Homeland Security's $9.6M contract for security systems services awarded to The GEO Group, Inc. in 2010

Contract Overview

Contract Amount: $21,483,285 ($21.5M)

Contractor: THE GEO Group, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2010-10-01

End Date: 2011-09-30

Contract Duration: 364 days

Daily Burn Rate: $59.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: LATE PALT ACCEPTED SUBJECT TO AVAILABILITY OF FUNDS "SAF" FOR FY2011 BROWARD CDF CONTRACT # HSCEDM-10-F-00011. PERIOD OF PERFORMANCE OCT 1, 2010 TO FEB 28, 2011. TOTAL: 9,610,483.50

Place of Performance

Location: POMPANO BEACH, BROWARD County, FLORIDA, 33073

State: Florida Government Spending

Plain-Language Summary

Department of Homeland Security obligated $21.5 million to THE GEO GROUP, INC. for work described as: LATE PALT ACCEPTED SUBJECT TO AVAILABILITY OF FUNDS "SAF" FOR FY2011 BROWARD CDF CONTRACT # HSCEDM-10-F-00011. PERIOD OF PERFORMANCE OCT 1, 2010 TO FEB 28, 2011. TOTAL: 9,610,483.50 Key points: 1. The contract was awarded using full and open competition, suggesting a competitive bidding process. 2. The period of performance was relatively short, spanning just over one year. 3. The contract type was Firm Fixed Price, which shifts cost risk to the contractor. 4. The North American Industry Classification System (NAICS) code 561621 indicates services related to security systems. 5. The contract was awarded by U.S. Immigration and Customs Enforcement (ICE) under the Department of Homeland Security. 6. The contract was not set aside for small businesses. 7. The contract was awarded in Florida.

Value Assessment

Rating: fair

The total value of $9,610,483.50 for a 364-day contract for security systems services appears to be within a reasonable range for such a requirement, though specific benchmarks are difficult to ascertain without more detailed service descriptions. The Firm Fixed Price contract type indicates that the government secured a defined cost for the services, transferring potential cost overruns to the contractor. However, the absence of detailed performance metrics or comparison data makes a definitive value-for-money assessment challenging.

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 bids. While the number of bids received is not specified, this method generally promotes price discovery and allows the government to select the best value offer. The use of full and open competition suggests that the agency sought to maximize competition to obtain favorable pricing and service quality.

Taxpayer Impact: A full and open competition process is generally beneficial for taxpayers as it encourages multiple vendors to compete, potentially driving down costs and improving the quality of services offered.

Public Impact

The primary beneficiary of this contract is the U.S. Immigration and Customs Enforcement (ICE) agency, which received security systems services. The services delivered likely involved the installation, maintenance, or monitoring of security systems to protect federal facilities or assets. The geographic impact is localized to Florida, where the contract was awarded and presumably performed. The contract supported jobs within the security systems services sector, though the exact number of individuals employed is not specified.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The short period of performance (364 days) might indicate a temporary need or a contract that was part of a larger, phased approach, potentially leading to future re-competition or contract modifications.
Without specific details on the security systems and their performance, it's difficult to assess the effectiveness and long-term value.
The contract was not set aside for small businesses, which may limit opportunities for smaller firms in this sector.
The 'LATE PALT ACCEPTED SUBJECT TO AVAILABILITY OF FUNDS "SAF" FOR FY2011' notation suggests potential funding uncertainties or administrative delays at the time of award.

Positive Signals

The use of a Firm Fixed Price contract type is a positive signal for cost control, as it locks in the price for the government.
Awarding under 'full and open competition' is a positive indicator of a robust and fair procurement process.
The contract was awarded to a known entity, The GEO Group, Inc., which may have a track record in providing such services.

Sector Analysis

The security systems services sector is a critical component of national security and facility management, encompassing a wide range of technologies and services from alarm systems to surveillance and access control. This contract falls within the broader professional, scientific, and technical services industry. Spending in this sector by federal agencies is substantial, driven by the need to protect sensitive information, personnel, and infrastructure. Comparable spending benchmarks would typically be assessed against other government contracts for similar security solutions, considering factors like system complexity, geographic scope, and duration.

Small Business Impact

This contract was not set aside for small businesses, nor is there an indication of specific subcontracting requirements for small businesses. This means that opportunities for small businesses to directly participate in this contract were limited to those that could compete as prime contractors under full and open competition, or potentially as subcontractors to the prime. The absence of a set-aside may mean that the agency determined that the scope of work was not conducive to a small business set-aside or that larger firms were deemed more capable of fulfilling the requirement.

