DHS's $51.6M detention services contract awarded to The GEO Group, Inc. for facilities support

Contract Overview

Contract Amount: $51,662,697 ($51.7M)

Contractor: THE GEO Group, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2017-12-01

End Date: 2018-12-05

Contract Duration: 369 days

Daily Burn Rate: $140.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DETENTION SERVICES

Place of Performance

Location: PEARSALL, FRIO County, TEXAS, 78061

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $51.7 million to THE GEO GROUP, INC. for work described as: DETENTION SERVICES Key points: 1. Contract value represents a significant investment in detention services for immigration enforcement. 2. The GEO Group, Inc. is a major provider in the private detention services sector. 3. Contract duration of 369 days indicates a short-term operational need. 4. The firm fixed-price contract type suggests predictable costs for the government. 5. Awarded under full and open competition, indicating a potentially competitive bidding process. 6. The contract is for facilities support services, a critical component of detention operations.

Value Assessment

Rating: fair

The contract value of $51.6 million for a 369-day period for detention services appears to be within the expected range for large-scale facilities support. Benchmarking against similar contracts for detention services is crucial to assess value for money, as pricing can vary significantly based on location, services included, and facility size. Without specific per-unit cost data or comparisons to other government contracts for similar services, a definitive value assessment is challenging. However, the scale of the award suggests a substantial operational requirement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple bidders were likely invited to submit proposals. This approach is designed to foster competition and potentially drive down prices by allowing various qualified contractors to vie for the work. The number of bidders and the specific evaluation criteria would provide further insight into the intensity of the competition and its impact on the final price and terms.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging a wider pool of offerors, which can lead to more competitive pricing and better service offerings, ultimately maximizing the value of federal dollars spent.

Public Impact

Benefits individuals in U.S. immigration custody by providing essential detention services. Supports the operational capacity of U.S. Immigration and Customs Enforcement (ICE) in Texas. Impacts the workforce employed by The GEO Group, Inc. in facility management and support roles. Ensures the provision of secure and managed environments for detainees during immigration proceedings.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for over-reliance on private contractors for essential government functions.
Concerns regarding the quality of care and living conditions in private detention facilities.
Fluctuations in demand for detention services can lead to underutilization or overcapacity.
Contractor performance issues could impact the efficiency and fairness of immigration processes.

Positive Signals

The GEO Group, Inc. has extensive experience in managing detention facilities.
Firm fixed-price contract provides cost certainty for the government.
Awarded through full and open competition, suggesting a robust selection process.
Contract specifies facilities support services, a core operational requirement for ICE.

Sector Analysis

The detention services sector is a significant part of the private corrections and immigration enforcement industry. This contract falls within the broader Facilities Support Services category, which includes the management and operation of various types of facilities. The market for detention services is influenced by immigration policies, enforcement priorities, and legal mandates. Spending in this sector can fluctuate based on these factors, and contracts are often awarded to large, established providers with the capacity to manage complex operations.

Small Business Impact

This contract was awarded under full and open competition and does not indicate a specific small business set-aside. While the prime contractor, The GEO Group, Inc., is a large corporation, there may be opportunities for small businesses to participate as subcontractors for specialized services within the scope of facilities support. The extent of small business subcontracting would depend on the prime contractor's strategy and the specific needs of the contract.

Oversight & Accountability

Oversight of detention services contracts is typically managed by the contracting agency, in this case, U.S. Immigration and Customs Enforcement (ICE), a component of the Department of Homeland Security. ICE is responsible for monitoring contractor performance, ensuring compliance with contract terms and performance standards, and conducting site visits. Transparency is often facilitated through contract awards databases and performance reports, though detailed operational oversight information may be limited to agency-internal processes.

Related Government Programs

Immigration and Customs Enforcement (ICE) Operations
Detention Facility Management
Correctional Services Contracts
Homeland Security Contracts

Risk Flags

Contractor Performance Concerns
Facility Conditions Scrutiny
Potential for Over-reliance on Private Sector

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $51.7 million to THE GEO GROUP, INC.. DETENTION SERVICES

Who is the contractor on this award?

The obligated recipient is THE GEO GROUP, INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Immigration and Customs Enforcement).

