DHS Spends $15.4M on Detention Services with The GEO Group, Inc. via Full and Open Competition

Contract Overview

Contract Amount: $15,386,529 ($15.4M)

Contractor: THE GEO Group, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2007-09-15

End Date: 2009-03-31

Contract Duration: 563 days

Daily Burn Rate: $27.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DETENTION SERVICES

Place of Performance

Location: MIAMI, MIAMI-DADE County, FLORIDA, 33138

State: Florida Government Spending

Plain-Language Summary

Department of Homeland Security obligated $15.4 million to THE GEO GROUP, INC. for work described as: DETENTION SERVICES Key points: 1. The contract awarded to The GEO Group, Inc. for detention services represents a significant expenditure of $15.4 million. 2. Full and open competition was utilized, suggesting a robust process for selecting the contractor. 3. The contract duration of 563 days indicates a medium-term service requirement. 4. The firm fixed-price contract type aims to control costs for the government.

Value Assessment

Rating: fair

The total award of $15.4 million over 563 days averages approximately $27,330 per day. Benchmarking this against similar detention service contracts is difficult without more granular data on bed-days and service levels.

Cost Per Unit: $27,330 per day (average)

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, which typically fosters competitive pricing. The firm fixed-price structure further supports price discovery by setting clear expectations.

Taxpayer Impact: Taxpayer funds were utilized through a competitive process, aiming for value. The fixed-price nature helps in budget predictability.

Public Impact

Immigration and Customs Enforcement (ICE) relies on these services for managing detainees. The contract duration and value suggest a substantial operational requirement. The use of a private contractor for detention services raises ongoing policy discussions. Geographic location in Florida may impact service delivery and local economic factors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed service metrics for cost comparison.
Potential for cost overruns if fixed price doesn't account for all contingencies.
Reliance on a single contractor for a critical service.

Positive Signals

Awarded via full and open competition.
Firm fixed-price contract type.
Clear contract end date.

Sector Analysis

Detention services fall under government contracting for public safety and immigration management. Spending benchmarks are highly variable based on service scope, location, and duration.

Small Business Impact

The data does not indicate if small businesses were involved as subcontractors. The primary awardee is a large corporation, suggesting limited direct opportunities for small businesses on this specific contract.

Oversight & Accountability

Oversight would typically be managed by ICE contracting officers to ensure compliance with the firm fixed-price terms and service level agreements. Accountability is tied to performance against the contract.

Related Government Programs

Department of Homeland Security Contracting
U.S. Immigration and Customs Enforcement Programs

Risk Flags

Contract awarded to a single large entity.
Limited detail on specific services provided.
Potential for cost escalation if fixed price is not comprehensive.
Reliance on private sector for detention services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $15.4 million to THE GEO GROUP, INC.. DETENTION SERVICES

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 $15.4 million.

What is the period of performance?

Start: 2007-09-15. End: 2009-03-31.

What specific services are included in the $15.4 million detention services contract, and how do they compare to industry standards for cost-effectiveness?

The provided data lacks specifics on the exact services rendered under the $15.4 million contract. To assess cost-effectiveness, a detailed breakdown of services (e.g., housing, food, medical care, transportation) and their associated costs per detainee per day would be necessary. Benchmarking against similar ICE contracts or private detention facilities with transparent pricing models would offer comparative insights.

Given the firm fixed-price structure, what mechanisms are in place to mitigate risks associated with unforeseen operational challenges or changes in detainee population?

A firm fixed-price contract generally places the risk of cost overruns on the contractor. However, mechanisms like contract modifications for scope changes, force majeure clauses, or specific performance incentives/penalties might exist. ICE's oversight would be crucial in managing these risks and ensuring the contractor fulfills obligations without compromising service quality or taxpayer funds.

How effective has The GEO Group, Inc. been in fulfilling similar detention service contracts for government agencies, and what is the track record regarding compliance and service quality?

Assessing the effectiveness of The GEO Group, Inc. requires reviewing their past performance on similar contracts, including any documented issues with service quality, compliance, or cost management. Publicly available reports, past performance evaluations, and any litigation or investigations related to their services would provide crucial insights into their reliability and effectiveness as a government contractor.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 621 NORTH WEST 53RD ST, STE 7000, BOCA RATON, FL, 33487

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $15,386,529

Exercised Options: $15,386,529

Current Obligation: $15,386,529

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HSCEAB04C0001

IDV Type: IDC

Timeline