Oversight & Accountability

Oversight for this contract would have been managed by the U.S. Immigration and Customs Enforcement (ICE) contracting officers and program managers. As a federal contract, it would be subject to standard government oversight mechanisms, including performance monitoring and financial accountability. The Department of Homeland Security's Office of Inspector General (OIG) would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract. Transparency would be facilitated through contract award databases like FPDS-NG (now SAM.gov).

Related Government Programs

Department of Homeland Security Contracts
U.S. Immigration and Customs Enforcement Contracts
Security Systems Services Contracts
Firm Fixed Price Contracts
Federal Contracts Awarded in Florida

Risk Flags

Potential Funding Uncertainty (SAF notation)
Short Period of Performance
Lack of Detailed Performance Metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $21.5 million to THE GEO GROUP, INC.. LATE PALT ACCEPTED SUBJECT TO AVAILABILITY OF FUNDS "SAF" FOR FY2011 BROWARD CDF CONTRACT # HSCEDM-10-F-00011. PERIOD OF PERFORMANCE OCT 1, 2010 TO FEB 28, 2011. TOTAL: 9,610,483.50

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 $21.5 million.

What is the period of performance?

Start: 2010-10-01. End: 2011-09-30.

What is the track record of The GEO Group, Inc. in providing security systems services to the federal government?

The GEO Group, Inc. is a diversified provider of correctional, detention, and community reentry services. While their primary focus is often on correctional facilities, they also engage in providing related services. Information regarding their specific track record in federal security systems services, beyond this particular contract, would require a deeper dive into federal procurement databases to identify other awards, performance reviews, and any reported issues. Their experience in managing secure environments for government agencies suggests a foundational understanding of security needs, but the specifics of technical security systems provision would need separate verification. Examining past performance questionnaires and any contract disputes or terminations associated with The GEO Group, Inc. would provide a more comprehensive view of their capabilities and reliability in this domain.

How does the per-unit cost or overall value of this contract compare to similar federal contracts for security systems services?

A direct comparison of the per-unit cost for this $9.6 million contract is challenging without knowing the specific services rendered (e.g., number of systems installed, maintenance hours, monitoring scope). However, the contract's total value for a 364-day period suggests a significant scope of work. To benchmark effectively, one would need to identify contracts with similar NAICS codes (561621) and contract types (Firm Fixed Price) awarded around the same period (2010-2011) by agencies like DHS or other federal entities. Factors such as the type of security systems (e.g., CCTV, access control, intrusion detection), the number of locations covered, and the level of service (installation, maintenance, monitoring) are crucial for a meaningful comparison. Without this granular data, assessing whether this contract represented excellent, good, or fair value is speculative.

What were the primary risks associated with this contract, and how were they managed?

Key risks for this contract likely included performance risk (ensuring the security systems functioned as intended and met ICE's operational needs), financial risk (potential cost overruns for the contractor given the FFP nature), and schedule risk (completing installation or services within the specified period). Given it was a Firm Fixed Price contract, the primary financial risk was borne by the contractor. The government's risk was primarily centered on performance and ensuring the security objectives were met. Management of these risks would typically involve clear performance work statements, regular progress reviews, acceptance testing of installed systems, and potentially liquidated damages clauses for delays or failures. The 'SAF' notation also points to a potential funding risk that was managed through conditional acceptance.

What was the overall effectiveness of the security systems provided under this contract?

The provided data does not include information on the effectiveness of the security systems delivered under this contract. Effectiveness would typically be measured by metrics such as system uptime, incident response times, reduction in security breaches, and user satisfaction from the agency. Post-contract evaluations, performance reports, or any documented incidents related to the security systems' failure or success would be necessary to assess effectiveness. Without such data, it is impossible to determine if the contract achieved its intended security outcomes.

How has federal spending on security systems services (NAICS 561621) evolved since this contract was awarded in 2010?

Federal spending on security systems services (NAICS 561621) has likely seen significant growth since 2010, driven by increasing security threats, technological advancements in surveillance and access control, and a heightened focus on protecting critical infrastructure and sensitive government data. Agencies across the federal government, including DHS, DoD, and others, continuously invest in upgrading and maintaining their security infrastructure. Trends would likely show an increase in the adoption of integrated systems, cybersecurity components within physical security, and potentially a greater emphasis on service-based contracts (e.g., managed security services) rather than just equipment procurement. Analyzing aggregate spending data from sources like the Federal Procurement Data System (FPDS) or SAM.gov would reveal the overall trend and shifts in the market.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Systems Services (except Locksmiths)

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: 1 PARK PL STE 700 621 NW 53RD ST, BOCA RATON, FL, 23

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $21,483,285

Exercised Options: $21,483,285

Current Obligation: $21,483,285

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSCEDM09D00006

IDV Type: IDC

Timeline