DHS awards $72.7M detention and transportation services contract to The GEO Group, Inc

Contract Overview

Contract Amount: $72,727,938 ($72.7M)

Contractor: THE GEO Group, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2023-10-28

End Date: 2024-09-27

Contract Duration: 335 days

Daily Burn Rate: $217.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NEW TASK ORDER FOR DETENTION AND TRANSPORTATION SERVICES FOR NORTHWEST DETENTION CENTER.

Place of Performance

Location: TACOMA, PIERCE County, WASHINGTON, 98421

State: Washington Government Spending

Plain-Language Summary

Department of Homeland Security obligated $72.7 million to THE GEO GROUP, INC. for work described as: NEW TASK ORDER FOR DETENTION AND TRANSPORTATION SERVICES FOR NORTHWEST DETENTION CENTER. Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 3. The duration of 335 days indicates a short-term need for these services. 4. The firm-fixed-price contract type shifts cost risk to the contractor. 5. The North American Industry Classification System (NAICS) code 561210 points to facilities support services. 6. The contract is for services at the Northwest Detention Center in Washington state. 7. No small business set-aside was utilized for this specific award.

Value Assessment

Rating: fair

Benchmarking the value of this specific delivery order is challenging without knowing the total value of the IDIQ contract it falls under. However, the firm-fixed-price structure is generally favorable for the government as it caps potential cost overruns. The price per day can be estimated, but without comparable bids or historical data for this specific facility and service level, a precise value-for-money assessment is difficult. The award amount of $72.7 million for approximately 11 months of service suggests a significant operational cost.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but the designation suggests a robust competitive environment was intended. Full and open competition is generally expected to drive down prices and encourage innovation by allowing a wide range of potential contractors to vie for the work.

Taxpayer Impact: Taxpayers benefit from full and open competition as it is designed to ensure the government receives the best possible value by fostering a competitive marketplace, which typically leads to lower prices and higher quality services.

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 transportation services. The services provided are critical for managing individuals in the immigration system. The geographic impact is focused on Washington state, specifically related to the Northwest Detention Center. The contract supports jobs within the private detention services industry, though specific workforce numbers are not detailed.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost creep if the scope of services expands beyond the initial fixed-price agreement.
Reliance on a single contractor for critical detention and transportation services raises concerns about service continuity and potential disruptions.
The firm-fixed-price nature, while beneficial, could incentivize the contractor to minimize service quality if not adequately monitored.
Limited transparency on the specific performance metrics and penalties associated with this delivery order.
The duration of the contract is relatively short, which might lead to frequent re-competition and associated administrative costs.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that should yield fair pricing.
The firm-fixed-price contract type transfers significant cost risk to the contractor.
The contract is a delivery order under an existing IDIQ, implying a pre-established framework and potentially streamlined oversight.
The contractor, The GEO Group, Inc., has extensive experience in providing detention services.
The services are essential for the government's immigration enforcement operations.

Sector Analysis

The facilities support services sector, particularly those related to government contracting for detention and correctional facilities, is a specialized market. Companies like The GEO Group, Inc. are major players in this industry, which is influenced by immigration policy and enforcement priorities. Spending in this sector can fluctuate significantly based on government demand. Comparable spending benchmarks would typically involve analyzing other ICE or DHS contracts for similar detention and transportation services, as well as contracts for correctional facility management.

Small Business Impact

This specific award was not a small business set-aside, as indicated by 'sb': false. The GEO Group, Inc. is a large corporation. While this particular contract did not directly benefit small businesses through a set-aside, large prime contractors are often required to meet small business subcontracting goals on their overall contracts. The impact on the small business ecosystem would depend on whether The GEO Group, Inc. utilizes small businesses as subcontractors for any portion of these services, which is not detailed in the provided data.

Oversight & Accountability

Oversight for this contract would primarily fall under U.S. Immigration and Customs Enforcement (ICE), a component of DHS. As a delivery order under an IDIQ, there is likely an existing framework for performance monitoring and accountability. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would typically cover investigations into fraud, waste, and abuse related to the contract.

