DHS Awards $110.7M for LA Detention Services to The GEO Group, Inc

Contract Overview

Contract Amount: $110,740,019 ($110.7M)

Contractor: THE GEO Group, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2020-11-04

End Date: 2021-12-19

Contract Duration: 410 days

Daily Burn Rate: $270.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TASK ORDER IS TO PROVIDE FUNDING FOR DETENTION TRANSPORTATION AND MEDICAL SERVICES IN THE LOS ANGELES AREA OF RESPONSIBILITY

Place of Performance

Location: ADELANTO, SAN BERNARDINO County, CALIFORNIA, 92301

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $110.7 million to THE GEO GROUP, INC. for work described as: TASK ORDER IS TO PROVIDE FUNDING FOR DETENTION TRANSPORTATION AND MEDICAL SERVICES IN THE LOS ANGELES AREA OF RESPONSIBILITY Key points: 1. Significant contract value for detention services in a major metropolitan area. 2. The GEO Group, Inc. is a major player in private detention services. 3. Potential risks include service quality, cost overruns, and contractor performance. 4. Spending falls within the Security Guards and Patrol Services sector.

Value Assessment

Rating: fair

The contract value of $110.7 million for a 13-month period appears substantial. Benchmarking against similar detention service contracts is necessary to assess if the pricing is competitive, considering the scope of transportation and medical services.

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. However, the specific pricing discovery mechanisms and the number of bids received are not detailed, impacting the assessment of price reasonableness.

Taxpayer Impact: Taxpayer funds are being used for essential but costly detention support services. Ensuring competitive pricing and efficient service delivery is crucial for maximizing value.

Public Impact

Impacts individuals in immigration detention within the Los Angeles area. Ensures continuity of essential services like transportation and medical care for detainees. Highlights the role of private contractors in managing federal detention operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration is relatively short, potentially leading to frequent re-competes and transition costs.
Lack of detailed performance metrics or quality assurance data.
Potential for cost creep in medical services if not tightly managed.

Positive Signals

Awarded under full and open competition, indicating market engagement.
Clear delineation of services (transportation and medical) within the contract.
Established contractor with experience in the detention services sector.

Sector Analysis

This contract falls under the Security Guards and Patrol Services sector, which includes a range of services related to facility security and personnel management. Spending benchmarks for detention services can vary widely based on location, detainee population, and service complexity.

Small Business Impact

The data does not indicate any specific set-asides for small businesses. The primary contractor, The GEO Group, Inc., is a large corporation, suggesting limited direct opportunities for small businesses in this specific award.

Oversight & Accountability

Oversight by U.S. Immigration and Customs Enforcement (ICE) is critical to ensure the contractor meets all service level agreements and maintains humane conditions. Regular audits and performance reviews are essential for accountability.

Related Government Programs

Security Guards and Patrol Services
Department of Homeland Security Contracting
U.S. Immigration and Customs Enforcement Programs

Risk Flags

Contractor's past performance and reputation in detention services.
Potential for service quality issues impacting detainee welfare.
Risk of cost overruns if not managed tightly, despite fixed price.
Dependence on a single large contractor for critical services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $110.7 million to THE GEO GROUP, INC.. TASK ORDER IS TO PROVIDE FUNDING FOR DETENTION TRANSPORTATION AND MEDICAL SERVICES IN THE LOS ANGELES AREA OF RESPONSIBILITY

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 $110.7 million.

What is the period of performance?

Start: 2020-11-04. End: 2021-12-19.

What is the cost per detainee per day for these services, and how does it compare to national averages or similar contracts?

Calculating the cost per detainee per day requires knowing the average daily population served under this contract. Without that data, a direct comparison is impossible. However, given the $110.7 million award over approximately 13 months, the daily cost is substantial. Benchmarking against publicly available data for similar ICE contracts in other regions would be necessary to assess cost-effectiveness.

What are the specific performance metrics and quality assurance measures in place to ensure the adequacy of medical and transportation services?

The provided data does not specify the performance metrics or quality assurance measures. Effective oversight would necessitate clearly defined standards for response times, staff qualifications, patient care protocols, and transportation safety. ICE should have robust mechanisms to monitor and enforce these standards, including regular site visits and review of incident reports.

How does the pricing structure, a firm fixed price, mitigate or exacerbate risks related to fluctuating operational costs, such as medical supplies or fuel?

A firm fixed price contract generally shifts the risk of fluctuating costs to the contractor. While this can protect the government from unexpected price increases, it may also lead the contractor to cut corners on service quality to maintain profitability if costs rise significantly. Conversely, if costs remain stable or decrease, the contractor benefits from higher profit margins.

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

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: $110,740,019

Exercised Options: $110,740,019

Current Obligation: $110,740,019

Actual Outlays: $494,276

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70CDCR20D00000009

IDV Type: IDC

Timeline