DHS awards $122.5M contract for detention services in Los Angeles to The GEO Group, Inc

Contract Overview

Contract Amount: $122,464,905 ($122.5M)

Contractor: THE GEO Group, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2021-12-20

End Date: 2022-12-19

Contract Duration: 364 days

Daily Burn Rate: $336.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TASK ORDER TO PROVIDE DETENTION SERVICES IN 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 $122.5 million to THE GEO GROUP, INC. for work described as: TASK ORDER TO PROVIDE DETENTION SERVICES IN LOS ANGELES AREA OF RESPONSIBILITY Key points: 1. The contract value represents a significant investment in detention services for the specified region. 2. The GEO Group, Inc. has a substantial presence in the corrections and detention sector. 3. The contract's firm-fixed-price structure aims to control costs, but requires careful monitoring of service delivery. 4. The duration of the contract is one year, suggesting a need for ongoing, but not long-term, service provision. 5. The award was made under full and open competition, indicating a potentially competitive bidding process. 6. The specific service category is Security Guards and Patrol Services, aligning with detention facility needs.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without detailed service level agreements and performance metrics. However, the total award of $122.5 million for a one-year period for detention services in a major metropolitan area like Los Angeles suggests a substantial operational cost. Comparing this to similar contracts for detention services across different regions or for different lengths of service would be necessary for a more precise value assessment. The firm-fixed-price nature implies that the contractor bears the risk of cost overruns, which can be a positive indicator of value if services are delivered as specified.

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 were eligible to bid. This process is designed to foster competition and potentially lead to more favorable pricing and service terms for the government. The number of bidders and the specifics of the evaluation process would provide further insight into the level of competition achieved. A robust competition typically results in a better price discovery mechanism.

Taxpayer Impact: A full and open competition generally benefits taxpayers by encouraging a wider range of providers to offer their services, potentially driving down costs and improving service quality through competitive pressure.

Public Impact

The primary beneficiaries are U.S. Immigration and Customs Enforcement (ICE) and the Department of Homeland Security (DHS), who receive essential detention services. The services delivered include the provision of detention facilities and associated security and operational support. The geographic impact is focused on the Los Angeles Area of Responsibility, serving the needs of federal immigration enforcement in that region. The contract supports jobs within the private detention services industry, including security personnel, administrative staff, and support services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for over-reliance on a single provider for critical detention services.
Concerns regarding the quality of care and conditions within private detention facilities.
The firm-fixed-price contract may incentivize cost-cutting that could impact service quality if not rigorously overseen.
The GEO Group, Inc. has faced public scrutiny and legal challenges related to its operations in the past.

Positive Signals

The contract was awarded through a full and open competitive process, suggesting a fair evaluation of multiple proposals.
The firm-fixed-price contract structure can provide cost certainty for the government.
The contract specifies a defined period of performance, allowing for periodic re-evaluation of needs and provider performance.
The services are critical for supporting the operational requirements of ICE in a key geographic area.

Sector Analysis

The private detention services industry is a significant component of the broader security and corrections sector. This contract falls within the realm of government contracting for essential public services, specifically related to immigration enforcement and detention. The market for such services is influenced by federal policy, immigration trends, and legislative appropriations. Comparable spending benchmarks would involve analyzing other ICE contracts for detention services in different regions or contracts for similar security and facility management services across various federal agencies.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. The award to The GEO Group, Inc., a large corporation, suggests that the primary focus was on meeting the scale and scope of the detention service requirements. Further analysis would be needed to determine if any subcontracting opportunities for small businesses were included or encouraged within the contract's terms.

Oversight & Accountability

Oversight for this contract would primarily fall under U.S. Immigration and Customs Enforcement (ICE), a component of DHS. ICE is responsible for monitoring contractor performance to ensure compliance with contract terms, service level agreements, and federal regulations. Accountability measures would include performance reviews, site inspections, and potentially audits. Transparency is facilitated through contract award databases, but detailed operational oversight information is often internal. The Inspector General for DHS may also conduct audits or investigations into the contract's administration and performance.

Related Government Programs

Immigration Detention Services
Federal Law Enforcement Support Services
Correctional Facility Management
Homeland Security Contracts
Private Security Services

Risk Flags

Contractor has a history of public scrutiny.
Potential for cost-cutting impacting service quality.
Reliance on a single large provider for critical services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $122.5 million to THE GEO GROUP, INC.. TASK ORDER TO PROVIDE DETENTION SERVICES IN 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 $122.5 million.

