DHS awards $57.3M contract for detention and transportation services to The GEO Group, Inc. in South Texas

Contract Overview

Contract Amount: $57,272,945 ($57.3M)

Contractor: THE GEO Group, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2023-08-06

End Date: 2024-08-05

Contract Duration: 365 days

Daily Burn Rate: $156.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DETENTION AND TRANSPORTATION SERVICES - SOUTH TEXAS ICE PROCESSING CENTER (STIPC) POP 06 AUG 2023 - 05 AUG 2024

Place of Performance

Location: PEARSALL, FRIO County, TEXAS, 78061

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $57.3 million to THE GEO GROUP, INC. for work described as: DETENTION AND TRANSPORTATION SERVICES - SOUTH TEXAS ICE PROCESSING CENTER (STIPC) POP 06 AUG 2023 - 05 AUG 2024 Key points: 1. Contract awarded to The GEO Group, Inc. for detention and transportation services. 2. The contract has a value of $57.3 million for a 1-year period. 3. Competition method was 'Full and Open', suggesting multiple bids were considered. 4. The sector is related to correctional institutions and immigration services.

Value Assessment

Rating: fair

The contract value of $57.3 million for a 1-year period for detention and transportation services appears to be within a reasonable range for such specialized services, though direct comparisons are difficult without more specific service details.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically allows for a broader range of potential bidders and can lead to more competitive pricing. The impact on price discovery is generally positive when multiple qualified vendors participate.

Taxpayer Impact: Taxpayers are impacted by the cost of detention and transportation services, which are essential for immigration enforcement operations.

Public Impact

Impacts individuals in immigration proceedings requiring detention and transport. Supports the operational capacity of U.S. Immigration and Customs Enforcement (ICE). Contributes to the private prison industry and its associated economic activity. Raises questions about the efficiency and cost-effectiveness of privatized detention services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for high per-unit costs in detention and transportation.
Reliance on private contractors for essential government functions.
Geographic concentration of services in South Texas.

Positive Signals

Awarded through full and open competition.
Clear contract duration and defined services.
Fixed-price contract type can provide cost certainty.

Sector Analysis

This contract falls within the correctional institutions sector, specifically for detention and transportation services related to immigration. Spending in this sector can fluctuate based on immigration policy and enforcement priorities.

Small Business Impact

The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine small business participation.

Oversight & Accountability

Oversight of detention and transportation services is crucial to ensure humane treatment, cost efficiency, and adherence to legal standards. The Department of Homeland Security and ICE are responsible for monitoring contractor performance.

Related Government Programs

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

Risk Flags

High contract value for a single year.
Potential for cost overruns or inefficiencies in service delivery.
Reliance on private sector for sensitive government functions.
Limited transparency on per-unit costs.
Geographic concentration of services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $57.3 million to THE GEO GROUP, INC.. DETENTION AND TRANSPORTATION SERVICES - SOUTH TEXAS ICE PROCESSING CENTER (STIPC) POP 06 AUG 2023 - 05 AUG 2024

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 $57.3 million.

What is the period of performance?

Start: 2023-08-06. End: 2024-08-05.

What is the benchmark cost per detainee for transportation and detention services in similar facilities?

Determining a precise benchmark for per-detainee costs is complex due to variations in service levels, geographic location, and contract specifics. However, industry reports and government audits often highlight a wide range. Without detailed service breakdowns, it's difficult to definitively assess if this $57.3 million contract for 365 days is cost-effective on a per-unit basis compared to national averages or similar ICE contracts.

What are the primary risks associated with contracting detention and transportation services to private entities like The GEO Group?

Key risks include potential for lower standards of care compared to government-run facilities, profit motives potentially overriding welfare concerns, and challenges in ensuring consistent oversight and accountability. There's also a risk of service disruptions if the contractor faces financial or operational issues. The government must maintain robust monitoring to mitigate these risks and ensure compliance with all regulations and ethical standards.

How effective is the 'full and open competition' process in ensuring the best value for taxpayer money in this specific service area?

Full and open competition is designed to maximize the pool of potential bidders, fostering a competitive environment that should theoretically lead to better pricing and service quality. However, the effectiveness can be limited by the specialized nature of detention services, which may restrict the number of truly qualified bidders. The government must ensure the solicitation is well-defined and the evaluation criteria are robust to truly capture the best value.

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: $57,272,945

Exercised Options: $57,272,945

Current Obligation: $57,272,945

Actual Outlays: $57,272,945

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70CDCR20D00000012

IDV Type: IDC

Timeline