DHS awards $47.3M contract for detention facility services to The GEO Group, Inc

Contract Overview

Contract Amount: $47,344,096 ($47.3M)

Contractor: THE GEO Group, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2022-10-16

End Date: 2023-10-15

Contract Duration: 364 days

Daily Burn Rate: $130.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

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

Place of Performance

Location: AURORA, ARAPAHOE County, COLORADO, 80012

State: Colorado Government Spending

Plain-Language Summary

Department of Homeland Security obligated $47.3 million to THE GEO GROUP, INC. for work described as: NEW TASK ORDER FOR DETENTION, TRANSPORTATION AND MEDICAL SERVICES FOR DENVER (AURORA) CONTRACT DETENTION FACILITY Key points: 1. Contract provides essential detention, transportation, and medical services for an immigration detention facility. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The fixed-price contract type aims to control costs by establishing a set price for services. 4. The duration of the task order is one year, indicating a need for ongoing operational support. 5. The services are critical for the functioning of immigration enforcement operations in the Denver area. 6. The GEO Group, Inc. is a significant player in the private detention services market.

Value Assessment

Rating: fair

This contract for detention, transportation, and medical services at a Denver-area facility appears to be priced within a reasonable range for the scope of work. Benchmarking against similar contracts for detention facility operations is challenging due to the specialized nature of these services and variations in service levels and geographic locations. However, the firm fixed-price structure suggests an attempt to manage cost predictability. Further analysis would require detailed cost breakdowns and comparisons with government-operated facilities or alternative service providers.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. This suggests a robust bidding process where multiple companies likely had the opportunity to compete for the work. The level of competition can influence pricing by encouraging bidders to offer competitive rates to secure the contract. Without specific details on the number of bids received, it's difficult to definitively assess the intensity of the competition.

Taxpayer Impact: A competitive bidding process generally benefits taxpayers by driving down prices and ensuring that the government receives the best value for its expenditure. Full and open competition increases the likelihood of obtaining services at a fair market price.

Public Impact

The contract directly supports U.S. Immigration and Customs Enforcement (ICE) operations by providing essential services for individuals in detention. It ensures the safe and humane detention, transportation, and medical care of detainees. The services are geographically focused on the Denver (Aurora), Colorado area. The contract sustains jobs within the private detention services industry, including roles for facility management, security, transportation, and medical personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for over-reliance on private contractors for essential government functions.
Concerns regarding the quality of care and living conditions in private detention facilities.
Contractor performance history in similar facilities requires scrutiny to ensure compliance and effectiveness.
Potential for cost overruns if not managed tightly, despite fixed-price structure.

Positive Signals

Contract awarded through full and open competition, suggesting potential for competitive pricing.
Firm fixed-price contract type provides cost certainty for the government.
Services are critical for maintaining operational capacity of immigration enforcement.
Task order duration allows for consistent service delivery over a defined period.

Sector Analysis

The private detention services sector is a significant component of the broader correctional and immigration services industry. This contract falls within the Facilities Support Services category, specifically catering to the unique needs of immigration detention. The market is characterized by a few large, established providers, including The GEO Group, Inc. and CoreCivic, Inc. Spending in this sector is often driven by federal immigration policies and enforcement priorities. Comparable spending benchmarks are difficult to establish precisely due to the highly specialized nature of the services and varying contract scopes.

Small Business Impact

This contract does not appear to have a small business set-aside. The award to The GEO Group, Inc., a large corporation, suggests that the primary focus was on securing a capable provider for a large-scale service requirement. There is no explicit indication of subcontracting opportunities for small businesses within the provided data, though it is possible that the prime contractor may engage small businesses for specific support roles.

Oversight & Accountability

Oversight for this contract would primarily fall under U.S. Immigration and Customs Enforcement (ICE), a component of the Department of Homeland Security. ICE is responsible for monitoring contractor performance to ensure compliance with contract terms, service level agreements, and relevant regulations. Transparency is typically managed through contract awards databases and performance reports, though detailed operational oversight information may not be publicly available. The Inspector General for the Department of Homeland Security may also conduct audits or investigations into the contract's execution.

