DHS Awards $35.5M for Security Services to The GEO Group, Inc. for Fourth Option Year

Contract Overview

Contract Amount: $35,551,630 ($35.6M)

Contractor: THE GEO Group, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2008-04-24

End Date: 2009-04-23

Contract Duration: 364 days

Daily Burn Rate: $97.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TASK ORDER FOR FOURTH OPTION YEAR ON CONTRACT ACL2C0004

Place of Performance

Location: TACOMA, PIERCE County, WASHINGTON, 98421

State: Washington Government Spending

Plain-Language Summary

Department of Homeland Security obligated $35.6 million to THE GEO GROUP, INC. for work described as: TASK ORDER FOR FOURTH OPTION YEAR ON CONTRACT ACL2C0004 Key points: 1. Significant contract value of $35.5M for security services. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract is for security guards and patrol services, a critical function for DHS. 4. The contract has been extended multiple times, indicating ongoing need and potential for price escalation.

Value Assessment

Rating: fair

The contract's pricing is based on a firm fixed price structure. Benchmarking against similar contracts for security services is difficult without more granular data on service levels and geographic scope. The provided benchmark of $97,669 per year seems low relative to the total award, suggesting it may represent a base or specific component.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the fact that this is the fourth option year suggests a long-term relationship, and the impact of repeated option years on price discovery needs further examination.

Taxpayer Impact: Taxpayer funds are being used for essential security services. The competitive award process aims to ensure value for money, but the cumulative cost over multiple years warrants scrutiny.

Public Impact

Ensures continued security operations for U.S. Immigration and Customs Enforcement. Supports federal agency's mission to maintain border security and enforce immigration laws. Provides employment opportunities within the security services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price creep over multiple option years.
Lack of detailed performance metrics in the provided data.
Dependence on a single contractor for critical security functions.

Positive Signals

Awarded through full and open competition.
Firm fixed price contract structure limits cost overruns.
Contract supports a vital government function.

Sector Analysis

The contract falls under the security and protection services sector. Spending in this sector is substantial for government agencies requiring physical security and surveillance. Benchmarks for similar contracts vary widely based on scope, location, and service intensity.

Small Business Impact

The contract was awarded to The GEO Group, Inc., a large corporation. There is no indication of small business participation in this specific task order based on the provided data. Efforts to ensure small business subcontracting opportunities should be reviewed.

Oversight & Accountability

The contract's multiple option years suggest a need for ongoing oversight to ensure performance standards are met and pricing remains competitive. Reviewing the justification for each option year and performance reviews would be key oversight activities.

Related Government Programs

Security Guards and Patrol Services
Department of Homeland Security Contracting
U.S. Immigration and Customs Enforcement Programs

Risk Flags

Contract duration and multiple option years may indicate a lack of ongoing competitive pressure.
Limited transparency on specific service scope and performance metrics.
Potential for price escalation over the life of the contract, despite fixed-price structure.
No clear indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $35.6 million to THE GEO GROUP, INC.. TASK ORDER FOR FOURTH OPTION YEAR ON CONTRACT ACL2C0004

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 $35.6 million.

What is the period of performance?

Start: 2008-04-24. End: 2009-04-23.

What is the specific scope of services provided under this task order, and how does it compare to industry standards for security guard and patrol services?

The provided data indicates the contract is for 'Security Guards and Patrol Services' (NAICS 561612). However, the specific details of the scope, such as the number of guards, hours of operation, specific locations, and specialized security measures, are not detailed. A comprehensive comparison to industry standards would require this granular information to assess if the services rendered align with typical market offerings and pricing for comparable security contracts.

How has the pricing evolved across the four option years, and what mechanisms are in place to prevent price gouging or ensure continued cost-effectiveness?

The data shows this is the fourth option year, implying previous awards. While the contract type is 'FIRM FIXED PRICE', which caps costs, the cumulative expenditure over multiple years warrants analysis. Without historical pricing data for the previous option years, it's impossible to assess price trends. Oversight should focus on reviewing the justification for each option year's pricing and ensuring it reflects fair market value.

What performance metrics are used to evaluate The GEO Group, Inc.'s service delivery, and what is the history of performance under this contract?

The provided data does not include specific performance metrics or a history of performance evaluations for this contract. Effective oversight requires clear Key Performance Indicators (KPIs) related to guard presence, response times, incident reporting, and overall security effectiveness. A review of past performance reports and any contractor performance assessment reports (CPARs) would be necessary to gauge the effectiveness of the services provided.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Guards and Patrol Services

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1 PARK PL STE 700 621 NW 53RD ST, BOCA RATON, FL, 33487

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $37,426,816

Exercised Options: $37,426,816

Current Obligation: $35,551,630

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HSCEAL02C0004

IDV Type: IDC

Timeline