DHS awards $57.2M task order for detention services, extending contract for The GEO Group, Inc

Contract Overview

Contract Amount: $57,183,779 ($57.2M)

Contractor: THE GEO Group, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2019-12-20

End Date: 2024-12-19

Contract Duration: 1,826 days

Daily Burn Rate: $31.3K/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. TASK ORDER POP: 12/20/23 - 12/19/24

Place of Performance

Location: BAKERSFIELD, KERN County, CALIFORNIA, 93301

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $57.2 million to THE GEO GROUP, INC. for work described as: NEW TASK ORDER FOR DETENTION SERVICES AT MESA VERDE AND GOLDEN STATE FACILITIES. TASK ORDER POP: 12/20/23 - 12/19/24 Key points: 1. This task order represents a significant portion of the overall contract value, indicating continued reliance on The GEO Group for detention services. 2. The contract's duration of 1826 days (5 years) suggests a long-term need for these services by U.S. Immigration and Customs Enforcement (ICE). 3. The firm-fixed-price contract type aims to control costs, but the total value warrants scrutiny for potential overruns or inefficiencies. 4. The services provided are critical for immigration enforcement operations within the specified facilities. 5. The geographic location in California may indicate specific regional demands or operational requirements for detention facilities. 6. The absence of small business set-aside flags requires examination of subcontracting opportunities for smaller enterprises.

Value Assessment

Rating: fair

The total award amount of $57.2 million for a 5-year period for detention services at two facilities appears substantial. Benchmarking against similar contracts for detention services is crucial to assess value for money. Without specific per-unit cost data or comparisons to publicly funded facilities, it's difficult to definitively assess pricing efficiency. However, the scale of the award suggests a significant operational requirement and potential for economies of scale, which should be reflected in competitive pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. This competitive process is generally expected to yield better pricing and service terms for the government. The number of bidders is not specified, which limits a deeper analysis of the competitive landscape and its impact on price discovery. However, the fact that it was competed openly is a positive indicator for government procurement.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages a wider range of providers to offer their services, potentially driving down costs and improving service quality through market forces.

Public Impact

The primary beneficiaries are U.S. Immigration and Customs Enforcement (ICE) and the Department of Homeland Security (DHS), who receive essential detention services. The services delivered include the operation and management of detention facilities, ensuring secure housing for individuals in immigration proceedings. The geographic impact is concentrated in California, specifically at the Mesa Verde and Golden State facilities. Workforce implications include employment opportunities for security guards, administrative staff, and support personnel at these facilities, likely contributing to the local economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns given the long-term nature and significant value of the contract.
Ensuring consistent service quality and adherence to detention standards over the contract's duration.
Monitoring contractor performance to ensure compliance with all contractual obligations and ethical standards.
Assessing the long-term necessity and cost-effectiveness of private detention facilities compared to alternatives.

Positive Signals

Awarded through full and open competition, indicating a potentially competitive bidding process.
Firm-fixed-price contract type helps to mitigate cost uncertainty for the government.
The contract duration suggests a stable and predictable operational requirement for ICE.
The GEO Group, Inc. is an established provider of detention services, implying experience and existing infrastructure.

Sector Analysis

The detention services sector is a critical component of the U.S. immigration system, involving both government-run and privately operated facilities. This contract falls within the broader security and government services industry. The market for detention services is influenced by immigration policy, enforcement priorities, and legal mandates. Comparable spending benchmarks would involve analyzing the per-diem costs at similar ICE-contracted facilities and government-operated facilities to assess cost-effectiveness.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). This means that large businesses were eligible to compete and likely were the primary awardees. Analysis of subcontracting plans would be necessary to determine if small businesses have opportunities to participate in fulfilling parts of this contract. The absence of a small business set-aside suggests that the primary focus was on securing the most capable and cost-effective provider through open competition.

Oversight & Accountability

Oversight for this contract would typically be managed by U.S. Immigration and Customs Enforcement (ICE) contracting officers and program managers. Accountability measures are embedded within the contract terms, including performance standards, reporting requirements, and potential penalties for non-compliance. Transparency is facilitated through contract awards databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise related to this contract.

Related Government Programs

Immigration and Customs Enforcement (ICE) Operations
Detention Facility Management
Federal Law Enforcement Support Services
Corrections and Incarceration Services

Risk Flags

Contractor Performance Risk
Service Quality Monitoring
Cost Overrun Potential
Ethical Considerations of Privatization

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $57.2 million to THE GEO GROUP, INC.. NEW TASK ORDER FOR DETENTION SERVICES AT MESA VERDE AND GOLDEN STATE FACILITIES. TASK ORDER POP: 12/20/23 - 12/19/24

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 $57.2 million.

