DHS awards $120M contract for detention services in California, highlighting ongoing need for immigration enforcement infrastructure

Contract Overview

Contract Amount: $120,393,306 ($120.4M)

Contractor: THE GEO Group, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2024-12-20

End Date: 2025-12-19

Contract Duration: 364 days

Daily Burn Rate: $330.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DETENTION SERVICES FOR LOS ANGELES AOR AT ADELANTO DETENTION FACILITY

Place of Performance

Location: LOS ANGELES, LOS ANGELES County, CALIFORNIA, 90012

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $120.4 million to THE GEO GROUP, INC. for work described as: DETENTION SERVICES FOR LOS ANGELES AOR AT ADELANTO DETENTION FACILITY Key points: 1. Contract value represents a significant investment in detention capacity for the Los Angeles area. 2. The award to The GEO Group, Inc. suggests a reliance on established private prison operators. 3. A full and open competition was conducted, indicating an effort to solicit a broad range of potential providers. 4. The contract duration of one year with potential for extensions points to a need for flexible, short-to-medium term solutions. 5. The fixed-price nature of the contract aims to provide cost certainty for the government. 6. This award is part of a larger federal spending trend on immigration detention and enforcement.

Value Assessment

Rating: fair

The contract value of $120.4 million for one year of detention services appears substantial, reflecting the high operational costs associated with secure detention facilities. Benchmarking against similar contracts for detention services in other regions or for different lengths of stay would be necessary for a precise value-for-money assessment. However, given the scale and specialized nature of detention services, the pricing is likely within a range expected for such operations, though it warrants scrutiny for potential efficiencies.

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 were invited to bid. This process is designed to foster a competitive environment, potentially leading to better pricing and service offerings. The number of bidders and the specific evaluation criteria would provide further insight into the intensity of the competition. A robust competition is generally favorable for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: A full and open competition increases the likelihood that taxpayer funds are used efficiently by driving down costs through market forces. It ensures that the government is not locked into a single provider without exploring all available options.

Public Impact

The primary beneficiaries are U.S. Immigration and Customs Enforcement (ICE) and the Department of Homeland Security (DHS), who receive essential detention services. The contract delivers critical services for the processing and detention of individuals within the Los Angeles Area of Responsibility. The geographic impact is focused on Adelanto, California, and the surrounding Los Angeles AOR, addressing specific regional immigration enforcement needs. The contract supports jobs within the private corrections industry, including security personnel, administrative staff, and support services at the Adelanto Detention Facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Reliance on private detention facilities can raise concerns about oversight and the quality of care provided to detainees.
The significant contract value may indicate a substantial ongoing demand for detention services, potentially reflecting broader immigration policy trends.
The fixed-price contract, while offering cost certainty, could incentivize cost-cutting measures that might impact service quality if not rigorously monitored.

Positive Signals

The use of full and open competition suggests an effort to ensure fair pricing and access to a competitive market.
The contract is for a defined period, allowing for periodic reassessment of needs and vendor performance.
The fixed-price structure provides budget predictability for the agency.

Sector Analysis

The federal government's spending on detention services falls within the broader 'Security and Support Services' sector, often involving private contractors. This market is characterized by specialized facilities and stringent regulatory requirements. The size of the federal detention services market is substantial, driven by immigration enforcement policies and judicial processes. This contract with The GEO Group, Inc. is a component of that larger market, reflecting ongoing government needs for detention capacity.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses, nor does it appear to have explicit subcontracting requirements for small businesses mentioned. The primary contractor, The GEO Group, Inc., is a large corporation. Therefore, the direct impact on the small business ecosystem through this specific award is likely minimal, unless the prime contractor voluntarily engages small businesses for support services not detailed in the provided data.

Oversight & Accountability

Oversight for this contract would primarily fall under U.S. Immigration and Customs Enforcement (ICE), a component of DHS. ICE is responsible for monitoring contractor performance, ensuring compliance with contract terms, and verifying that detention standards are met. Accountability measures would include performance metrics, site inspections, and grievance procedures for detainees. Transparency is facilitated through contract awards databases, though detailed operational oversight reports are not always publicly accessible.

