DHS's $22.2M contract for facilities support services awarded to The GEO Group, Inc. for option year four

Contract Overview

Contract Amount: $22,215,599 ($22.2M)

Contractor: THE GEO Group, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2010-06-01

End Date: 2011-09-15

Contract Duration: 471 days

Daily Burn Rate: $47.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: INCREMENTALFUNDING FOR OPTION YEAR FOUR OF THE BASIC CONTRACT (JUNE-SEPTEMBER 2010)

Place of Performance

Location: AURORA, ADAMS County, COLORADO, 80010

State: Colorado Government Spending

Plain-Language Summary

Department of Homeland Security obligated $22.2 million to THE GEO GROUP, INC. for work described as: INCREMENTALFUNDING FOR OPTION YEAR FOUR OF THE BASIC CONTRACT (JUNE-SEPTEMBER 2010) Key points: 1. The contract value represents a significant investment in facilities support services for immigration and customs enforcement. 2. The GEO Group, Inc. has secured this contract extension, indicating a continued relationship for service provision. 3. The duration of this option year is 471 days, suggesting a substantial operational period. 4. The contract was awarded under full and open competition, implying a competitive bidding process. 5. The firm-fixed-price contract type suggests that the price is set and not subject to upward adjustment based on costs. 6. This award falls under Facilities Support Services, a critical component of operational infrastructure.

Value Assessment

Rating: fair

Benchmarking the value of this specific option year is challenging without more granular data on the scope of services provided and the specific facilities managed. However, the total value of $22.2 million over approximately 15 months suggests a substantial operational cost. Comparing this to similar facilities support contracts for correctional or detention facilities would provide a clearer picture of value for money. The firm-fixed-price nature of the contract offers cost certainty to the government, but the ultimate value depends on the efficiency and effectiveness of the services delivered by The GEO Group, Inc.

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 vied for the opportunity. The level of competition is a positive sign for price discovery, as it theoretically drives down costs through market forces. The fact that this is an option year implies that the initial award was also competed, and this extension was offered based on the performance and terms established previously.

Taxpayer Impact: A full and open competition process generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and better service quality. It ensures that the government is not locked into a single provider without exploring market alternatives.

Public Impact

The primary beneficiaries are U.S. Immigration and Customs Enforcement (ICE) and the Department of Homeland Security (DHS), who receive essential facilities support services. The services delivered are critical for the operational readiness and management of facilities used in immigration and customs enforcement. The geographic impact is likely concentrated in the areas where The GEO Group, Inc. operates facilities under contract with ICE, specifically noted as Colorado (SN: COLORADO). Workforce implications include employment opportunities for individuals involved in facility management, maintenance, and support services provided by The GEO Group, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the firm-fixed-price model does not adequately account for unforeseen operational challenges.
Dependence on a single contractor for critical facilities support services could pose a risk if performance issues arise.
The long-term nature of such contracts may limit opportunities for newer, potentially more innovative service providers to enter the market.

Positive Signals

The award under full and open competition suggests a competitive process that likely secured favorable terms.
The firm-fixed-price contract type provides budget certainty for the government.
The continuation of the contract indicates satisfactory performance in previous option periods.

Sector Analysis

Facilities Support Services, categorized under NAICS code 561210, is a broad sector encompassing a wide range of services necessary for the operation and maintenance of buildings and other physical structures. This contract specifically relates to support for facilities used by U.S. Immigration and Customs Enforcement. The market for these services is substantial, with government agencies being significant clients due to the extensive infrastructure they manage. Comparable spending benchmarks would involve analyzing other large-scale facilities management contracts awarded by federal agencies, particularly those supporting law enforcement or detention operations.

Small Business Impact

The data indicates that small business participation (SB: false) and set-asides (SS: false) were not explicitly part of this contract award. This suggests that the primary contract was not specifically targeted towards small businesses, and there is no indication of subcontracting requirements for small businesses within this particular option year award. Consequently, the direct impact on the small business ecosystem for this specific contract appears limited, though the prime contractor, The GEO Group, Inc., may engage small businesses in its broader operations.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the U.S. Immigration and Customs Enforcement (ICE) contracting officers and program managers within the Department of Homeland Security (DHS). Accountability measures would be defined in the contract terms and conditions, including performance standards and reporting requirements. Transparency is generally facilitated through contract award databases like FPDS, where basic information is publicly available. The Inspector General for DHS would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Immigration and Customs Enforcement Operations
Homeland Security Facilities Management
Correctional Facility Support Services
Government Contracting Services

Risk Flags

Contractor Performance Risk
Service Delivery Continuity
Cost Management in Fixed-Price Contracts

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $22.2 million to THE GEO GROUP, INC.. INCREMENTALFUNDING FOR OPTION YEAR FOUR OF THE BASIC CONTRACT (JUNE-SEPTEMBER 2010)

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 $22.2 million.

