DHS awards $66M detention and transportation contract to The GEO Group, Inc. for Northwest Detention Center services

Contract Overview

Contract Amount: $65,941,448 ($65.9M)

Contractor: THE GEO Group, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2021-10-27

End Date: 2022-10-27

Contract Duration: 365 days

Daily Burn Rate: $180.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DETENTION AND TRANSPORTATION SERVICES NORTHWEST DETENTION CENTER TACOMA

Place of Performance

Location: TACOMA, PIERCE County, WASHINGTON, 98421

State: Washington Government Spending

Plain-Language Summary

Department of Homeland Security obligated $65.9 million to THE GEO GROUP, INC. for work described as: DETENTION AND TRANSPORTATION SERVICES NORTHWEST DETENTION CENTER TACOMA Key points: 1. Contract value represents a significant investment in detention and transportation services. 2. The GEO Group, Inc. is a major player in correctional and detention facility management. 3. Contract performance period is one year, indicating a need for ongoing services. 4. The firm-fixed-price structure aims to control costs for the government. 5. Geographic focus on Tacoma, Washington, highlights regional detention needs. 6. This contract falls under Facilities Support Services, a broad category.

Value Assessment

Rating: fair

The contract value of $65.9 million for a one-year period for detention and transportation services at the Northwest Detention Center appears substantial. Benchmarking against similar contracts for detention facility operations and transportation is crucial to assess value for money. Without specific comparable contract data, it's difficult to definitively state if this price is competitive. However, the scale of the operation suggests significant operational costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The number of bidders is not specified, but this procurement method generally promotes price discovery and potentially better pricing for the government. The agency sought proposals from all responsible sources.

Taxpayer Impact: Full and open competition is intended to ensure that taxpayers receive the best value by fostering a competitive environment among potential contractors.

Public Impact

The primary beneficiaries are U.S. Immigration and Customs Enforcement (ICE) and the Department of Homeland Security (DHS), ensuring operational capacity for detention and transportation. Services delivered include the management and operation of detention facilities and the transportation of detainees. The geographic impact is concentrated in Tacoma, Washington, addressing federal detention needs in that region. Workforce implications include employment opportunities for security personnel, administrative staff, and transportation specialists.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for high operational costs given the nature of detention services.
Reliance on a single contractor for critical detention and transportation functions.
Contract duration of one year may limit long-term strategic planning for facility management.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process.
Firm-fixed-price contract type helps to control costs and provides budget certainty.
The GEO Group, Inc. has extensive experience in managing detention facilities.

Sector Analysis

The Facilities Support Services sector encompasses a wide range of services essential for the operation of government facilities. This contract, specifically for detention and transportation, is a niche within this broader sector. The market for detention services is often characterized by a limited number of large, specialized providers. Spending in this area is driven by immigration policies and enforcement priorities.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary focus is on large business capabilities. There is no explicit information on subcontracting plans for small businesses within this award, suggesting that the prime contractor, The GEO Group, Inc., will likely manage the majority of the services directly.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of U.S. Immigration and Customs Enforcement (ICE) contracting officers and program managers within the Department of Homeland Security (DHS). The contract's performance would be monitored against the terms and conditions outlined in the delivery order. Transparency is generally maintained through contract award databases, though specific operational details may be sensitive.

Related Government Programs

Detention Services
Immigration Enforcement
Federal Facilities Management
Transportation Services
Correctional Services

Risk Flags

Contractor Performance Risk
Cost Overrun Potential
Reputational Risk
Service Disruption Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $65.9 million to THE GEO GROUP, INC.. DETENTION AND TRANSPORTATION SERVICES NORTHWEST DETENTION CENTER TACOMA

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 $65.9 million.

What is the period of performance?

Start: 2021-10-27. End: 2022-10-27.

What is the track record of The GEO Group, Inc. in managing similar detention facilities for federal agencies?

The GEO Group, Inc. is a well-established private operator of correctional and detention facilities in the United States and internationally. They have a long history of contracting with federal agencies, including DHS and the Bureau of Prisons, to manage various types of detention centers and provide related services. Their experience spans adult and juvenile facilities, as well as immigration detention centers. While they possess extensive operational experience, like many large contractors in this sector, they have also faced scrutiny and criticism regarding facility conditions, staffing levels, and cost-effectiveness in some of their contracts. Evaluating their performance on specific past contracts, particularly those with similar scope and duration to this DHS award, would provide a more detailed understanding of their capabilities and potential risks.

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

Determining a precise per-unit cost benchmark for detention services under this contract is challenging without more granular data on the average daily population, specific services provided per detainee, and the exact breakdown of operational costs. Detention facility contracts often have complex pricing structures that can include per diem rates, fixed monthly fees, and charges for specific services like transportation or medical care. Industry benchmarks can vary significantly based on geographic location, security levels required, and the specific needs of the contracting agency. Generally, private detention facilities aim for cost efficiencies, but the 'value for money' is often debated, with critics pointing to potential cost-cutting measures impacting quality of care or safety. A detailed analysis would require comparing the contract's specific rates against publicly available data for similar ICE or CBP detention contracts, adjusted for regional cost differences and service scope.

What are the primary risks associated with this contract for the Department of Homeland Security?

The primary risks for DHS associated with this contract include potential disruptions in detention and transportation services, which could impact immigration enforcement operations and detainee management. Reputational risk is also a significant concern, as private detention facilities operated by contractors like The GEO Group, Inc. can be subject to public scrutiny and criticism regarding conditions, human rights, and the overall effectiveness of the detention system. Operational risks include potential cost overruns if the firm-fixed-price model doesn't adequately account for unforeseen circumstances, or if performance issues lead to penalties or contract disputes. Furthermore, ensuring consistent compliance with DHS standards and regulations across all aspects of facility management and transportation is an ongoing challenge that requires robust oversight.

What is the historical spending pattern for detention and transportation services by ICE in the Tacoma, Washington region?

Historical spending data for detention and transportation services by ICE in the Tacoma, Washington region would reveal trends in demand and contract awards. This specific contract award of approximately $65.9 million for a one-year period suggests a consistent need for these services in the area. Analyzing previous years' spending would indicate whether this award represents an increase, decrease, or stable level of investment. It would also highlight the typical duration and value of contracts awarded for similar services in this geographic area and whether The GEO Group, Inc. has been a consistent recipient of such awards. Understanding these patterns can help assess the long-term commitment to detention operations in the region and the stability of the contracting environment.

How does the contract's duration of one year impact the government's ability to ensure long-term service quality and cost-effectiveness?

A one-year contract duration, while providing flexibility, can present challenges for ensuring long-term service quality and cost-effectiveness. For the government, shorter contract terms may necessitate frequent re-procurement processes, incurring administrative costs and potential disruptions if a new contractor is not readily available or if transition periods are lengthy. It can also limit the contractor's incentive to make significant long-term investments in facility upgrades or staff training, as their return on investment is tied to a shorter period. Conversely, a shorter term allows the government to more readily adjust services or switch providers if performance is unsatisfactory or if policy priorities change. For cost-effectiveness, it prevents locking into potentially unfavorable long-term rates but may also miss opportunities for volume discounts or economies of scale that longer-term commitments could offer.

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

Solicitation ID: HSCEDM-15-R-00001

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: $65,941,448

Exercised Options: $65,941,448

Current Obligation: $65,941,448

Actual Outlays: $10,546,646

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSCEDM15D00015

IDV Type: IDC

Timeline