What is the total obligated amount?

The obligated amount is $51.7 million.

What is the period of performance?

Start: 2017-12-01. End: 2018-12-05.

What is the historical spending pattern for detention services by U.S. Immigration and Customs Enforcement (ICE) over the past five years?

U.S. Immigration and Customs Enforcement (ICE) has consistently allocated substantial funding towards detention services, reflecting its mandate to detain and process individuals within the immigration system. Historical spending data reveals a significant and often increasing trend in this area, driven by evolving immigration policies, enforcement priorities, and judicial decisions. For instance, in fiscal years prior to and following this contract award, ICE's budget allocations for detention and removal operations have typically been in the billions of dollars annually. This specific $51.6 million contract for a 369-day period represents a portion of the overall detention services expenditure, likely for a specific facility or region. Analyzing year-over-year spending trends for ICE detention services can highlight shifts in operational capacity, contract types (e.g., bed space agreements vs. full facility management), and the overall demand for detention resources.

How does the per-bed cost of this contract compare to other ICE detention facilities in Texas or similar regions?

Determining the precise per-bed cost for this $51.6 million contract requires knowing the average daily population housed during the contract period and the specific services included. Without this granular data, a direct comparison is difficult. However, industry benchmarks and publicly available data on ICE contracts suggest that per-bed costs can range widely, often from $100 to over $200 per day, depending on factors such as location, security levels, medical services, and the scope of support provided. Contracts in Texas, a state with significant detention capacity, may exhibit competitive pricing due to market saturation. To perform a robust comparison, one would need to analyze ICE's contract data for similar facilities in Texas and neighboring states, looking at the daily per-diem rates and the total contract value relative to the number of beds and operational days.

What is The GEO Group, Inc.'s track record with ICE contracts, specifically regarding performance and any past controversies?

The GEO Group, Inc. is one of the largest private providers of detention and correctional services in the United States and has a long-standing relationship with ICE, managing numerous facilities across the country. Their track record includes managing significant bed capacity and providing a range of services. However, like other large private prison companies, The GEO Group has faced scrutiny and controversy regarding facility conditions, staffing levels, and alleged human rights abuses in some of its facilities, including those operated for ICE. Reports from government oversight bodies, non-governmental organizations, and media investigations have sometimes highlighted concerns about safety, sanitation, and the adequacy of care. Despite these criticisms, the company continues to secure and manage substantial government contracts, indicating that, from the government's perspective, they often meet contractual requirements, though performance can be a subject of ongoing review and debate.

What are the key performance indicators (KPIs) typically used to evaluate detention services contracts for ICE, and how is compliance monitored?

Key Performance Indicators (KPIs) for ICE detention services contracts are designed to ensure the safe, secure, and humane management of facilities and detainees. Common KPIs often include metrics related to detainee safety (e.g., incident rates, use of force), health services (e.g., access to medical care, timeliness of appointments), facility maintenance and sanitation, food services, transportation, and staff training and conduct. Compliance is typically monitored through a combination of methods: regular site visits and inspections by ICE contract officers, review of contractor-submitted performance reports, analysis of detainee grievances and incident logs, and potentially independent audits. Contract Performance Management Systems are often employed by ICE to track performance against established standards and identify areas needing improvement or corrective action.

What is the typical duration and value range for ICE detention services contracts awarded through full and open competition?

The duration and value range for ICE detention services contracts awarded through full and open competition can vary significantly based on the specific needs being addressed, such as the management of a specific facility, provision of bed space, or specialized support services. Contracts can range from short-term operational needs, like the 369-day duration of this particular contract, to multi-year agreements, often with option periods, extending for five years or more. In terms of value, contracts can range from a few million dollars for smaller operations or specific services to hundreds of millions or even billions of dollars for large-scale, long-term facility management contracts that house thousands of detainees. Full and open competition is generally employed for significant contracts to ensure a broad base of potential bidders and competitive pricing, though the number of bidders can still vary.

Industry Classification

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

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

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: 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: $51,662,697

Exercised Options: $51,662,697

Current Obligation: $51,662,697

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSCEDM12D00001

IDV Type: IDC

Timeline