DHS awards $54M+ for South Texas Detention Complex, raising questions on value and competition

Contract Overview

Contract Amount: $54,162,847 ($54.2M)

Contractor: THE GEO Group, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2022-08-06

End Date: 2023-09-05

Contract Duration: 395 days

Daily Burn Rate: $137.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SOUTH TEXAS DETENTION COMPLEX NEW TASK ORDER - POP 06 AUG 2022 - 05 AUG 2023.

Place of Performance

Location: PEARSALL, FRIO County, TEXAS, 78061

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $54.2 million to THE GEO GROUP, INC. for work described as: SOUTH TEXAS DETENTION COMPLEX NEW TASK ORDER - POP 06 AUG 2022 - 05 AUG 2023. Key points: 1. The contract awarded to The GEO Group, Inc. for detention services represents a significant expenditure. 2. While listed as full and open competition, the specific details of the bidding process are not provided. 3. The fixed-price contract structure aims to control costs, but the per-unit cost benchmark is not readily available. 4. The sector of correctional institutions is a recurring area of federal spending with ongoing oversight needs.

Value Assessment

Rating: fair

The total award of over $54 million for a 13-month period suggests a substantial cost for detention services. Without specific per-unit cost data or benchmarks for similar facilities, it is difficult to definitively assess the value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were theoretically allowed to participate. However, the limited information provided does not detail the number of bids received or the evaluation process, making it hard to confirm if this competition effectively drove down prices.

Taxpayer Impact: Taxpayer funds are being utilized for the operation of detention facilities. The effectiveness of the competitive process in securing the best possible price for these services is a key consideration for fiscal responsibility.

Public Impact

This contract directly impacts the management and operation of immigration detention facilities, a sensitive area of public policy. The significant financial outlay raises questions about resource allocation within the Department of Homeland Security. The duration and cost of the contract are relevant to ongoing debates about immigration enforcement and detention practices.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed cost breakdown
Limited transparency on competition effectiveness
Potential for cost overruns despite fixed price

Positive Signals

Fixed-price contract aims for cost certainty
Awarded under full and open competition

Sector Analysis

Correctional institutions represent a significant and ongoing area of federal spending, particularly related to immigration enforcement. Benchmarks for per-inmate-per-day costs can vary widely based on facility type, location, and services provided.

Small Business Impact

There is no indication in the provided data whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The Department of Homeland Security, specifically U.S. Immigration and Customs Enforcement, is responsible for overseeing this contract. Standard oversight mechanisms would apply, but specific details on performance monitoring and accountability are not provided.

Related Government Programs

Correctional Institutions
Department of Homeland Security Contracting
U.S. Immigration and Customs Enforcement Programs

Risk Flags

Lack of detailed cost per unit data
Limited transparency on competitive bidding outcomes
Potential for high operational costs in detention services
Contract duration and significant financial commitment

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $54.2 million to THE GEO GROUP, INC.. SOUTH TEXAS DETENTION COMPLEX NEW TASK ORDER - POP 06 AUG 2022 - 05 AUG 2023.

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 $54.2 million.

What is the period of performance?

Start: 2022-08-06. End: 2023-09-05.

What is the average cost per detainee per day under this contract, and how does it compare to industry benchmarks for similar facilities?

The provided data does not include a per-detainee-per-day cost. The total award is over $54 million for approximately 395 days of service. To calculate an average, the average daily population would be needed. Without this, a direct comparison to industry benchmarks is not possible, making it difficult to assess cost-effectiveness.

What specific factors contributed to the high value of this contract, and were there opportunities for cost savings that were not realized?

The high value is attributed to the operational costs of a detention facility, including staffing, housing, food, and medical services for detainees over a 13-month period. While a fixed-price contract aims for cost certainty, the lack of detailed cost breakdowns and competitive bidding transparency makes it difficult to identify specific cost-saving opportunities or confirm if the price reflects optimal value.

How effectively did the 'full and open competition' process ensure competitive pricing and prevent potential price gouging for detention services?

The 'full and open competition' designation suggests a broad solicitation, but the data lacks details on the number of bids received, the evaluation criteria, or the final negotiated price. Without this information, it's challenging to assess the effectiveness of the competition in driving down costs or ensuring fair market pricing for these essential but sensitive detention services.

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: $54,162,847

Exercised Options: $54,162,847

Current Obligation: $54,162,847

Actual Outlays: $50,331,856

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70CDCR20D00000012

IDV Type: IDC

Timeline