DHS awards $52.8M contract for South Texas Detention Complex services to The GEO Group, Inc

Contract Overview

Contract Amount: $52,818,942 ($52.8M)

Contractor: THE GEO Group, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2021-08-06

End Date: 2022-08-05

Contract Duration: 364 days

Daily Burn Rate: $145.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SOUTH TEXAS DETENTION COMPLEX NEW TASK ORDER AWARD: TBD POP 06 AUG 2021 - 05 AUG 2022. FUNDING THROUGH 30 SEPTEMBER 2021. COR RANDY LECOMPTE ACOR: MICHAEL SHERDIAN

Place of Performance

Location: PEARSALL, FRIO County, TEXAS, 78061

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $52.8 million to THE GEO GROUP, INC. for work described as: SOUTH TEXAS DETENTION COMPLEX NEW TASK ORDER AWARD: TBD POP 06 AUG 2021 - 05 AUG 2022. FUNDING THROUGH 30 SEPTEMBER 2021. COR RANDY LECOMPTE ACOR: MICHAEL SHERDIAN Key points: 1. Contract value of $52.8 million for a one-year period indicates significant operational costs for detention services. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The fixed-price contract type shifts performance risk to the contractor, The GEO Group, Inc. 4. Funding is allocated through September 30, 2021, with the contract extending to August 5, 2022. 5. The contract supports U.S. Immigration and Customs Enforcement (ICE) operations in Texas. 6. The GEO Group, Inc. is a major private operator of correctional and detention facilities.

Value Assessment

Rating: fair

The contract value of $52.8 million for a 364-day period equates to approximately $145,108 per day. Benchmarking this against similar detention facility contracts is challenging without more specific service details. However, the daily operational cost appears substantial, reflecting the complexities and resource demands of managing a detention center. The firm-fixed-price structure implies that the contractor is responsible for managing costs to remain profitable, which can be a positive indicator of value if managed effectively.

Cost Per Unit: $145,108 per day

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but the open competition suggests a robust market for these services. A competitive process is generally expected to drive prices toward market rates and encourage efficiency from the winning contractor.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure services at the best possible price. Full and open competition increases the likelihood that the government is not overpaying for essential detention services.

Public Impact

The primary beneficiaries are U.S. Immigration and Customs Enforcement (ICE) and the Department of Homeland Security, receiving essential detention services. The contract provides for the operation and management of the South Texas Detention Complex. The geographic impact is concentrated in South Texas, specifically in Pearsall, Texas. The contract supports jobs related to the operation and security of a detention facility, including correctional officers, administrative staff, and support personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Reliance on a single large contractor for critical detention services could pose a risk if performance issues arise.
The significant daily cost raises questions about cost-effectiveness and potential for optimization.
The duration of the contract, while a year, is part of a larger operational need that may involve follow-on funding or contracts.

Positive Signals

Awarded through full and open competition, suggesting a competitive market and potentially better pricing.
Firm-fixed-price contract shifts cost control responsibility to the contractor.
The GEO Group, Inc. has extensive experience in operating detention facilities, implying operational familiarity.

Sector Analysis

The private detention services sector is a significant component of the broader correctional services industry. This contract falls within the government services sector, specifically supporting immigration enforcement. The market is characterized by a few large, established players like The GEO Group, Inc. and CoreCivic, who manage a substantial portion of government-contracted detention beds. Spending in this area is often driven by immigration policy and enforcement priorities.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). The GEO Group, Inc. is a large corporation, and it is unlikely that significant subcontracting opportunities for small businesses would be a primary focus of this specific award, although some support services might be outsourced. The absence of small business set-asides means the direct economic impact on the small business ecosystem for this particular contract is likely minimal.

Oversight & Accountability

Oversight for this contract would primarily fall under U.S. Immigration and Customs Enforcement (ICE), a component of the Department of Homeland Security. The contract includes an 'ACOR' (Agency Contracting Officer's Representative), Michael Sherdian, indicating a designated point of contact for monitoring performance and ensuring compliance. The firm-fixed-price nature of the contract means that financial oversight focuses on ensuring the contractor meets the agreed-upon service levels within the fixed price. Transparency is generally maintained through contract award databases and reporting requirements.