What is the period of performance?

Start: 2021-12-20. End: 2022-12-19.

What is the historical spending pattern for detention services in the Los Angeles area by ICE?

Analyzing historical spending for detention services in the Los Angeles area by ICE is crucial for understanding the context of this $122.5 million award. While specific historical data for this exact task order is not provided, ICE has consistently allocated substantial funds towards detention operations nationwide. In previous fiscal years, ICE's budget for detention and removal operations has often been in the billions of dollars. The Los Angeles AOR is a significant operational area, and spending patterns can fluctuate based on immigration flows, policy changes, and the availability of detention facilities. Examining prior contracts awarded to The GEO Group, Inc. or other providers in this region would reveal trends in contract values, service scope, and duration, helping to determine if this current award represents an increase, decrease, or stable level of investment compared to past requirements.

How does the per-unit cost of detention services under this contract compare to national averages or similar contracts?

Determining the precise per-unit cost for detention services under this $122.5 million contract requires detailed information on the average daily population housed and the specific services included (e.g., housing, meals, medical care, transportation). Without these specifics, a direct per-unit cost comparison is difficult. However, national averages for per-diem costs in immigration detention facilities can range significantly, often between $100 to $200 or more, depending on the provider, location, and level of services. If this contract covers a significant number of beds for a full year, the total cost divided by the number of bed-days would yield a per-unit cost. Benchmarking this figure against publicly available data for similar ICE contracts, particularly those awarded through full and open competition, would indicate whether the pricing is competitive or potentially higher than market rates. The firm-fixed-price nature suggests ICE has negotiated a set rate, but the efficiency and value depend on the actual service delivery and occupancy.

What is The GEO Group, Inc.'s track record with federal contracts, particularly with DHS/ICE?

The GEO Group, Inc. is a major private operator of correctional and detention facilities and has a long-standing track record of holding numerous federal contracts, primarily with DHS (including ICE) and the Federal Bureau of Prisons. Their history includes managing a significant number of detention beds across the United States. While they are a frequent awardee due to their capacity and experience, their track record has also been subject to scrutiny. This scrutiny often involves concerns raised by advocacy groups, oversight bodies, and in some cases, litigation, regarding facility conditions, safety, staffing levels, and cost-effectiveness. For this specific contract, ICE's decision to award it to The GEO Group, Inc. implies that, based on the competitive evaluation, they met the required performance standards and qualifications. However, ongoing monitoring of their performance under this and other contracts is essential to ensure compliance and accountability.

What are the key performance indicators (KPIs) used to evaluate the success of this detention services contract?

Key Performance Indicators (KPIs) for detention services contracts are critical for ensuring that the contractor, The GEO Group, Inc., meets the government's requirements for safety, security, humane treatment, and operational efficiency. While the specific KPIs for this $122.5 million task order are not detailed in the provided data, typical KPIs for such contracts often include: facility safety and security incident rates (e.g., assaults, escapes), health and medical care access and quality metrics, compliance with detention standards (e.g., ICE Performance-Based National Detention Standards), staff training and retention rates, timely transportation of detainees, and cleanliness of facilities. ICE would monitor these KPIs through regular reporting, site visits, and audits. Failure to meet established KPIs can result in corrective action plans, financial penalties, or even contract termination, serving as a crucial mechanism for accountability and ensuring value for taxpayer money.

Are there any specific risks associated with relying on The GEO Group, Inc. for detention services in the Los Angeles area?

Relying on The GEO Group, Inc. for detention services in the Los Angeles area carries potential risks that are common to large private correctional and detention operators. One significant risk is the potential for negative publicity or public concern stemming from past controversies or incidents at facilities operated by the company, which could impact community relations and political support for the contract. Operational risks include maintaining adequate staffing levels, ensuring consistent adherence to evolving detention standards, and managing potential health crises or security breaches within the facilities. Furthermore, the firm-fixed-price nature of the contract, while offering cost certainty, could incentivize cost-cutting measures that might compromise service quality or detainee welfare if not rigorously monitored by ICE. The company's large scale also means that any systemic issues could affect a substantial number of individuals.

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: $122,464,905

Exercised Options: $122,464,905

Current Obligation: $122,464,905

Actual Outlays: $37,055,490

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70CDCR20D00000009

IDV Type: IDC

Timeline