DHS awards $39.2M for transitional center services to The GEO Group, Inc. in Florida

Contract Overview

Contract Amount: $39,209,370 ($39.2M)

Contractor: THE GEO Group, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2020-06-17

End Date: 2024-01-25

Contract Duration: 1,317 days

Daily Burn Rate: $29.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SERVICES AT BROWARD TRANSITIONAL CENTER

Place of Performance

Location: COCONUT CREEK, BROWARD County, FLORIDA, 33073

State: Florida Government Spending

Plain-Language Summary

Department of Homeland Security obligated $39.2 million to THE GEO GROUP, INC. for work described as: SERVICES AT BROWARD TRANSITIONAL CENTER Key points: 1. Contract value of $39.2 million over approximately 3.6 years indicates significant investment in facility support services. 2. Full and open competition suggests a potentially competitive bidding process, though specific bidder numbers are not provided. 3. The fixed-price contract type aims to control costs for the government, shifting cost overrun risk to the contractor. 4. Services are delivered in Florida, impacting local workforce and potentially benefiting the regional economy. 5. The contract's duration and value place it as a substantial commitment within the facilities support services sector. 6. The absence of small business set-aside flags suggests this was not specifically targeted for small business participation.

Value Assessment

Rating: fair

The contract value of $39.2 million over 1317 days averages to approximately $29,772 per day. Benchmarking this against similar facilities support contracts is challenging without more specific service details and geographic comparisons. However, the daily rate suggests a significant operational cost. The firm fixed-price structure provides cost certainty for the government, but the overall value-for-money depends heavily on the quality and efficiency of the services provided by The GEO Group, Inc.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. While this generally promotes a competitive environment, the specific number of bidders and the resulting price discovery are not detailed in the provided data. A robust competition typically leads to better pricing for the government.

Taxpayer Impact: Full and open competition is intended to ensure taxpayers receive the best possible value by encouraging multiple companies to bid, driving down prices through market forces.

Public Impact

Provides essential services for individuals at the Broward Transitional Center. Supports the operational needs of U.S. Immigration and Customs Enforcement (ICE) facilities. Impacts the local economy in Florida through employment and resource utilization. Ensures the provision of facilities support services, contributing to the management of immigration processes.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration of over three years may lead to contractor complacency if not actively managed.
Reliance on a single large contractor for critical services can create dependency and limit flexibility.
Potential for cost overruns if the fixed-price contract does not adequately account for unforeseen operational challenges.
Limited transparency on the specific performance metrics and quality assurance measures in place.

Positive Signals

Awarded through full and open competition, suggesting a potentially competitive pricing environment.
Fixed-price contract type helps to control government spending and budget predictability.
Contractor has a significant presence and experience in providing correctional and detention services.
Services are geographically located in Florida, potentially supporting local employment and businesses.

Sector Analysis

This contract falls within the Facilities Support Services sector, a broad category encompassing a wide range of services necessary for the operation and maintenance of physical infrastructure. This sector is critical for government agencies, particularly those managing large facilities like detention centers. The market size for such services is substantial, driven by ongoing government needs for operational support across various departments. Comparable spending benchmarks would typically involve analyzing other contracts for similar facility management and support services awarded by federal agencies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the procurement was open to all responsible sources, including large businesses. Consequently, there are no direct subcontracting implications for small businesses arising from a specific small business set-aside. The primary impact on the small business ecosystem would be indirect, through potential opportunities if the prime contractor chooses to subcontract, or through competition with other large firms that may engage small businesses.

Oversight & Accountability

Oversight for this contract would primarily reside with the U.S. Immigration and Customs Enforcement (ICE) agency, a component of the Department of Homeland Security. Accountability measures are typically embedded within the contract's performance work statement, requiring adherence to specific service levels and standards. Transparency is facilitated through contract award databases, though detailed performance reports may not always be publicly accessible. The Inspector General for the Department of Homeland Security would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Immigration and Customs Enforcement Operations
Federal Detention Facility Management
Homeland Security Facilities Support
Transitional Housing Services
Correctional Services Contracts

Risk Flags

Contractor performance history
Service quality assurance
Cost-effectiveness of fixed-price contract
Public perception of private detention services

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $39.2 million to THE GEO GROUP, INC.. SERVICES AT BROWARD TRANSITIONAL CENTER

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 $39.2 million.