Related Government Programs

Immigration Detention Services
Secure Facility Operations
Law Enforcement Support Services
Federal Law Enforcement Contracts
Corrections and Detention Management

Risk Flags

Potential for substandard conditions of confinement
Reliance on a single large private contractor
Fluctuations in demand impacting resource allocation
Contract performance monitoring challenges

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $120.4 million to THE GEO GROUP, INC.. DETENTION SERVICES FOR LOS ANGELES AOR AT ADELANTO 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 $120.4 million.

What is the period of performance?

Start: 2024-12-20. End: 2025-12-19.

What is the historical spending trend for detention services by ICE in the Los Angeles AOR?

Analyzing historical spending for ICE detention services in the Los Angeles AOR requires access to detailed budget and contract award data over multiple fiscal years. Generally, federal spending on immigration detention has seen fluctuations tied to immigration policy shifts, border apprehensions, and judicial decisions. For the Los Angeles AOR specifically, spending would reflect regional enforcement priorities and the availability of detention beds, whether government-operated or contracted. A review of past contracts awarded to various providers in this region would reveal trends in contract values, durations, and the number of awarded contracts, indicating the consistency or variability of federal investment in this area.

How does the per-bed cost of this contract compare to other ICE detention facilities?

To compare the per-bed cost, we would need to know the facility's certified bed capacity and divide the total contract value by the number of days in the contract term and then by the bed capacity. For example, if the Adelanto facility has a capacity of 1,000 beds, the daily per-bed cost would be approximately ($120,393,306.26 / 364 days) / 1,000 beds ≈ $330.75 per bed per day. This figure can then be benchmarked against publicly available data for other ICE contracts, which often range from $100 to over $400 per bed per day depending on location, security levels, services provided, and contract terms. Variations in per-bed costs are influenced by factors such as labor rates, operational complexity, and the specific services included (e.g., medical care, transportation).

What is The GEO Group, Inc.'s track record with ICE contracts, and are there any notable performance issues?

The GEO Group, Inc. is one of the largest private operators of correctional and detention facilities in the United States and has a long-standing relationship with ICE and other federal agencies. They manage numerous detention centers across the country. Their track record includes managing large-scale contracts similar to this one. However, like many large private prison operators, The GEO Group has faced scrutiny and criticism regarding conditions within their facilities, staffing levels, and instances of non-compliance with contract requirements or detention standards. Reports from oversight bodies, advocacy groups, and media investigations have sometimes highlighted concerns. A thorough assessment would involve reviewing ICE's performance evaluations for The GEO Group's past and current contracts, as well as any corrective action plans or penalties imposed.

What are the primary risks associated with this detention services contract?

Key risks associated with this detention services contract include potential issues related to detainee welfare and conditions of confinement, such as overcrowding, inadequate medical care, or safety concerns, which can lead to litigation and reputational damage for the government. Operational risks involve staffing shortages, security breaches, or facility maintenance failures that could disrupt services. Financial risks might arise if the fixed-price contract does not adequately account for unforeseen cost increases, or conversely, if the contractor inflates prices due to limited competition or market power. There's also the risk of non-compliance with evolving legal or policy mandates related to detention standards and practices, requiring costly adjustments.

How does the duration of this contract (364 days) impact the government's flexibility and long-term planning?

A contract duration of 364 days, essentially one year, provides the government with a degree of flexibility. It allows ICE to periodically reassess its detention needs based on changing immigration flows, policy directives, and budget allocations without being locked into a long-term commitment. This shorter term can facilitate quicker adjustments to capacity or service providers if circumstances change. However, it also means that the government must continually re-compete or extend contracts, which can be administratively burdensome and may not incentivize long-term facility improvements or operational efficiencies from the contractor. For long-term planning, a series of short-term contracts can create uncertainty for both the agency and the contractor.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Guards and Patrol 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: $120,393,306

Exercised Options: $120,393,306

Current Obligation: $120,393,306

Actual Outlays: $60,246,352

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70CDCR20D00000009

IDV Type: IDC

Timeline