DHS awards $50M+ for detention and transportation services to The GEO Group, Inc

Contract Overview

Contract Amount: $49,978,428 ($50.0M)

Contractor: THE GEO Group, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2024-08-18

End Date: 2026-07-31

Contract Duration: 712 days

Daily Burn Rate: $70.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THE PURPOSE OF THIS CONTRACT IS TO PROVIDE DETENTION AND TRANSPORTATION SERVICES AT MONTGOMERY PROCESSING CENTER (MPC) IN HOUSTON, TX. THE PURPOSE OF THIS NEW TASK ORDER IS TO ADD FUNDING FOR THE CONTINUANCE OF SERVICES.

Place of Performance

Location: BOCA RATON, PALM BEACH County, FLORIDA, 33431

State: Florida Government Spending

Plain-Language Summary

Department of Homeland Security obligated $50.0 million to THE GEO GROUP, INC. for work described as: THE PURPOSE OF THIS CONTRACT IS TO PROVIDE DETENTION AND TRANSPORTATION SERVICES AT MONTGOMERY PROCESSING CENTER (MPC) IN HOUSTON, TX. THE PURPOSE OF THIS NEW TASK ORDER IS TO ADD FUNDING FOR THE CONTINUANCE OF SERVICES. Key points: 1. Contract awarded to The GEO Group, Inc. for detention and transportation services. 2. Task order adds funding for the continuance of services at Montgomery Processing Center. 3. Contract duration is over 2 years, ending July 2026. 4. Services are essential for immigration processing and detention management. 5. The contract is a firm-fixed-price type, indicating predictable costs for the government. 6. This award represents a significant portion of spending within facilities support services.

Value Assessment

Rating: fair

The contract value of $49,978,428 for approximately two years of service appears to be within a reasonable range for detention and transportation services, given the scale and complexity of managing a processing center. Benchmarking against similar contracts for facilities support services and detention operations would provide a clearer picture of value for money. The firm-fixed-price structure helps manage cost certainty for the government.

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 intended to drive down prices and ensure the government receives the best value. The specific number of bidders is not provided, but the 'full and open' designation implies a robust competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a market where providers must offer competitive pricing and high-quality services to win contracts.

Public Impact

Benefits individuals in the immigration system requiring detention and transportation. Ensures the continuity of essential services for U.S. Immigration and Customs Enforcement (ICE). Services are geographically focused on Houston, Texas, impacting local operations. Supports a workforce involved in detention facility management and transportation logistics.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for over-reliance on a single large contractor for critical services.
Concerns regarding the quality of care and conditions within detention facilities.
Past criticisms of The GEO Group's operations and contract management.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Firm-fixed-price contract provides cost certainty for the government.
Contract duration allows for stable service provision.

Sector Analysis

This contract falls within the Facilities Support Services sector, specifically related to government-contracted detention and transportation. This sector is crucial for agencies like ICE, which rely on private sector partners to manage detention facilities and move individuals. Spending in this area can fluctuate based on immigration policies and enforcement levels. Comparable spending benchmarks would involve analyzing other ICE contracts for similar services and other federal agencies utilizing detention services.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside. The GEO Group, Inc. is a large corporation, suggesting that subcontracting opportunities for small businesses may exist, but this is not explicitly detailed in the provided information. The primary award is not directly impacting small businesses through a set-aside mechanism.

Oversight & Accountability

Oversight for this contract would typically be managed by U.S. Immigration and Customs Enforcement (ICE) contracting officers and program managers. Transparency is generally provided through contract award databases like FPDS. Accountability measures would include performance metrics, service level agreements, and potential penalties for non-compliance. Inspector General reviews may occur depending on the nature of any reported issues or audits.

Related Government Programs

Immigration Detention Services
Transportation of Detainees
Correctional Facility Management
Federal Law Enforcement Support Services

Risk Flags

Contractor performance concerns
Quality of care in detention facilities
Potential for cost-cutting impacting service quality

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $50.0 million to THE GEO GROUP, INC.. THE PURPOSE OF THIS CONTRACT IS TO PROVIDE DETENTION AND TRANSPORTATION SERVICES AT MONTGOMERY PROCESSING CENTER (MPC) IN HOUSTON, TX. THE PURPOSE OF THIS NEW TASK ORDER IS TO ADD FUNDING FOR THE CONTINUANCE OF SERVICES.

