DOJ awards $31.8M for detention services, with GEO Secure Services winning a firm-fixed-price contract

Contract Overview

Contract Amount: $31,815,183 ($31.8M)

Contractor: GEO Secure Services, LLC

Awarding Agency: Department of Justice

Start Date: 2022-12-23

End Date: 2023-12-22

Contract Duration: 364 days

Daily Burn Rate: $87.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMPREHENSIVE DETENTION SERVICES FOR THE EL CENTRO SERVICE PROCESSING CENTER LOCATED IN EL CENTRO, CA

Place of Performance

Location: BOCA RATON, PALM BEACH County, FLORIDA, 33431

State: Florida Government Spending

Plain-Language Summary

Department of Justice obligated $31.8 million to GEO SECURE SERVICES, LLC for work described as: COMPREHENSIVE DETENTION SERVICES FOR THE EL CENTRO SERVICE PROCESSING CENTER LOCATED IN EL CENTRO, CA Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The firm-fixed-price structure shifts cost risk to the contractor. 3. The contract duration is one year, indicating a need for ongoing services. 4. The service category is Facilities Support Services, a common requirement for government agencies. 5. The award amount is substantial, reflecting the scale of detention operations. 6. The contractor, GEO Secure Services, LLC, is a known entity in the corrections sector.

Value Assessment

Rating: fair

Benchmarking the value of this contract requires comparison to similar detention service contracts, which can vary significantly based on location, capacity, and specific service requirements. The firm-fixed-price nature of the award is standard for such services, aiming to control costs. However, without detailed service level agreements and performance metrics, a precise value-for-money assessment is challenging. The provided data does not include per-unit costs for inmate housing or services, making direct cost comparisons difficult.

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 a bid. The number of bidders is not specified, but this method generally promotes price discovery and allows the government to select the most advantageous offer. The competitive nature should theoretically lead to more favorable pricing for the government compared to sole-source or limited competition scenarios.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure services at the best possible price, reducing the risk of overpayment.

Public Impact

The primary beneficiaries are the U.S. Marshals Service and the Department of Justice, who receive essential detention services. The contract ensures the provision of secure and humane detention facilities for individuals in federal custody. The geographic impact is localized to El Centro, California, where the Service Processing Center is located. The contract supports jobs within the private corrections industry, contributing to the local and national workforce in this sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen operational issues arise, despite the fixed-price nature.
Reliance on a single contractor for critical detention services could pose continuity risks.
Ensuring consistent quality of care and adherence to detention standards requires robust oversight.

Positive Signals

Firm-fixed-price contract shifts cost risk to the contractor.
Awarded through full and open competition, suggesting a competitive market.
Contractor is an established provider in the detention services industry.

Sector Analysis

The detention services sector is a significant part of the private corrections industry, often contracted by federal, state, and local governments. This contract falls within Facilities Support Services, a broad category that encompasses the management and operation of physical infrastructure. The market size for private detention services is substantial, driven by government needs for correctional capacity. Comparable spending benchmarks would involve analyzing other contracts for similar facilities, considering factors like bed capacity, service scope, and geographic location.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities, if any, offered by the prime contractor, GEO Secure Services, LLC. Without specific subcontracting plans or goals mandated in the contract, the direct impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily engages small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Marshals Service, the contracting agency. Accountability measures would be defined in the contract's performance work statement, outlining service standards and penalties for non-compliance. Transparency is generally maintained through contract award databases, though detailed operational performance data may not be publicly accessible. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse related to the contract.

Related Government Programs

Federal Bureau of Prisons Contracts
Immigration and Customs Enforcement Detention Contracts
Department of Homeland Security Detention Services
State and Local Government Detention Contracts

Risk Flags

Contractor performance history requires review for compliance and quality.
Potential for cost overruns if scope changes or unforeseen issues arise.
Ensuring adequate oversight to maintain service standards and inmate welfare.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $31.8 million to GEO SECURE SERVICES, LLC. COMPREHENSIVE DETENTION SERVICES FOR THE EL CENTRO SERVICE PROCESSING CENTER LOCATED IN EL CENTRO, CA

Who is the contractor on this award?

