DHS awarded The GEO Group $46.1M for detention facilities support, with a high per-unit cost

Contract Overview

Contract Amount: $46,138,862 ($46.1M)

Contractor: THE GEO Group, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2011-12-26

End Date: 2012-11-30

Contract Duration: 340 days

Daily Burn Rate: $135.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: REFERENCE SOUTH TEXAS DETENTION COMPLEX CONTRACT HSCEDM-12-D-00001 WITH THE GEO GROUP. TASK ORDER HSCEDM-12-J-00010

Place of Performance

Location: PEARSALL, FRIO County, TEXAS, 78061

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $46.1 million to THE GEO GROUP, INC. for work described as: REFERENCE SOUTH TEXAS DETENTION COMPLEX CONTRACT HSCEDM-12-D-00001 WITH THE GEO GROUP. TASK ORDER HSCEDM-12-J-00010 Key points: 1. The contract value represents a significant investment in detention services. 2. Competition dynamics suggest a potentially competitive bidding process for this service. 3. Risk indicators may include contractor performance history and the nature of detention services. 4. Performance context is tied to the operational needs of immigration enforcement. 5. This contract falls within the broader sector of government facilities support and management.

Value Assessment

Rating: fair

The total award of $46.1 million for a 340-day period indicates a substantial cost for detention services. Benchmarking against similar contracts for detention facility operations is crucial to assess value for money. The provided data includes a benchmark of $135,703, which may represent a per-unit cost or a comparison point, but further context is needed to definitively assess its reasonableness. Without more granular data on services provided and the number of individuals detained, a precise value assessment is challenging.

Cost Per Unit: $135,703 (benchmark provided)

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple bidders were likely considered. This method is generally preferred for ensuring fair pricing and access for qualified contractors. The number of bidders and the specific evaluation criteria would provide further insight into the intensity of the competition and its impact on the final price.

Taxpayer Impact: Full and open competition is intended to drive down costs through market forces, potentially leading to better value for taxpayers compared to less competitive award methods.

Public Impact

Benefits U.S. Immigration and Customs Enforcement (ICE) by providing essential detention services. Supports the operational capacity of the federal government in managing immigration detention. Geographic impact is concentrated in Texas, where the detention facility is located. Workforce implications include employment opportunities for facility staff and support personnel in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for high operational costs associated with detention services.
Reliance on a single contractor for critical government functions.
Sensitivity of detention services to policy changes and public scrutiny.

Positive Signals

Awarded through full and open competition, indicating a potentially robust selection process.
Contract structure (Firm Fixed Price) provides cost certainty for the government.
Clear definition of services (Facilities Support Services) aids in performance monitoring.

Sector Analysis

This contract operates within the government services sector, specifically focusing on facilities support and management for correctional and detention operations. The market for such services is driven by government demand, particularly from agencies like DHS. Comparable spending benchmarks would involve analyzing other contracts for detention center operations, including per diem rates and overall facility management costs across different regions and contractors.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. As a large-scale facilities support service, it is possible that subcontracting opportunities may exist for specialized services, but the primary award was not directed towards small businesses. Further analysis of subcontracting plans would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of U.S. Immigration and Customs Enforcement (ICE), a component of DHS. Accountability measures would include performance standards, reporting requirements, and potential penalties for non-compliance. Transparency is generally facilitated through contract award databases, though specific operational details may be sensitive. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse.

Related Government Programs

Immigration Detention Services
Correctional Facility Management
Homeland Security Contracts
Federal Facilities Support

Risk Flags

Contractor Performance History
Cost Reasonableness
Service Quality Concerns
Detainee Welfare Standards

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $46.1 million to THE GEO GROUP, INC.. REFERENCE SOUTH TEXAS DETENTION COMPLEX CONTRACT HSCEDM-12-D-00001 WITH THE GEO GROUP. TASK ORDER HSCEDM-12-J-00010

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 $46.1 million.

What is the period of performance?

Start: 2011-12-26. End: 2012-11-30.

What is the historical spending pattern for detention facility support services by ICE?

Historical spending by ICE on detention facility support services has been substantial and has fluctuated based on immigration policies and enforcement priorities. The agency relies heavily on contracts with private entities to manage detention centers, particularly in areas where federal facilities are insufficient. Over the past decade, spending has seen significant increases during periods of heightened border activity. Analyzing trends requires examining annual appropriations, contract awards, and the average cost per detainee. Factors such as the duration of detention, the type of facility, and the geographic location all influence overall expenditure. For instance, contracts in high-cost urban areas or those requiring specialized services tend to be more expensive. Understanding these patterns is crucial for budget forecasting and identifying potential areas for cost efficiencies.

How does the per-unit cost of this contract compare to other ICE detention facilities?

The provided benchmark of $135,703 requires clarification to be directly comparable as a per-unit cost. If this figure represents a per-day or per-person cost, it can be benchmarked against publicly available per diem rates for similar ICE contracts. Generally, per diem rates for detention services can vary significantly based on facility size, location, security level, and the services included (e.g., medical care, transportation). Contracts awarded through full and open competition often aim for competitive pricing, but the specific market conditions and the scope of services dictate the final rate. Without knowing the exact definition of the benchmark and the number of individuals or days it pertains to, a precise comparison is difficult. However, ICE's overall detention costs are a significant portion of its budget, and monitoring these per-unit costs against market averages and historical trends is a key oversight function.

What are the primary risks associated with contracting for detention services?

Contracting for detention services carries several inherent risks. A primary concern is the potential for substandard conditions or inadequate care for detainees, which can lead to legal challenges, reputational damage, and increased oversight. Contractor performance can be inconsistent, impacting the government's ability to fulfill its legal obligations. There's also a risk of cost overruns, especially if contract terms are not precisely defined or if unforeseen operational issues arise. Furthermore, the privatization of detention facilities raises ethical considerations and concerns about accountability, as private entities may prioritize profit over detainee welfare. Ensuring robust contract management, regular site inspections, and clear performance metrics are critical to mitigating these risks. The GEO Group, as a major contractor in this space, has faced scrutiny regarding its operations in the past, highlighting the importance of diligent oversight.

What is The GEO Group's track record with federal detention contracts?

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 track record of contracting with federal agencies, including ICE and the Federal Bureau of Prisons. They manage a significant number of detention beds nationwide. Their history includes numerous contracts for immigration detention, as well as for federal and state prisons. While they are a major player with extensive experience, their track record has also been subject to public and governmental scrutiny regarding facility conditions, detainee treatment, and operational efficiency. Reports from government watchdogs and advocacy groups have sometimes raised concerns, while the company maintains its commitment to providing safe and secure facilities. Evaluating their track record involves reviewing performance reviews, audit findings, and any litigation or investigations related to their federal contracts.

How does the contract duration and value compare to typical ICE detention contracts?

This contract, with a duration of approximately 340 days and a value of $46.1 million, represents a substantial, medium-term commitment for detention services. Typical ICE detention contracts can range widely in duration, from short-term task orders to multi-year agreements, often with options for extension. The value is also variable, depending on the number of beds, the level of services, and the prevailing per diem rates. A $46 million award for less than a year suggests a high daily operational cost or a significant number of detainees being housed. Compared to some longer-term, multi-billion dollar contracts for large detention centers, this might appear smaller, but for a specific task order or facility support, it is a significant award. The firm-fixed-price structure provides cost certainty for this period, which is a common approach for managing predictable operational expenses.

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

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $46,138,862

Exercised Options: $46,138,862

Current Obligation: $46,138,862

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSCEDM12D00001

IDV Type: IDC

Timeline