DOJ awards $23.8M for detention services to The GEO Group, Inc. in Florida

Contract Overview

Contract Amount: $23,831,037 ($23.8M)

Contractor: THE GEO Group, Inc.

Awarding Agency: Department of Justice

Start Date: 2025-11-01

End Date: 2026-10-31

Contract Duration: 364 days

Daily Burn Rate: $65.5K/day

Competition Type: COMPETED UNDER SAP

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CONTRACTOR SHALL PERFORM DETENTION SERVICES AS DESCRIBED IN THE STATEMENT OF WORK (ATTACHED) FOR WESTERN REGION DETENTION FACILITY

Place of Performance

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

State: Florida Government Spending

Plain-Language Summary

Department of Justice obligated $23.8 million to THE GEO GROUP, INC. for work described as: CONTRACTOR SHALL PERFORM DETENTION SERVICES AS DESCRIBED IN THE STATEMENT OF WORK (ATTACHED) FOR WESTERN REGION DETENTION FACILITY Key points: 1. Contract value represents a significant investment in regional detention infrastructure. 2. The GEO Group, Inc. is a major player in private correctional facility management. 3. Contract duration of one year suggests potential for follow-on work or re-competition. 4. Fixed-price contract type shifts performance risk to the contractor. 5. Services are essential for U.S. Marshals Service operations in the Western Region. 6. Geographic concentration in Florida highlights regional operational focus.

Value Assessment

Rating: fair

The contract value of $23.8 million for one year of detention services appears within a reasonable range for large-scale correctional facility operations. Benchmarking against similar contracts for detention services managed by the U.S. Marshals Service or other federal agencies would provide a clearer picture of value for money. The firm fixed-price structure aims to control costs, but the overall value is contingent on the quality and efficiency of services delivered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under Simplified Acquisition Procedures (SAP), indicating a competitive process was utilized. While the specific number of bidders is not provided, SAP is generally intended for procurements below certain thresholds where full and open competition is feasible. This suggests that multiple offerors likely had the opportunity to bid, contributing to price discovery and potentially favorable pricing.

Taxpayer Impact: A competed award under SAP generally benefits taxpayers by fostering competition, which can lead to more cost-effective pricing compared to sole-source or limited competition awards.

Public Impact

The U.S. Marshals Service benefits from secure and operational detention facilities for individuals in federal custody. Detention services ensure the safe housing and management of detainees. The contract's impact is primarily concentrated in Florida, supporting federal law enforcement operations in the Western Region. The contract supports jobs within the private correctional facility management sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Reliance on a single large contractor for critical detention services may reduce flexibility.
Potential for cost overruns if unforeseen operational challenges arise, despite fixed-price structure.

Positive Signals

Firm fixed-price contract aligns contractor incentives with cost control.
Competitive award process suggests potential for good value.
Contract duration provides stability for service provision.

Sector Analysis

The Facilities Support Services sector, particularly within correctional and detention management, is a significant area of government contracting. This contract fits within the broader landscape of government outsourcing for essential services. The market includes several large, established providers like The GEO Group, Inc., indicating a mature and competitive industry. Spending benchmarks for similar detention services can vary widely based on location, capacity, and service requirements.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a result, large businesses were the primary participants in the competition. There is no explicit information on subcontracting requirements for small businesses within this award. The focus on a large incumbent or major player suggests limited direct opportunities for small businesses to participate as prime contractors on this specific contract.

Oversight & Accountability

Oversight for this contract would typically fall under the U.S. Marshals Service, with potential involvement from the Department of Justice's Office of the Inspector General. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver services as specified in the Statement of Work. Transparency is facilitated through contract awards databases, though detailed performance metrics may not always be publicly disclosed.

Related Government Programs

Federal Bureau of Prisons Detention Services
Immigration and Customs Enforcement Detention Contracts
State and Local Government Detention Agreements

Risk Flags

Contractor Performance Risk
Service Quality Concerns
Potential for Cost Overruns (if scope changes)
Staffing Level Adequacy

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $23.8 million to THE GEO GROUP, INC.. CONTRACTOR SHALL PERFORM DETENTION SERVICES AS DESCRIBED IN THE STATEMENT OF WORK (ATTACHED) FOR WESTERN REGION 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 Justice (U.S. Marshals Service).