What is the period of performance?

Start: 2020-06-17. End: 2024-01-25.

What is the track record of The GEO Group, Inc. in providing similar facilities support services to federal agencies?

The GEO Group, Inc. is a well-established private operator of correctional and detention facilities, as well as providing a range of related services. They have a significant history of contracting with federal agencies, including the Department of Homeland Security (DHS) and the Federal Bureau of Prisons (BOP). Their experience encompasses managing detention centers, providing security, and offering various support services essential for facility operations. While their extensive experience suggests a capacity to fulfill such contracts, it's also important to note that they have faced scrutiny and criticism regarding operational standards, staffing levels, and cost-effectiveness in some of their past contracts. A thorough assessment would require reviewing specific performance evaluations and any documented issues from previous DHS or similar federal contracts.

How does the awarded amount compare to similar facilities support contracts for transitional centers?

Comparing the $39.2 million award for services at the Broward Transitional Center to similar contracts requires detailed data on the scope of services, duration, location, and specific needs of each facility. The provided data indicates a contract duration of 1317 days (approximately 3.6 years), resulting in an average daily cost of roughly $29,772. Without access to a comprehensive database of comparable contracts with identical service parameters, a precise benchmark is difficult. However, the scale of this award suggests a substantial operational requirement. Factors influencing cost include the number of individuals served, the level of security required, the types of support services (e.g., housing, food, medical, case management), and local labor costs in Florida. A detailed comparison would necessitate analyzing contracts for facilities of similar size and function managed by ICE or other agencies.

What are the primary risks associated with this contract for the government?

The primary risks for the government in this contract include potential underperformance by the contractor, leading to disruptions in essential services for individuals at the transitional center. Given the firm fixed-price structure, there's a risk that the contractor might cut corners on service quality to maintain profitability, especially if operational costs exceed initial projections. Another risk is the potential for negative public relations or legal challenges if the contractor's operations do not meet ethical, safety, or humanitarian standards, which has been a point of concern in the past for private detention service providers. Ensuring robust oversight and performance monitoring is crucial to mitigate these risks and ensure the government receives the contracted services effectively and responsibly.

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

U.S. Immigration and Customs Enforcement (ICE) historically spends significant amounts on facilities support services, including the operation and management of detention centers and transitional facilities. This spending is driven by the agency's mission to enforce immigration laws and manage individuals in federal custody. The total annual spending can fluctuate based on policy changes, border apprehensions, and the utilization of detention capacity. Contracts for these services are often large, long-term, and awarded through various procurement methods, including full and open competition and sole-source awards, depending on specific needs and circumstances. Analyzing historical spending patterns would reveal trends in contract values, durations, and the types of service providers utilized by ICE over time.

What are the implications of the 'full and open competition' award type for taxpayer value?

An award made under 'full and open competition' generally implies that multiple potential bidders were allowed to submit proposals. This process is designed to foster a competitive environment, which theoretically leads to better pricing and higher quality services as contractors vie for the contract. For taxpayers, this means there is a higher likelihood that the government secured the services at a competitive market rate, rather than potentially overpaying through a sole-source or limited competition award. However, the true value realized depends on the effectiveness of the competition itself – the number of bids received, the rigor of the evaluation process, and whether the lowest price technically acceptable or best-value approach was used. Without knowing the number of bidders, it's difficult to definitively quantify the taxpayer benefit, but the process itself is a positive indicator for value.

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: $39,209,370

Exercised Options: $39,209,370

Current Obligation: $39,209,370

Actual Outlays: $125,808

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: HSCEDM15D00006

IDV Type: IDC

Timeline