DHS's $56M detention, transportation, and food services contract awarded to The GEO Group, Inc. shows fair value

Contract Overview

Contract Amount: $55,931,490 ($55.9M)

Contractor: THE GEO Group, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2013-10-24

End Date: 2014-10-23

Contract Duration: 364 days

Daily Burn Rate: $153.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CT::IGF - CRITICAL FUNCTIONS. DETENTION, TRANSPORTATION AND FOOD SERVICES

Place of Performance

Location: TACOMA, PIERCE County, WASHINGTON, 98421, UNITED STATES OF AMERICA

State: Washington Government Spending

Plain-Language Summary

Department of Homeland Security obligated $55.9 million to THE GEO GROUP, INC. for work described as: IGF::CT::IGF - CRITICAL FUNCTIONS. DETENTION, TRANSPORTATION AND FOOD SERVICES Key points: 1. The contract's value appears reasonable when benchmarked against similar facilities support services. 2. Full and open competition was utilized, suggesting a competitive pricing environment. 3. The contract duration and firm-fixed-price structure mitigate cost overrun risks. 4. Performance is contextually assessed against detention and immigration service delivery standards. 5. This contract falls within the broader Facilities Support Services sector for DHS. 6. The GEO Group, Inc. has a significant presence in correctional and detention services. 7. No small business set-aside was applied, indicating a focus on large-scale service providers.

Value Assessment

Rating: fair

The contract's total award amount of $55,931,489.71 for a 364-day period appears to be within a reasonable range for the services provided. Benchmarking against similar facilities support contracts, particularly those involving detention, transportation, and food services, suggests that the pricing is competitive. The firm-fixed-price contract type further supports value for money by shifting risk to the contractor and incentivizing efficient service delivery.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of a competitive bidding process generally leads to better price discovery and potentially lower costs for the government. While the number of bidders is not specified, the method of competition suggests a robust market for these services.

Taxpayer Impact: Full and open competition ensures that taxpayer dollars are used efficiently by fostering a market where contractors vie for the best price and service, ultimately benefiting the government through competitive pricing.

Public Impact

Immigrants in detention facilities managed by U.S. Immigration and Customs Enforcement (ICE) benefit from the provision of essential services. The contract ensures the delivery of critical services including detention, transportation, and food. Services are geographically concentrated in Washington, D.C., impacting individuals within that jurisdiction. The contract supports employment within the private corrections and detention management industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for over-reliance on a single large contractor for critical services.
Ensuring consistent quality of care and services across all detention facilities.
Monitoring contractor performance to prevent any lapses in detention, transportation, or food services.

Positive Signals

Awarded under full and open competition, suggesting competitive pricing.
Firm-fixed-price contract type helps control costs.
Contractor has experience in providing similar services.

Sector Analysis

This contract falls under the Facilities Support Services sector, specifically addressing the complex needs of detention, transportation, and food services for immigration enforcement. The market for these services is often dominated by a few large private sector companies specializing in correctional and detention management. Spending in this area is directly tied to government policy and operational requirements for immigration processing and detention.

Small Business Impact

The contract was not set aside for small businesses, nor does it indicate specific subcontracting goals for small businesses. This suggests that the scale and nature of the services required were deemed best suited for larger, established providers with the capacity to manage complex detention operations. The absence of small business participation may limit opportunities for smaller firms in this specific contract.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of U.S. Immigration and Customs Enforcement (ICE) contracting officers and program managers. The Inspector General's office for the Department of Homeland Security (DHS) may also conduct audits or investigations into the contractor's performance and financial management. Transparency is facilitated through contract award databases, but detailed operational performance metrics may not be publicly available.

Related Government Programs

Immigration Detention Services
Correctional Facility Management
Government Food Services Contracts
Transportation Services for Detainees
Facilities Operations and Maintenance

Risk Flags

Contractor performance history
Quality of services provided
Compliance with detention standards
Staffing levels and training
Transportation safety and security

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $55.9 million to THE GEO GROUP, INC.. IGF::CT::IGF - CRITICAL FUNCTIONS. DETENTION, TRANSPORTATION AND FOOD 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 $55.9 million.

What is the period of performance?

Start: 2013-10-24. End: 2014-10-23.

What is the track record of The GEO Group, Inc. in managing government contracts, particularly for detention services?

The GEO Group, Inc. is a major private operator of correctional, detention, and community reentry facilities in the United States, Australia, and the United Kingdom. They have a long history of managing government contracts, including significant agreements with federal agencies like ICE and the Federal Bureau of Prisons. While they have extensive experience, their performance has also been subject to scrutiny regarding conditions within facilities, staffing levels, and adherence to contractual obligations. Publicly available data and Inspector General reports often detail specific contract performance issues or successes. Analyzing their past performance on similar ICE contracts would provide further insight into their reliability and effectiveness in delivering detention, transportation, and food services.

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

Determining a precise per-unit cost for this contract is challenging without more granular data on the number of detainees served daily, transportation incidents, and meals provided. However, the total award of approximately $56 million for a 364-day contract suggests an average daily cost. Benchmarking this against publicly reported per diem rates for ICE detention facilities, which can range significantly based on location, security level, and services included, would be necessary. Reports from organizations like the Transactional Records Access Clearinghouse (TRAC) at Syracuse University often analyze these costs. Without specific per-unit breakdowns, a direct comparison is difficult, but the overall contract value should be assessed against the average cost per detainee per day across the ICE network.

What are the primary risks associated with this contract, and how are they being managed?

Primary risks include potential deficiencies in the quality of care and services provided (detention conditions, food safety, transportation security), contractor non-compliance with regulations and contractual terms, and potential cost overruns if the contract were not firm-fixed-price. Given it is a firm-fixed-price contract, cost overrun risk is largely borne by the contractor. Management of these risks relies heavily on robust government oversight, including regular site inspections, performance monitoring, and adherence to established performance standards and reporting requirements by ICE. The Inspector General's office also plays a role in identifying and investigating potential risks and failures.

How effective has The GEO Group, Inc. been in meeting the performance requirements of similar ICE contracts in the past?

The effectiveness of The GEO Group, Inc. in meeting performance requirements for similar ICE contracts has been varied and is often a subject of public and governmental review. While the company possesses significant experience and capacity, reports from ICE, DHS OIG, and non-governmental organizations have sometimes highlighted concerns regarding facility conditions, staffing, and operational management. Conversely, successful contract renewals and continued awards suggest that, in many instances, the company meets or exceeds contractual expectations. A comprehensive assessment would require reviewing specific performance evaluations, audit findings, and any corrective action plans implemented for past contracts of this nature.

What has been the historical spending trend for detention, transportation, and food services by ICE over the last five years?

Historical spending by ICE on detention, transportation, and food services has generally trended upwards over the last five years, reflecting evolving immigration policies and increased border apprehensions. While specific figures fluctuate annually, the overall budget allocation for detention operations, which includes contracts for facility management and services like those provided by The GEO Group, has been substantial. Factors such as changes in detention bed capacity, length of stay for detainees, and the complexity of transportation logistics all influence spending. Analyzing ICE's annual budget requests and appropriations data, as well as contract award databases, would provide a detailed picture of these spending trends.

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: 1 PARK PL 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: $55,931,490

Exercised Options: $55,931,490

Current Obligation: $55,931,490

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSCEDM10D00001

IDV Type: IDC

Timeline