DHS awards $55M for detention services to The GEO Group, Inc. in Texas

Contract Overview

Contract Amount: $55,018,504 ($55.0M)

Contractor: THE GEO Group, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2023-08-18

End Date: 2024-06-30

Contract Duration: 317 days

Daily Burn Rate: $173.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MONTGOMERY PROCESSING CENTER DETENTION SERVICES

Place of Performance

Location: CONROE, MONTGOMERY County, TEXAS, 77301

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $55.0 million to THE GEO GROUP, INC. for work described as: MONTGOMERY PROCESSING CENTER DETENTION SERVICES Key points: 1. Contract value represents a significant investment in detention infrastructure. 2. Full and open competition suggests a potentially competitive bidding process. 3. Fixed-price contract type may offer cost certainty but limits flexibility. 4. Short contract duration (less than one year) indicates a need for immediate services. 5. The award falls within facilities support services, a critical operational area for ICE. 6. Geographic concentration in Texas highlights regional detention needs.

Value Assessment

Rating: fair

The contract value of $55 million for approximately 317 days of service requires careful benchmarking against similar detention facility contracts. Without specific per-unit cost data (e.g., cost per detainee per day), a precise value-for-money assessment is challenging. However, the firm-fixed-price structure suggests an attempt to control costs. Comparisons with other ICE contracts for similar services in different regions would be necessary to determine if this pricing is competitive.

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. The number of bidders is not specified, but this procurement method generally promotes a competitive environment, which can lead to better pricing and service offerings for the government. The agency's decision to use full and open competition suggests confidence in the market's ability to provide adequate solutions.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging providers to offer the best value.

Public Impact

Benefits individuals requiring detention services under U.S. immigration law. Provides essential facilities support services for U.S. Immigration and Customs Enforcement (ICE). Services are geographically concentrated in Texas, addressing regional detention capacity needs. Impacts the private detention services industry workforce, including operational and support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Reliance on private contractors for detention services raises concerns about oversight and potential for human rights issues.
The firm-fixed-price contract may not adequately account for unforeseen operational changes or needs.
The short duration could indicate a stop-gap measure, potentially leading to future contract instability or higher costs if extended.

Positive Signals

Full and open competition suggests a robust market engagement process.
The fixed-price contract provides a degree of cost predictability for the government.
Awarding to an established provider like The GEO Group, Inc. may ensure operational continuity.

Sector Analysis

The private detention services sector is a significant component of the broader correctional and facilities management industry. This contract falls under Facilities Support Services (NAICS 561210). The market is characterized by a few large, established players, including The GEO Group, Inc. and CoreCivic, Inc., who hold numerous government contracts. Spending in this sector is closely tied to immigration policy and enforcement priorities.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. The primary contractor, The GEO Group, Inc., is a large corporation. There is no explicit information provided regarding subcontracting opportunities for small businesses within this specific award, though large federal contractors are often encouraged or required to have subcontracting plans.

Oversight & Accountability

Oversight for detention services contracts typically falls under the purview of U.S. Immigration and Customs Enforcement (ICE) officials. This includes monitoring contract performance, ensuring compliance with performance standards, and conducting site inspections. The Department of Homeland Security's Office of Inspector General may also conduct audits or investigations into the contractor's operations and financial management. Transparency is often limited due to security and operational sensitivities.

Related Government Programs

Immigration and Customs Enforcement (ICE) Detention Contracts
Federal Bureau of Prisons (BOP) Contracts
U.S. Marshals Service Detention Contracts
Facilities Support Services Contracts

Risk Flags

Potential for cost overruns if fixed-price is not adequately managed.
Concerns regarding contractor performance and facility conditions.
Short contract duration may indicate instability or future renegotiation needs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $55.0 million to THE GEO GROUP, INC.. MONTGOMERY PROCESSING CENTER DETENTION SERVICES

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 $55.0 million.