Related Government Programs

Immigration and Customs Enforcement Detention Contracts
Department of Homeland Security Facilities Support Services
Correctional and Detention Facility Management Contracts
Immigration Services Contracts
Transportation Services for Federal Agencies

Risk Flags

Contract awarded under Full and Open Competition
Firm Fixed Price Contract Type
Delivery Order under IDIQ
Facilities Support Services NAICS Code
Contract Duration less than 1 year

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $72.7 million to THE GEO GROUP, INC.. NEW TASK ORDER FOR DETENTION AND TRANSPORTATION SERVICES FOR NORTHWEST DETENTION CENTER.

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 $72.7 million.

What is the period of performance?

Start: 2023-10-28. End: 2024-09-27.

What is the historical spending pattern for detention and transportation services at the Northwest Detention Center?

Analyzing historical spending for the Northwest Detention Center requires access to past contract awards and modifications specifically for this facility. Without that granular data, it's difficult to provide a precise historical spending pattern. However, given that The GEO Group, Inc. is a major provider of such services, it is likely they have held previous contracts for this location or similar facilities. Trends in federal spending on detention services are often influenced by shifts in immigration policy, border security measures, and overall caseloads managed by ICE. Fluctuations can be expected year-over-year based on these external factors, as well as the specific terms and durations of awarded contracts.

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

To compare the per-day cost, we first estimate it: $72,727,938.31 / 335 days = approximately $217,098 per day. A meaningful comparison requires data on other ICE contracts for detention and transportation services, specifically for facilities of similar size and service complexity. Without access to a benchmark database of comparable ICE contracts, it's challenging to definitively state if this rate is high or low. Factors such as geographic location, security levels, staffing requirements, and the specific services included (e.g., medical care, food services, transportation frequency) can significantly impact per-day costs. Generally, larger facilities or those with more intensive service requirements may have higher per-day costs.

What is The GEO Group, Inc.'s track record with DHS and ICE for providing detention services?

The GEO Group, Inc. has a long-standing and extensive track record of providing detention and related services to DHS and its predecessor agencies, including ICE. They operate numerous detention facilities across the United States. While they are a major contractor, their performance has also been subject to scrutiny and criticism from various oversight bodies and advocacy groups regarding conditions, costs, and operational practices. Reviewing past performance evaluations, contract compliance records, and any documented disputes or investigations related to their previous ICE contracts would provide a more comprehensive understanding of their specific track record for this type of service.

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

The provided data does not specify the key performance indicators (KPIs) or service level agreements (SLAs) for this particular delivery order. Typically, contracts for detention and transportation services include detailed requirements related to facility safety, security, inmate care, transportation logistics, staffing levels, and response times. These KPIs and SLAs are crucial for ensuring the contractor meets the government's standards and objectives. Performance is usually monitored through regular reporting, site inspections, and potentially through a government-appointed contract officer's representative (COR). Failure to meet these agreed-upon metrics can result in penalties or corrective actions.

What is the total value of the IDIQ contract under which this delivery order was issued?

The provided data pertains to a specific delivery order ($72.7 million) and does not include information about the overall indefinite-delivery/indefinite-quantity (IDIQ) contract it falls under. IDIQ contracts are designed to allow agencies to procure a range of supplies or services over a period of time, with specific task orders or delivery orders issued as needs arise. The total value of the parent IDIQ contract could be significantly higher than this single delivery order, potentially in the hundreds of millions or even billions of dollars, depending on the scope and duration of the overarching agreement. Accessing the details of the base IDIQ contract would be necessary to determine its total authorized value.

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: 621 NW 53RD ST STE 700, BOCA RATON, FL, 33487

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $72,727,938

Exercised Options: $72,727,938

Current Obligation: $72,727,938

Actual Outlays: $72,727,938

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSCEDM15D00015

IDV Type: IDC

Timeline