What is the period of performance?

Start: 2010-06-01. End: 2011-09-15.

What is the historical spending trend for facilities support services by U.S. Immigration and Customs Enforcement over the past five years?

Analyzing the historical spending trend for facilities support services by U.S. Immigration and Customs Enforcement (ICE) over the past five years would require access to comprehensive federal procurement data. Typically, such an analysis would involve querying databases like FPDS or USASpending.gov for contracts awarded under NAICS code 561210 (Facilities Support Services) or similar codes, filtered by the awarding agency (ICE) and the relevant time period. The trend would likely reveal fluctuations based on operational needs, budget allocations, and the number of facilities managed. For instance, periods of increased border activity or changes in detention policies could correlate with higher spending on facilities support. Understanding this trend provides context for the current contract's value and helps identify any significant deviations or patterns in ICE's procurement strategy for these essential services.

How does the per-unit cost of services under this contract compare to similar contracts awarded to The GEO Group, Inc. or other providers for comparable facilities?

A direct per-unit cost comparison for this contract is difficult without specific details on the services rendered and the metrics used (e.g., cost per bed, cost per square foot, cost per service call). The GEO Group, Inc. operates in a sector where pricing can vary significantly based on facility size, location, security requirements, and the specific scope of support services (e.g., maintenance, janitorial, security, food services). To benchmark effectively, one would need to identify contracts with similar facility types (e.g., detention centers, processing centers) and service scopes awarded to The GEO Group, Inc. or competitors like CoreCivic or Management and Training Corporation. Analyzing the contract terms, including the firm-fixed-price structure and any associated labor rates or material cost adjustments, would be crucial. A higher per-unit cost might be justified by more comprehensive service offerings or more challenging operating environments, while a lower cost could indicate greater efficiency or less demanding requirements.

What are the key performance indicators (KPIs) used to evaluate The GEO Group, Inc.'s performance under this contract, and what has been their historical performance against these KPIs?

Key Performance Indicators (KPIs) for facilities support services contracts typically revolve around operational efficiency, safety, maintenance responsiveness, and compliance with regulations. For a contract with U.S. Immigration and Customs Enforcement (ICE), these might include metrics such as response times for facility repairs, uptime of critical systems (e.g., HVAC, plumbing), cleanliness standards, adherence to safety protocols, and timely completion of preventative maintenance schedules. Historical performance data against these KPIs would usually be documented in performance reports, contractor performance assessment reporting (CPAR) systems, or internal agency evaluations. A review of these records would indicate whether The GEO Group, Inc. has consistently met or exceeded expectations, or if there have been recurring issues. Consistent high performance would justify the contract renewal, while persistent underperformance might raise concerns about value and risk.

What is the total value of contracts awarded to The GEO Group, Inc. by the Department of Homeland Security (DHS) in the last fiscal year, and how does this contract contribute to that total?

To determine the total value of contracts awarded to The GEO Group, Inc. by the Department of Homeland Security (DHS) in the last fiscal year, one would need to query federal procurement databases (e.g., FPDS, USASpending.gov) for all awards to this contractor from DHS agencies during that period. This specific contract, valued at approximately $22.2 million for its option year, represents a portion of DHS's overall spending on facilities support services. The GEO Group, Inc. is a significant provider of detention and facility management services, and DHS is a major client. Therefore, this contract likely represents a substantial, but not necessarily the entirety, of their business with DHS. Understanding the total award value provides a clearer picture of the contractor's reliance on DHS and the scale of DHS's outsourcing of these services.

Are there any known risks or concerns associated with The GEO Group, Inc.'s track record in providing similar services, particularly in government contracting?

The GEO Group, Inc., like many large government contractors, has faced scrutiny and criticism regarding its operations, particularly concerning the management of correctional and detention facilities. Concerns often raised by advocacy groups and oversight bodies include issues related to inmate safety, staffing levels, healthcare provision, and instances of non-compliance with contractual or regulatory standards. While these concerns may not directly relate to facilities support services in all cases, they contribute to a broader perception of the company's operational practices. For this specific contract, a thorough risk assessment would involve reviewing any past performance issues, contract disputes, or findings from Inspector General reports related to The GEO Group, Inc.'s services for ICE or other DHS components. The government's decision to award an option year suggests that, based on available information, these risks were deemed manageable or mitigated.

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

Offers Received: 1

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, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $23,268,643

Exercised Options: $23,268,643

Current Obligation: $22,215,599

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HSCEOP06D00010

IDV Type: IDC

Timeline