DHS awards $43.8M for detention facility services in Colorado, raising value-for-money questions

Contract Overview

Contract Amount: $43,859,762 ($43.9M)

Contractor: THE GEO Group, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2021-10-19

End Date: 2022-10-15

Contract Duration: 361 days

Daily Burn Rate: $121.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DETENTION, TRANSPORTATION AND MEDICAL SERVICES FOR DENVER (AURORA) CONTRACT DETENTION FACILITY

Place of Performance

Location: CENTENNIAL, ARAPAHOE County, COLORADO, 80111

State: Colorado Government Spending

Plain-Language Summary

Department of Homeland Security obligated $43.9 million to THE GEO GROUP, INC. for work described as: DETENTION, TRANSPORTATION AND MEDICAL SERVICES FOR DENVER (AURORA) CONTRACT DETENTION FACILITY Key points: 1. The contract value represents a significant investment in detention facility support services. 2. Competition dynamics for this contract are crucial for ensuring fair pricing. 3. Performance history of the contractor will be a key indicator of future success. 4. The duration of the contract (361 days) suggests a need for ongoing operational support. 5. Sector positioning within facilities support services highlights a specialized area of government contracting.

Value Assessment

Rating: fair

Benchmarking the value of this contract requires comparison with similar detention facility service contracts. The firm-fixed-price structure aims to control costs, but the actual value depends on the efficiency and quality of services delivered. Without detailed performance metrics or cost breakdowns, a definitive assessment of value-for-money is challenging. The awarded amount of $43.8 million for a 361-day period warrants scrutiny to ensure it aligns with market rates and operational needs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The number of bidders is not specified, but this procurement method generally fosters price discovery and encourages competitive pricing. The agency's decision to use full and open competition suggests confidence in the market's ability to provide suitable solutions.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it is intended to drive down costs through market forces, leading to better value for public funds.

Public Impact

Immigrants in detention facilities in the Denver (Aurora) area benefit from the services provided. Services include detention, transportation, and medical care for detainees. The geographic impact is concentrated in Aurora, Colorado. The contract supports jobs within the private detention facility management sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if service demands exceed initial projections.
Ensuring consistent quality of medical services within detention facilities can be challenging.
Contractor's ability to manage diverse operational needs effectively.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Full and open competition suggests a competitive bidding process.
Contract awarded to a known entity in the detention services sector.

Sector Analysis

The Facilities Support Services sector, NAICS code 561210, encompasses a range of services for the operation and maintenance of buildings and other facilities. This contract falls within the government's broader spending on correctional and detention services. Comparable spending benchmarks would involve analyzing other contracts for similar detention facility operations, considering factors like bed capacity, service scope, and geographic location.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. This suggests that the primary award went to a large business, and the direct impact on the small business ecosystem may be limited unless the prime contractor actively engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of U.S. Immigration and Customs Enforcement (ICE) officials within the Department of Homeland Security. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specified services at an agreed-upon price. Transparency would be enhanced through public contract databases and performance reports, though specific oversight mechanisms and Inspector General jurisdiction would depend on internal DHS policies.

Related Government Programs

Immigration and Customs Enforcement Operations
Detention Facility Management
Correctional Services
Government Contracting for Support Services

Risk Flags

Potential for service quality issues in a high-demand environment.
Contractor's ability to manage medical services effectively.
Ensuring fair pricing through competitive bidding.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $43.9 million to THE GEO GROUP, INC.. DETENTION, TRANSPORTATION AND MEDICAL SERVICES FOR DENVER (AURORA) CONTRACT 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 $43.9 million.

What is the period of performance?

Start: 2021-10-19. End: 2022-10-15.

What is the historical spending pattern for detention, transportation, and medical services for the Denver (Aurora) facility?

Analyzing historical spending for this specific contract requires access to past contract awards and modifications for the Denver (Aurora) detention facility. Without prior contract data, it's difficult to establish a spending trend. However, the current award of $43.8 million for a 361-day period suggests a substantial and ongoing need for these services. Trends in government spending on detention services are often influenced by immigration policies, enforcement priorities, and judicial decisions. A comprehensive review would involve examining prior contract values, durations, and any changes in service scope or pricing over time to understand if this award represents an increase, decrease, or stable level of expenditure.

How does the contractor's track record in managing similar facilities compare to industry standards?

The Geo Group, Inc. is a well-established private operator of correctional and detention facilities. Their track record includes managing numerous facilities across the United States and internationally. Assessing their performance against industry standards requires a detailed review of past contract performance evaluations, any documented instances of non-compliance, safety incidents, or significant operational challenges. Publicly available information and government performance reports (if accessible) would provide insights into their reliability, efficiency, and adherence to service level agreements. Comparisons should consider the scale and complexity of facilities managed, as well as the specific services provided under this contract.

What are the key performance indicators (KPIs) used to measure the success of this contract?

Key Performance Indicators (KPIs) for a contract of this nature typically focus on the quality, timeliness, and cost-effectiveness of the services provided. For detention services, KPIs might include detainee-to-staff ratios, incident rates (e.g., escapes, assaults, medical emergencies), response times for medical services, transportation safety records, and compliance with facility standards and regulations. For medical services specifically, KPIs could involve patient satisfaction, adherence to treatment protocols, and timely access to care. The firm-fixed-price nature of the contract implies that the contractor is responsible for meeting these performance standards within the agreed budget. Specific KPIs would be detailed in the contract's Performance Work Statement (PWS).

Are there any specific risks associated with the medical services component of this contract?

Yes, there are inherent risks associated with the medical services component of detention contracts. These include ensuring adequate staffing of qualified medical professionals, providing timely and appropriate medical care to detainees with diverse health needs (including chronic conditions and mental health issues), managing the procurement and inventory of medical supplies, and maintaining compliance with healthcare regulations and standards within a correctional environment. Risks also extend to potential liability for medical malpractice or inadequate care. The government's oversight must ensure the contractor has robust protocols in place to mitigate these risks and provide a standard of care that meets legal and ethical requirements.

How does the geographic location of the facility impact the cost and logistics of these services?

The geographic location in Aurora, Colorado, can influence the cost and logistics of detention, transportation, and medical services. Labor costs for staffing may vary based on the local market. Transportation logistics, particularly for detainees, will depend on the proximity of courts, other detention facilities, and medical specialists. The availability of local medical resources and the ease of access for emergency services are also critical factors. Furthermore, the cost of utilities, security, and facility maintenance can be affected by regional economic conditions and regulations. The government's analysis during the procurement process would have considered these location-specific factors when evaluating bids and setting the contract price.

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: 4955 TECHNOLOGY WAY, BOCA RATON, FL, 33431

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $43,859,762

Exercised Options: $43,859,762

Current Obligation: $43,859,762

Actual Outlays: $5,073,436

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70CDCR22D00000001

IDV Type: IDC

Timeline