DHS awards $54.9M detention services contract to GEO Group, Inc. for California facilities

Contract Overview

Contract Amount: $54,862,887 ($54.9M)

Contractor: THE GEO Group, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2022-12-20

End Date: 2023-12-19

Contract Duration: 364 days

Daily Burn Rate: $150.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NEW TASK ORDER FOR DETENTION SERVICES AT MESA VERDE AND GOLDEN STATE FACILITIES.

Place of Performance

Location: BAKERSFIELD, KERN County, CALIFORNIA, 93301

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $54.9 million to THE GEO GROUP, INC. for work described as: NEW TASK ORDER FOR DETENTION SERVICES AT MESA VERDE AND GOLDEN STATE FACILITIES. Key points: 1. Contract value represents a significant investment in detention services for ICE. 2. GEO Group, Inc. is a major provider of correctional and detention facilities. 3. The contract was awarded under full and open competition, suggesting a competitive bidding process. 4. The firm-fixed-price structure aims to control costs for the government. 5. The duration of the task order is one year, indicating a need for ongoing services. 6. The contract is for security guards and patrol services, a critical component of detention operations.

Value Assessment

Rating: fair

The contract value of $54.9 million for a one-year period for detention services appears substantial. Benchmarking against similar contracts for detention services is crucial to assess value for money. Without specific details on the number of detainees served or the scope of services beyond security, a precise value assessment is difficult. However, given the scale, it warrants comparison with other ICE contracts for similar facilities and services to ensure competitive pricing and efficient resource allocation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. This process generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The number of bidders is not specified, but the open competition suggests that multiple companies likely vied for this significant contract, potentially driving down costs and improving the quality of services provided.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining services at competitive market rates, preventing potential overspending and encouraging efficiency from 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. The services delivered include security guards and patrol services essential for maintaining order and safety within detention facilities. The geographic impact is focused on California, specifically Mesa Verde and Golden State facilities. The contract supports jobs in the security and corrections sector within California.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Reliance on a single large contractor for critical detention services could create dependency.
The firm-fixed-price nature may not fully account for unforeseen operational complexities or fluctuations in service needs.
The specific performance metrics and penalties for non-compliance are not detailed, posing a potential risk to service quality.
The long-term implications of private detention facility operations on detainee welfare and human rights are a recurring concern.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
The firm-fixed-price contract type provides cost certainty for the government.
The contract duration is clearly defined, allowing for predictable service provision.
The specific nature of the service (security guards and patrol) is well-defined within the task order.

Sector Analysis

The detention services sector is a significant part of the broader private corrections and security industry. This contract falls within the government services sector, specifically supporting law enforcement and immigration functions. The market for detention services is characterized by a few large, established providers capable of meeting the stringent requirements of federal agencies like ICE. Spending in this area is often driven by immigration policy and enforcement priorities.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a large contract for detention services, it is likely that the prime contractor, The GEO Group, Inc., will manage the majority of the work. There may be opportunities for small businesses to participate as subcontractors, particularly for specialized services or supplies, but the primary award does not directly benefit the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under U.S. Immigration and Customs Enforcement (ICE), a component of DHS. ICE is responsible for monitoring contractor performance, ensuring compliance with contract terms, and addressing any issues that arise. The contract's performance will likely be subject to regular reviews and potentially audits. Transparency is facilitated through contract award databases, but detailed operational oversight mechanisms are internal to the agency.

Related Government Programs

Immigration detention services
Correctional facility management
Security guard services
Federal law enforcement support contracts

Risk Flags

Contractor performance history
Potential for cost overruns if service needs fluctuate significantly
Adequacy of oversight for private detention facilities
Service quality assurance

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $54.9 million to THE GEO GROUP, INC.. NEW TASK ORDER FOR DETENTION SERVICES AT MESA VERDE AND GOLDEN STATE FACILITIES.

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 $54.9 million.

What is the period of performance?

Start: 2022-12-20. End: 2023-12-19.

What is the historical spending pattern for detention services at Mesa Verde and Golden State facilities?

Analyzing historical spending for detention services at the Mesa Verde and Golden State facilities requires access to detailed contract databases beyond the provided summary. Typically, ICE awards multiple task orders and contracts for detention services, often on a recurring basis to manage fluctuating detainee populations. Past spending would likely show a pattern of similar firm-fixed-price contracts awarded to large providers like The GEO Group, Inc. or its competitors. Fluctuations in spending could be attributed to changes in immigration enforcement policies, detainee numbers, and the specific services required. Without specific historical data for these exact facilities, it's difficult to provide precise figures, but the sector generally sees consistent federal investment driven by ongoing immigration operations.

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

Determining the per-unit cost of detention services requires knowing the number of detainees served and the total contract value. The provided data gives a total contract value of $54.9 million for a 364-day duration. If we assume an average daily population (ADP) for these facilities, we could calculate a daily per-detainee cost. However, industry benchmarks for per-detainee costs vary significantly based on factors like facility type (e.g., short-term holding vs. long-term detention), location, services included (medical, legal access, etc.), and security levels. Without knowing the ADP or the specific service inclusions, a direct comparison to benchmarks is not feasible. Generally, federal per-diem rates for detention can range from $100 to over $300, depending on these variables.

What is The GEO Group, Inc.'s track record with ICE and DHS regarding contract performance and compliance?

The GEO Group, Inc. is a major private operator of correctional and detention facilities and has a long-standing relationship with ICE and DHS. Their track record is extensive, involving numerous contracts across the country. While they are a significant provider, their performance has also been subject to scrutiny and criticism regarding facility conditions, detainee welfare, and cost-effectiveness. Reports from government watchdogs and advocacy groups have sometimes highlighted issues. However, they continue to win substantial federal contracts, indicating that, from the agencies' perspective, they generally meet contractual requirements. A comprehensive assessment would involve reviewing past performance evaluations, any penalties incurred, and specific findings from oversight bodies.

What are the key performance indicators (KPIs) for this detention services contract, and how are they monitored?

The provided data does not specify the key performance indicators (KPIs) for this particular task order. However, for detention services contracts, common KPIs typically revolve around safety and security (e.g., incident rates, escapes), detainee care (e.g., access to medical services, timely processing), facility maintenance, and staff performance. Monitoring is usually conducted by contracting officers' representatives (CORs) from ICE, who conduct site visits, review incident reports, and assess compliance with performance standards outlined in the Performance Work Statement (PWS). Contractual remedies, including financial penalties or termination, can be invoked if KPIs are not met.

How does the firm-fixed-price (FFP) contract type impact risk allocation between DHS and The GEO Group, Inc.?

A firm-fixed-price (FFP) contract, like this one, shifts most of the risk to the contractor, The GEO Group, Inc. The price is set and generally not subject to adjustment based on the contractor's cost experience. This means that if the contractor's costs for providing security guards and patrol services exceed their estimates, they absorb the loss. Conversely, if their costs are lower than anticipated, they retain the profit. For DHS, the primary benefit is cost certainty; they know the maximum amount they will pay. The risk for DHS is that the contractor might cut corners on service quality to maintain profitability if costs rise unexpectedly, although performance standards and monitoring aim to mitigate this.

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: $54,862,887

Exercised Options: $54,862,887

Current Obligation: $54,862,887

Actual Outlays: $54,862,887

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