DHS awards $66.2M contract for detainee housing services to The GEO Group, Inc

Contract Overview

Contract Amount: $66,190,763 ($66.2M)

Contractor: THE GEO Group, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2024-12-20

End Date: 2025-12-19

Contract Duration: 364 days

Daily Burn Rate: $181.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: HOUSING FOR DETAINEES

Place of Performance

Location: BAKERSFIELD, KERN County, CALIFORNIA, 93301

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $66.2 million to THE GEO GROUP, INC. for work described as: HOUSING FOR DETAINEES Key points: 1. Contract awarded for essential detainee housing and security services. 2. The GEO Group, Inc. is the sole awardee for this delivery order. 3. Contract duration is one year, indicating a need for ongoing services. 4. The contract type is Firm Fixed Price, providing cost certainty. 5. Services are to be performed in California. 6. This award falls under the Security Guards and Patrol Services PSC. 7. The contract value represents a significant investment in detention infrastructure.

Value Assessment

Rating: fair

The contract value of $66.2 million for one year of detainee housing services appears to be within a reasonable range for such specialized facilities. Benchmarking against similar contracts for detention services is crucial for a definitive value assessment. The Firm Fixed Price structure offers predictability, but the absence of detailed cost breakdowns makes a granular value-for-money analysis challenging without further data on per-bed rates or service inclusions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting multiple vendors had the opportunity to bid. However, the data indicates this is a 'Delivery Order' (awarded under a larger contract vehicle), and the specific competition details for this particular order are not fully elaborated. The number of bidders for this specific order is not provided, making it difficult to assess the intensity of competition and its impact on pricing.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging competitive pricing and potentially leading to lower costs for government services.

Public Impact

Provides essential housing and support services for individuals in U.S. Immigration and Customs Enforcement (ICE) custody. Ensures the secure and orderly management of detention facilities. Supports the operational needs of the Department of Homeland Security (DHS) in managing immigration processes. Impacts the workforce within the private detention services sector in California. Contributes to the broader immigration enforcement and processing infrastructure of the federal government.

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 contractor for critical detainee housing services raises concerns about service continuity and potential disruptions.
Limited transparency on specific performance metrics and quality assurance measures for detainee welfare.
The long-term sustainability and ethical considerations of private detention facilities warrant ongoing scrutiny.

Positive Signals

Firm Fixed Price contract provides budget certainty for the government.
Awarded through full and open competition, suggesting a competitive bidding process.
The contract duration of one year allows for periodic re-evaluation of needs and contractor performance.
Services are critical for the operational mission of U.S. Immigration and Customs Enforcement.

Sector Analysis

The federal government contracts for a wide range of services related to detention and corrections, often through private sector providers. This contract for detainee housing falls within the broader security and government services sector. The market for detention services is influenced by immigration policy, national security concerns, and legal mandates. Comparable spending benchmarks would involve analyzing other contracts for similar facilities, considering factors like bed capacity, location, and service level agreements.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. As a large contract awarded to The GEO Group, Inc., a major private prison operator, the primary focus is likely on large-scale service delivery. Subcontracting opportunities for small businesses may exist within the operational aspects of the facility, but these are not explicitly detailed in the award information. The impact on the small business ecosystem would depend on the extent to which the prime contractor utilizes small business vendors for support services.

Oversight & Accountability

Oversight for this contract would primarily reside with the U.S. Immigration and Customs Enforcement (ICE) within the Department of Homeland Security. Standard oversight mechanisms would include contract performance monitoring, site inspections, and review of financial reporting. Accountability measures are typically tied to adherence to the contract's terms and conditions, including service level agreements and security protocols. Transparency is often limited for detention facility operations due to security and privacy concerns, though contract awards and basic performance information are generally publicly available.

