DOJ awards $64M for detention services, with GEO Group securing the contract for Central Valley Facility

Contract Overview

Contract Amount: $63,976,173 ($64.0M)

Contractor: THE GEO Group, Inc.

Awarding Agency: Department of Justice

Start Date: 2023-10-01

End Date: 2026-03-31

Contract Duration: 912 days

Daily Burn Rate: $70.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FY23 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 $64.0 million to THE GEO GROUP, INC. for work described as: FY23 PRIVATE DETENTION SERVICES FOR CENTRAL VALLEY DETENTION FACILITY Key points: 1. Contract value represents a significant investment in detention infrastructure. 2. The award to a single incumbent suggests potential for stable but limited competition. 3. Performance will be closely monitored given the sensitive nature of detention services. 4. This contract aligns with broader federal efforts to manage detention populations. 5. The fixed-price structure aims to control costs for the government. 6. Geographic concentration in Florida may indicate regional demand for these services.

Value Assessment

Rating: fair

The contract value of $64 million over approximately three years appears substantial for detention services at a single facility. Benchmarking against similar contracts for detention services is challenging without more specific details on facility capacity, security levels, and service scope. However, the fixed-price nature suggests an attempt to lock in costs. Further analysis would require comparing per-bed costs or service rates to industry averages and other government contracts for comparable facilities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The fact that The GEO Group, Inc. was awarded the contract suggests they were the most competitive offeror based on the evaluation criteria. The specific number of bidders is not provided, but full and open competition generally promotes price discovery and potentially better value.

Taxpayer Impact: Taxpayers benefit from the competitive process which aims to secure the best value for the government's expenditure on detention services.

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 secure housing and care of detainees. The geographic impact is concentrated in Florida, specifically serving the Central Valley Detention Facility's operational needs. Workforce implications include employment opportunities for security personnel, administrative staff, and support services at the facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for over-reliance on a single provider if follow-on contracts are awarded without robust competition.
Ensuring consistent quality of care and security standards across the contract duration.
Managing potential cost overruns if unforeseen operational challenges arise despite the fixed-price structure.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
Fixed-price contract type helps to establish cost certainty for the government.
The GEO Group, Inc. is an established provider in the detention services sector, implying experience.

Sector Analysis

The private detention services sector is a component of the broader correctional and security services industry. This contract falls within the government services segment, where private companies are contracted to manage and operate facilities. Spending in this sector is influenced by federal, state, and local policies regarding incarceration and detention. Comparable spending benchmarks would involve analyzing other federal contracts for similar detention facilities, considering factors like bed capacity, security levels, and geographic location.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside requirement (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities if The GEO Group, Inc. chooses to engage them. Without specific subcontracting plans, it's difficult to assess the direct impact on the small business ecosystem for this particular award.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Marshals Service, the contracting agency. Accountability measures are embedded within the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract award databases. Inspector General jurisdiction would likely fall under the Department of Justice's Office of the Inspector General, which investigates fraud, waste, and abuse in federal programs.

Related Government Programs

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

Risk Flags

Potential for service quality issues
Security vulnerabilities
Staffing and retention challenges
Reputational risk for the government

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $64.0 million to THE GEO GROUP, INC.. FY23 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 $64.0 million.

What is the period of performance?

Start: 2023-10-01. End: 2026-03-31.

What is the historical spending pattern for detention services at the Central Valley Detention Facility?

Historical spending data for the Central Valley Detention Facility prior to this award is not directly available in the provided data. However, the contract duration of 912 days (approximately 2.5 years) and the award amount of $64,976,172.54 suggest an average annual spending of roughly $26 million. This figure can be used as a baseline for future comparisons. To understand historical patterns, one would need to access previous contract awards for this specific facility or similar facilities managed by the U.S. Marshals Service, analyzing spending trends over multiple fiscal years to identify any increases, decreases, or fluctuations in cost.

How does the awarded price compare to similar detention contracts managed by the U.S. Marshals Service?

A direct comparison of the awarded price of approximately $64 million for this contract to similar contracts is difficult without more granular data on facility capacity, security levels, and the specific services included. The U.S. Marshals Service contracts for detention services across various facilities, and costs can vary significantly based on these factors. However, the average annual cost implied by this award is around $26 million. Benchmarking against other contracts of similar duration and scope would be necessary to determine if this price represents good value for money. Factors such as the number of detainees housed, the length of stay, and the required security protocols heavily influence pricing in this sector.

What is The GEO Group, Inc.'s track record with federal detention contracts?

The GEO Group, Inc. is a major private operator of correctional and detention facilities and has a significant track record with federal agencies, including the Department of Justice and Immigration and Customs Enforcement (ICE). They manage numerous facilities under various contracts. Their performance history with the government is extensive, encompassing both successes and criticisms related to operational efficiency, security, and detainee welfare. Analyzing past performance reviews, any contract disputes, or instances of non-compliance would provide a more comprehensive view of their track record specifically for federal detention services.

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

While specific Key Performance Indicators (KPIs) are not detailed in the provided award data, typical KPIs for federal detention services contracts include metrics related to detainee safety and security (e.g., incident rates, use of force incidents), health and medical services (e.g., response times to medical emergencies, access to care), facility maintenance and cleanliness, staff training and retention, and compliance with federal standards and regulations. The U.S. Marshals Service would establish and monitor these KPIs to ensure the contractor meets contractual obligations and provides adequate care and security for detainees.

What is the risk assessment associated with contracting for private detention services?

Contracting for private detention services carries several inherent risks. These include potential issues related to the quality of care and safety of detainees, security breaches, staff misconduct or inadequate training, and potential cost overruns if not managed tightly, despite the fixed-price nature. Reputational risk for the government is also a concern, as negative incidents at private facilities can draw public scrutiny. Furthermore, ensuring consistent adherence to ethical standards and legal requirements is paramount. The government mitigates these risks through rigorous contract oversight, performance monitoring, and clear contractual stipulations.

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: $105,537,686

Exercised Options: $105,537,686

Current Obligation: $63,976,173

Actual Outlays: $24,202,570

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