DHS awarded The GEO Group $50.9M for detention facilities support, with option year 3 extending services

Contract Overview

Contract Amount: $50,880,521 ($50.9M)

Contractor: THE GEO Group, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2014-10-23

End Date: 2015-11-30

Contract Duration: 403 days

Daily Burn Rate: $126.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: REFERENCE SOUTH TEXAS DETENTION COMPLEX CONTRACT HSCEDM-12-D-00001 WITH THE GEO GROUP. OPTION YEAR 3 IGF::OT::IGF

Place of Performance

Location: PEARSALL, FRIO County, TEXAS, 78061

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $50.9 million to THE GEO GROUP, INC. for work described as: REFERENCE SOUTH TEXAS DETENTION COMPLEX CONTRACT HSCEDM-12-D-00001 WITH THE GEO GROUP. OPTION YEAR 3 IGF::OT::IGF Key points: 1. The contract value for option year 3 represents a significant investment in detention facility operations. 2. Competition dynamics for this contract are crucial for ensuring cost-effectiveness in detention services. 3. Performance metrics and service delivery quality are key risk indicators for this type of facility management contract. 4. This contract falls within the broader context of federal spending on immigration enforcement and detention. 5. The facilities support services sector is a critical component of government operations, particularly for agencies like ICE.

Value Assessment

Rating: fair

The awarded amount of $50.9 million for option year 3 needs to be benchmarked against similar detention facility contracts. Without comparative data on per-bed costs or service scope, assessing the value-for-money is challenging. The firm-fixed-price structure suggests predictable costs, but the overall pricing should be evaluated against industry standards for facility management and detention services.

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 better pricing and service offerings. The number of bidders and the evaluation criteria would provide further insight into the strength of the competition and its impact on the final award.

Taxpayer Impact: A competitive award process for detention services can lead to taxpayer savings by ensuring the government secures services at a reasonable market rate, preventing potential overcharges.

Public Impact

The primary beneficiaries are U.S. Immigration and Customs Enforcement (ICE) and the Department of Homeland Security (DHS), receiving essential detention facility support. Services delivered include the operation and maintenance of detention facilities, ensuring secure and humane housing for detainees. The geographic impact is concentrated in Texas, where the Reference South Texas Detention Complex is located. Workforce implications include employment opportunities for facility staff, security personnel, and support services within the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if service scope expands beyond initial projections.
Ensuring consistent quality of care and security standards across the contract duration.
Dependence on a single contractor for critical detention infrastructure.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Firm-fixed-price contract type provides cost certainty for the government.
Established contractor with experience in managing detention facilities.

Sector Analysis

The facilities support services sector, particularly for government contracts, is substantial. This contract falls within the broader category of government outsourcing for essential services. Comparable spending benchmarks would involve analyzing other ICE or DHS contracts for detention center operations and management, as well as similar contracts across other federal agencies requiring facility maintenance and support.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify small business set-asides or subcontracting goals. Therefore, the direct impact on small businesses is not evident from this information, and there is no indication of specific subcontracting opportunities being mandated.

Oversight & Accountability

Oversight is typically managed by the contracting agency (ICE/DHS) through contract officers and technical representatives who monitor performance against contract requirements. Accountability measures are embedded in the contract terms, including performance standards and potential penalties for non-compliance. Transparency is generally facilitated through contract award databases, though detailed operational oversight reports may not always be publicly available.

Related Government Programs

Immigration and Customs Enforcement Operations
Detention and Deportation Services
Federal Law Enforcement Support Services
Correctional Facility Management

Risk Flags

Contractor performance history
Potential for cost overruns
Service quality and safety standards
Dependence on a single provider

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $50.9 million to THE GEO GROUP, INC.. REFERENCE SOUTH TEXAS DETENTION COMPLEX CONTRACT HSCEDM-12-D-00001 WITH THE GEO GROUP. OPTION YEAR 3 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 $50.9 million.

What is the period of performance?

Start: 2014-10-23. End: 2015-11-30.

What is the historical spending trend for this specific contract or similar detention facility contracts awarded to The GEO Group by ICE?

Analyzing historical spending for HSCEDM-12-D-00001 reveals a pattern of option year awards, indicating continued service provision. The initial award and subsequent option years would show cumulative spending. To assess trends, one would compare the annual spending for this contract against previous years and against other ICE contracts for detention services awarded to The GEO Group or other providers. This would help identify any significant increases or decreases in cost per detainee or per facility, potentially influenced by contract modifications, inflation adjustments, or changes in operational scope. Without access to the full contract history and all modifications, a precise trend analysis is limited, but the existence of option years suggests a sustained, significant financial commitment.

How does the per-bed cost or per-detainee cost for this contract compare to national averages or benchmarks for similar facilities?

Determining the precise per-bed or per-detainee cost requires knowing the average daily population housed under this contract and the total service cost. If, for example, the $50.9 million option year 3 covered an average of 1,000 beds for 365 days, the approximate daily cost per bed would be around $139. This figure needs to be benchmarked against industry data for private detention facilities and government-operated facilities. National averages can vary widely based on location, security levels, services provided (medical, legal, etc.), and contract terms. If this cost is significantly higher or lower than comparable facilities, it warrants further investigation into the reasons, which could include specialized services, unique operational challenges, or competitive pricing advantages.

What are the key performance indicators (KPIs) outlined in the contract, and how has The GEO Group performed against them?

Key performance indicators for detention facility contracts typically include metrics related to safety and security (e.g., incident rates, escapes), detainee welfare (e.g., access to services, grievance resolution), facility maintenance (e.g., cleanliness, repair response times), and staff performance (e.g., training compliance, turnover rates). The contract documents would specify these KPIs and the acceptable performance thresholds. Performance evaluations are usually conducted by the government's contracting officer's representative (COR). Information on The GEO Group's performance against these KPIs is often found in contract performance reports, Contractor Performance Assessment Reporting System (CPARS) records, or Inspector General reports. Consistent failure to meet KPIs could lead to contract disputes, penalties, or non-renewal.

What is the total federal spending on detention facilities and related services over the past five fiscal years, and what percentage does this contract represent?

Total federal spending on detention facilities and related services, primarily by agencies like ICE and CBP within DHS, has been in the billions of dollars annually. This spending encompasses a wide range of contracts for facility operation, transportation, and support services. To determine the percentage this specific $50.9 million option year represents, one would need to sum the total federal outlays for all detention-related contracts across relevant agencies for a given fiscal year. This contract, while substantial for a single facility's option year, likely represents a small fraction of the overall federal budget allocated to immigration detention infrastructure and operations. A precise percentage requires access to comprehensive federal spending data aggregated by category.

Are there any known issues or controversies related to The GEO Group's performance at this specific facility or other ICE contracts that could impact this award?

The GEO Group, as a major private prison and detention facility operator, has faced scrutiny and controversy regarding conditions, safety, and cost-effectiveness at various facilities nationwide, including those operated for ICE. Issues have ranged from allegations of understaffing and inadequate medical care to security breaches and detainee rights violations. Such controversies can lead to negative press, congressional inquiries, lawsuits, and potentially impact future contract awards or renewals. Government agencies like ICE are expected to consider a contractor's past performance record, including any documented issues or substantiated complaints, during the evaluation and oversight processes for ongoing and future contracts.

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

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: $50,880,521

Exercised Options: $50,880,521

Current Obligation: $50,880,521

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSCEDM12D00001

IDV Type: IDC

Timeline