DHS awards $23.9M for detention, transportation, and food services to The GEO Group, Inc

Contract Overview

Contract Amount: $23,915,076 ($23.9M)

Contractor: THE GEO Group, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2014-10-23

End Date: 2015-09-27

Contract Duration: 339 days

Daily Burn Rate: $70.5K/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

State: Washington Government Spending

Plain-Language Summary

Department of Homeland Security obligated $23.9 million to THE GEO GROUP, INC. for work described as: IGF::CT::IGF - CRITICAL FUNCTIONS. DETENTION, TRANSPORTATION AND FOOD SERVICES Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 3. The duration of 339 days indicates a short-term operational need. 4. The contract value is substantial for the services provided. 5. The services are critical for detention operations. 6. The award was a single delivery order, suggesting a specific, defined task.

Value Assessment

Rating: fair

The contract value of $23.9 million for a 339-day period for detention, transportation, and food services appears to be within a reasonable range for such critical support functions. Benchmarking against similar contracts for detention facilities and services is necessary for a definitive value assessment. However, the firm-fixed-price nature of the contract helps control costs for the government, provided the scope is well-defined and managed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The fact that it resulted in a single delivery order suggests that while the competition was open, only one bid was deemed suitable or the scope was highly specific. A single award from an open competition could imply either a highly specialized service or potential challenges in attracting multiple competitive bids for this particular requirement.

Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it aims to secure the best value through a competitive process, potentially driving down prices and improving service quality.

Public Impact

The primary beneficiaries are U.S. Immigration and Customs Enforcement (ICE) and the individuals in their custody, who will receive essential services. Services delivered include detention, transportation, and food services, crucial for the operational needs of ICE. The geographic impact is likely concentrated in the Washington, D.C. area, as indicated by the state code 'WA'. Workforce implications include employment opportunities for personnel involved in providing these support services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the scope of work is not precisely managed under the firm-fixed-price contract.
Dependence on a single contractor for critical services could pose a risk if performance issues arise.
The short duration might indicate a stop-gap measure, raising questions about long-term service planning.

Positive Signals

Awarded through full and open competition, suggesting a fair and transparent process.
Firm-fixed-price contract type provides cost certainty for the government.
The services provided are essential for the government's detention and immigration enforcement operations.

Sector Analysis

This contract falls within the Facilities Support Services sector, specifically catering to government detention operations. This niche market often involves specialized providers with experience in secure environments. The total contract value of approximately $23.9 million for a less-than-one-year period is significant, reflecting the high operational costs associated with detention services. Comparable spending benchmarks would typically involve analyzing per diem rates for detention services across different jurisdictions and providers.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a small business set-aside. The primary contractor, The GEO Group, Inc., is a large corporation, and its subcontracting practices would need to be assessed separately if applicable to this specific award.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Immigration and Customs Enforcement (ICE) contracting officers and program managers. Accountability measures are inherent in the firm-fixed-price contract structure, which penalizes contractor cost overruns. Transparency is generally facilitated through contract award databases, though specific performance metrics and oversight reports may not always be publicly available.

Related Government Programs

Immigration Detention Services
Correctional Facility Management
Government Support Services
Transportation Services Contracts
Food Services Contracts

Risk Flags

Potential for performance issues impacting detainee welfare.
Risk of cost increases if scope is not tightly managed.
Dependence on contractor for critical, time-sensitive services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $23.9 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 $23.9 million.

What is the period of performance?

Start: 2014-10-23. End: 2015-09-27.

What is the track record of The GEO Group, Inc. in providing similar detention, transportation, and food services to government agencies?

The GEO Group, Inc. is a well-established private operator of correctional and detention facilities, as well as providing a range of community and reintegration services. They have a significant history of contracting with federal, state, and local government agencies in the United States and internationally. Their experience spans managing prisons, juvenile detention centers, and immigration detention facilities. While they possess extensive experience, their track record has also been subject to scrutiny regarding operational standards, inmate welfare, and cost-effectiveness. Reviews of their past performance often highlight both their capacity to manage large-scale operations and concerns raised by oversight bodies or advocacy groups regarding specific incidents or conditions within facilities they manage. A thorough assessment would require examining specific performance evaluations and any documented disputes or corrective actions related to prior contracts.

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

To compare the per-day cost, we first calculate it from the provided data: $23,915,075.97 / 339 days = approximately $70,546 per day. This figure represents the total daily cost for all services (detention, transportation, food) provided under this specific contract. Benchmarking this against other ICE detention contracts requires access to similar data for comparable contracts. ICE contracts can vary significantly based on location, security levels, services included, and the specific needs of the detainee population. Generally, per-day costs for immigration detention can range widely, from under $100 to several hundred dollars per detainee per day, depending on these factors. Without specific comparable contract data, it is difficult to definitively state whether $70,546 per day is high or low. However, this figure likely represents the total operational cost for a facility or a significant service package, rather than a per-detainee cost, which would be a more common metric for direct comparison.

What are the primary risks associated with a firm-fixed-price contract for detention services?

The primary risk with a firm-fixed-price (FFP) contract for detention services, while generally favorable for cost control, lies in the potential for scope creep or unforeseen operational challenges. If the scope of services is not meticulously defined and managed, the contractor may face increased costs due to factors beyond their control (e.g., unexpected detainee needs, security incidents requiring enhanced measures). In such scenarios, the contractor might seek change orders, potentially negating the FFP benefit. Conversely, if the contractor attempts to cut corners to maintain profitability under an FFP contract, it could lead to substandard service delivery, impacting detainee welfare and facility safety. Effective government oversight is crucial to ensure the contractor meets all contractual obligations without compromising quality or safety, and to manage any necessary contract modifications judiciously.

What is the historical spending trend for detention, transportation, and food services by ICE?

Historical spending by ICE on detention, transportation, and food services has been substantial and generally increasing over the past decade, reflecting evolving immigration policies and enforcement priorities. ICE's budget allocates significant portions to detention operations, which encompass facility management, detainee care, and transportation. Spending trends are influenced by factors such as the number of individuals in custody, the duration of detention, and the types of facilities utilized (government-owned vs. contract facilities). While specific figures for 'detention, transportation, and food services' as a distinct category can fluctuate, the overall expenditure on detention infrastructure and operations represents a major component of ICE's budget. Analyzing year-over-year spending patterns, contract awards, and the average daily population in detention provides insight into these trends. It's important to note that spending can also be impacted by legislative changes, court orders, and shifts in operational strategies.

What are the implications of this contract being a single delivery order under a larger contract vehicle?

This contract represents a single delivery order (aw: DELIVERY ORDER) issued against a potentially larger contract vehicle or agreement. The implications are that the overall contract may have been established previously, possibly through a broader solicitation or indefinite-delivery/indefinite-quantity (IDIQ) contract. This specific delivery order then defines the scope, price, and period of performance for a particular task or requirement. For taxpayers, a single delivery order under a pre-existing vehicle can sometimes indicate efficiency, as the initial competition and vetting of the base contract may have already occurred. However, it also means that the competition for this specific task might have been limited to the awardee(s) of the base contract, rather than a fresh, full-and-open competition for this particular order. The 'full and open competition' noted in the data likely refers to the competition for the base contract vehicle itself, not necessarily for this specific delivery order if it was awarded under an existing IDIQ.

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

Solicitation ID: HSCEDM-09-R-00003

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: $23,915,076

Exercised Options: $23,915,076

Current Obligation: $23,915,076

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSCEDM10D00001

IDV Type: IDC

Timeline