Related Government Programs

Immigration and Customs Enforcement (ICE) Operations
Detention Facility Management
Immigration Services
Federal Law Enforcement Support Services

Risk Flags

Contractor Performance History
Quality of Services
Detainee Welfare and Rights
Security Incidents
Staffing Levels and Training

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $47.3 million to THE GEO GROUP, INC.. NEW TASK ORDER FOR 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 $47.3 million.

What is the period of performance?

Start: 2022-10-16. End: 2023-10-15.

What is the track record of The GEO Group, Inc. in managing similar detention facilities for federal agencies?

The GEO Group, Inc. has a substantial track record in managing correctional and detention facilities for federal, state, and local governments. They operate numerous facilities across the United States, including immigration detention centers. Their experience includes providing a range of services such as housing, security, transportation, and healthcare. However, the company has also faced scrutiny and criticism regarding conditions, staffing levels, and incidents within some of its facilities. A thorough review would involve examining specific performance metrics, compliance records, and any past disputes or investigations related to their federal contracts, particularly those with ICE, to assess their suitability and reliability for this specific task order.

How does the awarded amount of $47.3 million compare to historical spending on similar detention services by ICE in the Denver area?

Comparing the $47.3 million award to historical spending requires access to detailed ICE budget allocations and contract histories for detention services specifically in the Denver (Aurora) region. Without this granular data, a direct comparison is difficult. However, this figure represents a significant investment for a one-year task order, suggesting a substantial operational requirement for detention capacity. ICE's overall spending on detention and related services fluctuates based on immigration flows, policy changes, and facility utilization. To provide a precise benchmark, one would need to analyze ICE's previous contracts for similar services in the same geographic area or for facilities of comparable size and scope.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract, and how is performance monitored?

While the specific KPIs and SLAs are not detailed in the provided data, contracts for detention, transportation, and medical services typically include stringent performance standards. These often cover areas such as detainee safety and security, timely transportation, quality and accessibility of medical care, facility maintenance, food services, and compliance with all applicable laws and regulations. Performance monitoring is usually conducted by contracting officers' representatives (CORs) or technical monitors from ICE, who conduct site visits, review incident reports, track key metrics, and hold regular performance review meetings with the contractor. Failure to meet SLAs can result in penalties, corrective action plans, or even contract termination.

What are the potential risks associated with relying on a private contractor like The GEO Group, Inc. for essential immigration detention services?

Key risks include potential compromises in the quality of care and living conditions due to profit motives, leading to humanitarian concerns and potential legal challenges. There's also the risk of inadequate staffing or training, which can increase security incidents and risks to both detainees and staff. Contractor performance can be inconsistent, and managing such complex operations requires robust government oversight to ensure compliance with standards and regulations. Furthermore, reliance on private entities can sometimes lead to a lack of transparency and accountability compared to government-run facilities. Finally, the potential for labor disputes or unionization efforts at contractor facilities could disrupt services.

Are there any specific clauses or requirements in this contract related to emergency preparedness and response for the detention facility?

Contracts for critical infrastructure and services like detention facilities typically include robust emergency preparedness and response requirements. This would likely involve detailed plans for responding to various emergencies such as fires, medical emergencies, natural disasters, security breaches, or civil disturbances. The contract would mandate specific training for staff, availability of emergency equipment, communication protocols, and coordination procedures with local emergency services. The GEO Group, Inc. would be expected to maintain and regularly test these plans to ensure the safety and security of detainees and staff during crisis situations, adhering to standards set by ICE and potentially other relevant federal agencies.

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: $47,344,096

Exercised Options: $47,344,096

Current Obligation: $47,344,096

Actual Outlays: $47,344,096

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