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 $50.0 million.

What is the period of performance?

Start: 2024-08-18. End: 2026-07-31.

What is the historical spending trend for detention and transportation services by ICE, and how does this award compare?

Analyzing historical spending trends for ICE's detention and transportation services reveals fluctuations often tied to policy changes and enforcement priorities. In recent years, ICE has consistently awarded billions of dollars annually for these services, with significant portions going to large private contractors. This specific award of approximately $50 million for a two-year period represents a moderate allocation for a single processing center and task order. To fully contextualize, one would need to compare this amount against the total annual budget allocated by ICE for detention operations and against the average cost per detainee or per facility managed by other contractors. Without broader historical data on ICE's total detention spending and the specific scope of services covered by this $50 million, it's challenging to definitively state if it's higher or lower than average, but it aligns with the significant investment the agency makes in managing its detainee population.

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

The GEO Group, Inc. has a substantial track record of securing and performing federal contracts, particularly with Immigration and Customs Enforcement (ICE) and the Federal Bureau of Prisons (BOP). They are one of the largest private operators of correctional and detention facilities in the United States. Their history includes managing numerous detention centers and providing related services, such as transportation. However, their track record is also marked by significant public scrutiny and criticism regarding facility conditions, inmate welfare, staffing levels, and cost-effectiveness. Numerous reports from government watchdogs, NGOs, and media outlets have raised concerns about their operations. Despite these criticisms, they continue to be a major federal contractor, indicating that their bids and performance, in many cases, meet government requirements, though often with ongoing debate about the quality and ethical implications of their services.

How does the firm-fixed-price (FFP) contract type impact value for money and risk for the government in this context?

A firm-fixed-price (FFP) contract type, as used here, is generally advantageous for the government when the scope of work is well-defined and risks of cost overruns are manageable. For detention and transportation services, an FFP contract provides cost certainty, meaning the government knows the total price upfront, simplifying budgeting and financial planning. This shifts the risk of cost overruns to the contractor, The GEO Group, Inc. If the contractor incurs higher costs than anticipated due to operational inefficiencies or unforeseen circumstances, their profit margin will decrease, but the government's payment remains fixed. This structure incentivizes the contractor to manage their operations efficiently to maximize profit. However, if the scope of services is not precisely defined or if there are significant unforeseen changes required, an FFP contract can sometimes lead to the contractor being less flexible or potentially cutting corners on service quality to maintain profitability, which could be a risk to the government if not rigorously overseen.

What are the potential risks associated with relying on private contractors for detention and transportation services?

Relying on private contractors like The GEO Group, Inc. for detention and transportation services presents several potential risks. A primary concern is the potential for a profit motive to conflict with the quality of care and humane treatment of detainees. Contractors may be incentivized to cut costs on staffing, training, food, medical care, or facility maintenance to increase profits, potentially leading to substandard conditions and safety issues. There's also a risk of reduced transparency and accountability compared to government-run facilities, making oversight more challenging. Furthermore, contractor performance can be inconsistent, and issues like staffing shortages, security breaches, or transportation delays can disrupt operations and impact the efficiency of the immigration system. Finally, dependence on a few large private companies can reduce government flexibility and bargaining power over time.

What is the significance of the 'Facilities Support Services' NAICS code (561210) in relation to this contract?

The North American Industry Classification System (NAICS) code 561210, 'Facilities Support Services,' is a broad category that encompasses a wide range of services aimed at operating and maintaining buildings and other facilities. This includes services like cleaning, operation, maintenance, and repair of facilities. For this specific contract with The GEO Group, Inc., the NAICS code signifies that the core service provided is the management and operation of the Montgomery Processing Center (MPC), which involves maintaining the physical infrastructure, ensuring security, and providing essential support services for its operation as a detention facility. While detention services are a specialized subset, they fall under the umbrella of facilities support because the contract is fundamentally about managing and operating a physical site to house and process individuals, requiring a comprehensive approach to facility upkeep and operational readiness.

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

Solicitation ID: HSCEDM-15-R-00004

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: $49,978,428

Exercised Options: $49,978,428

Current Obligation: $49,978,428

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSCEDM17D00009

IDV Type: IDC

Timeline