DHS awarded GEO Group $46M for detention services, highlighting a significant investment in correctional facility management

Contract Overview

Contract Amount: $46,037,066 ($46.0M)

Contractor: THE GEO Group, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2013-12-01

End Date: 2014-11-30

Contract Duration: 364 days

Daily Burn Rate: $126.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: GEO GROUP CONTRACT HSCEDM-12-D-00001 FOR SOUTH TEXAS DETENTION COMPLEX. TASK ORDER HSCEDM-14-J-00008 IGF::OT::IGF

Place of Performance

Location: PEARSALL, FRIO County, TEXAS, 78061

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $46.0 million to THE GEO GROUP, INC. for work described as: GEO GROUP CONTRACT HSCEDM-12-D-00001 FOR SOUTH TEXAS DETENTION COMPLEX. TASK ORDER HSCEDM-14-J-00008 IGF::OT::IGF Key points: 1. The contract value represents a substantial commitment to outsourced detention operations. 2. Competition dynamics for this contract are crucial for understanding pricing efficiency. 3. Performance context is essential to evaluate the effectiveness of services rendered. 4. Sector positioning shows a reliance on private entities for correctional services. 5. Risk indicators may include operational continuity and cost overruns.

Value Assessment

Rating: fair

The contract value of $46 million for a one-year period suggests a significant per-day cost for detention services. Benchmarking against similar contracts for federal detention facilities is necessary to determine if this represents good value. Factors such as the level of service, security requirements, and geographic location can influence pricing, making direct comparisons challenging without further context. The firm-fixed-price structure aims to control costs, but the overall value depends on the quality and efficiency of the services provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This competitive process is generally expected to drive down prices and ensure a fair market rate. 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 award price. A robust competition suggests that the government sought the best value proposition from the market.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it promotes a competitive environment, which can lead to more cost-effective solutions and prevent price gouging by a single provider.

Public Impact

Immigrants in detention benefit from the services provided, impacting their living conditions and care. The contract supports the operation of the South Texas Detention Complex, a key facility for U.S. Immigration and Customs Enforcement (ICE). Geographic impact is concentrated in Texas, specifically within the operational area of the detention facility. Workforce implications include employment opportunities for staff at the detention facility, managed by The GEO Group.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if not managed tightly under the fixed-price contract.
Ensuring consistent service quality and adherence to detention standards.
Monitoring contractor performance to meet all contractual obligations.
Managing the human rights and welfare aspects of detention operations.

Positive Signals

Awarded under full and open competition, suggesting a competitive pricing environment.
Firm-fixed-price contract type helps to control costs and provide budget certainty.
The contract addresses a critical government need for detention services.

Sector Analysis

The correctional services industry is a significant sector within government contracting, particularly for agencies like ICE. This contract falls under facilities support services, which includes the management and operation of detention centers. The market size for such services is substantial, driven by federal, state, and local government needs. Benchmarking this contract's value against other similar detention facility contracts would provide context on its relative cost-effectiveness within the broader industry.

Small Business Impact

The contract was awarded to The GEO Group, Inc., a large corporation, and there is no indication of a small business set-aside. Subcontracting opportunities for small businesses are not explicitly detailed in the provided data, but large prime contractors often engage small businesses for various support services. The impact on the small business ecosystem would depend on whether The GEO Group utilizes them for specialized services or supplies.

Oversight & Accountability

Oversight for this contract would typically be managed by U.S. Immigration and Customs Enforcement (ICE) contracting officers and program managers. Accountability measures are embedded within the contract terms, requiring adherence to performance standards and reporting. Transparency is generally maintained through contract awards databases, though detailed operational reports may be internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Federal Detention Center Operations
Immigration and Customs Enforcement Contracts
Correctional Facility Management Services
Private Prison Industry Contracts

Risk Flags

Contractor Performance Risk
Operational Security Risk
Detainee Welfare Concerns
Cost Management Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $46.0 million to THE GEO GROUP, INC.. GEO GROUP CONTRACT HSCEDM-12-D-00001 FOR SOUTH TEXAS DETENTION COMPLEX. TASK ORDER HSCEDM-14-J-00008 IGF::OT::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 $46.0 million.

What is the period of performance?

Start: 2013-12-01. End: 2014-11-30.

What is the historical spending pattern for GEO Group with DHS for similar detention services?

Analyzing historical spending for The GEO Group, Inc. with the Department of Homeland Security (DHS) for similar detention services would provide valuable context. This involves examining past contract awards, their values, durations, and the specific services rendered. A trend of consistent or increasing awards might indicate a strong, ongoing relationship and demand for their services. Conversely, fluctuating or decreasing awards could suggest shifts in government strategy, increased competition, or performance issues. Understanding the historical financial commitment helps in assessing the long-term significance of this $46 million contract and its place within the broader landscape of DHS's outsourcing of detention operations.

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

To compare the per-day cost of this contract, we first need to calculate it. The total contract value is $46,037,066.14, and the duration is 364 days. This yields a daily cost of approximately $126,475.46. Comparing this to other ICE detention facilities requires access to data on similar contracts, including their daily operational costs. Factors such as the number of detainees housed, the level of security, medical services provided, and geographic location significantly influence per-day costs. If this contract's daily rate is substantially higher or lower than comparable facilities, it warrants further investigation into the reasons behind the discrepancy, which could relate to service scope, efficiency, or market conditions.

What are the key performance indicators (KPIs) for this contract and how has GEO Group performed against them?

Key Performance Indicators (KPIs) for detention facility contracts typically revolve around operational efficiency, safety, security, detainee welfare, and compliance with regulations. Examples include incident rates (fights, escapes, injuries), medical care quality, food service standards, cleanliness, and timely processing of detainees. Assessing GEO Group's performance against these KPIs would require access to performance reports, inspection findings, and potentially data from oversight bodies or detainee advocacy groups. Consistent positive performance against these metrics would indicate value for money and effective service delivery, while negative trends could signal risks and potential need for corrective actions or contract renegotiation.

What is the risk profile associated with outsourcing detention services to private contractors like GEO Group?

Outsourcing detention services to private contractors like The GEO Group presents several risk categories. Operational risks include potential lapses in security, safety incidents, and failure to meet contractual service standards. Financial risks involve potential cost overruns if not managed effectively, or if the fixed-price contract doesn't account for unforeseen circumstances. Reputational risks can arise from negative publicity concerning detainee treatment, conditions, or contractor conduct. Compliance risks involve ensuring the contractor adheres to all relevant laws, regulations, and ethical standards. The government mitigates these risks through robust contract oversight, performance monitoring, and clear contractual requirements, but inherent risks remain.

How has the total federal spending on detention services evolved over the past five years, and what is GEO Group's market share?

To assess the evolution of federal spending on detention services and GEO Group's market share, one would need to aggregate data from various federal agencies (DHS, DOJ, etc.) that utilize detention facilities. This involves tracking total obligated amounts for detention contracts over the last five fiscal years. Subsequently, GEO Group's awarded contract values within this period would be identified to calculate their market share. An increasing overall federal spend might indicate growing demand or policy shifts, while changes in GEO Group's share could reflect competitive pressures, contract wins/losses, or strategic decisions. This analysis provides a macro view of the detention services market and the contractor's position within it.

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: $46,037,066

Exercised Options: $46,037,066

Current Obligation: $46,037,066

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSCEDM12D00001

IDV Type: IDC

Timeline