DHS awards $56M contract for detention facility services to The GEO Group, Inc

Contract Overview

Contract Amount: $56,009,253 ($56.0M)

Contractor: THE GEO Group, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2023-10-16

End Date: 2024-10-15

Contract Duration: 365 days

Daily Burn Rate: $153.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DETENTION, TRANSPORTATION, AND MEDICAL SERVICES FOR DENVER (AURORA) CONTRACT DETENTION FACILITY

Place of Performance

Location: BOCA RATON, PALM BEACH County, FLORIDA, 33431

State: Florida Government Spending

Plain-Language Summary

Department of Homeland Security obligated $56.0 million to THE GEO GROUP, INC. for work described as: DETENTION, TRANSPORTATION, AND MEDICAL SERVICES FOR DENVER (AURORA) CONTRACT DETENTION FACILITY Key points: 1. Contract value represents a significant investment in immigration detention infrastructure. 2. The GEO Group, Inc. is a major player in private detention services. 3. Fixed-price contract type aims to control costs, but scope creep could increase final expenditure. 4. Performance period of one year with potential for extensions suggests ongoing need. 5. The contract falls under Facilities Support Services, a critical component of ICE operations. 6. Geographic location in Aurora, Colorado, serves a specific regional need for detention capacity.

Value Assessment

Rating: fair

The contract value of $56 million for a one-year period for detention, transportation, and medical services appears to be within the expected range for large-scale detention facilities. Benchmarking against similar contracts for ICE detention centers is crucial for a definitive value assessment. However, the fixed-price nature suggests an attempt to cap costs, though the actual cost could fluctuate based on utilization and unforeseen service demands. Without specific per-unit cost data or detailed service level agreements, a precise value-for-money assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This competitive process is generally expected to drive better pricing and service quality. The number of bidders is not specified, but the 'full and open' designation suggests a robust bidding environment. The presence of competition is a positive indicator for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process which should lead to more cost-effective solutions for essential services like detention and transportation.

Public Impact

The primary beneficiaries are U.S. Immigration and Customs Enforcement (ICE) and the Department of Homeland Security (DHS), who receive essential detention and support services. The contract provides detention, transportation, and medical services for individuals in ICE custody. The services are geographically focused on the Denver (Aurora) area, addressing regional detention needs. The contract supports jobs within the private corrections and facility management sector, including security, medical, and administrative staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if service demands exceed initial projections under a fixed-price contract.
Reliance on a single large contractor for critical detention services raises concerns about service continuity and potential monopolistic pricing in future procurements.
The effectiveness and ethical considerations of private detention facilities are a subject of ongoing public debate and scrutiny.
Ensuring adequate medical care and humane conditions within detention facilities requires robust oversight.

Positive Signals

Awarded through full and open competition, suggesting a competitive marketplace for these services.
Fixed-price contract type provides cost certainty for the government, assuming scope is well-defined.
The contract specifies a one-year term, allowing for periodic re-evaluation of needs and contractor performance.
The contract is for essential services supporting national security and immigration enforcement objectives.

Sector Analysis

The private detention services sector is a significant part of the correctional and immigration enforcement landscape. This contract falls within the Facilities Support Services NAICS code (561210), which encompasses a broad range of facility management and support operations. The market for detention services is largely driven by government demand, particularly from federal agencies like ICE. Spending in this sector can fluctuate based on immigration policies and enforcement priorities. Comparable spending benchmarks would involve analyzing other ICE contracts for similar detention facilities across different regions.

Small Business Impact

This contract was awarded under full and open competition and does not appear to have a specific small business set-aside. The GEO Group, Inc. is a large corporation, and it is unlikely that significant subcontracting opportunities for small businesses will be a primary focus of this particular award, unless specified in the contract's performance requirements. The impact on the small business ecosystem is likely minimal for this direct award.

Oversight & Accountability

Oversight for this contract would primarily 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 verifying the quality of services delivered. Accountability measures are typically embedded in the contract through performance standards, reporting requirements, and potential penalties for non-compliance. Transparency is facilitated through contract awards databases, but detailed operational oversight information is often internal.

