DHS awarded $44M for detention management to The GEO Group, Inc., with a 410-day duration

Contract Overview

Contract Amount: $44,034,146 ($44.0M)

Contractor: THE GEO Group, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2020-08-31

End Date: 2021-10-15

Contract Duration: 410 days

Daily Burn Rate: $107.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DETENTION MANAGEMENT/MEDICAL/TRANSPORTATION FOR AURORA, CO

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20536

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $44.0 million to THE GEO GROUP, INC. for work described as: DETENTION MANAGEMENT/MEDICAL/TRANSPORTATION FOR AURORA, CO Key points: 1. The contract's value of $44 million for a 410-day period suggests a significant operational cost for detention services. 2. Full and open competition was utilized, indicating a potentially competitive bidding process for these services. 3. The firm-fixed-price contract type aims to control costs by setting a predetermined price for services. 4. The contract was awarded as a delivery order, suggesting it may be part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 5. The services provided fall under Facilities Support Services, a broad category that includes the management of detention facilities. 6. The geographic focus is Aurora, Colorado, highlighting a specific operational area for these detention services.

Value Assessment

Rating: fair

The contract value of $44 million over approximately 13.5 months equates to roughly $3.26 million per month. Benchmarking this against similar detention management contracts is challenging without more specific service details and contract structures. However, the firm-fixed-price nature suggests an attempt to manage costs predictably. The absence of a stated base year value and the delivery order award mechanism make direct comparison difficult without understanding the parent IDIQ contract, if applicable. The total award amount of $44,034,146.30 appears to be the ceiling or total obligated amount for the period.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which theoretically allows all responsible sources to submit bids. This method is generally preferred for maximizing competition and achieving the best value for the government. The number of bidders is not specified in the provided data, but the use of full and open competition suggests that multiple entities were likely considered or participated in the bidding process. This level of competition is intended to drive down prices and improve service quality.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it promotes a competitive environment, which can lead to more cost-effective service delivery and potentially lower overall government spending on these essential services.

Public Impact

Immigrants in detention facilities in Aurora, Colorado, benefit from the services provided under this contract. The contract ensures the provision of essential detention management, medical, and transportation services for individuals in ICE custody. The geographic impact is concentrated in Aurora, Colorado, where the detention facilities are located. The contract supports jobs within the private detention management sector, including roles for facility staff, medical personnel, and transportation officers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the firm-fixed-price contract does not adequately account for all operational variables.
Dependence on a single contractor for critical detention services raises concerns about service continuity and quality.
The scale of the contract may indicate significant demand for detention services, potentially reflecting broader immigration policy impacts.

Positive Signals

The use of full and open competition suggests a structured procurement process aimed at achieving value.
The firm-fixed-price contract type provides cost certainty for the government.
The contract duration of 410 days allows for a defined period of service delivery and planning.

Sector Analysis

The detention management sector is a specialized area within government contracting, primarily serving agencies like DHS and DOJ. This contract for facilities support services, including medical and transportation, falls under the broader 'Administrative and Support and Waste Management and Remediation Services' industry. The market is characterized by a few large, established players, and competition can be influenced by security clearances, facility requirements, and past performance. The total award amount of $44 million for this period is substantial, reflecting the high operational costs associated with secure detention facilities.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). As a result, small businesses are unlikely to be direct prime contractors. However, there may be opportunities for small businesses to participate as subcontractors to The GEO Group, Inc., depending on the company's subcontracting plans and the nature of the services required. The impact on the small business ecosystem would be indirect, primarily through potential subcontracting relationships.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Immigration and Customs Enforcement (ICE), a component of the Department of Homeland Security. ICE contracting officers and program managers are responsible for monitoring performance, ensuring compliance with contract terms, and approving payments. The contract's firm-fixed-price nature and defined duration provide a framework for accountability. Transparency is facilitated through contract award databases, though detailed operational performance metrics may not always be publicly disclosed. Inspector General oversight from DHS would also apply.

Related Government Programs

Immigration and Customs Enforcement (ICE) Detention Contracts
Federal Bureau of Prisons (BOP) Detention Services
Department of Health and Human Services (HHS) Refugee Resettlement Services
State and Local Government Detention Agreements

Risk Flags

Potential for service quality degradation under fixed-price contract if cost controls are prioritized over standards.
Dependence on a single provider for critical services raises continuity of operations concerns.
Contract awarded as a delivery order; parent IDIQ contract details and competition level are not fully specified here.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $44.0 million to THE GEO GROUP, INC.. DETENTION MANAGEMENT/MEDICAL/TRANSPORTATION FOR AURORA, CO

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 $44.0 million.

What is the period of performance?

Start: 2020-08-31. End: 2021-10-15.

