DHS's $60M detention services contract awarded to The Geo Group, Inc. shows fair value

Contract Overview

Contract Amount: $59,949,555 ($59.9M)

Contractor: THE GEO Group, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2015-09-28

End Date: 2016-09-27

Contract Duration: 365 days

Daily Burn Rate: $164.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CT::IGF 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 $59.9 million to THE GEO GROUP, INC. for work described as: IGF::CT::IGF DETENTION, TRANSPORTATION AND FOOD SERVICES Key points: 1. The contract represents a significant investment in detention and transportation services. 2. Competition was robust, suggesting potential for competitive pricing. 3. Performance history and risk indicators will be crucial for ongoing oversight. 4. This contract falls within the broader Facilities Support Services sector. 5. The awardee has a substantial presence in the corrections and detention industry.

Value Assessment

Rating: fair

The contract's value of approximately $60 million over one year appears reasonable when benchmarked against similar large-scale detention and transportation service contracts. While specific per-unit cost data is not provided, the firm-fixed-price structure suggests that the government has a clear understanding of the total cost. However, without detailed breakdowns of service components and their associated costs, a definitive value-for-money assessment is challenging. Further analysis of the contractor's historical performance and cost efficiency on similar contracts would be beneficial.

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 were likely considered. The presence of a competitive bidding process is generally positive for price discovery and ensuring that the government receives competitive offers. The number of bidders and the specifics of the evaluation process would provide further insight into the strength of the competition.

Taxpayer Impact: Full and open competition typically leads to better pricing for taxpayers by fostering a competitive environment among potential service providers.

Public Impact

Benefits individuals requiring immigration detention and transportation services. Ensures the provision of essential services for U.S. Immigration and Customs Enforcement (ICE) operations. Impacts workforce in areas where detention facilities are operated. Supports the logistical and operational needs of a major federal law enforcement agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if service demands exceed initial projections.
Ensuring consistent quality of services across all contracted facilities.
Monitoring contractor compliance with detention standards and regulations.

Positive Signals

Awarded under full and open competition, suggesting competitive pricing.
Firm-fixed-price contract provides cost certainty for the government.
Contract duration allows for stable service provision.

Sector Analysis

This contract falls within 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 substantial, driven by government demand. Comparable spending benchmarks would involve analyzing other large federal contracts for correctional facility management and inmate services, which often involve significant annual expenditures.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside. Therefore, there is no direct indication of small business participation through a set-aside. Subcontracting opportunities for small businesses may exist, but this would depend on the prime contractor's subcontracting plan and the nature of the services required. The overall impact on the small business ecosystem is likely indirect unless specific subcontracting goals are mandated.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Immigration and Customs Enforcement (ICE) contracting officer's representative (COR) and contracting officer (CO). Accountability measures are embedded within the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract award databases, though detailed operational performance data may be less publicly accessible. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse.

Related Government Programs

Federal Prison System Contracts
Immigration Detention Services
Correctional Facility Management
Government Transportation Services

Risk Flags

Contractor performance history
Quality of services and conditions
Cost efficiency and value for money
Compliance with regulations and standards

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $59.9 million to THE GEO GROUP, INC.. IGF::CT::IGF 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 $59.9 million.

What is the period of performance?

Start: 2015-09-28. End: 2016-09-27.

What is the contractor's track record with similar federal contracts?

The Geo Group, Inc. has a significant history of managing correctional and detention facilities for federal, state, and local governments. They have held numerous contracts with agencies such as the Bureau of Prisons and U.S. Immigration and Customs Enforcement (ICE). Their track record includes managing large-scale facilities and providing a range of services including detention, transportation, and food services. While they are an established provider, like many large contractors in this sector, they have also faced scrutiny and legal challenges related to operational conditions, labor practices, and contract performance in some of their facilities. A thorough review would involve examining past performance evaluations and any significant disputes or litigation.

How does the awarded price compare to market rates for detention services?

Benchmarking the awarded price of approximately $60 million against market rates for detention services requires detailed cost breakdowns not available in the provided data. However, given the scale and duration (one year), the price appears to be within the expected range for large federal contracts of this nature. Market rates are influenced by factors such as geographic location, security requirements, level of services (medical, food, transportation), and the specific population being detained. The firm-fixed-price nature suggests the government aimed for cost certainty. A more precise comparison would necessitate analyzing per diem rates charged by comparable private detention facility operators and other government contracts for similar services.

What are the primary risk indicators associated with this contract?

Key risk indicators for this contract include potential issues related to the quality of care and living conditions within detention facilities, which have been areas of public concern and regulatory oversight for private detention operators. Another risk is the potential for cost overruns if unforeseen operational challenges arise or if the scope of services needs to expand beyond initial projections, despite the firm-fixed-price structure. Contractor performance, including adherence to safety protocols, staffing levels, and timely transportation, is also a critical risk area. Furthermore, reputational risk for the government can arise from negative publicity associated with the contractor's operations.

How effective has the contractor been in delivering detention and transportation services historically?

The effectiveness of The Geo Group, Inc. in delivering detention and transportation services historically is a complex assessment with varied feedback. They are a major provider and have successfully managed numerous contracts, indicating a capacity to meet basic service requirements. However, effectiveness can be measured differently. From an operational standpoint, they generally fulfill contract obligations. From a human rights and quality of care perspective, their performance has been subject to criticism and legal challenges in various jurisdictions, focusing on issues like staffing, inmate safety, and healthcare provision. Government performance evaluations and Inspector General reports would offer a more direct assessment of their effectiveness on specific contracts.

What are the historical spending patterns for similar detention services by DHS?

Historical spending patterns for detention and transportation services by the Department of Homeland Security (DHS), particularly through U.S. Immigration and Customs Enforcement (ICE), have been substantial and have generally trended upwards over the past two decades, reflecting evolving immigration policies and enforcement priorities. Annual spending often runs into billions of dollars, encompassing contracts with multiple private prison and detention facility operators. This specific contract for approximately $60 million represents a portion of that larger expenditure. Analyzing historical data reveals fluctuations based on border apprehensions, detention policies, and congressional appropriations, with significant portions allocated to facility operations, staffing, and inmate support services.

What is the typical duration and value of contracts for detention services?

Contracts for detention services, especially those managed by ICE, can vary significantly in duration and value. While some may be short-term or task orders, larger contracts for operating entire facilities often span multiple years, typically ranging from 3 to 5 years, with options for extensions. The value is highly dependent on the number of beds, the services provided (e.g., medical, food, transportation), and the geographic location. Annual values can range from tens of millions to hundreds of millions of dollars per contract. The contract in question, with a value of $60 million for a one-year term, is a moderate-sized contract within this sector, likely covering a specific facility or a set of services.

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: $59,949,555

Exercised Options: $59,949,555

Current Obligation: $59,949,555

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSCEDM15D00015

IDV Type: IDC

Timeline