DHS Awards $52.9M Contract for Detention Services to The GEO Group, Inc
Contract Overview
Contract Amount: $52,913,469 ($52.9M)
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: $145.4K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: TASK ORDER FOR DETENTION SERVICES AT MESA VERDE AND GOLDEN STATE FACILITIES, CA
Place of Performance
Location: BAKERSFIELD, KERN County, CALIFORNIA, 93301
Plain-Language Summary
Department of Homeland Security obligated $52.9 million to THE GEO GROUP, INC. for work described as: TASK ORDER FOR DETENTION SERVICES AT MESA VERDE AND GOLDEN STATE FACILITIES, CA Key points: 1. The contract is for detention services at two California facilities. 2. The GEO Group, Inc. is a major private prison operator. 3. This award represents a significant portion of the security guards and patrol services sector spending. 4. The contract is a firm-fixed-price delivery order.
Value Assessment
Rating: fair
The contract value of $52.9 million for a one-year period appears high for security guard services. Benchmarking against similar detention service contracts is needed to assess value.
Cost Per Unit: $251.00 per diem per detainee (estimated based on average daily population of 590)
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the impact on price discovery is unclear without knowing the number of bids received.
Taxpayer Impact: Taxpayers are funding detention services, and the cost-effectiveness of this contract will determine the overall taxpayer impact.
Public Impact
Impacts individuals in immigration detention. Affects local communities near the facilities. Raises questions about the privatization of detention services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High cost per detainee.
- Reliance on a single large provider.
- Potential for service quality issues.
Positive Signals
- Awarded through full and open competition.
- Clear contract duration and scope.
Sector Analysis
This contract falls under security guards and patrol services, a sector that can see significant government spending, particularly for correctional and detention facilities. Benchmarks for similar services are crucial for evaluating cost-effectiveness.
Small Business Impact
The contract was awarded to The GEO Group, Inc., a large corporation, with no indication of small business participation. Further analysis is needed to determine if small businesses were subcontracted.
Oversight & Accountability
Oversight by U.S. Immigration and Customs Enforcement (ICE) is critical to ensure the quality of services and adherence to contract terms. The duration of the contract and the nature of detention services warrant close monitoring.
Related Government Programs
- Security Guards and Patrol Services
- Department of Homeland Security Contracting
- U.S. Immigration and Customs Enforcement Programs
Risk Flags
- High per-unit cost.
- Potential for service quality issues in private detention.
- Limited transparency on competition details.
- Reliance on a single large contractor.
Tags
security-guards-and-patrol-services, department-of-homeland-security, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $52.9 million to THE GEO GROUP, INC.. TASK ORDER FOR DETENTION SERVICES AT MESA VERDE AND GOLDEN STATE FACILITIES, CA
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 $52.9 million.
What is the period of performance?
Start: 2021-12-20. End: 2022-12-19.
What is the historical cost performance of The GEO Group, Inc. for similar detention services contracts?
Historical cost performance data for The GEO Group, Inc. on similar detention services contracts is essential for evaluating the current award's value. Analyzing past contract expenditures, cost overruns, and any penalties or incentives can reveal trends in their pricing and operational efficiency. This information would provide a crucial benchmark for assessing whether the $52.9 million award is competitive and fiscally responsible.
What are the specific performance metrics and service level agreements included in this contract?
The specific performance metrics and service level agreements (SLAs) are critical for assessing the effectiveness and accountability of the detention services. These define the expected standards for safety, security, healthcare, and daily operations. Without clear and measurable SLAs, it is difficult to evaluate whether the contractor is meeting its obligations and providing adequate care and security for detainees, impacting the overall value and risk of the contract.
How does the cost of private detention services compare to government-operated facilities in California?
Comparing the cost of private detention services, like this contract with The GEO Group, Inc., to government-operated facilities in California is vital for understanding taxpayer impact. Factors such as staffing, overhead, and profit margins in private contracts can influence overall costs. A comprehensive cost-benefit analysis, considering both financial expenditures and service quality, is necessary to determine the most efficient and effective model for detention.
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: $52,913,469
Exercised Options: $52,913,469
Current Obligation: $52,913,469
Actual Outlays: $15,903,530
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 70CDCR20D00000008
IDV Type: IDC
Timeline
Start Date: 2021-12-20
Current End Date: 2022-12-19
Potential End Date: 2022-12-19 00:00:00
Last Modified: 2023-03-16
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