DHS's $22.4M detention facility contract with GEO Group raises value and competition questions

Contract Overview

Contract Amount: $22,381,614 ($22.4M)

Contractor: THE GEO Group, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2011-09-15

End Date: 2021-09-15

Contract Duration: 3,653 days

Daily Burn Rate: $6.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: AURORA CONTRACT DETENTION FACILITY - COCO. BASE OPTION

Place of Performance

Location: AURORA, ADAMS County, COLORADO, 80010

State: Colorado Government Spending

Plain-Language Summary

Department of Homeland Security obligated $22.4 million to THE GEO GROUP, INC. for work described as: AURORA CONTRACT DETENTION FACILITY - COCO. BASE OPTION Key points: 1. The contract's duration and firm-fixed-price structure suggest predictable costs, but value for money requires deeper analysis. 2. Full and open competition was utilized, indicating a potentially robust bidding process. 3. The contractor, GEO Group, has a significant presence in the corrections and detention services market. 4. Performance context is crucial; the facility's operational success and adherence to standards are key indicators. 5. This contract falls within the Facilities Support Services sector, a critical component of government operations. 6. The lack of small business set-aside warrants examination of subcontracting opportunities.

Value Assessment

Rating: fair

Benchmarking the per-unit cost of detention services against similar facilities operated by DHS or other agencies is essential to assess value for money. Given the firm-fixed-price structure, the contractor bears cost overruns, which can incentivize efficiency. However, without detailed performance metrics and comparisons to industry standards, it's difficult to definitively state if the $22.4 million represents excellent value. The long duration of the contract (over 10 years) also means that market conditions and operational needs may have evolved significantly since its inception.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple bidders had the opportunity to compete. This method is generally preferred as it fosters price discovery and can lead to more competitive pricing. The number of bidders and the specifics of the evaluation process would provide further insight into the level of competition achieved and its impact on the final price.

Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down costs through market forces, ensuring that the government secures services at the most competitive rates available.

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 supports the operation of a detention facility, providing housing and related services for individuals in federal custody. The geographic impact is localized to Colorado, where the Aurora Contract Detention Facility is located. Workforce implications include employment opportunities for facility staff, security personnel, and support services within the Colorado region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost creep if scope changes are not managed tightly.
Reliance on a single contractor for a critical service raises concerns about service continuity.
Ensuring consistent quality of care and adherence to detention standards over a long contract period.

Positive Signals

Firm-fixed-price contract structure shifts cost risk to the contractor.
Full and open competition suggests a competitive award process.
Long-term contract provides stability for service delivery.

Sector Analysis

This contract falls within the Facilities Support Services sector, specifically related to government-operated detention facilities. The market for correctional and detention services is substantial, with several large private sector players. Government contracts in this area are often long-term due to the specialized nature of the facilities and services required. Benchmarking against other government contracts for similar detention services would provide context for the pricing and scope.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the primary competition likely involved larger, established firms with the capacity to manage such a facility. Further investigation into subcontracting plans would be necessary to determine if small businesses have opportunities to participate in providing ancillary services or supplies.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of U.S. Immigration and Customs Enforcement (ICE) contracting officers and program managers. Performance reviews, site inspections, and adherence to contract terms and service level agreements are standard oversight mechanisms. The Department of Homeland Security's Office of Inspector General may also conduct audits or investigations into the contract's performance and financial management.

Related Government Programs

Federal Detention Center Operations
Immigration Detention Services
Correctional Facility Management Contracts
Homeland Security Facilities Management

Risk Flags

Long contract duration may outpace evolving needs or technology.
Potential for contractor performance issues in a sensitive service area.
Lack of specific performance data makes value assessment difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $22.4 million to THE GEO GROUP, INC.. AURORA CONTRACT DETENTION FACILITY - COCO. BASE OPTION

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 $22.4 million.

What is the period of performance?

Start: 2011-09-15. End: 2021-09-15.

What is the track record of The GEO Group, Inc. in managing federal detention facilities, and have there been any significant performance issues or controversies associated with their contracts?

