DHS awards $32.8M contract for detention services to The GEO Group, Inc. in California

Contract Overview

Contract Amount: $32,758,676 ($32.8M)

Contractor: THE GEO Group, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2023-12-20

End Date: 2024-12-19

Contract Duration: 365 days

Daily Burn Rate: $89.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NEW TASK ORDER FOR DETENTION SERVICES DESERT VIEW (DV) ANNEX IN THE LOS ANGELES AREA OF RESPONSIBILITY

Place of Performance

Location: LOS ANGELES, LOS ANGELES County, CALIFORNIA, 90012

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $32.8 million to THE GEO GROUP, INC. for work described as: NEW TASK ORDER FOR DETENTION SERVICES DESERT VIEW (DV) ANNEX IN THE LOS ANGELES AREA OF RESPONSIBILITY Key points: 1. Contract awarded to incumbent provider, The GEO Group, Inc., suggesting potential for stable service delivery. 2. Full and open competition was utilized, indicating a broad search for qualified bidders. 3. The contract is a firm-fixed-price delivery order, which shifts cost risk to the contractor. 4. Service duration is one year, allowing for periodic reassessment of needs and performance. 5. The contract value represents a significant investment in immigration detention infrastructure. 6. Geographic focus on the Los Angeles area of responsibility highlights regional detention needs.

Value Assessment

Rating: fair

The contract value of $32.8 million for one year of detention services appears to be within a reasonable range for large-scale immigration detention facilities. Benchmarking against similar contracts for detention services in the Los Angeles area would provide a clearer picture of value for money. The firm-fixed-price structure helps control costs for the government, but the overall cost-effectiveness depends on the efficiency and quality of services provided by The GEO Group.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors were likely solicited and had the opportunity to bid. The specific number of bidders is not provided, but the use of this procurement method generally fosters price discovery and encourages competitive pricing. The agency's decision to use full and open competition indicates a belief that sufficient market capacity exists to meet the requirement.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best possible price and quality through a wide range of potential providers, maximizing the chances of a cost-effective outcome.

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 the Desert View (DV) Annex detention facility. The geographic impact is concentrated in the Los Angeles area of responsibility, serving federal detention needs in Southern California. Workforce implications include employment opportunities for security guards, administrative staff, and support personnel at the detention facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for over-reliance on a single large contractor for critical detention services.
Concerns regarding the cost-effectiveness and quality of private detention facilities.
The one-year duration may limit long-term strategic planning for detention capacity.
Geographic concentration could be a vulnerability if local conditions change significantly.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process.
Firm-fixed-price contract shifts cost risk to the contractor.
The GEO Group, Inc. is an incumbent provider, potentially indicating familiarity and established operational procedures.
Contract duration allows for periodic review and potential adjustments to service requirements.

Sector Analysis

The detention services sector is a critical component of the U.S. immigration system, involving both government-operated and privately-run facilities. This contract falls within the broader security and government services industry. The market for detention services is characterized by a few large, established providers, including The GEO Group, Inc. and CoreCivic. Spending in this sector is often driven by immigration policy and enforcement priorities.

Small Business Impact

The provided data indicates that small business participation (sb) is false and there is no indication of a small business set-aside (ss). This suggests that the contract was not specifically targeted towards small businesses. Subcontracting opportunities for small businesses may exist if The GEO Group, Inc. chooses to engage them for specific services, but this is not guaranteed by the contract terms. The overall impact on the small business ecosystem for this specific contract appears minimal.

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 to ensure compliance with contract terms, service level agreements, and facility standards. Accountability measures would include performance reviews, site inspections, and potential penalties for non-compliance. Transparency is facilitated through contract awards being publicly reported, though detailed operational performance data may be less accessible.

Related Government Programs

Immigration Detention Services
Correctional Facility Management
Security Guard Services
Federal Law Enforcement Support
Department of Homeland Security Contracts

Risk Flags

Contractor Performance Risk
Cost Overrun Potential
Reputational Risk
Operational Dependency Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $32.8 million to THE GEO GROUP, INC.. NEW TASK ORDER FOR DETENTION SERVICES DESERT VIEW (DV) ANNEX IN THE LOS ANGELES AREA OF RESPONSIBILITY

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 $32.8 million.

What is the period of performance?

Start: 2023-12-20. End: 2024-12-19.

What is The GEO Group, Inc.'s track record with similar federal detention contracts?

The GEO Group, Inc. has a long and extensive history of operating detention facilities for various federal agencies, including ICE and the Federal Bureau of Prisons. They manage a significant number of facilities across the United States. Their track record is often a subject of public scrutiny, with both praise for providing necessary capacity and criticism regarding conditions, costs, and human rights concerns. Numerous government audits, inspector general reports, and news investigations have examined their performance. While they are a major player with substantial experience, their history includes various controversies and legal challenges related to their operations, making their track record complex and multifaceted.

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

Without specific per-bed cost data or a breakdown of services included in the $32.8 million total, a direct comparison to other ICE detention facilities is challenging. The provided data does not include the facility's capacity or the number of beds. However, the average per-bed cost for ICE detention can vary significantly based on location, facility type (e.g., public vs. private, length of stay), and services provided (e.g., medical care, transportation). Industry reports and government analyses often place average per-diem costs for ICE detention in the range of $100-$200 per person, but this can fluctuate. A detailed analysis would require comparing the total contract value against the facility's operational capacity and the specific services mandated.

What are the primary risks associated with this contract for DHS?

The primary risks for DHS associated with this contract include potential contractor performance failures, such as inadequate staffing, poor facility conditions, or security breaches, which could lead to negative publicity, legal challenges, and endanger detainees or staff. There's also a risk of cost overruns if the firm-fixed-price model doesn't adequately account for unforeseen operational challenges or if contract modifications become necessary. Reputational risk is significant, as private detention facilities are often under public scrutiny. Furthermore, reliance on a single provider for a critical service in a specific region could pose an operational risk if the contractor faces financial instability or significant operational disruptions.

How effective is the firm-fixed-price contract type in managing costs for detention services?

The firm-fixed-price (FFP) contract type is generally effective in managing costs for the government because it shifts the majority of cost risk to the contractor. The contractor is obligated to perform the work for the agreed-upon price, regardless of their actual costs. This incentivizes the contractor to be efficient and control their expenses. For detention services, an FFP contract provides budget certainty for DHS. However, if the scope of work is not clearly defined or if unforeseen circumstances arise, the contractor may seek modifications or claim additional costs, potentially negating some of the cost control benefits. The success of FFP also depends on the contractor's ability to accurately estimate costs upfront.

What is the historical spending trend for detention services in the Los Angeles area of responsibility?

Historical spending data for detention services specifically within the Los Angeles area of responsibility for ICE is not directly provided in the given data. However, overall federal spending on immigration detention has fluctuated significantly over the years, often correlating with changes in immigration policy, enforcement priorities, and border apprehension numbers. Agencies like ICE aim to maintain sufficient detention capacity to manage populations. Spending in specific regions like Los Angeles is influenced by local operational needs, the availability of facilities, and the competitive landscape of service providers in that area. Analyzing past contract awards and task orders issued by ICE for detention services in California would be necessary to establish a trend.

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

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: $32,758,676

Exercised Options: $32,758,676

Current Obligation: $32,758,676

Actual Outlays: $32,758,676

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70CDCR20D00000009

IDV Type: IDC

Timeline