DHS awards $37.9M detention services contract to The GEO Group, Inc. without competition
Contract Overview
Contract Amount: $37,878,569 ($37.9M)
Contractor: THE GEO Group, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2019-06-26
End Date: 2019-12-31
Contract Duration: 188 days
Daily Burn Rate: $201.5K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: IGF::CT::IGF DETENTION SERVICES
Place of Performance
Location: ADELANTO, SAN BERNARDINO County, CALIFORNIA, 92301
Plain-Language Summary
Department of Homeland Security obligated $37.9 million to THE GEO GROUP, INC. for work described as: IGF::CT::IGF DETENTION SERVICES Key points: 1. The GEO Group, Inc. secured a $37.9M contract for detention services. 2. This contract was not competed, raising questions about price discovery. 3. The services fall under Facilities Support Services (NAICS 561210). 4. The contract duration was 188 days, ending in December 2019.
Value Assessment
Rating: questionable
The contract value of $37.9M for 188 days suggests a high daily rate. Without competitive bidding, it's difficult to assess if this pricing is reasonable compared to similar detention service contracts.
Cost Per Unit: $201,482 per unit (assuming 'unit' refers to a daily rate or similar metric, requires clarification)
Competition Analysis
Competition Level: sole-source
The contract was awarded as a sole-source, 'NOT COMPETED' action. This limits price discovery and potentially leads to higher costs for taxpayers as market competition is bypassed.
Taxpayer Impact: The lack of competition may result in the government paying more than necessary for detention services, impacting taxpayer funds.
Public Impact
Impacts individuals in immigration detention. Affects the operational capacity of U.S. Immigration and Customs Enforcement (ICE). Highlights potential reliance on a single provider for critical services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for inflated pricing
- Sole-source award
Positive Signals
- Contract awarded to an established provider
- Services provided within the specified timeframe
Sector Analysis
The Facilities Support Services sector, particularly for government contracts like detention services, can be substantial. Benchmarks for such services vary widely based on location, security requirements, and duration.
Small Business Impact
This contract was awarded to The GEO Group, Inc., a large corporation, and there is no indication of small business participation in this specific award.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure fair pricing and prevent potential overspending. Oversight should focus on the justification for not competing the contract.
Related Government Programs
- Facilities Support Services
- Department of Homeland Security Contracting
- U.S. Immigration and Customs Enforcement Programs
Risk Flags
- Sole-source award lacks transparency.
- Potential for inflated costs due to lack of competition.
- High per-unit cost raises value concerns.
- Limited insight into performance metrics.
- No small business participation noted.
Tags
facilities-support-services, department-of-homeland-security, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $37.9 million to THE GEO GROUP, INC.. IGF::CT::IGF 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 $37.9 million.
What is the period of performance?
Start: 2019-06-26. End: 2019-12-31.
What was the specific justification for awarding this contract on a sole-source basis, and were alternative solutions considered?
The provided data indicates the contract was 'NOT COMPETED' and awarded as a sole-source. A detailed review of the contract file would be necessary to ascertain the specific justification provided by DHS/ICE. This could include reasons like urgency, lack of available sources, or specific technical requirements. Without this documentation, it's impossible to confirm if alternatives were adequately explored.
How does the per-unit cost of $201,482 compare to industry benchmarks for similar detention services, considering the contract's duration?
The per-unit cost of $201,482 is exceptionally high if it represents a daily rate, suggesting a potential overpayment. However, the 'unit' definition is unclear. If it represents a monthly or contract-level cost, it might be more reasonable. A direct comparison requires understanding the unit definition and benchmarking against contracts with similar service levels, security needs, and geographic locations.
What measures were in place to ensure the quality and effectiveness of detention services provided by The GEO Group, Inc. under this contract?
While the data confirms the award and duration, it does not detail the quality assurance or performance monitoring mechanisms. ICE typically has performance standards and oversight processes for detention contracts. However, the lack of competition might reduce the incentive for the contractor to proactively enhance service quality beyond minimum requirements.
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: $37,878,569
Exercised Options: $37,878,569
Current Obligation: $37,878,569
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 70CDCR19D00000011
IDV Type: IDC
Timeline
Start Date: 2019-06-26
Current End Date: 2019-12-31
Potential End Date: 2020-04-03 00:00:00
Last Modified: 2023-01-31
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