DHS ICE awards $30.18M for security services in California, raising value-for-money questions

Contract Overview

Contract Amount: $30,181,264 ($30.2M)

Contractor: THE GEO Group, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2019-12-20

End Date: 2020-12-19

Contract Duration: 365 days

Daily Burn Rate: $82.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NEW TASK ORDER MESA VERDE TASK ORDER POP: 12/21/19 - 12/20/20 FUNDING POP 12/21/19 - 1/31/2020 COR:NATHAN LINDSEY 661-328-4503

Place of Performance

Location: BAKERSFIELD, KERN County, CALIFORNIA, 93301

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $30.2 million to THE GEO GROUP, INC. for work described as: NEW TASK ORDER MESA VERDE TASK ORDER POP: 12/21/19 - 12/20/20 FUNDING POP 12/21/19 - 1/31/2020 COR:NATHAN LINDSEY 661-328-4503 Key points: 1. The contract's value is substantial, warranting a close look at cost-effectiveness. 2. Competition dynamics for this security services contract need further examination. 3. Risk indicators are not immediately apparent but require ongoing monitoring. 4. Performance context is limited without specific metrics on service delivery. 5. This contract fits within the broader federal spending on security and detention services. 6. The fixed-price nature suggests cost certainty but may limit flexibility.

Value Assessment

Rating: fair

The awarded amount of $30.18 million for a one-year contract for security guards and patrol services appears significant. Benchmarking against similar contracts for detention facility security is crucial to determine if this represents a fair price. Without detailed service level agreements and performance data, a definitive value-for-money assessment is challenging. The fixed-price contract type provides some cost predictability for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The number of bidders is not specified, which limits the ability to fully assess the competitive landscape. A robust competition typically drives down prices and encourages innovation, but the specific outcomes for this contract are not detailed.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best value through market forces. However, the ultimate benefit depends on the number of responsive bids received and the effectiveness of the evaluation process.

Public Impact

The primary beneficiaries are U.S. Immigration and Customs Enforcement (ICE) and the Department of Homeland Security (DHS), receiving essential security services. The services delivered include security guards and patrol services, crucial for maintaining order and safety within detention facilities. The geographic impact is focused on California, where the services are being rendered. Workforce implications include the employment of security personnel by the contractor, The GEO Group, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if scope creep occurs despite fixed-price contract.
Dependence on a single contractor for critical security functions.
Limited transparency on specific performance metrics and service quality.
Potential for contractor to prioritize profit over optimal service delivery.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process.
Fixed-price contract provides cost certainty for the government.
Contractor has a significant presence in the corrections and detention services industry.

Sector Analysis

This contract falls within the broader security services sector, which includes guarding, patrol, and investigation services. The federal government is a major consumer of these services, particularly for its law enforcement and correctional agencies. The market for detention and security services is competitive, with several large firms vying for government contracts. Benchmarking against other federal contracts for similar services would provide further context on pricing and scope.

Small Business Impact

The contract was not awarded as a small business set-aside, and there is no indication of specific subcontracting goals for small businesses. This suggests that the primary award went to a large business. Further analysis would be needed to determine if any subcontracting opportunities exist for small businesses within the performance of this contract.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer's representative (COR) within U.S. Immigration and Customs Enforcement. Accountability measures are usually tied to the contract's performance standards and deliverables. Transparency is dependent on the public availability of contract performance reports and any associated Inspector General audits, which are not detailed here.

Related Government Programs

Federal Prison System Contracts
Immigration Detention Services
Homeland Security Contracts
Private Security Services

Risk Flags

Potential for cost overruns if scope creep occurs.
Dependence on contractor performance for critical security functions.
Limited public data on specific performance metrics.
Contractor's past performance may warrant further review.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $30.2 million to THE GEO GROUP, INC.. NEW TASK ORDER MESA VERDE TASK ORDER POP: 12/21/19 - 12/20/20 FUNDING POP 12/21/19 - 1/31/2020 COR:NATHAN LINDSEY 661-328-4503

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 $30.2 million.

What is the period of performance?

Start: 2019-12-20. End: 2020-12-19.

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

Analyzing historical spending by ICE in California for security services requires access to detailed federal procurement data over multiple fiscal years. While this specific task order is for $30.18 million, understanding the broader trend involves examining previous contracts for similar services, including their duration, value, and the contractors involved. Factors such as changes in immigration policy, detention facility capacity, and security requirements can influence spending patterns. Without access to a comprehensive historical database, it is difficult to provide a precise spending trend. However, it is reasonable to assume that spending in this area is influenced by the operational needs of ICE and the broader immigration enforcement landscape in a populous state like California.

How does the per-unit cost of security services in this contract compare to industry benchmarks?

Determining the per-unit cost requires breaking down the total contract value by the specific services rendered and the quantity of those services. For example, if the contract specifies a certain number of guard hours or patrol routes, we could calculate an hourly rate or a per-route cost. Comparing this to industry benchmarks would involve researching average rates for security guards and patrol services in California, considering factors like experience levels, security clearances, and the specific nature of the facility being secured. Given that this is a fixed-price contract for a broad scope of services, a precise per-unit cost comparison is challenging without more granular data on the deliverables. However, the overall contract value of $30.18 million for one year suggests a significant operational cost.

What is the track record of The GEO Group, Inc. in fulfilling federal security contracts, particularly with DHS?

The GEO Group, Inc. is a well-established private operator of correctional, detention, and community reentry facilities. They have a long history of contracting with federal agencies, including the Department of Homeland Security (DHS) and the Federal Bureau of Prisons. Their track record involves managing a wide range of facilities and services, often under complex regulatory environments. Performance reviews and past performance evaluations are critical components of federal contract awards. While specific details of their performance on this particular task order are not provided, their extensive experience suggests a capacity to handle such contracts. However, like many large contractors in this sector, they have also faced scrutiny and criticism regarding operational standards and cost-effectiveness in some of their past contracts.

What are the potential risks associated with a sole-source or limited competition award for security services?

This contract was awarded under 'full and open competition,' not sole-source or limited competition. Therefore, the risks typically associated with those less competitive award types are not directly applicable here. Sole-source awards, where only one vendor is solicited, carry risks such as potentially higher prices due to lack of competition, limited innovation, and a reduced incentive for the contractor to perform exceptionally. Limited competition, where only a few vendors are solicited, carries similar, though potentially lesser, risks. In contrast, full and open competition is designed to mitigate these risks by maximizing the pool of potential offerors, thereby fostering price competition and encouraging high performance standards to win the contract.

How does the duration and funding structure of this task order impact overall program effectiveness?

This task order has a 365-day period of performance, with funding allocated for the period of performance from 12/21/19 to 1/31/2020, and a separate task order period of performance from 12/21/19 to 12/20/20. This structure suggests that while the contract is in place for a full year, the initial funding may have been for a shorter period, with subsequent funding actions expected. A one-year duration is relatively standard for many service contracts, allowing for flexibility and periodic re-evaluation of needs. However, if the underlying security requirements are long-term, a series of short-term task orders could lead to administrative burden and potential disruptions in service continuity or contractor investment. The effectiveness hinges on consistent funding and clear performance expectations throughout the period of performance.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Guards and Patrol Services

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 70CDCR20R00000002

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4955 TECHNOLOGY WAY, BOCA RATON, FL, 33431

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $30,181,264

Exercised Options: $30,181,264

Current Obligation: $30,181,264

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70CDCR20D00000008

IDV Type: IDC

Timeline