DHS awards $48.3M facilities support contract to The GEO Group, Inc. for Texas detention center operations

Contract Overview

Contract Amount: $48,312,099 ($48.3M)

Contractor: THE GEO Group, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2022-08-18

End Date: 2023-08-17

Contract Duration: 364 days

Daily Burn Rate: $132.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: **NEW TASK ORDER NUMBER ( MONTGOMERY PROCESSING CENTER (MPC) /GEO) CONTRACT PERIOD OF PERFORMANCE- 18 AUG 2022 - 17 AUG 2023 FUNDING PERIOD OF PERFORMANCE - 18 AUG 2022 - 30 SEP 2022

Place of Performance

Location: CONROE, MONTGOMERY County, TEXAS, 77301

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $48.3 million to THE GEO GROUP, INC. for work described as: **NEW TASK ORDER NUMBER ( MONTGOMERY PROCESSING CENTER (MPC) /GEO) CONTRACT PERIOD OF PERFORMANCE- 18 AUG 2022 - 17 AUG 2023 FUNDING PERIOD OF PERFORMANCE - 18 AUG 2022 - 30 SEP 2022 Key points: 1. Contract value represents a significant investment in detention facility management. 2. The GEO Group, Inc. has a substantial history of providing similar services to government agencies. 3. The firm-fixed-price structure aims to control costs, but requires careful monitoring of service delivery. 4. Competition was full and open, suggesting a potentially competitive bidding process. 5. The contract duration aligns with operational needs for immigration processing. 6. Performance is geographically concentrated in Texas, impacting local resources and workforce.

Value Assessment

Rating: fair

The contract value of $48.3 million for a one-year period is substantial for facilities support services. Benchmarking against similar contracts for detention center operations is crucial to assess value for money. Without specific details on the scope of services (e.g., bed count, staffing levels, specific support functions), a precise value comparison is difficult. However, the firm-fixed-price nature suggests the government has a defined cost, but the contractor bears the risk of cost overruns. This necessitates robust performance monitoring to ensure services meet contract requirements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This approach generally fosters a competitive environment, potentially leading to better pricing and service offerings. The number of bidders is not specified, but the 'full and open' designation suggests a deliberate effort to maximize competition. This process is designed to ensure the government receives the best value through market forces.

Taxpayer Impact: A full and open competition process is favorable for taxpayers as it increases the likelihood of obtaining competitive pricing and encourages a wider range of service providers to compete, potentially driving down costs.

Public Impact

The primary beneficiaries are U.S. Immigration and Customs Enforcement (ICE) and the Department of Homeland Security (DHS), receiving essential detention management services. The contract supports the operation of detention facilities, ensuring capacity for processing and holding individuals within the immigration system. Geographic impact is concentrated in Texas, where the facilities are located, potentially creating local employment opportunities and utilizing local resources. Workforce implications include direct employment for facility staff, security personnel, and support services within the contracted facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if service scope expands beyond initial fixed-price agreement.
Ensuring consistent service quality across all contracted functions requires diligent oversight.
Dependence on a single contractor for critical detention operations poses a risk if performance issues arise.
Geographic concentration in Texas could lead to localized impacts on community resources and infrastructure.

Positive Signals

Firm-fixed-price contract type provides cost certainty for the government.
Full and open competition suggests a robust market engagement process.
The GEO Group, Inc. has extensive experience in this service area.
Contract duration aligns with operational needs, allowing for stable service provision.

Sector Analysis

This contract falls within the Facilities Support Services sector, specifically related to government-contracted detention operations. This is a specialized segment of the broader facilities management industry, often involving significant security and logistical considerations. The market for such services is driven by government demand, particularly from agencies like DHS and ICE. Comparable spending benchmarks would involve analyzing other contracts for similar detention facility management services across different geographic locations and contract durations.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. Therefore, there are no direct small business set-aside provisions. However, the prime contractor, The GEO Group, Inc., may engage small businesses as subcontractors to fulfill certain aspects of the contract. The extent of subcontracting to small businesses will depend on the contractor's own procurement practices and the specific needs of the service delivery.

Oversight & Accountability

Oversight for this contract is likely managed by U.S. Immigration and Customs Enforcement (ICE) contracting officers and program managers. Accountability measures would be embedded in the contract's performance standards and reporting requirements. Transparency is typically facilitated through contract award databases and public reporting mechanisms. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Immigration Detention Services
Correctional Facility Management
Government Facilities Operations
Homeland Security Contracts
Detention Center Support

Risk Flags

Contractor Performance History
Service Quality Monitoring
Cost Overrun Potential
Geographic Concentration Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $48.3 million to THE GEO GROUP, INC.. **NEW TASK ORDER NUMBER ( MONTGOMERY PROCESSING CENTER (MPC) /GEO) CONTRACT PERIOD OF PERFORMANCE- 18 AUG 2022 - 17 AUG 2023 FUNDING PERIOD OF PERFORMANCE - 18 AUG 2022 - 30 SEP 2022

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 $48.3 million.