What is the period of performance?

Start: 2019-12-20. End: 2024-12-19.

What is the historical spending pattern for detention services at Mesa Verde and Golden State facilities under The GEO Group, Inc.?

Historical spending data for detention services at these specific facilities under The GEO Group, Inc. would require a deeper dive into past contract awards and task orders issued by U.S. Immigration and Customs Enforcement (ICE). This task order, valued at $57.2 million over approximately five years, represents a significant, ongoing investment. To understand the pattern, one would need to examine previous contracts with The GEO Group for these or similar facilities, noting their duration, value, and any modifications. Comparing the current award's value and duration to historical figures would reveal trends in spending, potential increases or decreases, and the overall commitment to private detention services in this region. It's also important to consider if this new task order is a renewal, an expansion, or a continuation of previous services, as this context is crucial for interpreting spending patterns.

How does the per-unit cost of detention services under this contract compare to government-operated facilities or other private providers?

A precise per-unit cost comparison is challenging without detailed operational data from The GEO Group, Inc. and other facilities. However, the total award of $57.2 million for a period of up to 1826 days (5 years) for two facilities suggests an average annual cost of approximately $11.44 million per facility. To benchmark this, one would need to obtain the average daily population (ADP) for these facilities and calculate a per-diem rate. This rate could then be compared to publicly available per-diem rates for other ICE-contracted facilities and, where possible, to the per-diem costs of operating government-owned detention centers. Factors such as the level of security required, services provided (medical, recreational, etc.), and geographic location significantly influence these costs. A higher per-diem rate than comparable facilities might indicate less value for money, while a lower rate could suggest efficiency or potentially reduced service levels.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this detention services contract?

While the provided data does not detail the specific Key Performance Indicators (KPIs) and Service Level Agreements (SLAs) for this task order, they are critical components of any government contract for detention services. Typically, these would include metrics related to facility safety and security (e.g., incident rates, escapes), detainee welfare (e.g., access to legal counsel, medical care response times, grievance procedures), operational efficiency (e.g., staffing levels, bed utilization), and compliance with detention standards. The contract likely outlines specific targets for these KPIs and defines consequences for failing to meet the SLAs, which could range from corrective action plans to financial penalties. U.S. Immigration and Customs Enforcement (ICE) would monitor these metrics closely to ensure the contractor, The GEO Group, Inc., is meeting its obligations and providing humane and secure detention conditions.

What is the track record of The GEO Group, Inc. in managing similar detention facilities for ICE or other government agencies?

The GEO Group, Inc. has a long-standing and extensive track record in managing detention facilities for U.S. Immigration and Customs Enforcement (ICE) and other government agencies, including the Federal Bureau of Prisons and U.S. Marshals Service. They operate numerous facilities across the country. Their history includes both successful contract fulfillments and instances of scrutiny regarding conditions, staffing, and cost-effectiveness. Performance reviews, past performance evaluations in contract solicitations, and reports from oversight bodies like the Government Accountability Office (GAO) or the Department of Homeland Security's Office of Inspector General (OIG) would provide a more detailed assessment of their specific track record relevant to this task order. Understanding their past performance, including any past performance issues and corrective actions, is crucial for evaluating the risk associated with this award.

Are there any known risks or concerns associated with The GEO Group, Inc.'s performance or the nature of private detention services?

Yes, there are several categories of risks and concerns often associated with private detention services and contractors like The GEO Group, Inc. These include potential conflicts of interest (profit motive versus humane care), concerns about maintaining adequate staffing levels and training, ensuring consistent adherence to evolving detention standards, and managing incidents of violence or escapes. Oversight bodies and advocacy groups have frequently raised questions about the quality of care, medical services, and overall conditions in privately operated facilities. Specific to The GEO Group, past litigation, investigations, and public reports have sometimes highlighted issues related to these areas. For this specific contract, risks could also include the long-term cost-effectiveness compared to government-run facilities, potential for service disruptions, and the ethical considerations surrounding the privatization of detention.

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

Solicitation ID: 70CDCR20R00000002

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: $57,183,779

Exercised Options: $57,183,779

Current Obligation: $57,183,779

Actual Outlays: $57,183,790

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