DHS's $61.1M detention services contract with The Geo Group, Inc. awarded under full and open competition

Contract Overview

Contract Amount: $61,117,009 ($61.1M)

Contractor: THE GEO Group, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2016-09-28

End Date: 2017-09-27

Contract Duration: 364 days

Daily Burn Rate: $167.9K/day

Competition Type: FULL AND OPEN COMPETITION

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 $61.1 million to THE GEO GROUP, INC. for work described as: IGF::CT::IGF DETENTION, TRANSPORTATION AND FOOD SERVICES Key points: 1. Contract awarded to a single large business, raising questions about small business participation. 2. The contract's duration of 364 days suggests a focus on short-term operational needs. 3. Fixed-price contract type may offer cost certainty but could limit flexibility for evolving requirements. 4. The 'WA' status code requires further investigation to understand its implications. 5. Spending in Facilities Support Services (NAICS 561210) is a significant category for DHS.

Value Assessment

Rating: fair

The total award amount of $61.1 million for a 364-day contract appears substantial for facilities support services. Benchmarking against similar contracts for detention, transportation, and food services would be necessary to determine if this represents good value. Without specific performance metrics or comparisons to other providers, assessing the true value-for-money is challenging. The fixed-price nature of the contract suggests a defined scope, but the overall cost needs to be evaluated against the quality and scope of services delivered.

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 offers. The data does not specify the number of bidders, which is crucial for assessing the level of competition. A robust competition typically leads to better pricing and service innovation. If only a few bids were received, it could suggest market limitations or a lack of interest from potential contractors, potentially impacting price discovery.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages a wider range of offers, potentially driving down costs and improving service quality through market forces.

Public Impact

Benefits individuals requiring detention, transportation, and food services under federal custody. Services are delivered within the geographic scope of Washington (SN: WA). Supports operational needs of U.S. Immigration and Customs Enforcement (ICE). The contract likely impacts the workforce employed by The Geo Group, Inc. in service delivery roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detail on the number of bidders in the full and open competition.
The 'WA' status code requires clarification regarding its operational or administrative implications.
Absence of performance metrics makes it difficult to assess service quality and effectiveness.
Potential for limited small business subcontracting opportunities given the award to a single large business.

Positive Signals

Awarded through full and open competition, suggesting an effort to maximize market participation.
Fixed-price contract type provides cost predictability for the government.
The contract addresses essential operational requirements for ICE.

Sector Analysis

This contract falls within the Facilities Support Services sector (NAICS 561210), a broad category encompassing a wide range of services necessary for the operation and maintenance of facilities. Spending in this sector is critical for government agencies to manage their physical infrastructure and operational needs. Comparable spending benchmarks would involve analyzing other contracts for similar services, particularly those related to correctional facilities, detention centers, and government building management, to understand cost drivers and market rates.

Small Business Impact

The contract was awarded to The Geo Group, Inc., a large business, and the data indicates no small business set-aside (SB: false). This suggests that small businesses may not have been primary recipients of this prime contract. Further analysis would be needed to determine if subcontracting opportunities were made available to small businesses and how effectively they were utilized. The impact on the small business ecosystem depends heavily on the subcontracting plan, if any.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program officials within U.S. Immigration and Customs Enforcement (ICE). The contract type (Firm Fixed Price) implies a focus on adherence to the agreed-upon price and scope. Transparency is generally facilitated through contract award databases, but detailed performance reports and Inspector General audits would provide deeper insights into accountability and effectiveness. The specific oversight mechanisms for detention, transportation, and food services contracts are critical given the sensitive nature of the services.

Related Government Programs

Detention Services
Immigration and Customs Enforcement Contracts
Facilities Management Contracts
Government Support Services

Risk Flags

Potential for service quality degradation due to fixed-price incentive.
Contractor financial viability risk if costs exceed estimates.
Need for robust performance monitoring to ensure compliance.
Limited visibility into subcontractor performance if applicable.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $61.1 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 $61.1 million.

What is the period of performance?

