DHS awards $117.4M contract for detention and transportation services in Washington state

Contract Overview

Contract Amount: $117,431,350 ($117.4M)

Contractor: THE GEO Group, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2024-10-28

End Date: 2026-03-27

Contract Duration: 515 days

Daily Burn Rate: $228.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NEW TASK ORDER FOR DETENTION AND TRANSPORTATION SERVICES AT TACOMA, WA FOR SEATTLE AOR

Place of Performance

Location: TACOMA, PIERCE County, WASHINGTON, 98421

State: Washington Government Spending

Plain-Language Summary

Department of Homeland Security obligated $117.4 million to THE GEO GROUP, INC. for work described as: NEW TASK ORDER FOR DETENTION AND TRANSPORTATION SERVICES AT TACOMA, WA FOR SEATTLE AOR Key points: 1. Contract focuses on essential support services for immigration enforcement operations. 2. The GEO Group, Inc. is the primary contractor for this delivery order. 3. Services are critical for managing detainee movement and care within the Seattle AOR. 4. The contract duration spans over 1.5 years, indicating ongoing operational needs. 5. Fixed-price contract type aims to control costs for the government. 6. This award represents a significant investment in immigration enforcement infrastructure.

Value Assessment

Rating: fair

The contract value of $117.4 million for detention and transportation services over approximately 1.5 years appears substantial. Benchmarking against similar contracts for detention services requires detailed analysis of scope, location, and service levels. Given the nature of detention services, pricing can be influenced by operational complexity and security requirements. Without specific comparable data on per-detainee costs or facility operational expenses, a precise value-for-money assessment is challenging, but the scale suggests significant resource allocation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. This competitive process is generally expected to yield better pricing and service options for the government. The number of bidders and the specific evaluation criteria would provide further insight into the effectiveness of the competition in driving value. A full and open competition is the preferred method for ensuring a robust marketplace.

Taxpayer Impact: A full and open competition is favorable for taxpayers as it promotes a competitive environment, which can lead to more cost-effective solutions and prevent price gouging.

Public Impact

Benefits federal agencies, specifically U.S. Immigration and Customs Enforcement (ICE), by providing necessary operational support. Delivers essential detention and transportation services for individuals within the Seattle Area of Responsibility (AOR). Geographic impact is concentrated in Tacoma, Washington, and the surrounding Seattle AOR. Supports a workforce involved in detention management, transportation, and related logistical operations. Ensures continuity of operations for ICE's enforcement and removal activities in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if operational demands exceed initial projections.
Reliance on a single contractor for critical services raises concerns about service continuity and potential for price increases in future solicitations.
Ensuring consistent quality of care and transportation for detainees is paramount and requires robust oversight.

Positive Signals

Awarded under full and open competition, indicating a competitive bidding process.
Firm Fixed Price contract type helps to establish cost certainty for the government.
The contract duration of over 1.5 years suggests a stable, long-term need being met.

Sector Analysis

This contract falls within the Facilities Support Services sector, specifically related to government-contracted detention and transportation. This sector is a significant component of the broader government services market, particularly for agencies involved in law enforcement and immigration. The market for detention services is often characterized by a limited number of specialized providers, making competition dynamics crucial. Comparable spending benchmarks would involve analyzing other ICE or similar agency contracts for detention and transportation services across different regions.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this particular delivery order. This means the primary contractor, The GEO Group, Inc., is not a small business, and there's no explicit mandate for subcontracting to small businesses within this award's details. Future analysis could explore if The GEO Group has a broader small business subcontracting plan in place across its operations.

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. Accountability measures are typically embedded within the contract terms, including performance standards, reporting requirements, and potential penalties for non-compliance. Transparency is facilitated through contract award databases, though detailed operational oversight reports may not always be publicly available. Inspector General jurisdiction would likely extend to investigating waste, fraud, and abuse related to this contract.

Related Government Programs

ICE Detention Services
Immigration Enforcement Programs
Federal Law Enforcement Support Services
Government Facilities Management Contracts
Transportation Services Contracts

Risk Flags

Contractor Performance Risk
Service Continuity Risk
Cost Overrun Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $117.4 million to THE GEO GROUP, INC.. NEW TASK ORDER FOR DETENTION AND TRANSPORTATION SERVICES AT TACOMA, WA FOR SEATTLE AOR

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 $117.4 million.

What is the period of performance?

Start: 2024-10-28. End: 2026-03-27.

What is the historical spending pattern for detention and transportation services by ICE in the Seattle AOR?

Analyzing historical spending for ICE detention and transportation services in the Seattle AOR requires accessing past contract awards and obligations data. This would involve looking at contracts awarded to various providers over several fiscal years. Trends in spending can reveal increasing or decreasing demand for these services, shifts in contractor utilization, and the average cost per year or per service. For instance, a rising trend might indicate increased enforcement activity or changes in detention policies, while a stable or declining trend could suggest the opposite or greater efficiency. Understanding this historical context is crucial for evaluating the current $117.4 million award's appropriateness and for future budget planning.

How does the per-diem cost for detention services under this contract compare to national averages or other ICE contracts?

Determining the per-diem cost requires dividing the total contract value by the estimated number of detainee days over the contract period. This metric is essential for benchmarking against national averages and other ICE contracts. If this contract's per-diem rate is significantly higher than comparable contracts, it could indicate potential issues with pricing, service scope, or market conditions in the Seattle AOR. Conversely, a lower rate might suggest favorable negotiation or efficient service delivery. However, direct comparisons must account for variations in service levels, security requirements, geographic location, and the specific services included (e.g., medical care, transportation).

What is The GEO Group, Inc.'s track record with ICE and other federal agencies regarding performance and compliance?

The GEO Group, Inc. has a substantial history of contracting with ICE and other federal agencies for detention and transportation services. Evaluating their track record involves reviewing past performance evaluations, any documented instances of non-compliance, contract disputes, or litigation. Agencies typically maintain performance assessment reports (PARs) or similar documentation. A review of public records, news archives, and government accountability reports can also provide insights into their operational history, including any controversies or commendations. A strong performance record suggests reliability, while a history of issues may indicate higher risk for this contract.

What are the specific performance metrics and service level agreements (SLAs) outlined in this contract?

The contract likely includes specific performance metrics and Service Level Agreements (SLAs) designed to ensure the quality and timeliness of detention and transportation services. These could cover aspects such as detainee safety and well-being, transportation punctuality, facility maintenance standards, staffing levels, and response times for emergencies. The effectiveness of oversight mechanisms depends on how rigorously these metrics are monitored and enforced. A review of the contract's Performance Work Statement (PWS) would detail these requirements and the associated remedies or incentives for meeting or failing to meet them.

What is the potential impact of this contract on the local workforce in Tacoma, WA?

This contract is expected to have a notable impact on the local workforce in Tacoma, Washington, and the surrounding region. The operation of detention facilities and the provision of transportation services require a significant number of personnel, including security staff, administrative personnel, drivers, and support staff. The GEO Group, Inc. will likely be hiring locally to fill these positions. The number of jobs created, the types of employment (full-time, part-time), and the associated wages and benefits will contribute to the local economy. Additionally, indirect employment may be generated through local suppliers and service providers supporting the contract.

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: $117,431,350

Exercised Options: $117,431,350

Current Obligation: $117,431,350

Actual Outlays: $52,930,125

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSCEDM15D00015

IDV Type: IDC

Timeline