What is the period of performance?

Start: 2022-08-18. End: 2023-08-17.

What is the historical spending pattern for facilities support services by U.S. Immigration and Customs Enforcement (ICE) over the past five years?

Analyzing historical spending patterns for ICE's facilities support services reveals a consistent and significant investment in maintaining detention infrastructure. Over the past five fiscal years, ICE has allocated billions of dollars towards contracts for the operation and maintenance of detention facilities, including services like housing, food, medical care, and transportation. This spending is directly influenced by immigration policy, border apprehension rates, and the overall capacity needs of the immigration enforcement system. Fluctuations in annual spending can often be correlated with changes in enforcement priorities or shifts in the demographic makeup of individuals apprehended. The contract awarded to The GEO Group, Inc. for $48.3 million in FY2022 represents a portion of this broader, ongoing expenditure required to manage the nation's immigration detention system.

How does the per-unit cost of services under this contract compare to similar detention facility contracts awarded by ICE?

A precise per-unit cost comparison for this contract is challenging without detailed service metrics such as the average daily population (ADP) housed, staffing ratios, or specific service inclusions (e.g., meals per day, medical visits). The contract value of $48.3 million is for a one-year period, supporting facilities in Texas. To benchmark effectively, one would need to compare this against contracts for facilities of similar size and service scope, also awarded under firm-fixed-price or similar pricing arrangements. Generally, costs per detainee per day can vary significantly based on geographic location, security levels required, and the comprehensiveness of services provided. Without access to the specific performance work statement and detailed cost breakdowns, a definitive comparison to market rates or other ICE contracts remains speculative, though the overall contract value suggests a substantial operational scale.

What is The GEO Group, Inc.'s track record in managing government detention facilities, and have there been any significant performance issues or controversies?

The GEO Group, Inc. is one of the largest private operators of correctional and detention facilities in the United States, with a long history of contracting with federal, state, and local governments. They manage a significant number of immigration detention centers on behalf of U.S. Immigration and Customs Enforcement (ICE). Their track record includes successfully operating numerous facilities, providing essential services, and meeting contractual obligations. However, like many large private prison operators, The GEO Group has also faced scrutiny and controversy regarding conditions within their facilities, staffing levels, use of force incidents, and allegations of inadequate medical care. Numerous reports and lawsuits have been filed over the years concerning these issues. While the company maintains that it operates facilities in compliance with contractual and regulatory standards, these past controversies represent a notable aspect of their operational history that warrants consideration.

What are the primary risks associated with this firm-fixed-price contract for facilities support services, and how are they mitigated?

The primary risk associated with a firm-fixed-price (FFP) contract for complex services like detention facility support is that the contractor may cut corners on service quality or staffing to maintain profitability if their cost estimates prove inaccurate or unforeseen issues arise. For The GEO Group, Inc., this could manifest as reduced staffing levels, inadequate maintenance, or insufficient provision of amenities, potentially impacting detainee welfare and operational efficiency. Mitigation strategies employed by ICE would include rigorous performance monitoring, regular site inspections, adherence to detailed performance standards outlined in the Performance Work Statement (PWS), and robust contract management. The government's ability to enforce penalties, withhold payments for non-performance, or even terminate the contract for cause serves as a crucial deterrent against substandard service delivery.

How does the geographic concentration of this contract in Texas impact the overall distribution of ICE detention resources and related federal spending?

The concentration of this $48.3 million contract in Texas highlights the state's significant role in the U.S. immigration detention system. Texas hosts a substantial number of ICE detention facilities due to its geographic proximity to the U.S.-Mexico border and its role as a major transit point. Awarding such a large contract to a single provider in Texas means a significant portion of ICE's detention operational budget is directed to this region. This concentration can lead to localized economic impacts, including job creation and demand for local services, but also raises questions about the diversification of federal detention resources across different states. It suggests that federal immigration enforcement strategies heavily rely on the infrastructure and operational capacity within Texas, influencing the distribution of federal funds and the logistical challenges associated with managing a large detainee population in a specific geographic area.

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-00004

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: $48,312,099

Exercised Options: $48,312,099

Current Obligation: $48,312,099

Actual Outlays: $46,705,272

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSCEDM17D00009

IDV Type: IDC

Timeline