DOJ awards $56.8M contract for detention services to The GEO Group, Inc. in Florida

Contract Overview

Contract Amount: $56,830,852 ($56.8M)

Contractor: THE GEO Group, Inc.

Awarding Agency: Department of Justice

Start Date: 2024-11-01

End Date: 2025-10-31

Contract Duration: 364 days

Daily Burn Rate: $156.1K/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 $56.8 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 secure facility operations. 2. The firm-fixed-price structure shifts cost risk to the contractor, potentially incentivizing efficiency. 3. A single delivery order suggests this is part of a larger indefinite-delivery contract. 4. The contract duration of one year aligns with operational needs for detention facilities. 5. Services are concentrated in Florida, impacting local workforce and regional detention capacity.

Value Assessment

Rating: fair

The contract value of $56.8 million for one year of detention services appears to be within a reasonable range for large-scale correctional facility operations. Benchmarking against similar contracts for detention services by the U.S. Marshals Service would provide a clearer picture of value for money. The firm-fixed-price contract type suggests that the contractor bears the primary financial risk, which can be a positive indicator of value if managed effectively. However, without detailed cost breakdowns or comparisons to other providers, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The contract was competed under SAP (Simplified Acquisition Procedures), which typically implies a value below the threshold for full and open competition. This suggests that the competition may have been limited to a pre-qualified list of vendors or through specific set-aside procedures. The number of bidders is not specified, making it difficult to assess the breadth of competition. Limited competition can sometimes lead to higher prices compared to full and open competition.

Taxpayer Impact: The level of competition under SAP is not ideal for taxpayers, as it may not yield the lowest possible price. Further details on the bidding process are needed to confirm if fair market value was achieved.

Public Impact

The U.S. Marshals Service benefits from the provision of essential detention services, ensuring the secure housing of detainees. The contract supports the operational capacity of the Western Region Detention Facility. The geographic impact is concentrated in Florida, potentially supporting local employment in facility management and security. The contract ensures the continuity of detention services, which is critical for the justice system's operational needs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen operational issues arise, despite the firm-fixed-price structure.
Dependence on a single contractor for critical detention services could pose continuity risks.
Limited competition under SAP may not guarantee the most cost-effective solution for taxpayers.

Positive Signals

Firm-fixed-price contract shifts cost risk to the contractor, encouraging efficient service delivery.
The contract duration provides a stable period for service provision.
Services are clearly defined in the Statement of Work, allowing for measurable performance.

Sector Analysis

The detention services sector is a critical component of the correctional and law enforcement industry. This contract falls under Facilities Support Services, a broad category that includes the management and operation of various types of facilities. The market for detention services is often characterized by long-term contracts and significant regulatory oversight. Spending in this sector is driven by government needs for secure housing of individuals in the justice system. Comparable spending benchmarks would involve analyzing other contracts for similar detention facilities operated by federal agencies.

Small Business Impact

The data indicates that small business participation (sb: false) and set-asides (ss: false) were not factors in this specific contract award. This suggests that the contract was not specifically targeted towards small businesses, and larger, established providers likely dominated the bidding process. There is no information provided on subcontracting plans, so the impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily engages small businesses.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Marshals Service, the contracting agency. The firm-fixed-price nature of the contract implies that the contractor is responsible for managing costs and performance within the agreed-upon price. Accountability measures would be tied to the performance standards outlined in the Statement of Work. Transparency regarding the specific terms and performance metrics would depend on the agency's public disclosure policies for contracts awarded under Simplified Acquisition Procedures.

Related Government Programs

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

Risk Flags

Limited Competition
Potential for Cost Overruns
Contractor Performance Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $56.8 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 $56.8 million.

What is the period of performance?

Start: 2024-11-01. End: 2025-10-31.

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

Analyzing the historical spending of the U.S. Marshals Service (USMS) on detention services in Florida requires access to historical contract databases and budget allocations. Generally, the USMS relies heavily on contracted detention facilities due to fluctuating inmate populations and the need for flexible capacity. Spending patterns are influenced by factors such as federal sentencing guidelines, immigration policies, and the availability of federal detention centers. Over the past decade, the USMS has consistently awarded significant contracts for detention services, with a substantial portion allocated to private prison operators like The GEO Group, Inc. The specific amount spent annually in Florida can vary based on the number of facilities under contract, their capacity, and the per diem rates negotiated. Without specific historical data for the Western Region Detention Facility or similar Florida-based contracts, it's difficult to provide precise figures, but it is reasonable to assume consistent, multi-million dollar annual expenditures in the state to meet operational demands.

How does the per-unit cost of detention services under this contract compare to national averages for similar facilities?

Determining the precise per-unit cost (e.g., per detainee per day) for this $56.8 million contract is challenging without knowing the average daily population housed at the Western Region Detention Facility. However, industry benchmarks for private detention facilities housing USMS detainees typically range from $70 to $120 per detainee per day, depending on the level of security, services provided, and geographic location. Florida, being a state with a significant demand for detention services and a well-established private corrections industry, might see rates at the mid-to-higher end of this range. The firm-fixed-price nature of this contract means the total cost is fixed, but the effective per-unit cost will fluctuate with the actual number of detainees served. A detailed analysis would require comparing the contract's total value against the average daily population over the contract period and benchmarking this against similar USMS contracts nationwide.

What is The GEO Group, Inc.'s track record with the U.S. Marshals Service and other federal agencies?

The GEO Group, Inc. is one of the largest private operators of correctional and detention facilities in the United States and has a long-standing relationship with the U.S. Marshals Service (USMS) and other federal agencies, including Immigration and Customs Enforcement (ICE) and the Federal Bureau of Prisons (BOP). Historically, GEO has been a significant recipient of federal contracts for detention and offender management services. Their track record includes managing numerous facilities across the country. However, like other major private prison operators, GEO has faced scrutiny and criticism regarding facility conditions, staffing levels, and instances of non-compliance with contract requirements. Performance reviews and contract compliance data from federal agencies would provide a more detailed assessment of their specific track record with the USMS, including any past disputes, penalties, or commendations.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks associated with this detention services contract include potential operational failures (e.g., security breaches, escapes), fluctuations in detainee population impacting cost-effectiveness, contractor non-performance, and potential for negative publicity related to facility management. Mitigation strategies typically involve robust oversight by the USMS, including regular inspections, performance monitoring, and audits. The firm-fixed-price contract structure places the financial risk of operational inefficiencies on The GEO Group, Inc. Furthermore, the contract likely includes clauses for penalties or termination for significant breaches of contract terms. The defined scope of work and performance standards in the Statement of Work also serve as key mitigation tools by setting clear expectations for the contractor.

How does the competition level for this contract (competed under SAP) impact the potential for cost savings for taxpayers?

Competing contracts under Simplified Acquisition Procedures (SAP) generally involves a less extensive and potentially less competitive process compared to full and open competition. SAP is designed for acquisitions below certain dollar thresholds (currently $250,000, but specific agency rules may apply or this could be a task order under a larger IDIQ). While SAP can expedite the acquisition process, it often limits the pool of potential bidders. This reduced competition can lead to higher prices than might be achieved in a broader, more robust bidding environment. For taxpayers, this means there is a greater risk that the government may not be securing the lowest possible price for the detention services. The specific impact depends on how many vendors were solicited under SAP and the nature of the market for these services in the region.

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: $56,830,852

Exercised Options: $56,830,852

Current Obligation: $56,830,852

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15M40018DA3500001

IDV Type: IDC

Timeline