Related Government Programs

Immigration and Customs Enforcement (ICE) Operations
Detention Facility Management
Correctional Services Contracts
Department of Homeland Security Contracts

Risk Flags

Contract awarded to a large, established private prison operator.
Significant daily operational cost.
Potential for performance issues in detention facility management.
Reliance on contractor for critical government function.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $52.8 million to THE GEO GROUP, INC.. SOUTH TEXAS DETENTION COMPLEX NEW TASK ORDER AWARD: TBD POP 06 AUG 2021 - 05 AUG 2022. FUNDING THROUGH 30 SEPTEMBER 2021. COR RANDY LECOMPTE ACOR: MICHAEL SHERDIAN

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 $52.8 million.

What is the period of performance?

Start: 2021-08-06. End: 2022-08-05.

What is the historical spending pattern for detention services at the South Texas Detention Complex?

Historical spending data for this specific task order is limited as it is a new award. However, The GEO Group, Inc. has operated detention facilities for ICE for many years. Analyzing past contracts with The GEO Group, Inc. or other providers for similar facilities in Texas or other border regions would provide context. For instance, ICE's overall budget for detention and removal operations has fluctuated based on policy and enforcement levels, often running into billions of dollars annually. Understanding the specific needs and bed counts associated with this task order compared to previous arrangements at the South Texas Detention Complex would be crucial for a comprehensive historical analysis. Without prior task orders or contracts for this exact facility under ICE's purview, a direct historical comparison is not feasible from the provided data alone.

How does the per-day cost of this contract compare to other ICE detention facilities?

The per-day cost for this contract is approximately $145,108 per day, or roughly $4,000 per bed per month if assuming a standard capacity. Comparing this to other ICE detention facilities requires access to detailed cost data for comparable contracts, which is not publicly available in a standardized format. However, reports from government watchdogs and news investigations have often highlighted per-diem rates for ICE detention that can range significantly, sometimes from $100 to over $300 per detainee per day, depending on the facility type, location, services provided, and contract specifics. The provided figure represents the total operational cost for the facility, not necessarily a per-detainee cost. A direct comparison would necessitate knowing the average daily population and the specific services included in this contract versus others.

What are the key performance indicators (KPIs) and service level agreements (SLAs) for this contract?

The provided data does not specify the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. However, for detention facility operations, typical KPIs and SLAs would likely include standards related to safety and security (e.g., incident rates, use of force incidents), detainee welfare (e.g., access to medical care, food services, legal access), facility maintenance, staffing levels, and compliance with ICE Performance-Based National Detention Standards (PBNDS). The firm-fixed-price nature suggests that adherence to these standards is a condition of payment, and failure to meet critical requirements could lead to penalties or contract termination. A thorough review of the full contract document would be necessary to identify the specific KPIs and SLAs.

What is The GEO Group, Inc.'s track record with ICE and other government agencies regarding detention services?

The GEO Group, Inc. has a long and extensive history of contracting with federal, state, and local government agencies, including U.S. Immigration and Customs Enforcement (ICE), to provide correctional and detention services. They are one of the largest private operators of such facilities in the United States. Their track record includes managing numerous detention centers and prisons. However, like other large private prison operators, The GEO Group has faced scrutiny and criticism regarding conditions within their facilities, staffing levels, use of force incidents, and cost-effectiveness. Reports from government oversight bodies, advocacy groups, and media outlets have documented both successes and failures in their operations. ICE relies on The GEO Group for a significant number of detention beds, indicating a level of trust in their capacity to meet operational requirements, despite ongoing public and governmental debate surrounding private detention.

What are the potential risks associated with relying on a single contractor for this detention facility?

Relying on a single contractor, The GEO Group, Inc., for the operation of the South Texas Detention Complex presents several potential risks. Firstly, there is a risk of contractor failure or poor performance; if The GEO Group fails to meet contractual obligations regarding safety, security, or detainee welfare, it could lead to significant operational disruptions, legal challenges, and negative publicity for ICE and DHS. Secondly, a lack of competition for future contract renewals or expansions could lead to reduced price pressure and potentially higher costs over time. Thirdly, over-reliance on one provider can create a dependency that makes transitioning to a different provider or an in-house government operation difficult and costly. Finally, any major operational issues, such as security breaches or health crises, at a facility managed by a single contractor can have a disproportionately large impact due to the concentration of responsibility.

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: $52,818,942

Exercised Options: $52,818,942

Current Obligation: $52,818,942

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70CDCR20D00000012

IDV Type: IDC

Timeline