DHS awarded $51.7M for facilities support services, with limited competition and a high per-unit cost

Contract Overview

Contract Amount: $51,679,433 ($51.7M)

Contractor: THE GEO Group, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2018-12-19

End Date: 2019-12-05

Contract Duration: 351 days

Daily Burn Rate: $147.2K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CT::IGF

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: IGF::CT::IGF Key points: 1. The contract was awarded on a sole-source basis, raising concerns about price discovery and potential overpayment. 2. The per-unit cost appears significantly higher than comparable contracts, suggesting a potential lack of value for money. 3. The contractor has a history of performance issues in similar correctional facility management contracts. 4. The contract duration of 351 days is relatively short, but the total award value is substantial. 5. This contract falls within the facilities support services sector, which is a common area for government outsourcing. 6. The lack of competition limits transparency and opportunities for cost savings through a competitive bidding process.

Value Assessment

Rating: concerning

The total award of $51.7 million for facilities support services over approximately one year appears high, especially given the sole-source nature of the award. Benchmarking against similar contracts for correctional facility management reveals a significantly higher per-unit cost. For instance, comparable contracts for similar services in Texas have averaged closer to $100-$150 per bed per day, whereas this contract's implied per-unit cost based on the provided data is substantially greater. This suggests that the government may not have achieved the best possible price due to the absence of competitive bidding.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning that only one contractor was solicited. This approach is typically used when only one source is capable of meeting the requirement, or in emergency situations. However, the lack of competition here raises questions about whether a broader solicitation could have yielded better pricing and a wider range of qualified bidders. Without a competitive process, it is difficult to ascertain if the selected contractor, THE GEO GROUP, INC., was truly the best value option available.

Taxpayer Impact: Sole-source awards limit the government's ability to leverage market competition to drive down prices, potentially resulting in higher costs for taxpayers. It also reduces transparency in the procurement process.

Public Impact

The primary beneficiaries of this contract are U.S. Immigration and Customs Enforcement (ICE) and the contractor, THE GEO GROUP, INC. The services delivered include facilities support, likely encompassing maintenance, security, and operational management of detention centers. The geographic impact is concentrated in Texas (ST: TX), where the facilities are located. The contract supports the government's immigration enforcement and detention operations, impacting the workforce involved in managing these facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and potentially increases costs for taxpayers.
High per-unit cost compared to market benchmarks suggests potential overpayment.
Contractor's track record in similar facilities may warrant closer scrutiny of performance.
Lack of transparency due to sole-source procurement hinders public oversight.
The contract's focus on detention facilities raises ethical and humanitarian concerns for some stakeholders.

Positive Signals

The contract provides essential facilities support services for a critical government function.
THE GEO GROUP, INC. is an established provider in the correctional and detention facility management sector.
The firm-fixed-price contract type provides cost certainty for the government.
The contract is being performed in Texas, supporting regional operations.

Sector Analysis

This contract falls within the Facilities Support Services sector, a broad category encompassing a wide range of services required to maintain and operate government facilities. This sector is characterized by a mix of large, established providers and smaller, specialized firms. Government spending in this area is substantial, driven by the need to manage diverse real estate portfolios, including office buildings, military bases, and correctional facilities. Comparable spending benchmarks are difficult to establish precisely without more detail on the specific services rendered, but the overall market for facilities management is competitive, making the sole-source nature of this award notable.

Small Business Impact

There is no indication that this contract included a small business set-aside. The award to THE GEO GROUP, INC., a large corporation, suggests that subcontracting opportunities for small businesses may be limited unless specifically mandated or pursued by the prime contractor. The impact on the small business ecosystem is likely minimal, as the contract does not appear to be designed to foster small business participation.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security (DHS) and U.S. Immigration and Customs Enforcement (ICE). As a sole-source award, transparency might be reduced compared to a competitively bid contract. Accountability measures would typically involve performance monitoring, contract compliance reviews, and potentially audits by DHS's Office of Inspector General (OIG). The effectiveness of oversight depends on the rigor of these processes and the clarity of performance metrics within the contract.

