DHS awarded $33.4M for detention facility services to The GEO Group, Inc. over 1 year

Contract Overview

Contract Amount: $33,403,427 ($33.4M)

Contractor: THE GEO Group, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2007-04-11

End Date: 2008-04-23

Contract Duration: 378 days

Daily Burn Rate: $88.4K/day

Number of Offers Received: 5

Pricing Type: OTHER (NONE OF THE ABOVE)

Sector: Other

Official Description: DETENTION FACILITY

Place of Performance

Location: TACOMA, PIERCE County, WASHINGTON, 98421

State: Washington Government Spending

Plain-Language Summary

Department of Homeland Security obligated $33.4 million to THE GEO GROUP, INC. for work described as: DETENTION FACILITY Key points: 1. Contract value appears reasonable for the duration and scope of services. 2. Limited competition may have impacted final pricing. 3. Contract duration and potential for extensions present moderate risk. 4. Services are critical for immigration enforcement operations. 5. The GEO Group is a major provider of detention services. 6. Spending on detention facilities is a significant component of immigration enforcement budgets.

Value Assessment

Rating: good

The total award of $33.4 million over approximately one year for detention facility services appears to be within a reasonable range for the scope of services provided by The GEO Group, Inc. Benchmarking against similar contracts for detention services is challenging due to variations in facility size, location, and service requirements. However, the per-diem rate implied by the total award and the number of detainees (if available) would be a key metric for a more precise value assessment. Without specific per-diem data, a direct comparison is difficult, but the overall contract value suggests a substantial commitment to these services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was likely competed on a limited basis, potentially through existing indefinite-delivery/indefinite-quantity (IDIQ) contracts or specific solicitations targeting pre-qualified providers. The number of bidders is not explicitly stated, but the nature of specialized detention services often leads to a limited pool of qualified contractors. This limited competition can sometimes result in less aggressive pricing compared to full and open competition, as the government has fewer options to choose from.

Taxpayer Impact: Limited competition means taxpayers may not have benefited from the most competitive pricing achievable through a broader solicitation process. This could translate to higher costs for detention services.

Public Impact

Immigrants in federal custody benefit from the provision of secure detention facilities. Services include housing, security, and potentially other support functions for detainees. The geographic impact is localized to the facility's operational area. The contract supports jobs within the private corrections and security sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if service demands exceed initial projections.
Reliance on a single contractor for critical detention services can create dependency.
Ensuring consistent quality of care and security across the contract duration.

Positive Signals

The GEO Group has extensive experience in managing detention facilities.
Contract specifies security and operational standards to be met.
DHS oversight mechanisms are in place to monitor performance.

Sector Analysis

The private detention services sector is a significant part of the broader corrections and security industry. This contract falls within the government services segment, specifically focusing on immigration detention. The market is characterized by a few large, established players like The GEO Group, CoreCivic, and Management and Training Corporation. Spending in this sector is closely tied to immigration policy and enforcement priorities, making it subject to fluctuations based on political and administrative changes.

Small Business Impact

This contract does not appear to have a small business set-aside component. The nature of large-scale detention facility operations typically requires significant resources and experience, often favoring larger, established corporations. There is no explicit information regarding subcontracting opportunities for small businesses within this specific award, though larger contractors may engage small businesses for ancillary services.

Oversight & Accountability

Oversight for this contract would typically be managed by U.S. Immigration and Customs Enforcement (ICE) within DHS. Mechanisms likely include contract officers' representatives (CORs) who monitor performance, site visits, and regular reporting requirements. Transparency is generally maintained through contract award databases, but detailed operational oversight reports may not always be publicly accessible. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse related to the contract.

Related Government Programs

Immigration and Customs Enforcement Operations
Detention and Corrections Services
Federal Law Enforcement Support Services

Risk Flags

Contract Duration and Option Periods
Performance Quality Concerns
Limited Competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $33.4 million to THE GEO GROUP, INC.. DETENTION FACILITY

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 $33.4 million.

