DHS Awards $69.9M Contract for Alien Detention and Transportation Services in Michigan
Contract Overview
Contract Amount: $69,900,421 ($69.9M)
Contractor: THE GEO Group, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2025-07-21
End Date: 2026-04-30
Contract Duration: 283 days
Daily Burn Rate: $247.0K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: THE PURPOSE OF THIS TASK ORDER IS FOR COMPREHENSIVE DETENTION AND TRANSPORATION SERVICES FOR HOUSING CRIMINAL ALIENS AT NORTH LAKE DETENTION CENTER IN BALDWIN MI.
Place of Performance
Location: BALDWIN, LAKE County, MICHIGAN, 49304
State: Michigan Government Spending
Plain-Language Summary
Department of Homeland Security obligated $69.9 million to THE GEO GROUP, INC. for work described as: THE PURPOSE OF THIS TASK ORDER IS FOR COMPREHENSIVE DETENTION AND TRANSPORATION SERVICES FOR HOUSING CRIMINAL ALIENS AT NORTH LAKE DETENTION CENTER IN BALDWIN MI. Key points: 1. The contract focuses on essential services for criminal alien detention and transportation. 2. The GEO Group, Inc. is the sole provider for this task order. 3. The contract value is substantial at $69.9 million. 4. Services are required in Michigan, specifically at the North Lake Detention Center.
Value Assessment
Rating: questionable
The contract is a firm-fixed-price delivery order. Without a competitive bidding process, it's difficult to assess if the $69.9 million price represents fair market value compared to similar detention and transportation services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no opportunity for other qualified vendors to offer competitive bids.
Taxpayer Impact: The lack of competition for a significant contract value raises concerns about potential overspending of taxpayer funds.
Public Impact
Impacts individuals in the criminal justice system requiring detention and transportation. Affects local economy in Baldwin, Michigan through service provision. Ensures operational capacity for ICE's detention and removal processes.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- High contract value
Positive Signals
- Ensures service continuity
- Specific location requirement met
Sector Analysis
This contract falls under security services, specifically related to detention and transportation of individuals. Benchmarks for this sector can vary widely based on location, security levels, and service scope.
Small Business Impact
The data indicates the awardee is THE GEO GROUP, INC., a large corporation. There is no information suggesting that small businesses were involved as subcontractors or partners in this specific task order.
Oversight & Accountability
The contract is a delivery order under a larger framework, suggesting some level of prior vetting. However, the sole-source nature warrants scrutiny to ensure the price and terms are justified and that future opportunities are competed.
Related Government Programs
- Security Guards and Patrol Services
- Department of Homeland Security Contracting
- U.S. Immigration and Customs Enforcement Programs
Risk Flags
- Sole-source award raises concerns about fair pricing.
- Lack of competition may lead to suboptimal value for taxpayer money.
- Potential for cost overruns if not closely monitored.
- Contract duration of nearly one year requires ongoing performance evaluation.
Tags
security-guards-and-patrol-services, department-of-homeland-security, mi, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $69.9 million to THE GEO GROUP, INC.. THE PURPOSE OF THIS TASK ORDER IS FOR COMPREHENSIVE DETENTION AND TRANSPORATION SERVICES FOR HOUSING CRIMINAL ALIENS AT NORTH LAKE DETENTION CENTER IN BALDWIN MI.
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 $69.9 million.
What is the period of performance?
Start: 2025-07-21. End: 2026-04-30.
What is the justification for awarding this contract on a sole-source basis?
The provided data does not include the justification for the sole-source award. Typically, sole-source contracts are awarded when only one vendor can provide the required service, or in urgent situations. Further investigation would be needed to understand the specific rationale behind this decision and if it aligns with federal procurement regulations.
How does the per-unit cost of detention and transportation compare to other ICE contracts or industry averages?
Without a competitive bidding process and specific service metrics, it is impossible to establish a per-unit cost benchmark. A fair comparison would require access to pricing data from similar contracts awarded through full and open competition, as well as detailed breakdowns of the services provided under this $69.9 million award.
What are the performance metrics and oversight mechanisms in place for this contract?
The data provided does not detail the performance metrics or specific oversight mechanisms. While the contract is for detention and transportation services, the effectiveness and accountability would depend on the Service Level Agreements (SLAs), reporting requirements, and the agency's active monitoring of The GEO Group's performance.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
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: $69,900,421
Exercised Options: $69,900,421
Current Obligation: $69,900,421
Actual Outlays: $9,210,893
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 70CDCR25D00000009
IDV Type: IDC
Timeline
Start Date: 2025-07-21
Current End Date: 2026-04-30
Potential End Date: 2026-07-20 00:00:00
Last Modified: 2026-02-03
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