What is the historical spending pattern for detention management services in Aurora, CO, by DHS/ICE?

Analyzing historical spending for detention management in Aurora, CO, by DHS/ICE requires examining contract awards over multiple fiscal years. This specific contract, valued at approximately $44 million, covers a period from August 31, 2020, to October 15, 2021. To understand the pattern, one would need to aggregate all contracts awarded by ICE for detention, medical, and transportation services at the Aurora facility or within its operational jurisdiction during previous years. This would involve searching federal procurement databases like FPDS or USASpending for relevant contract actions, filtering by agency (DHS/ICE), location (Aurora, CO), and service type (detention management, facility support). Comparing the current award amount to previous years would reveal trends in spending, potential increases or decreases in service demand, and the consistency of contractor selection. For instance, if previous contracts were significantly smaller or awarded to different entities, it might indicate a shift in service needs or a change in contracting strategy. Conversely, consistent awards to the same contractor could suggest a stable operational requirement and a strong incumbent performance record.

How does the per-day cost of this contract compare to similar detention facilities operated by ICE?

To compare the per-day cost, we first calculate the daily rate for this contract. The total award is $44,034,146.30 over 410 days, resulting in a daily rate of approximately $107,400. This figure represents the total cost per day for detention management, medical, and transportation services. Benchmarking this against similar ICE facilities requires access to data on other detention contracts, specifically their total value, duration, and the number of detainees served. Without specific data on the capacity and operational costs of comparable facilities, a precise comparison is difficult. However, if data were available, one would look at the daily cost per detainee or the overall daily operational cost for facilities of similar size and security levels. Factors such as location, labor costs, medical service intensity, and the specific services included in the contract scope significantly influence these costs. A higher per-day cost might be justified by more comprehensive medical services or higher security requirements, while a lower cost could indicate greater operational efficiency or a less intensive service model.

What is The GEO Group, Inc.'s track record with ICE and other federal agencies for detention services?

The GEO Group, Inc. is a major private operator of correctional and detention facilities in the United States and internationally. Their track record with ICE and other federal agencies, such as the Federal Bureau of Prisons (BOP) and U.S. Customs and Border Protection (CBP), is extensive. They manage numerous detention centers and provide related services under various contracts. Historically, GEO Group has been awarded significant contracts for immigration detention services, including those for ICE. Performance reviews and contract compliance data, often found in federal procurement databases or agency performance reports, would provide a detailed assessment. While GEO Group has a long history of service, like many large contractors in this sector, they have also faced scrutiny and criticism regarding facility conditions, staffing levels, and operational incidents. Evaluating their track record involves reviewing past performance evaluations, any contract disputes or terminations, and the overall volume and value of contracts held with federal agencies over time. Their continued award of substantial contracts suggests a perceived ability to meet agency requirements, despite potential controversies.

What are the key performance indicators (KPIs) typically used to evaluate detention management contracts like this one?

Key Performance Indicators (KPIs) for detention management contracts typically focus on safety, security, health, and operational efficiency. For ICE contracts, common KPIs include detainee-to-staff ratios, response times for medical emergencies, incident rates (e.g., assaults, escapes, self-harm), cleanliness and maintenance of facilities, food service quality, and transportation safety. Compliance with ICE Performance-Based National Detention Standards (PBNDS) is paramount. Contracts often include specific metrics for medical care access and timeliness, grievance procedures, and legal access. Performance is usually evaluated through regular site inspections, audits, detainee surveys, and incident reporting. Failure to meet these KPIs can result in contractual remedies, including financial penalties or even contract termination. The firm-fixed-price nature of this contract implies that the contractor is responsible for meeting these standards within the agreed-upon price, making robust oversight and KPI tracking crucial for the government.

Does the firm-fixed-price (FFP) contract type adequately mitigate risks for the government in detention management services?

A firm-fixed-price (FFP) contract is designed to shift most of the risk to the contractor, as the price is set regardless of the contractor's actual costs. For detention management services, this can be advantageous for the government by providing cost certainty and predictability. The government knows the maximum expenditure upfront. However, risks remain. If the contractor underestimates costs or faces unforeseen operational challenges (e.g., unexpected medical needs of detainees, facility repairs), they may cut corners on service quality to maintain profitability, potentially impacting detainee welfare or security. Conversely, if the FFP price is set too high due to a lack of robust market research or competitive bidding, the government may overpay. Effective mitigation of risks under an FFP contract relies heavily on strong government oversight, clear performance standards, and the ability to enforce penalties for non-compliance. The government must ensure the contract scope is comprehensive and that KPIs are rigorously monitored to prevent quality degradation.

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: $44,034,146

Exercised Options: $44,034,146

Current Obligation: $44,034,146

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: HSCEDM11D00003

IDV Type: IDC

Timeline