What is the period of performance?

Start: 2007-04-11. End: 2008-04-23.

What is the historical spending trend for detention facility services by DHS?

Historical spending by the Department of Homeland Security (DHS) on detention facility services has been substantial and generally increasing over the past decade, driven by evolving immigration policies and enforcement efforts. While specific figures fluctuate annually, DHS consistently allocates billions of dollars towards detention and related services. This includes contracts with private operators for immigration detention centers, as well as costs associated with federal facilities. Factors influencing spending include the number of individuals apprehended, asylum claim processing times, and judicial decisions. Analyzing year-over-year trends reveals shifts in operational capacity and contractor reliance, often reflecting changes in administration priorities and border security measures. The $33.4 million awarded in this instance represents a portion of that larger, ongoing federal commitment to detention infrastructure and operations.

How does The GEO Group's performance on similar contracts compare?

The GEO Group, Inc. has a long and extensive track record of operating detention facilities for various federal agencies, including DHS and ICE. Performance reviews and government audits of their facilities have yielded mixed results over the years. While the company generally meets contractual obligations for security and basic services, concerns have been raised in various reports regarding conditions, staffing levels, and healthcare provision at some of its facilities. Government accountability offices and inspector general reports have sometimes identified deficiencies that required corrective action. However, The GEO Group remains a primary contractor due to its capacity and experience. Assessing performance on this specific $33.4 million contract would require examining contemporaneous performance metrics and any official evaluations conducted during its term.

What are the key performance indicators (KPIs) for detention facility contracts?

Key performance indicators (KPIs) for detention facility contracts typically revolve around safety, security, and humane treatment of detainees, alongside operational efficiency. These often include metrics such as incident rates (e.g., assaults, escapes, self-harm), detainee grievance resolution times, staffing levels and turnover, compliance with facility standards (e.g., cleanliness, food service, medical care access), and adherence to operational schedules. Government agencies like ICE monitor these KPIs through regular inspections, audits, and performance reports submitted by the contractor. Failure to meet these KPIs can result in contractual penalties, mandatory corrective action plans, or even termination of the contract. The specific KPIs for this $33.4 million contract would be detailed in the contract's Performance Work Statement (PWS).

What is the typical profit margin for private detention facility operators?

Profit margins for private detention facility operators can vary significantly based on contract terms, operational efficiency, and the specific services included. While exact figures are often proprietary, industry analyses and government reports suggest that profit margins can range from the low single digits to potentially 10-15% or higher in some cases. Factors influencing profitability include the per diem rate negotiated, occupancy levels, labor costs, and the extent of services required (e.g., medical care, transportation). Contracts that are more comprehensive or have higher risk elements may command higher rates. Government oversight and competitive bidding processes aim to ensure that profits remain reasonable and do not lead to excessive costs for taxpayers. Detailed financial analyses of specific contracts are often not publicly available.

How has the use of private detention facilities evolved over time?

The use of private detention facilities by the U.S. government, particularly for immigration detention, has evolved significantly since the late 1980s and early 1990s. Initially, private facilities were used to supplement federal capacity. However, with increasing numbers of border apprehensions and shifts in immigration enforcement policies, reliance on private contractors has grown substantially. This trend has been driven by the need for flexible capacity that can be scaled up or down relatively quickly compared to building and maintaining government-owned facilities. The private sector offers specialized expertise in facility management and security. However, this reliance has also drawn criticism regarding cost-effectiveness, oversight challenges, and concerns about the quality of care and human rights. Recent policy shifts have sometimes aimed to reduce reliance on private facilities, though they remain a critical component of the detention system.

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

Contractor Details

Address: 1 PARK PL STE 700 621 NW 53RD ST, BOCA RATON, FL, 23

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

Financial Breakdown

Contract Ceiling: $33,403,427

Exercised Options: $33,403,427

Current Obligation: $33,403,427

Parent Contract

Parent Award PIID: HSCEAL02C0004

IDV Type: IDC

Timeline