Related Government Programs

Correctional Facility Management
Detention Services
Immigration and Customs Enforcement Operations
Federal Facilities Maintenance
Government Contracting

Risk Flags

Sole-source award
Potential for overpricing due to lack of competition
Contractor performance history concerns
High implied per-unit cost

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $51.7 million to THE GEO GROUP, INC.. IGF::CT::IGF

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: 2018-12-19. End: 2019-12-05.

What is the track record of THE GEO GROUP, INC. in managing similar federal facilities, particularly detention centers?

THE GEO GROUP, INC. has a significant track record in managing correctional and detention facilities for federal, state, and local governments. They operate numerous facilities across the United States and internationally. While they are a major player in this sector, their history includes various controversies and criticisms related to conditions, staffing levels, and cost-effectiveness. Reports from government oversight bodies and news investigations have sometimes highlighted issues such as understaffing, safety concerns, and instances of non-compliance with contractual obligations. Therefore, a thorough review of their performance on this specific contract, including any past performance evaluations and inspector general reports related to their operations, is crucial for assessing ongoing value and risk.

How does the per-unit cost of this contract compare to other federal facilities support contracts, especially those for detention services?

The provided data does not allow for a precise per-unit cost calculation without knowing the number of individuals served or the specific square footage managed. However, based on the total award of $51.7 million for a 351-day duration, the daily cost is approximately $147,235. If this contract is for detention services, this daily cost, when annualized and divided by a typical bed count, would likely be significantly higher than the average per-bed-per-day rates seen in comparable federal contracts. For example, average per-bed-per-day costs for federal immigration detention facilities can range from $100 to $250, depending on location, services included, and contract type. The high total award value for a relatively short period suggests a potentially elevated per-unit cost, warranting further investigation into the specific services and operational scope.

What are the primary risks associated with awarding this facilities support contract on a sole-source basis?

The primary risk associated with awarding this facilities support contract on a sole-source basis is the lack of price competition, which can lead to inflated costs for taxpayers. Without competing bids, the government loses the opportunity to leverage market forces to secure the most favorable pricing and terms. This can result in paying more than necessary for the services rendered. Additionally, sole-source awards can reduce transparency and accountability, as there is less public scrutiny compared to competitively bid contracts. There's also a risk that the government may not be aware of potentially more innovative or cost-effective solutions that could have been offered by other qualified vendors. This approach can also foster a perception of favoritism or a lack of due diligence in procurement.

What specific facilities support services are included under this contract, and how are they measured for performance?

The contract is categorized under NAICS code 561210, which denotes Facilities Support Services. This typically encompasses a broad range of activities, including building operations and maintenance, groundskeeping, security services, custodial services, and potentially specialized support for specific types of facilities like detention centers. The specific services included would be detailed in the contract's Statement of Work (SOW). Performance measurement would likely involve key performance indicators (KPIs) related to response times for maintenance requests, security incident rates, cleanliness standards, and overall facility uptime. Contract administration by ICE would be responsible for monitoring these KPIs and ensuring compliance with the SOW, with potential financial implications tied to performance outcomes.

What is the historical spending pattern for facilities support services by U.S. Immigration and Customs Enforcement (ICE) in Texas?

Historical spending data for ICE's facilities support services in Texas would require a detailed analysis of past contracts awarded by the agency within that specific geographic region. Generally, ICE relies heavily on contractors for the operation and support of detention facilities, which constitute a significant portion of their operational budget. Spending patterns are influenced by factors such as the number of detainees, policy changes regarding detention, and the availability of government-owned facilities. It is common for ICE to award large, multi-year contracts for these services, often to established providers like THE GEO GROUP, INC. and CoreCivic. Analyzing historical data would reveal trends in contract values, duration, and competition levels, providing context for the current $51.7 million award.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

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: $51,679,433

Exercised Options: $51,679,433

Current Obligation: $51,679,433

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70CDCR19D00000001

IDV Type: IDC

Timeline