Start: 2016-09-28. End: 2017-09-27.

What is the historical spending pattern for detention, transportation, and food services by U.S. Immigration and Customs Enforcement (ICE)?

Analyzing historical spending patterns for ICE in the 'detention, transportation, and food services' category reveals trends in resource allocation and contractor reliance. Prior to this $61.1 million award in 2016-2017, ICE consistently allocated significant funds to these services, often through multiple contracts with various providers. Spending in this area is driven by fluctuating detainee populations and evolving immigration policies. Examining data from preceding years would show whether this contract represented an increase, decrease, or continuation of previous spending levels. It would also highlight if ICE has historically relied on a few large providers or a broader base of smaller contractors. Understanding these patterns is crucial for assessing the long-term financial commitment and operational strategy of ICE in managing its detention facilities and services.

How does the per-unit cost of services under this contract compare to industry benchmarks for detention facilities?

Determining the per-unit cost for services under this $61.1 million contract requires breaking down the total award by the specific services rendered (detention, transportation, food) and the expected volume or number of individuals served over the 364-day period. Without this granular data, a direct comparison to industry benchmarks is difficult. However, general benchmarks for per-diem costs in detention facilities can range significantly based on location, security levels, and the scope of services included. If this contract covers comprehensive services, its per-unit cost would need to be evaluated against the average daily cost per detainee reported by similar government or private facilities. A higher per-unit cost might be justifiable if the contract includes specialized services or operates in a high-cost region, but it warrants scrutiny to ensure cost-effectiveness and prevent overpayment.

What is the track record of The Geo Group, Inc. in fulfilling similar government contracts, particularly with DHS or ICE?

The Geo Group, Inc. has a substantial track record as a private operator of correctional and detention facilities for government agencies, including the Department of Homeland Security (DHS) and its component, U.S. Immigration and Customs Enforcement (ICE). They have been awarded numerous contracts over the years for managing detention centers, providing transportation services, and offering related support. Performance reviews and past performance evaluations associated with these prior contracts are critical indicators of their reliability, quality of service, and adherence to contractual obligations. While their extensive experience suggests familiarity with government requirements, it's also important to consider any past controversies, legal challenges, or findings of non-compliance related to their operations, as these could indicate potential risks for future contracts. A thorough review of their past performance history with ICE and DHS would provide valuable context for assessing the risk associated with this specific award.

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

Firm fixed-price (FFP) contracts, while offering cost certainty to the government, can introduce specific risks when applied to complex and potentially variable services like detention, transportation, and food services. One primary risk is that the contractor, The Geo Group, Inc., might be incentivized to cut corners on service quality, staffing levels, or amenities to maximize profit margins if the actual costs exceed their initial estimates. This could lead to substandard conditions for detainees, increased security risks, or inadequate food services. Conversely, if the contractor significantly underestimates costs or faces unforeseen circumstances (e.g., unexpected detainee population surges, medical emergencies), they might seek contract modifications or face financial distress, potentially impacting service continuity. The government's ability to enforce strict performance standards and conduct thorough oversight is crucial to mitigate these risks under an FFP structure.

How does the geographic location (Washington state) influence the cost and delivery of these services?

The geographic location specified as 'WA' (Washington) for this contract can influence both the cost and the delivery of detention, transportation, and food services. Operating costs in Washington, particularly in metropolitan areas, may be higher due to factors such as labor costs, real estate prices, and regulatory requirements compared to other regions. This could translate into higher per-unit service costs. Furthermore, the logistics of transportation services within Washington and potentially to/from other locations would be affected by the state's geography, infrastructure, and traffic conditions. The availability of suitable facilities for detention and the local labor pool for staffing these facilities are also geographically dependent. Therefore, the 'WA' designation suggests that the contract pricing and operational plans were likely tailored to the specific economic and logistical conditions prevalent in that state.

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: $61,117,009

Exercised Options: $61,117,009

Current Obligation: $61,117,009

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSCEDM15D00015

IDV Type: IDC

Timeline