DHS ICE awards $52M contract to The GEO Group for detention services in Texas

Contract Overview

Contract Amount: $51,996,948 ($52.0M)

Contractor: THE GEO Group, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2020-08-06

End Date: 2021-08-05

Contract Duration: 364 days

Daily Burn Rate: $142.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FY20 TO FOR DETENTION AND TRANSPORTATION SERVICES - SOUTH TEXAS ICE PROCESSING CENTER (STIPC)

Place of Performance

Location: PEARSALL, FRIO County, TEXAS, 78061

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $52.0 million to THE GEO GROUP, INC. for work described as: FY20 TO FOR DETENTION AND TRANSPORTATION SERVICES - SOUTH TEXAS ICE PROCESSING CENTER (STIPC) Key points: 1. The contract represents a significant expenditure for detention and transportation services. 2. The GEO Group, Inc. is a major player in the private prison industry. 3. Potential risks include reliance on a single provider and the nature of detention services. 4. The IT sector is not directly involved; this falls under correctional institutions.

Value Assessment

Rating: fair

The award amount of $51.9M for a one-year period appears substantial. Benchmarking against similar detention contracts would be necessary to assess value, but the fixed-price nature provides some cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method aims to achieve fair market prices, though the specific pricing outcomes require further analysis.

Taxpayer Impact: Taxpayer funds are being used for detention and transportation services, a significant cost for immigration enforcement operations.

Public Impact

Impacts individuals in immigration detention and their access to services. Affects local economies in Texas through employment and related services. Raises questions about the privatization of detention and its oversight.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Reliance on private detention facilities
Potential for cost overruns in service delivery
Ethical considerations of private detention

Positive Signals

Awarded through full and open competition
Fixed-price contract provides cost control

Sector Analysis

This contract falls under correctional institutions, a sector often involving significant government spending for public safety and law enforcement functions. Benchmarks for similar services are highly dependent on location and specific service requirements.

Small Business Impact

The data indicates the award went to a large corporation, The GEO Group, Inc. There is no explicit information suggesting opportunities were set aside for small businesses in this particular contract.

Oversight & Accountability

Oversight is crucial for detention contracts to ensure humane conditions, adherence to regulations, and proper use of taxpayer funds. The Department of Homeland Security and ICE are responsible for monitoring this contract's performance.

Related Government Programs

Correctional Institutions
Department of Homeland Security Contracting
U.S. Immigration and Customs Enforcement Programs

Risk Flags

High contract value
Reliance on a single large provider
Nature of detention services
Potential for service quality issues
Limited transparency in private operations

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $52.0 million to THE GEO GROUP, INC.. FY20 TO FOR DETENTION AND TRANSPORTATION SERVICES - SOUTH TEXAS ICE PROCESSING CENTER (STIPC)

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 $52.0 million.

What is the period of performance?

Start: 2020-08-06. End: 2021-08-05.

What is the cost-effectiveness of private detention centers compared to government-run facilities for similar services?

Assessing cost-effectiveness requires a comprehensive analysis comparing operational costs, staffing levels, infrastructure maintenance, and service quality between private and public detention centers. Factors like profit margins for private entities and overhead for government agencies must be considered. Data suggests private facilities can sometimes offer lower direct costs, but this may not always translate to better overall value when considering indirect costs and accountability.

What are the primary risks associated with outsourcing detention and transportation services to private companies like The GEO Group?

Key risks include potential compromises in service quality and inmate welfare due to profit motives, difficulties in ensuring consistent oversight and accountability, and the concentration of power with a few large private contractors. There's also the risk of 'revolving door' policies influencing immigration enforcement decisions and the potential for service disruptions if contracts are terminated or renegotiated.

How does the fixed-price contract structure impact the government's ability to control costs and ensure service quality for detention services?

A fixed-price contract provides the government with cost certainty, as the contractor is obligated to perform the work for a set amount. This limits the risk of cost overruns for the government. However, it can incentivize the contractor to cut corners on service quality or staffing to maximize profit, necessitating robust performance monitoring and clear contract terms to ensure standards are met.

Industry Classification

NAICS: Public Administration › Justice, Public Order, and Safety Activities › Correctional Institutions

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: 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: $51,996,948

Exercised Options: $51,996,948

Current Obligation: $51,996,948

Actual Outlays: $38,931

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70CDCR20D00000012

IDV Type: IDC

Timeline