The GEO Group, Inc. is one of the largest private operators of correctional and detention facilities in the United States. They manage a significant portfolio of contracts with federal, state, and local government agencies, including U.S. Immigration and Customs Enforcement (ICE) and the Federal Bureau of Prisons. Historically, GEO Group has faced scrutiny and criticism regarding conditions within their facilities, including issues related to staffing levels, healthcare services, safety, and security. Reports from government watchdogs, news investigations, and advocacy groups have sometimes highlighted concerns. However, the company generally maintains that it operates facilities in compliance with contractual obligations and government standards. A thorough review would involve examining specific performance evaluations, audit reports, and any litigation or disputes related to their ICE contracts, particularly for the Aurora facility if applicable.

How does the per-bed cost of this contract compare to other ICE detention facilities, both government-operated and privately-run?

To assess the value for money, a comparison of the per-bed cost is crucial. The total contract value of $22,381,614.07 over its approximate 10-year duration (from September 15, 2011, to September 15, 2021) suggests an average annual cost of roughly $2.24 million. Dividing this by the facility's capacity (which is not provided in the data but is essential for this calculation) would yield a per-bed, per-day, or per-year cost. This figure should then be benchmarked against publicly available data for similar ICE contracts, considering factors like facility size, location, services provided (e.g., medical care, legal access), and security levels. Private facilities can vary widely in cost, and government-operated facilities have different cost structures. Without the facility's bed count and specific service inclusions, a precise comparison is difficult, but such data is vital for evaluating cost-effectiveness.

What are the key performance indicators (KPIs) used to evaluate the performance of The GEO Group under this contract, and how has the contractor performed against these metrics?

Key performance indicators (KPIs) for detention facility contracts typically revolve around operational efficiency, safety, security, and compliance with standards. For ICE contracts, these often include metrics related to detainee well-being (e.g., access to medical care, food services, legal representation), facility safety (e.g., incident rates, use of force), security protocols (e.g., escapes, contraband interdiction), and staff training and retention. Performance is usually assessed through regular site visits, audits, incident report reviews, and detainee grievance procedures. The contract documents themselves would outline the specific KPIs and service level agreements. Evaluating the contractor's performance requires access to ICE's internal performance evaluations, quality assurance reports, and any corrective action plans issued. Without this specific performance data, it's challenging to definitively assess the contractor's success beyond the fact that the contract was extended and fulfilled.

Given the contract's duration, what is the potential for cost escalation or the need for contract modifications over its lifespan?

While this contract is firm-fixed-price (pt: FIRM FIXED PRICE), which generally limits cost escalation for the government, the extended duration (3653 days, approximately 10 years) inherently carries risks. Changes in federal regulations, evolving security requirements, inflation impacting labor and supply costs, or unforeseen facility maintenance needs could necessitate contract modifications. ICE would need to manage any such changes carefully through formal modification processes, ensuring that any adjustments are justified and that the government receives fair value. The potential for scope creep, where additional services are requested without a corresponding price adjustment, is also a consideration. However, the firm-fixed-price nature aims to place the burden of managing these risks on the contractor.

What is the historical spending trend for ICE detention facilities, and how does this specific contract fit within that broader spending pattern?

ICE's detention operations represent a significant portion of the agency's budget, driven by the need to detain individuals awaiting immigration proceedings or removal. Historical spending trends show a substantial and often increasing allocation towards detention services over the past two decades, influenced by immigration policies and enforcement priorities. This $22.4 million contract, awarded in 2011 and ending in 2021, represents one component of ICE's broader detention infrastructure, which includes numerous facilities across the country, both government-owned and contracted. Analyzing ICE's overall budget for detention and comparing the number and cost of contracts awarded annually would place this specific contract within a larger context. It reflects a period where reliance on private detention providers was a common strategy to meet capacity demands.

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

Solicitation ID: HSCEDM-11-R-00002

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: $45,727,183

Exercised Options: $45,727,183

Current Obligation: $22,381,614

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: HSCEDM11D00003

IDV Type: IDC

Timeline