DOJ awards $61M contract for detention services to The GEO Group, Inc. in Florida

Contract Overview

Contract Amount: $61,162,285 ($61.2M)

Contractor: THE GEO Group, Inc.

Awarding Agency: Department of Justice

Start Date: 2023-10-01

End Date: 2024-10-31

Contract Duration: 396 days

Daily Burn Rate: $154.4K/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 $61.2 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 focuses on essential detention services, indicating a need for facility support. 2. The contract is a firm-fixed-price delivery order, providing cost certainty. 3. Competition under SAP suggests a streamlined procurement process for this service. 4. The contract duration is approximately 13 months, aligning with operational needs. 5. The awardee, The GEO Group, Inc., is a significant player in the corrections industry. 6. The geographic focus is Florida, serving the Western Region Detention Facility.

Value Assessment

Rating: fair

The contract value of $61.16 million for approximately 13 months of detention services appears to be within a reasonable range for such operations, though a direct comparison to similar contracts is difficult without more detailed service specifications. The firm-fixed-price structure helps manage cost predictability. Benchmarking the per-unit cost of detention would provide a clearer picture of value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP (Simplified Acquisition Procedures), which typically involves a limited number of bidders and a less extensive solicitation process than full and open competition. While specific bidder numbers are not provided, this method suggests that competition may have been restricted, potentially impacting price discovery compared to a broader solicitation.

Taxpayer Impact: Limited competition under SAP may result in less aggressive pricing for taxpayers compared to a fully competed contract with numerous bidders vying for the award.

Public Impact

The primary beneficiaries are the U.S. Marshals Service and the Department of Justice, ensuring the secure detention of individuals. The services delivered include the operation and management of a detention facility. The geographic impact is localized to Florida, specifically serving the Western Region Detention Facility. Workforce implications include employment opportunities for facility staff, security personnel, and support services within the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition impacting cost-effectiveness.
Reliance on a single contractor for critical detention services.
Need for robust oversight to ensure service quality and compliance.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Contract duration aligns with operational needs.
Awardee has experience in detention services.

Sector Analysis

The detention services sector is a critical component of the criminal justice system, involving the management and operation of correctional facilities. This contract falls under Facilities Support Services, a broad category that includes the maintenance and operation of various types of buildings. The market for detention services is often characterized by specialized providers, and government contracts represent a significant portion of this industry's revenue.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from this particular award. The primary contractor, The GEO Group, Inc., is a large entity.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Marshals Service, the contracting agency, and potentially the Department of Justice's internal oversight mechanisms. Transparency is facilitated through contract award databases. The extent of Inspector General jurisdiction would depend on specific fraud or waste allegations, but general contract performance oversight is agency-led.

Related Government Programs

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

Risk Flags

Contractor Performance Risk
Operational Compliance Risk
Cost Management Risk
Security Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $61.2 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 $61.2 million.

What is the period of performance?

Start: 2023-10-01. End: 2024-10-31.

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

The GEO Group, Inc. has a substantial history of managing federal detention facilities for various agencies, including the U.S. Marshals Service, Immigration and Customs Enforcement (ICE), and the Federal Bureau of Prisons (BOP). Their track record includes operating a wide range of facilities, from short-term holding centers to long-term correctional institutions. While they are a major provider, their performance has also been subject to scrutiny regarding operational standards, staffing levels, and incident management. Reviews and audits by government agencies and watchdog groups have sometimes highlighted areas for improvement, alongside acknowledgments of their capacity to manage large-scale operations. Understanding their specific performance on similar U.S. Marshals Service contracts would provide the most relevant context for this award.

How does the awarded price compare to similar detention service contracts?

Directly comparing the awarded price of $61.16 million for approximately 13 months of service is challenging without granular data on the specific services rendered, facility capacity, inmate population, and geographic cost variations. However, the U.S. Marshals Service frequently contracts for detention services, and contract values can range significantly based on these factors. The firm-fixed-price nature of this award suggests a defined scope of work. To benchmark effectively, one would need to analyze per diem rates, operational costs, and service level agreements from comparable contracts awarded around the same time and in similar regions, considering factors like security requirements and staffing mandates.

What are the primary risks associated with this contract?

Key risks for this contract include potential operational deficiencies in maintaining facility standards and security, which could lead to safety incidents for staff and detainees. There's also a risk of cost overruns if unforeseen issues arise that are not adequately covered by the firm-fixed-price structure, although this structure aims to mitigate such risks. Contractor performance issues, such as staffing shortages or non-compliance with regulations, could lead to service disruptions or penalties. Furthermore, reputational risks for the government could arise from negative publicity related to facility conditions or incidents. Ensuring robust oversight and clear performance metrics is crucial to mitigate these risks.

How effective is the U.S. Marshals Service in overseeing detention service contracts?

The U.S. Marshals Service (USMS) employs a multi-faceted approach to overseeing its detention service contracts, including regular site visits, performance evaluations, and audits. They establish performance standards and metrics within the contracts and monitor the contractor's adherence to these requirements. The effectiveness can vary depending on the resources allocated to oversight, the experience of the contracting officers' representatives (CORs), and the transparency of the contractor's operations. While the USMS has mechanisms in place, challenges can arise from the complexity of managing numerous facilities and the potential for contractors to face their own operational difficulties. Continuous monitoring and a willingness to enforce contract terms are key indicators of effective oversight.

What are the historical spending patterns for detention services by the U.S. Marshals Service?

The U.S. Marshals Service has consistently allocated significant funding towards detention services, reflecting its mandate to manage federal prisoners awaiting trial or sentencing. Historical spending data shows a substantial and often increasing trend in this area, driven by factors such as fluctuating inmate populations, evolving legal requirements, and the reliance on contracted facilities. The agency utilizes a mix of its own detention centers and numerous contracts with private operators and local jails. Annual spending can reach into the billions of dollars, making detention services a major budget item for the USMS. This specific contract represents a portion of that broader historical expenditure.

Industry Classification

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

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

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: $122,541,920

Exercised Options: $122,541,920

Current Obligation: $61,162,285

Actual Outlays: $51,559,765

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15M40018DA3500001

IDV Type: IDC

Timeline