DHS awards $38.7M for alien housing and safeguarding services, with a 364-day duration

Contract Overview

Contract Amount: $38,691,835 ($38.7M)

Contractor: THE GEO Group, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2025-09-01

End Date: 2026-08-31

Contract Duration: 364 days

Daily Burn Rate: $106.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THIS IS A NEW TASK ORDER TO OBLIGATE FUNDING FOR HOUSING AND SAFEGUARDING ILLEGAL ALIENS IN SUPPORT OF ENFORCEMENT AND REMOVAL OPERATIONS (ERO) AT BROWARD TRANSITIONAL CENTER IN POMPANO, FL.

Place of Performance

Location: POMPANO BEACH, BROWARD County, FLORIDA, 33073

State: Florida Government Spending

Plain-Language Summary

Department of Homeland Security obligated $38.7 million to THE GEO GROUP, INC. for work described as: THIS IS A NEW TASK ORDER TO OBLIGATE FUNDING FOR HOUSING AND SAFEGUARDING ILLEGAL ALIENS IN SUPPORT OF ENFORCEMENT AND REMOVAL OPERATIONS (ERO) AT BROWARD TRANSITIONAL CENTER IN POMPANO, FL. Key points: 1. Contract focuses on essential services for enforcement and removal operations. 2. The award is a delivery order under a larger contract. 3. Pricing appears to be a fixed-rate structure. 4. The contract duration is one year, aligning with operational needs. 5. Services are critical for managing migrant populations. 6. The contractor has a significant role in detention services.

Value Assessment

Rating: fair

The contract value of $38.7 million for a 364-day period for housing and safeguarding illegal aliens is substantial. Benchmarking this against similar contracts for detention and transitional services is complex due to varying service levels and geographic costs. However, the fixed-price nature suggests a defined cost structure. Further analysis would require comparing per-diem rates or service costs to industry averages for similar facilities and populations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The specific number of bidders is not provided, but this method generally promotes competitive pricing and allows the government to select the most advantageous offer. The open competition suggests a healthy market for these services.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down costs through market forces and encourages a wider range of providers to compete, potentially leading to better value.

Public Impact

Benefits individuals in U.S. Immigration and Customs Enforcement (ICE) custody. Provides essential services including housing, safeguarding, and support for enforcement and removal operations. Geographic impact is concentrated in Pompano Beach, Florida. Supports the federal government's immigration enforcement and management functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if operational needs exceed initial projections.
Dependence on a single contractor for critical services raises continuity of operations risks.
Ensuring humane and effective safeguarding of individuals is paramount and requires robust oversight.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Fixed-price contract provides cost certainty for the government.
Contract duration of one year allows for regular review and potential re-competition.

Sector Analysis

This contract falls within the government services sector, specifically related to immigration and detention services. The market for such services is often characterized by a limited number of specialized providers capable of meeting stringent government requirements. Spending in this area is driven by federal policy and enforcement priorities. Comparable spending benchmarks would involve analyzing other ICE or CBP contracts for similar facility management and support services.

Small Business Impact

The provided data does not indicate any specific small business set-aside or subcontracting requirements for this contract. As it was awarded through full and open competition, it's possible that small businesses could have participated as prime contractors or subcontractors if they met the qualifications. Further investigation into the subcontracting plan, if any, would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under U.S. Immigration and Customs Enforcement (ICE), a component of the Department of Homeland Security. Accountability measures would include performance standards outlined in the contract, regular reporting requirements, and potential site inspections. Transparency is generally maintained through contract award databases, though specific operational details may be sensitive.

Related Government Programs

ICE Detention Services
Immigration Enforcement Operations
Alien Processing and Management
Federal Detention Facility Management

Risk Flags

Contract awarded to a large, established provider in the detention services sector.
Services are critical for immigration enforcement operations.
Potential for public scrutiny regarding detention conditions and treatment of individuals.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $38.7 million to THE GEO GROUP, INC.. THIS IS A NEW TASK ORDER TO OBLIGATE FUNDING FOR HOUSING AND SAFEGUARDING ILLEGAL ALIENS IN SUPPORT OF ENFORCEMENT AND REMOVAL OPERATIONS (ERO) AT BROWARD TRANSITIONAL CENTER IN POMPANO, FL.

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 $38.7 million.

What is the period of performance?

Start: 2025-09-01. End: 2026-08-31.

What is the historical spending by DHS on similar alien housing and safeguarding services?

