Homeland Security's $44.7M contract for security systems services awarded to The GEO Group, Inc

Contract Overview

Contract Amount: $44,711,695 ($44.7M)

Contractor: THE GEO Group, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2013-03-01

End Date: 2014-12-31

Contract Duration: 670 days

Daily Burn Rate: $66.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FUNDING FOR NEW TASK ORDER TO EXERCISE OPTION YEAR 4 OF CONTRACT HSCEDM-09-D-00006. T/O POP 3/01/2013 TO 02/28/2014. FUNDING POP 3/1/2013 TO 3/31/2013. IGF::CT::IGF

Place of Performance

Location: POMPANO BEACH, BROWARD County, FLORIDA, 33073

State: Florida Government Spending

Plain-Language Summary

Department of Homeland Security obligated $44.7 million to THE GEO GROUP, INC. for work described as: FUNDING FOR NEW TASK ORDER TO EXERCISE OPTION YEAR 4 OF CONTRACT HSCEDM-09-D-00006. T/O POP 3/01/2013 TO 02/28/2014. FUNDING POP 3/1/2013 TO 3/31/2013. IGF::CT::IGF Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 670 days indicates a significant, ongoing need for security systems services. 3. The fixed-price contract type helps to control costs and provides predictability for the government. 4. Awarded by U.S. Immigration and Customs Enforcement (ICE), highlighting its role in border security or detention facility management. 5. The specific NAICS code (561621) points to specialized security system services beyond basic locksmithing. 6. The contract is not set aside for small businesses, implying larger contractors were expected to bid.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more detailed service descriptions and market data for specialized security systems. The fixed-price nature is a positive indicator for cost control. However, the raw dollar amount for a single task order over approximately two years suggests a substantial investment. Further analysis would require comparing the scope of services to similar contracts within DHS or other agencies providing comparable security solutions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. This typically suggests a robust bidding environment, which can lead to better pricing and service options for the government. The number of bidders is not specified, but the designation implies multiple entities had the opportunity to compete for this requirement.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive market that can drive down prices and encourage innovation, leading to better value for public funds.

Public Impact

The primary beneficiaries are likely U.S. Immigration and Customs Enforcement (ICE) operations, potentially related to border security, detention facilities, or critical infrastructure protection. Services delivered include specialized security systems, which could encompass surveillance, access control, alarm systems, and related monitoring. The geographic impact is specified as Florida (ST: FL, SN: FLORIDA), suggesting the services are primarily deployed within that state. Workforce implications may include the need for skilled technicians, security personnel, and project managers employed by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics or outcome-based evaluations in the provided data.
Potential for cost overruns if the scope of 'security systems services' is broader than initially anticipated.
Dependence on a single contractor for critical security infrastructure could pose risks if performance falters.

Positive Signals

Awarded through full and open competition, indicating a potentially competitive pricing environment.
Fixed-price contract type helps manage budget predictability.
The contract duration suggests a stable, long-term requirement being met.

Sector Analysis

The security systems services sector is a critical component of the broader security industry, encompassing a wide range of technologies and services designed to protect assets, personnel, and information. This contract falls within the government's need for robust security infrastructure, particularly relevant for agencies like ICE. Comparable spending benchmarks would involve analyzing other government contracts for physical security systems, surveillance technology, and access control solutions across various federal agencies.

Small Business Impact

The data indicates this contract was not set aside for small businesses (SB: false). This suggests that the requirement was likely deemed too large or specialized for small business set-aside programs, or that the competition was opened broadly to all eligible firms. Consequently, the direct impact on the small business ecosystem may be limited, though the prime contractor might engage small businesses as subcontractors.

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 facilitated through contract databases like FPDS. Accountability measures are inherent in the fixed-price contract terms, with potential for penalties or termination for non-performance. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of Homeland Security Contracts
U.S. Immigration and Customs Enforcement Contracts
Security Systems Services Contracts
Federal Law Enforcement Support Contracts
Fixed-Price Contracts

Risk Flags

Potential for scope creep in 'security systems services'.
Cybersecurity risks associated with networked security systems.
Dependence on contractor performance for critical security functions.
Need for verification of specialized technical expertise beyond core services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $44.7 million to THE GEO GROUP, INC.. FUNDING FOR NEW TASK ORDER TO EXERCISE OPTION YEAR 4 OF CONTRACT HSCEDM-09-D-00006. T/O POP 3/01/2013 TO 02/28/2014. FUNDING POP 3/1/2013 TO 3/31/2013. IGF::CT::IGF

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 $44.7 million.

