DHS awards $34.4M for security services to The Geo Group, Inc. over 17 months

Contract Overview

Contract Amount: $34,399,749 ($34.4M)

Contractor: THE GEO Group, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2011-10-01

End Date: 2013-02-28

Contract Duration: 516 days

Daily Burn Rate: $66.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SUBJECT TO AVAILABILITY OF FUNDS "SAF" FOR FY12 FUNDING FOR BTC/GUARDS SERVICES TASK ORDER HSCEDM-11-F-00004.

Place of Performance

Location: POMPANO BEACH, BROWARD County, FLORIDA, 33073

State: Florida Government Spending

Plain-Language Summary

Department of Homeland Security obligated $34.4 million to THE GEO GROUP, INC. for work described as: SUBJECT TO AVAILABILITY OF FUNDS "SAF" FOR FY12 FUNDING FOR BTC/GUARDS SERVICES TASK ORDER HSCEDM-11-F-00004. Key points: 1. Contract value appears reasonable for the duration and scope of security services. 2. Full and open competition suggests a competitive bidding process was utilized. 3. The contractor, The Geo Group, Inc., has a significant presence in correctional and detention services. 4. Performance period spans over a year, indicating a need for sustained security operations. 5. The contract falls within the Security Systems Services sector, excluding locksmiths. 6. The award was a delivery order under a larger contract vehicle.

Value Assessment

Rating: good

The contract value of $34.4 million over approximately 17 months averages to about $2 million per month. This figure seems within a reasonable range for comprehensive security guard and related services, especially considering the potential complexity and staffing requirements for federal facilities. Benchmarking against similar contracts for security services at federal sites would provide a more precise value-for-money assessment, but the initial figure does not raise immediate red flags.

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. This method generally fosters a competitive environment, encouraging multiple bidders to offer their best pricing and service proposals. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competition was intended and likely occurred, which is beneficial for price discovery.

Taxpayer Impact: A full and open competition process is favorable for taxpayers as it increases the likelihood of securing services at competitive market rates, potentially leading to cost savings compared to less competitive procurement methods.

Public Impact

The primary beneficiaries are the Department of Homeland Security and U.S. Immigration and Customs Enforcement, receiving essential security services. Services delivered include guards and security systems, crucial for maintaining safety and order. The contract is geographically focused on Florida, impacting local security operations and potentially workforce. The contract supports jobs within the security services industry in Florida.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for over-reliance on a single large contractor for critical security functions.
Need for robust performance monitoring to ensure service quality meets federal standards.
Contract duration could lead to complacency if not actively managed.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing structure.
The Geo Group, Inc. is an established provider in the corrections and detention sector.
Clear service requirements and performance period are defined.

Sector Analysis

The security systems services sector is a vital component of the broader security industry, encompassing a wide range of protective measures. This contract, specifically for guards and security systems, fits within the operational needs of federal agencies responsible for maintaining secure facilities. Spending in this sector can fluctuate based on national security priorities and facility management requirements. Comparable spending benchmarks would involve analyzing other federal contracts for similar security services across different agencies and geographic locations.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a result, small businesses were likely not the primary focus of this specific award. However, the prime contractor, The Geo Group, Inc., may engage small businesses for subcontracting opportunities to fulfill certain aspects of the contract, though this is not explicitly detailed in the provided data. The impact on the broader small business ecosystem would depend on the extent of any subcontracting.

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. Performance standards and deliverables are outlined in the contract, and regular monitoring and reporting are expected. The contract's structure as a delivery order under a larger vehicle may also involve oversight from the agency that awarded the base contract. Transparency is generally maintained through contract databases and reporting requirements.

Related Government Programs

Federal Protective Service Contracts
Immigration and Customs Enforcement Detention Services
Department of Homeland Security Facility Management
Government Security Guard Services

Risk Flags

Contractor Performance History
Scope of Work Clarity
Cost Reasonableness
Security Service Quality Assurance

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $34.4 million to THE GEO GROUP, INC.. SUBJECT TO AVAILABILITY OF FUNDS "SAF" FOR FY12 FUNDING FOR BTC/GUARDS SERVICES TASK ORDER HSCEDM-11-F-00004.

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 $34.4 million.

What is the period of performance?

Start: 2011-10-01. End: 2013-02-28.

What is the track record of The Geo Group, Inc. with federal contracts, particularly with DHS?

The Geo Group, Inc. is a significant player in the corrections and detention management industry and has a substantial history of holding federal contracts, including with the Department of Homeland Security (DHS) and its components like U.S. Immigration and Customs Enforcement (ICE). Their federal contract portfolio often involves providing services related to detention facilities, including security, staffing, and management. While their experience is extensive, it's important to note that like many large federal contractors, they have also faced scrutiny and legal challenges related to their operations and contract performance in the past. A detailed review would involve examining specific past performance evaluations, any contract disputes, and compliance records relevant to security services.

How does the awarded price compare to market rates for similar security services?

The awarded value of $34.4 million over approximately 17 months equates to an average monthly cost of roughly $2 million. Without specific details on the scope of services (e.g., number of guards, hours, technology deployed, facility size, threat level), a precise market rate comparison is challenging. However, for comprehensive security guard and systems services at federal facilities, this figure appears to be within a plausible range. Industry benchmarks for security guard services can vary widely based on location, labor costs, and the level of expertise required. A more definitive assessment would require comparing this contract's specific deliverables and pricing structure against publicly available data for similar federal or large-scale commercial security contracts.

What are the primary risks associated with this contract and contractor?

Key risks associated with this contract include potential performance deficiencies by the contractor, The Geo Group, Inc., in delivering consistent and high-quality security services. Given the nature of security operations, failures could have significant implications for facility safety and security. There's also a risk related to cost overruns if the scope of work expands or unforeseen operational challenges arise. Furthermore, the contractor's history in the corrections and detention sector may bring associated reputational risks or concerns regarding labor practices and oversight, depending on past incidents. Ensuring robust contract management and performance monitoring by DHS is crucial to mitigate these risks.

How effective has The Geo Group, Inc. been in fulfilling similar federal contracts?

Assessing the overall effectiveness of The Geo Group, Inc. in fulfilling similar federal contracts requires a deep dive into past performance evaluations, contract close-outs, and any formal disputes or corrective actions. As a large, established contractor, they have likely completed numerous contracts successfully. However, specific performance metrics for this particular contract are not available in the provided data. Publicly available information and contract databases might offer insights into their performance ratings on previous DHS or other federal contracts. It's advisable to consult sources like the Federal Procurement Data System (FPDS) or agency-specific performance review systems for a more detailed understanding.

What are the historical spending patterns for security services by U.S. Immigration and Customs Enforcement?

U.S. Immigration and Customs Enforcement (ICE), as a component of DHS, has consistently allocated significant funds towards security services, including personnel, technology, and facility management, to support its law enforcement and detention operations. Historical spending patterns reveal a substantial and ongoing requirement for these services, driven by the agency's mission. Fluctuations in spending can be attributed to changes in operational tempo, policy shifts, budget allocations, and the number and type of facilities requiring security. Analyzing ICE's budget justifications and historical contract awards would provide a clearer picture of their spending trends in this category over time.

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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1 PARK PL STE 700 621 NW 53RD ST, 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: $34,399,749

Exercised Options: $34,399,749

Current Obligation: $34,399,749

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSCEDM09D00006

IDV Type: IDC

Timeline