What is the total obligated amount?

The obligated amount is $23.8 million.

What is the period of performance?

Start: 2025-11-01. End: 2026-10-31.

What is The GEO Group, Inc.'s track record with federal detention contracts, particularly with the U.S. Marshals Service?

The GEO Group, Inc. has a substantial history of contracting with federal agencies, including the U.S. Marshals Service (USMS), for the provision of detention and correctional services. They operate numerous facilities across the country under various contracts. Historically, their performance has been subject to scrutiny, with reports and reviews from government oversight bodies and advocacy groups highlighting both successes and challenges related to facility conditions, staffing, and operational efficiency. For instance, past USMS contracts with GEO have been examined for compliance with performance standards and cost-effectiveness. A detailed review would involve analyzing specific past performance evaluations, any contract disputes or penalties, and the scope of services previously provided to the USMS to assess their suitability for this current award.

How does the per-bed cost of this contract compare to other USMS detention facilities in similar regions?

Determining the precise per-bed cost requires knowing the facility's capacity, which is not explicitly provided in the contract data. However, the total contract value of $23.8 million over 364 days suggests a daily operational cost. If we assume a hypothetical capacity, say 500 beds, the daily cost would be approximately $130,000, or $260 per bed per day. This figure needs to be benchmarked against publicly available data for other USMS contracts. Factors such as the level of security required, services included (medical, food, transportation), and geographic location significantly influence per-bed costs. Contracts in high-cost-of-living areas or those requiring specialized security measures tend to be more expensive. A comprehensive comparison would involve analyzing the USMS's historical spending patterns and recent contract awards for facilities of comparable size and service level within the Western Region and nationally.

What are the primary risks associated with this firm fixed-price contract for detention services?

The primary risk with a firm fixed-price (FFP) contract for detention services lies in the potential for the contractor, The GEO Group, Inc., to cut corners on service quality or staffing levels to maintain profitability if operational costs exceed projections. While FFP shifts cost risk to the contractor, it does not eliminate performance risk. If the contractor fails to meet the standards outlined in the Statement of Work (SOW), it could lead to issues with detainee welfare, security breaches, or non-compliance with federal regulations. The government's recourse would be through contract remedies, but addressing systemic failures can be complex and disruptive. Additionally, unforeseen events or changes in operational requirements not covered by contract modifications could strain the contractor's ability to deliver services within the fixed price, potentially leading to disputes or a need for contract adjustments.

How effective are facilities support services contracts like this in meeting the USMS's mission objectives?

Contracts for detention facilities are critical to the U.S. Marshals Service's mission of ensuring the custody and care of federal prisoners awaiting trial or sentencing. The effectiveness of these contracts hinges on the contractor's ability to provide secure, humane, and compliant housing. When well-managed and overseen, these services allow the USMS to focus on its core law enforcement and judicial support functions without the burden of direct facility operation. However, effectiveness can be compromised by issues such as overcrowding, inadequate staffing, insufficient training, or lapses in security protocols, which have been documented in various private detention facilities. The success of this specific contract will depend on rigorous performance monitoring by the USMS and the contractor's commitment to meeting all contractual obligations and federal standards.

What has been the historical spending trend for detention services by the U.S. Marshals Service over the past five years?

The U.S. Marshals Service (USMS) has consistently allocated significant funding towards detention services, reflecting its responsibility for managing the largest population of federal prisoners. Over the past five years, spending has generally remained substantial, often fluctuating based on judicial caseloads, immigration policies, and the availability of federal detention beds. While specific year-over-year figures require detailed analysis of federal budget data and contract databases, the overall trend indicates a sustained need for contracted detention capacity. Factors such as increased border apprehensions or shifts in sentencing guidelines can influence demand and, consequently, spending. The USMS often utilizes a mix of its own facilities and contracted services, with contracted facilities playing a crucial role in accommodating the fluctuating population.

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: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

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: $497,601,400

Exercised Options: $23,831,037

Current Obligation: $23,831,037

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15M40018DA3500001

IDV Type: IDC

Timeline