DHS awards $64.7M detention services contract to The GEO Group, Inc. under full and open competition

Contract Overview

Contract Amount: $64,722,320 ($64.7M)

Contractor: THE GEO Group, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2018-09-28

End Date: 2019-09-27

Contract Duration: 364 days

Daily Burn Rate: $177.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CT::IGF DETENTION, FOOD AND TRANSPORTAION SERVICES

Place of Performance

Location: TACOMA, PIERCE County, WASHINGTON, 98421

State: Washington Government Spending

Plain-Language Summary

Department of Homeland Security obligated $64.7 million to THE GEO GROUP, INC. for work described as: IGF::CT::IGF DETENTION, FOOD AND TRANSPORTAION SERVICES Key points: 1. Contract awarded to a single large business, raising questions about small business participation. 2. Firm Fixed Price contract type suggests clear scope and predictable costs. 3. High value contract for essential services indicates significant taxpayer investment. 4. Sector is Facilities Support Services, a common area for government contracting.

Value Assessment

Rating: fair

The contract value of $64.7M for a one-year period appears substantial. Benchmarking against similar detention services contracts would be necessary to determine if this pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a broad solicitation process. However, the award to a single large business may limit future competitive opportunities for smaller firms.

Taxpayer Impact: The $64.7M award represents a significant allocation of taxpayer funds for detention services, necessitating careful oversight to ensure value for money.

Public Impact

Impacts individuals in immigration detention facilities. Ensures operational continuity for critical government functions. Potential for cost savings or overspending depending on service efficiency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of small business participation.
Potential for cost overruns if not managed effectively.

Positive Signals

Awarded under full and open competition.
Firm Fixed Price contract type.

Sector Analysis

This contract falls within the Facilities Support Services sector, which includes a wide range of services for maintaining government facilities. Spending in this sector can vary significantly based on the type and scale of facilities managed.

Small Business Impact

The contract data indicates that small businesses were not awarded this specific contract, as it went to a large business. Further analysis would be needed to determine if small businesses had opportunities to subcontract or if the solicitation was structured in a way that favored large prime contractors.

Oversight & Accountability

Oversight is crucial for a contract of this magnitude to ensure compliance with service level agreements and cost controls. The awarding agency, U.S. Immigration and Customs Enforcement, should have robust mechanisms in place to monitor performance and expenditures.

Related Government Programs

Facilities Support Services
Department of Homeland Security Contracting
U.S. Immigration and Customs Enforcement Programs

Risk Flags

Lack of small business participation.
Potential for cost creep in fixed-price contracts if scope is not well-defined.
Reliance on a single large provider may reduce future competition.
Contract duration is one year, requiring frequent re-competition or extensions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $64.7 million to THE GEO GROUP, INC.. IGF::CT::IGF DETENTION, FOOD AND TRANSPORTAION 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 $64.7 million.

What is the period of performance?

Start: 2018-09-28. End: 2019-09-27.

What is the historical cost performance of The GEO Group, Inc. on similar contracts?

Analyzing the historical cost performance of The GEO Group, Inc. on comparable detention, food, and transportation services contracts is essential for assessing value. This includes examining past contract modifications, cost overruns, and adherence to budget. Such a review would provide insights into the company's ability to manage costs effectively and deliver services within the allocated funds, informing future pricing negotiations and risk assessments.

What are the specific performance metrics and service level agreements tied to this contract?

Understanding the specific performance metrics and service level agreements (SLAs) is critical for evaluating the effectiveness and accountability of this contract. These metrics define the expected quality and quantity of services, such as detainee care standards, food quality, and transportation timeliness. Robust SLAs allow for objective performance measurement, enabling the agency to hold the contractor accountable and ensure taxpayer funds are used to achieve desired outcomes.

What is the potential impact of this contract on the broader immigration detention system's capacity and cost?

This contract's $64.7 million value suggests a significant role in supporting the broader immigration detention system's capacity. Its impact on cost depends on whether it represents an efficient, competitive solution compared to alternatives or if it contributes to inflated system-wide expenses. Analyzing the contract's terms, service delivery efficiency, and comparison to publicly run facilities or other private providers is key to understanding its fiscal implications.

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: $64,722,320

Exercised Options: $64,722,320

Current Obligation: $64,722,320

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSCEDM15D00015

IDV Type: IDC

Timeline