided data indicates that small business participation (sb) is false, and there is no indication of a small business set-aside (ss). This suggests that the contract was not specifically targeted towards small businesses. Subcontracting opportunities for small businesses are not detailed in the provided information, but typically, larger prime contractors may engage small businesses for specialized services.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Marshals Service, the contracting agency. Accountability measures are expected to be outlined in the Statement of Work, detailing performance standards and potential remedies for non-compliance. Transparency is facilitated through contract databases, though detailed operational oversight reports may not be publicly available.

Related Government Programs

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

Risk Flags

Contract value is substantial, requiring careful monitoring of performance and cost.
Reliance on a single contractor for essential services necessitates robust oversight.
Potential for service disruptions if contractor fails to meet performance standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $54.6 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 $54.6 million.

What is the period of performance?

Start: 2022-10-01. End: 2023-09-30.

What is the historical spending pattern for detention services by the U.S. Marshals Service in Florida?

Analyzing historical spending patterns for detention services by the U.S. Marshals Service in Florida requires access to detailed procurement data over multiple fiscal years. This would involve identifying all contracts awarded for detention facility operations within the state, noting the contractors, contract values, durations, and service types. Trends in spending could reveal whether the agency is increasing or decreasing its reliance on contracted facilities, and if there are shifts in the types of services procured. Comparing current contract values to historical averages can help determine if the $54.5 million award for the Western Region Facility is in line with past expenditures or represents a significant increase or decrease. Such analysis would also highlight any dominant contractors in the region and the typical pricing structures employed.

How does the per-bed cost of this contract compare to national averages for federal detention facilities?

To compare the per-bed cost of this contract to national averages, we first need to determine the facility's capacity. The contract value is $54,552,305.69 for a 364-day period. If, for example, the facility has a capacity of 1,000 beds, the daily per-bed cost would be approximately ($54,552,305.69 / 364 days) / 1,000 beds ≈ $149.87 per bed per day. National averages for federal detention facilities can vary significantly based on factors like location, security level, services provided, and the specific agency operating the facility (e.g., USMS, BOP, ICE). General industry reports and government accountability office (GAO) studies often provide benchmarks. If the calculated per-bed cost is significantly higher than the national average, it would warrant further investigation into the specific operational requirements, service level agreements, and potential inefficiencies contributing to the higher cost.

What are the specific performance metrics and penalties outlined in the Statement of Work?

The Statement of Work (SOW) is a critical document that defines the specific performance metrics and any associated penalties for non-compliance. While the provided data indicates the existence of an SOW, its contents are not detailed here. Typically, for detention facility contracts, performance metrics would include standards related to inmate safety and security, health and medical services, food services, sanitation, staffing levels, incident reporting, and facility maintenance. Penalties could range from financial deductions for minor infractions to contract termination for severe or repeated failures to meet standards. A thorough review of the SOW would be necessary to understand the exact expectations, how performance is measured (e.g., through audits, inspections, incident reports), and the consequences for the contractor, The GEO Group, Inc., if these standards are not met.

Has The GEO Group, Inc. previously held similar contracts with the U.S. Marshals Service, and what is their performance history?

Assessing The GEO Group, Inc.'s performance history with the U.S. Marshals Service (USMS) requires examining past contract awards and performance evaluations. The GEO Group is a major private prison operator, and it is highly probable they have held numerous contracts with various federal agencies, including the USMS, for detention services. Publicly available contract databases and inspector general reports can provide insights into their track record. Key areas to investigate would include any history of contract disputes, instances of non-compliance with SOW requirements, inmate safety incidents, cost overruns, or early contract terminations. Conversely, positive performance indicators such as consistent high ratings, successful contract renewals, and efficient service delivery should also be considered to form a balanced view of their capabilities and reliability.

What is the potential impact of this contract on the local Florida economy and workforce?

This $54.5 million contract for detention services is likely to have a notable impact on the local Florida economy, particularly in the region surrounding the Western Region Detention Facility. The primary impact will be job creation, encompassing roles such as correctional officers, administrative staff, maintenance personnel, food service workers, and medical support staff. The wages and salaries paid to these employees will contribute to local spending. Additionally, the facility will require goods and services from local suppliers, such as food, utilities, maintenance materials, and transportation, further stimulating economic activity. The presence of a large federal contract can also attract ancillary businesses and services to the area. The scale of the contract suggests a significant number of direct and indirect jobs will be supported, contributing to the overall economic health of the community.

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: $54,552,306

Exercised Options: $54,552,306

Current Obligation: $54,552,306

Actual Outlays: $54,564,178

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15M40018DA3500001

IDV Type: IDC

Timeline