Related Government Programs

Federal Bureau of Prisons Contracts
U.S. Marshals Service Detention Contracts
Department of Defense Detention Operations
Immigration and Customs Enforcement Facility Management

Risk Flags

Contract awarded to a single, large private operator.
Potential for service disruptions if contractor faces issues.
Limited transparency on specific performance metrics.
Ongoing scrutiny of private detention facility conditions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $66.2 million to THE GEO GROUP, INC.. HOUSING FOR DETAINEES

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 $66.2 million.

What is the period of performance?

Start: 2024-12-20. End: 2025-12-19.

What is the historical spending pattern for detainee housing services by U.S. Immigration and Customs Enforcement?

U.S. Immigration and Customs Enforcement (ICE) has a significant history of contracting for detainee housing services, primarily with private sector companies. Annual spending can fluctuate based on immigration flows, policy changes, and detention capacity needs. Historically, ICE's budget allocations for detention and removal operations, which include housing costs, have been in the billions of dollars annually. For example, in fiscal year 2023, ICE's budget for detention and removal operations was approximately $3.7 billion. The specific amount spent on housing contracts can vary year to year, influenced by the number of detainees, average length of stay, and the types of facilities utilized. Analyzing past contract awards and their values provides insight into the scale and cost drivers of ICE's detention network.

How does the per-bed cost of this contract compare to industry benchmarks for similar detention facilities?

Determining the precise per-bed cost for this $66.2 million contract requires additional data not provided, such as the total number of beds available and the average daily population housed. However, industry benchmarks for private immigration detention facilities can range significantly, often from $100 to over $200 per detainee per day, depending on factors like location, security level, services provided (medical, legal access, etc.), and contract terms. If this contract covers 364 days and houses, for instance, 1,000 detainees on average, the daily cost would be approximately $181,843 / 1000 = $181.84 per detainee per day. This figure would need to be compared against specific, geographically relevant benchmarks for similar facilities to assess value for money.

What are the key performance indicators (KPIs) used to evaluate The GEO Group, Inc.'s performance under this contract?

While specific Key Performance Indicators (KPIs) are not detailed in the award abstract, government contracts for detainee housing typically include performance standards related to safety, security, sanitation, detainee care, and compliance with ICE Performance-Based National Detention Standards (PBNDS). These standards cover areas such as facility maintenance, food services, medical care, transportation, and incident reporting. ICE officials would monitor adherence to these standards through regular inspections, audits, and review of incident reports. Failure to meet KPIs can result in contractual remedies, including financial penalties or termination of the contract. The effectiveness of these KPIs in ensuring humane and secure detention is a subject of ongoing public and governmental review.

What is the track record of The GEO Group, Inc. in managing federal detention contracts, particularly with ICE?

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 federal agencies, including ICE and the Federal Bureau of Prisons. The company manages numerous detention centers across the country. Their track record is complex and has been subject to significant public scrutiny and criticism regarding conditions of confinement, safety incidents, and cost-effectiveness. Reports from government watchdogs, non-governmental organizations, and media outlets have often highlighted concerns about overcrowding, inadequate medical care, and staff training issues at facilities operated by GEO. Conversely, the company maintains that it operates facilities in compliance with contractual obligations and government standards. ICE's continued awarding of contracts to GEO suggests that, from the agency's perspective, the company meets the required performance criteria, though oversight and accountability remain critical.

Are there any specific risks associated with relying on a single contractor for detainee housing services in California?

Relying on a single contractor like The GEO Group, Inc. for detainee housing services in California presents several potential risks. Firstly, it reduces the government's leverage in price negotiations and service level adjustments, as there is no immediate alternative provider. Secondly, it creates a dependency that could lead to service disruptions if the contractor faces operational issues, labor disputes, or financial difficulties. Thirdly, a lack of competition can potentially lead to complacency in maintaining high standards of care and security. Finally, the concentration of services with one provider might limit the government's ability to adapt quickly to changing needs or to implement innovative solutions that might be offered by a more diverse market of providers.

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: $66,190,763

Exercised Options: $66,190,763

Current Obligation: $66,190,763

Actual Outlays: $39,737,012

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