Related Government Programs

ICE Detention Contracts
DHS Facilities Support Services
Federal Corrections Services
Immigration Enforcement Support

Risk Flags

Potential for cost overruns if service demands fluctuate significantly.
Concerns regarding the quality of medical care and living conditions in private detention facilities.
Reliance on a single large contractor may limit future competition and flexibility.
Past performance issues and public scrutiny associated with private detention operators.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $56.0 million to THE GEO GROUP, INC.. DETENTION, TRANSPORTATION, AND MEDICAL SERVICES FOR DENVER (AURORA) CONTRACT DETENTION FACILITY

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 $56.0 million.

What is the period of performance?

Start: 2023-10-16. End: 2024-10-15.

What is the historical spending pattern of ICE with The GEO Group, Inc. for similar detention services?

Historical spending data reveals that The GEO Group, Inc. has been a significant contractor for ICE for many years, managing numerous detention facilities across the United States. ICE's reliance on private contractors like GEO for detention services is a long-standing practice, driven by the need for flexible and scalable capacity. Annual spending with The GEO Group has often reached hundreds of millions of dollars, reflecting the scale of their operations and the demand for detention beds. Analyzing specific contract histories for facilities in the Denver/Aurora region would provide a more granular view of past expenditures and performance in that specific geographic area. This historical context is crucial for understanding the current contract's place within a broader, ongoing relationship between ICE and The GEO Group.

How does the per-bed cost of this contract compare to other ICE detention facilities?

Determining the precise per-bed cost for this $56 million contract requires knowing the facility's total bed capacity and the average daily population housed. Without this specific data, a direct comparison to other ICE detention facilities is challenging. However, industry reports and government watchdog analyses often highlight significant variations in per-bed costs across different facilities, influenced by factors such as location, services provided (medical, transportation), contract type, and the specific contractor. Generally, costs can range from $100 to over $200 per bed per day. The GEO Group operates facilities with varying cost structures, and this contract's efficiency would need to be benchmarked against facilities of similar size and service scope managed by ICE directly or by other private providers.

What are the key performance indicators (KPIs) and service level agreements (SLAs) for this contract?

While the specific Key Performance Indicators (KPIs) and Service Level Agreements (SLAs) are not detailed in the provided data, contracts of this nature typically include stringent requirements related to facility safety, security, sanitation, staffing levels, and the provision of timely and adequate medical care. ICE mandates specific standards for detention operations, which are incorporated into these contracts. Performance is usually monitored through regular inspections, audits, and reporting. Failure to meet KPIs or SLAs can result in financial penalties, corrective action plans, or even contract termination. The effectiveness of oversight and the rigor of these KPIs are critical for ensuring humane conditions and operational integrity.

What is the track record of The GEO Group, Inc. regarding contract compliance and past performance issues with ICE?

The GEO Group, Inc. has a long and complex track record with ICE and other government agencies. While they are one of the largest providers of detention services and have successfully managed numerous contracts, they have also faced significant scrutiny and criticism regarding facility conditions, safety incidents, and allegations of contract non-compliance. Reports from government oversight bodies and advocacy groups have documented issues ranging from inadequate staffing and medical care to instances of violence and escapes at facilities operated by GEO. Conversely, the company often highlights its adherence to contract terms and its role in providing necessary capacity for federal immigration enforcement. A thorough review would involve examining specific past performance evaluations and any corrective actions taken.

What are the potential risks associated with a fixed-price contract for detention services?

A fixed-price contract, like the one awarded to The GEO Group, Inc., aims to provide cost certainty for the government by establishing a set price for the services. However, risks can emerge if the scope of services is not precisely defined or if unforeseen circumstances lead to increased operational demands. For detention services, this could include fluctuations in the number of detainees, unexpected medical emergencies requiring extensive care, or security incidents necessitating additional resources. If the actual costs incurred by the contractor exceed the fixed price due to such factors, the contractor may seek change orders or claim additional compensation, potentially negating the cost certainty benefit. Conversely, if the contractor can deliver services below the fixed price, they realize a higher profit margin. Effective contract management and clear scope definition are crucial to mitigate these risks.

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

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: $56,009,253

Exercised Options: $56,009,253

Current Obligation: $56,009,253

Actual Outlays: $56,009,253

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70CDCR22D00000001

IDV Type: IDC

Timeline