Historical spending by the Department of Homeland Security (DHS) on alien housing and safeguarding services has been substantial and fluctuates based on migration patterns and enforcement policies. U.S. Immigration and Customs Enforcement (ICE), the agency awarding this contract, is the primary entity responsible for these services. ICE's budget for detention and removal operations, which includes housing, has historically been in the billions of dollars annually. For example, in fiscal year 2023, ICE's budget for Enforcement and Removal Operations (ERO) was approximately $3.7 billion. This figure encompasses a wide range of activities, including the operation of detention facilities, transportation, and case management. The specific amount allocated to contracts for transitional centers like the Broward Transitional Center can vary year to year, influenced by factors such as the number of individuals in custody, the duration of their stay, and the specific services required. Analyzing past contract awards for similar services, particularly those with The GEO Group, Inc., would provide a more granular understanding of spending trends and the typical cost per individual or per facility.

How does the pricing of this contract compare to other similar contracts for detention services?

Directly comparing the pricing of this $38.7 million contract for a 364-day period to other similar contracts is challenging without detailed per-unit cost breakdowns (e.g., per diem rates) and specific service inclusions. However, The GEO Group, Inc. is a major provider of detention and correctional services, and their pricing is generally competitive within this specialized market. Contracts for detention services are often awarded on a fixed-price or cost-reimbursement basis, with variations in pricing influenced by factors such as the facility's capacity, location, security level, and the range of services provided (e.g., medical care, food, transportation, case management). Given that this is a delivery order under a larger contract awarded through full and open competition, it suggests that the pricing was deemed advantageous at the time of the original award. To conduct a thorough benchmark, one would need to compare the per-diem rates or total contract value relative to the number of individuals housed and the services rendered against other ICE or CBP contracts for similar facilities and populations.

What are the key performance indicators (KPIs) for this contract, and how is performance monitored?

While the specific Key Performance Indicators (KPIs) for this contract are not detailed in the provided data, contracts for detention and safeguarding services typically include rigorous performance standards. These often revolve around the health, safety, and welfare of the individuals in custody, as well as the security and operational integrity of the facility. Common KPIs might include metrics related to medical care access and quality, food services (e.g., nutritional standards, timely delivery), facility maintenance and cleanliness, incident reporting and response times (e.g., for medical emergencies, security breaches), and compliance with detention standards. Performance monitoring is usually conducted by the contracting officer's representative (COR) or a designated government technical monitor. This involves regular site visits, review of contractor-submitted reports, audits, and potentially resident feedback mechanisms. Failure to meet KPIs can result in contractual remedies, including financial penalties or termination.

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

The GEO Group, Inc. has an extensive track record of providing correctional, detention, and community reentry services to federal, state, and local government agencies across the United States and internationally. For federal contracts, The GEO Group is a significant provider of detention facilities and services for U.S. Immigration and Customs Enforcement (ICE) and the Federal Bureau of Prisons (BOP). Their portfolio includes managing a variety of facilities, from short-term holding centers to long-term detention facilities. Historically, The GEO Group has been awarded numerous large contracts for these services. While they have a substantial operational history, like many large government contractors in this sector, they have also faced scrutiny and criticism regarding conditions in some of their facilities, staffing levels, and cost-effectiveness. Performance reviews and contract outcomes can vary significantly depending on the specific contract, facility, and oversight. Their continued success in winning federal contracts suggests a perceived ability to meet government requirements, though ongoing performance monitoring and public accountability remain critical.

What are the potential risks associated with this contract, and what mitigation strategies are in place?

Potential risks associated with this contract include operational challenges in managing a transient population, ensuring the safety and well-being of detainees, maintaining facility security, and managing costs effectively. There's also a risk of negative public perception or legal challenges related to detention conditions. Mitigation strategies are typically embedded within the contract itself and through robust government oversight. The contract will likely specify detailed performance standards, security protocols, and health and safety requirements. The government's COR will monitor compliance through regular inspections, audits, and performance reviews. The fixed-price nature of the contract helps mitigate cost overrun risks for the government, provided the scope is well-defined. Furthermore, the full and open competition process aims to select a contractor with a proven ability to manage these risks effectively. The GEO Group's experience in the sector is also a mitigating factor, as they are expected to have established procedures for managing these types of operations.

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: $38,691,835

Exercised Options: $38,691,835

Current Obligation: $38,691,835

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70CDCR21D00000004

IDV Type: IDC

Timeline