What is the period of performance?

Start: 2023-08-18. End: 2024-06-30.

What is the historical spending trend for detention services by U.S. Immigration and Customs Enforcement (ICE) over the past five fiscal years?

ICE's spending on detention services has fluctuated significantly over the past five fiscal years, largely influenced by shifts in immigration policy, border apprehensions, and judicial decisions. While specific figures vary annually, the agency consistently allocates substantial resources to detention operations, often amounting to billions of dollars. This spending supports a network of government-owned and contracted facilities. Factors such as the number of individuals in detention, average length of stay, and the types of services required (e.g., medical, transportation, basic housing) all contribute to the overall expenditure. Analyzing historical data reveals trends in contract awards, pricing structures, and the utilization of both public and private detention centers, providing context for current contract values like the $55 million awarded to The GEO Group, Inc.

How does the per-bed cost or per-day cost of this contract compare to other ICE detention contracts awarded in Texas or similar regions?

A direct comparison of the per-bed or per-day cost for this $55 million contract is challenging without knowing the exact capacity and average daily population it is intended to serve over its 317-day duration. However, ICE detention contracts historically range widely in cost. Factors influencing these costs include the level of services provided (e.g., medical care, staffing ratios, programming), the security level of the facility, and the geographic location. Contracts in high-cost-of-living areas or those requiring specialized services tend to be more expensive. Benchmarking this contract against others in Texas would require accessing detailed cost breakdowns or publicly available data on similar ICE awards to determine if the pricing is within the expected range or represents a potential outlier, either high or low.

What is The GEO Group, Inc.'s track record with ICE and other federal agencies regarding performance, compliance, and any past disputes or penalties?

The GEO Group, Inc. is one of the largest private operators of correctional and detention facilities in the United States and has a long-standing relationship with ICE and other federal agencies, including the Federal Bureau of Prisons and the U.S. Marshals Service. Their track record is extensive, encompassing numerous contracts for detention services. While they have a history of fulfilling large-scale government contracts, they have also faced scrutiny and criticism regarding conditions within their facilities, staffing levels, and compliance with contract terms. Reports from oversight bodies, advocacy groups, and media investigations have sometimes highlighted concerns related to inmate welfare, safety, and operational efficiency. Any past disputes, penalties, or significant compliance issues would be critical factors in assessing the risk associated with this new award.

What are the primary performance metrics and service level agreements (SLAs) associated with this detention services contract?

Detention services contracts typically include stringent performance metrics and service level agreements (SLAs) designed to ensure the safety, security, and humane treatment of detainees, as well as the efficient operation of the facility. Key performance areas often include detainee accountability, security protocols, incident reporting, medical care standards, food services, sanitation, and staff training. SLAs may specify response times for medical emergencies, staffing ratios, and cleanliness standards. Compliance with these metrics is usually monitored by the contracting agency (ICE in this case) through regular inspections, audits, and performance reviews. Failure to meet these SLAs can result in contractual remedies, including financial penalties or even termination of the contract.

How does the current contract award fit into the broader context of ICE's overall detention capacity and utilization strategy?

This $55 million contract for detention services in Texas is part of ICE's broader strategy to manage its detention capacity, which fluctuates based on enforcement priorities, border flows, and legal mandates. ICE utilizes a mix of its own facilities and contracts with private companies and local jails to house individuals in its custody. The award of this contract suggests a need for additional or continued detention resources in the region. The relatively short duration (ending June 30, 2024) might indicate it's intended to meet immediate or short-term capacity demands, or it could be part of a larger strategy involving subsequent contract actions. Understanding ICE's overall bed count, utilization rates, and long-term detention planning provides essential context for evaluating the significance and necessity of this specific award.

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: $55,018,504

Exercised Options: $55,018,504

Current Obligation: $55,018,504

Actual Outlays: $55,068,675

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSCEDM17D00009

IDV Type: IDC

Timeline