DHS awarded $36.8M for detention facility guard services to The GEO Group, Inc. over 4 years

Contract Overview

Contract Amount: $36,873,782 ($36.9M)

Contractor: THE GEO Group, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2005-04-24

End Date: 2009-04-23

Contract Duration: 1,460 days

Daily Burn Rate: $25.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DETENION FACILITY GUARD SERVICES

Place of Performance

Location: SARASOTA, SARASOTA County, FLORIDA, 34236

State: Florida Government Spending

Plain-Language Summary

Department of Homeland Security obligated $36.9 million to THE GEO GROUP, INC. for work described as: DETENION FACILITY GUARD SERVICES Key points: 1. The contract value represents a significant investment in detention facility operations. 2. Competition dynamics for this contract warrant further examination due to its specific award type. 3. Performance history and potential risks associated with private detention facility management are key indicators. 4. This contract falls within the broader context of immigration enforcement and detention services. 5. The services provided are critical for maintaining secure and orderly detention centers.

Value Assessment

Rating: fair

Benchmarking the value-for-money for detention facility guard services is complex, as it depends on the specific security requirements, facility size, and location. The $36.8 million awarded over four years averages to approximately $9.2 million annually. Without comparable contract data for similar facilities and service levels, a precise value assessment is challenging. However, the firm-fixed-price structure suggests that the contractor bears the risk of cost overruns, which can be a positive indicator for the government if managed effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while an initial broad competition may have occurred, specific sources were later excluded, leading to a more limited pool of bidders. The exact reasons for exclusion and the number of bidders that remained are not detailed in the provided data. A limited competition can sometimes lead to less competitive pricing compared to full and open competition.

Taxpayer Impact: The limited competition may have resulted in higher costs for taxpayers than if a broader range of potential providers had been able to bid without exclusion.

Public Impact

The primary beneficiaries are U.S. Immigration and Customs Enforcement (ICE) and the Department of Homeland Security (DHS), ensuring operational capacity for detention facilities. The services delivered include security guard and patrol services essential for the safe and secure operation of detention centers. The geographic impact is concentrated in Florida, where the contract is being performed. Workforce implications include the employment of security personnel by the contractor, The GEO Group, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if not managed tightly under the firm-fixed-price contract.
Dependence on a single contractor for critical security services.
Concerns regarding the quality of services and adherence to standards in private detention facilities.
Limited competition may impact price competitiveness.
Potential for service disruptions if contractor performance issues arise.

Positive Signals

Firm-fixed-price contract structure shifts cost risk to the contractor.
The GEO Group, Inc. is an established provider of correctional and detention services.
The contract duration provides stability for service delivery.
Services are essential for meeting DHS operational requirements.

Sector Analysis

The contract falls within the Security Guards and Patrol Services sector (NAICS 561612), which is a component of the broader private security industry. This industry is characterized by a mix of large, established firms and smaller specialized companies. Government contracts for security services, particularly for detention facilities, represent a significant market segment. Benchmarking this contract's value against other federal detention facility contracts would provide further context on pricing and service scope.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. Therefore, there are no direct subcontracting implications for small businesses mandated by this award. The primary contractor, The GEO Group, Inc., is a large corporation, and its internal subcontracting practices would determine any indirect impact on the small business ecosystem.

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 would be embedded in the contract's performance standards and reporting requirements. Transparency is generally facilitated through contract award databases, though detailed performance metrics may not always be publicly available. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse related to the contract.

Related Government Programs

Federal Prison System Contracts
Immigration Detention Services
Homeland Security Contracts
Private Security Services Contracts

Risk Flags

Limited competition may impact price.
Contractor performance history requires monitoring.
Potential for service quality issues in private detention facilities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $36.9 million to THE GEO GROUP, INC.. DETENION FACILITY GUARD 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 $36.9 million.

What is the period of performance?

Start: 2005-04-24. End: 2009-04-23.

What is the track record of The GEO Group, Inc. in providing detention facility guard services to the federal government?

The GEO Group, Inc. is a well-established private operator of correctional, detention, and community reentry facilities. They have a long history of contracting with federal agencies, including the Department of Homeland Security (DHS) and the Federal Bureau of Prisons (BOP). Their track record includes managing numerous facilities across the United States and internationally. While they are a significant player in the industry, their performance has also been subject to scrutiny regarding conditions within facilities, labor practices, and contract compliance. Reviews and audits by government oversight bodies and advocacy groups have sometimes raised concerns, while other assessments may highlight their capacity to manage large-scale operations. Specific performance data for this particular contract would be needed for a precise evaluation.

How does the pricing of this contract compare to similar detention facility guard service contracts?

Direct comparison of pricing for this $36.8 million, four-year contract for detention facility guard services is challenging without access to a comprehensive database of similar federal contracts. Factors such as facility size, inmate population, security levels required, geographic location (affecting labor costs), and the specific scope of services (e.g., medical, food services included or separate) significantly influence pricing. The firm-fixed-price nature of this contract suggests a defined cost expectation. To benchmark effectively, one would need to identify contracts with comparable facility types (e.g., immigration detention centers), bed capacity, and service requirements awarded around the same period. Without such granular data, assessing whether the price represents good value-for-money is difficult.

What are the primary risks associated with contracting for detention facility guard services, and how are they mitigated in this contract?

Key risks in contracting for detention facility guard services include potential lapses in security leading to escapes or disturbances, inadequate staffing levels or training, and failure to meet operational standards or humane treatment protocols. There's also the risk of contractor misconduct or fraud. This contract, being firm-fixed-price, shifts some financial risk to The GEO Group, Inc., incentivizing cost control. Mitigation strategies typically involve robust performance monitoring by the government agency (ICE/DHS), adherence to detailed performance work statements (PWS), regular inspections, and contractual remedies for non-performance, such as penalties or termination. The 'limited competition' aspect, however, might introduce a risk of reduced pressure on the contractor to maintain optimal performance if alternatives are scarce.

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

U.S. Immigration and Customs Enforcement (ICE) has historically allocated substantial funding towards detention services, including guard services, as a core component of its immigration enforcement mission. Spending in this area has fluctuated based on immigration policy, enforcement priorities, and the number of individuals in detention. Over the years, ICE's budget for detention operations, which encompasses facility management and staffing, has often been in the billions of dollars annually. Contracts for guard services represent a significant portion of this operational budget. Analyzing historical spending patterns would reveal trends in contract values, durations, and the prevalence of specific contractors like The GEO Group, Inc., often showing a consistent reliance on private sector providers for these services.

How does the contract type ('FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES') impact the government's ability to secure competitive pricing?

The contract type 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests an initial broad solicitation, but with subsequent limitations placed on eligible bidders. This approach can be used for various reasons, such as ensuring specific technical capabilities or addressing national security concerns related to certain entities. However, excluding potential bidders, even if justified, inherently reduces the competitive landscape. A smaller pool of bidders generally leads to less price pressure compared to a truly full and open competition where all qualified sources can participate without restriction. Therefore, this award mechanism may have constrained the government's ability to achieve the most competitive pricing possible, potentially leading to higher costs for taxpayers than if the exclusion had not occurred.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Guards and Patrol Services

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1 PARK PL STE 700 621 NW 53RD ST, BOCA RATON, FL, 33487

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $475,525,703

Exercised Options: $45,207,169

Current Obligation: $36,873,782

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HSCEAL02C0004

IDV Type: IDC

Timeline