The obligated recipient is GEO SECURE SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Justice (U.S. Marshals Service).

What is the total obligated amount?

The obligated amount is $31.8 million.

What is the period of performance?

Start: 2022-12-23. End: 2023-12-22.

What is the track record of GEO Secure Services, LLC in managing federal detention facilities?

GEO Secure Services, LLC, a subsidiary of The GEO Group, Inc., has a long history of operating correctional and detention facilities for various government agencies, including the U.S. Marshals Service, Immigration and Customs Enforcement (ICE), and the Federal Bureau of Prisons (BOP). Their track record includes managing facilities of varying sizes and complexities across the United States. While they are a major player in the private corrections industry, their operations have also been subject to scrutiny regarding conditions, staffing levels, and costs. Publicly available information and government oversight reports often detail performance metrics, incidents, and compliance issues related to their contracts. Analyzing these reports provides a comprehensive view of their operational history and their ability to meet contractual obligations.

How does the awarded amount compare to similar detention service contracts?

Comparing the $31.8 million award for 364 days of service requires context regarding the facility's capacity, specific services provided, and location. Detention contracts are highly variable. For instance, contracts for large-capacity facilities or those requiring specialized medical or mental health services can be significantly higher. Conversely, smaller facilities or those with fewer service requirements would naturally have lower contract values. Benchmarking this specific contract against others for the El Centro Service Processing Center, or similar facilities managed by the U.S. Marshals Service in comparable regions, would provide a more accurate assessment of its value. Without such direct comparisons, it's difficult to definitively state if $31.8 million represents a high, low, or average cost for the services rendered.

What are the primary risks associated with this contract for the government?

The primary risks for the government in this contract revolve around ensuring the consistent provision of safe, secure, and humane detention services. A key risk is contractor performance failure, where GEO Secure Services, LLC might not meet the required standards for facility management, inmate care, or security protocols. This could lead to negative publicity, legal challenges, and potential disruptions in the justice system. Another risk is cost escalation, although mitigated by the firm-fixed-price structure, unforeseen operational challenges or changes in regulatory requirements could still impose additional burdens. Ensuring compliance with all federal regulations and ethical standards in detention operations also presents an ongoing risk that requires diligent oversight.

What is the historical spending pattern for detention services by the U.S. Marshals Service?

The U.S. Marshals Service (USMS) has a significant and consistent history of contracting for detention services, reflecting its role in managing individuals in federal custody awaiting trial or sentencing. Historical spending patterns show a substantial annual expenditure on contract detention facilities, often running into hundreds of millions of dollars nationwide. This spending fluctuates based on caseloads, federal sentencing policies, and the availability of federal detention space. The USMS relies heavily on private contractors to supplement its own facilities, particularly in areas where federal capacity is insufficient. Analyzing past contract awards, including their values, durations, and the contractors involved, reveals a long-term trend of outsourcing a considerable portion of its detention requirements.

How does the firm-fixed-price contract type influence contractor behavior and government cost control?

A firm-fixed-price (FFP) contract type is designed to provide the government with cost certainty by establishing a price that is not subject to adjustment based on the contractor's cost experience. For GEO Secure Services, LLC, this means they bear the primary financial risk if their costs exceed the agreed-upon price. This incentivizes the contractor to manage their operations efficiently and control costs to maximize profit. For the U.S. Marshals Service, the FFP structure offers predictability in budgeting and limits the potential for cost overruns. However, it can also reduce the government's flexibility to incorporate changes or upgrades during the contract period without potentially renegotiating the price, and it places a greater emphasis on clearly defining the scope of work upfront to avoid disputes.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: THE GEO Group, Inc.

Address: 4955 TECHNOLOGY WAY, BOCA RATON, FL, 33431

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $31,815,183

Exercised Options: $31,815,183

Current Obligation: $31,815,183

Actual Outlays: $31,815,183

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15M40020DA3500004

IDV Type: IDC

Timeline