What is the period of performance?

Start: 2013-03-01. End: 2014-12-31.

What is the historical spending pattern for this specific contract vehicle (HSCEDM-09-D-00006) with The GEO Group, Inc. prior to this task order?

The provided data focuses on a single task order (T/O) for option year 4. To understand historical spending, one would need to examine the full contract history for HSCEDM-09-D-00006. This would involve querying contract databases for all previously awarded task orders, modifications, and funding actions against this base contract. Analyzing these historical data points would reveal the total value obligated over the life of the contract, the frequency and value of previous option exercises, and any significant changes in spending trends. Without this broader context, it's difficult to assess if the $44.7 million for this task order represents a typical expenditure or a significant deviation.

How does the per-unit cost or overall value of this contract compare to similar security systems services contracts awarded by other federal agencies?

A direct per-unit cost comparison is not feasible with the provided data, as specific units of service (e.g., per camera, per sensor, per hour of monitoring) are not detailed. However, the total value of $44.7 million for approximately two years of service for security systems can be benchmarked against similar large-scale security contracts. For instance, contracts for physical security systems at federal courthouses, military bases, or border patrol facilities might offer comparable data points. Agencies like the General Services Administration (GSA) or the Department of Defense (DoD) often procure similar services. A comprehensive comparison would involve analyzing contract award databases for contracts with similar NAICS codes (561621) and scope, looking at total contract values, durations, and the number of bidders to assess if the pricing for this ICE contract appears competitive within the federal market.

What specific types of security systems are covered under this contract, and what is the risk associated with their implementation and maintenance?

The contract specifies 'Security Systems Services (except Locksmiths)' under NAICS code 561621. This broad category can encompass a wide array of technologies, including but not limited to: video surveillance (CCTV), access control systems (key cards, biometric scanners), intrusion detection systems (alarms, motion sensors), perimeter security (fencing, sensors), and potentially integrated command and control software. The risks associated with implementation and maintenance include technological obsolescence, cybersecurity vulnerabilities (if systems are networked), integration challenges between different components, potential for system failures impacting operational security, and the need for highly trained personnel for operation and repair. The government must ensure robust testing, validation, and ongoing maintenance protocols are in place to mitigate these risks.

What is the track record of The GEO Group, Inc. in providing security systems services to the federal government, particularly DHS?

The GEO Group, Inc. is primarily known as a provider of correctional and detention management services, as well as immigration detention services. While they operate facilities that inherently require security systems, their direct track record as a primary provider of specialized security *systems* services (installation, maintenance, integration of technology) to the federal government, especially DHS, may be less extensive than their core detention operations. It is crucial to examine their past performance on similar contracts, including any awards, past performance reviews, and any documented issues or successes related to technology deployment and security system management. Their experience in managing secure facilities likely provides a foundation, but the specific technical expertise for advanced security systems needs independent verification.

What are the potential implications of this contract award on competition within the security systems services market for federal contracts?

Awarding a significant contract like this to The GEO Group, Inc. under full and open competition suggests that the market has multiple capable providers. The fact that it was competed implies that other firms had the opportunity to bid. The long-term impact on market competition depends on several factors: the number of bidders, the level of innovation proposed, and whether this contract serves as a significant barrier to entry for smaller or newer firms. If The GEO Group, Inc. successfully executes this contract, it could enhance their position in this specific niche. Conversely, if the competition was robust and pricing was aggressive, it could signal a highly competitive market segment. Future contract awards in this space will indicate whether this was an isolated large award or part of a trend.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Systems Services (except Locksmiths)

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: 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, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $44,711,695

Exercised Options: $44,711,695

Current Obligation: $44,711,695

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSCEDM09D00006

IDV Type: IDC

Timeline