DHS/ICE contract for detention management services awarded to The GEO Group, Inc. for over $22.3 million

Contract Overview

Contract Amount: $22,340,169 ($22.3M)

Contractor: THE GEO Group, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2012-09-15

End Date: 2013-09-15

Contract Duration: 365 days

Daily Burn Rate: $61.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CT::IGF CRITICAL FUNCTION. DETENTION MANAGMENT, MEDICAL SERVICES, TRANSPORTATION SERVICES, FOOD SERVICES FOR DHS/ICE AUROROA, CO AT GEO GROUP COCA FACILITY.

Place of Performance

Location: AURORA, ADAMS County, COLORADO, 80010

State: Colorado Government Spending

Plain-Language Summary

Department of Homeland Security obligated $22.3 million to THE GEO GROUP, INC. for work described as: IGF::CT::IGF CRITICAL FUNCTION. DETENTION MANAGMENT, MEDICAL SERVICES, TRANSPORTATION SERVICES, FOOD SERVICES FOR DHS/ICE AUROROA, CO AT GEO GROUP COCA FACILITY. Key points: 1. The contract value of over $22.3 million for a one-year period suggests a significant operational scale. 2. Full and open competition was utilized, indicating a potentially competitive bidding process. 3. The firm-fixed-price contract type aims to control costs for the government. 4. The contract is for critical detention management, medical, transportation, and food services. 5. The geographic location in Aurora, Colorado, specifies the operational area. 6. The contract was awarded to a single vendor, The GEO Group, Inc.

Value Assessment

Rating: fair

The contract value of $22.3 million for a one-year duration for detention management services is substantial. Benchmarking against similar contracts for ICE detention facilities is crucial to assess value for money. Given the critical nature of services provided (medical, food, transportation), the pricing needs to be carefully evaluated against industry standards for such comprehensive support. Without specific per-unit cost data or comparisons to other facilities of similar size and service scope, it is difficult to definitively assess if this represents excellent value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The presence of only one award indicates that The GEO Group, Inc. was the successful bidder among potentially several. The level of competition, while open, does not inherently guarantee the lowest price without further analysis of the number of bids received and the pricing structures proposed.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it theoretically encourages multiple vendors to offer competitive pricing, potentially leading to cost savings for the government.

Public Impact

Immigrants in DHS/ICE detention facilities in Aurora, Colorado, benefit from the provision of essential services. The contract ensures the delivery of detention management, medical services, transportation, and food services. The geographic impact is localized to the GEO Group COCA facility in Aurora, Colorado. The contract supports the operational needs of U.S. Immigration and Customs Enforcement (ICE).

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if not managed tightly due to the fixed-price nature and scope of services.
Reliance on a single contractor for critical services raises concerns about service continuity and quality.
The scale of the contract may limit future competition if the incumbent contractor is highly favored.

Positive Signals

Firm-fixed-price contract type helps to control costs for the government.
Full and open competition provides an opportunity for multiple vendors to bid.
The contract addresses critical operational needs for ICE detention facilities.

Sector Analysis

This contract falls within the Facilities Support Services sector, specifically related to government-operated or contracted detention facilities. The market for correctional and detention services is specialized, often involving large, established providers like The GEO Group. Spending in this sector is driven by government policy and demand for detention capacity. Comparable benchmarks would involve analyzing other ICE or Bureau of Prisons contracts for similar facility management and support services.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary focus is on large business competition. There is no explicit information regarding subcontracting plans for small businesses within this award. The impact on the small business ecosystem is likely minimal unless The GEO Group, Inc. voluntarily engages small businesses for specialized support services.

Oversight & Accountability

Oversight for this contract would typically be managed by contracting officers and program managers within U.S. Immigration and Customs Enforcement (ICE). The firm-fixed-price nature provides a degree of cost control. Transparency is generally facilitated through contract award databases. Specific accountability measures would be detailed in the contract's performance work statement, with potential for Inspector General review if performance issues or fraud are suspected.

Related Government Programs

DHS/ICE Detention Services Contracts
Federal Correctional Facility Management
Government Outsourced Services
Immigration Detention Operations

Risk Flags

Contract awarded to a single large provider with extensive history in the sector.
Critical services (medical, food, transport) require stringent oversight.
Potential for cost escalation if not managed tightly.
Reliance on contractor for essential human services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $22.3 million to THE GEO GROUP, INC.. IGF::CT::IGF CRITICAL FUNCTION. DETENTION MANAGMENT, MEDICAL SERVICES, TRANSPORTATION SERVICES, FOOD SERVICES FOR DHS/ICE AUROROA, CO AT GEO GROUP COCA FACILITY.

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 $22.3 million.

What is the period of performance?

Start: 2012-09-15. End: 2013-09-15.

What is the historical spending pattern for this specific contract or similar services provided by The GEO Group, Inc. to ICE?

Analyzing historical spending for this specific contract (if it's a renewal or successor) or for similar detention management services provided by The GEO Group, Inc. to ICE is crucial for understanding cost trends and value over time. Without access to historical contract data, it's difficult to determine if the $22.3 million award represents an increase or decrease compared to previous periods. Generally, ICE contracts for detention services are substantial and recurring, reflecting ongoing needs. Examining past performance, contract modifications, and any disputes or overruns associated with The GEO Group's previous ICE contracts would provide valuable context for assessing the current award's financial prudence and the contractor's reliability.

How does the per-unit cost of services (e.g., per detainee per day) compare to industry benchmarks for similar ICE detention facilities?

To assess the value for money, a comparison of the per-unit cost of services is essential. This would involve calculating the cost per detainee per day based on the contract value and the facility's average daily population. This calculated rate should then be benchmarked against similar contracts awarded by ICE or other federal agencies for detention facilities of comparable size, location, and service scope. Factors such as the level of medical care provided, security requirements, and geographic location can influence these costs. If the per-unit cost is significantly higher than benchmarks, it may indicate potential overpricing or inefficiencies, warranting further investigation into the contract's pricing structure and the scope of services.

What is The GEO Group, Inc.'s track record with ICE and other federal agencies regarding performance, compliance, and contract management?

The GEO Group, Inc. has a long history of contracting with federal agencies, including ICE and the Bureau of Prisons, for detention and correctional services. Their track record is extensive and has been subject to public scrutiny and oversight. Key aspects to examine include their past performance ratings, any history of contract disputes, litigation, or findings of non-compliance with regulations or contract terms. Reports from government oversight bodies, such as Inspectors General, and news archives can provide insights into any significant issues related to service quality, safety, or management. A thorough review of their performance history is critical for understanding the risks associated with this current award and for assessing their capability to deliver the required services effectively and ethically.

What are the specific performance metrics and service level agreements (SLAs) outlined in the contract, and how are they monitored?

The effectiveness and value of this contract are heavily dependent on the specific performance metrics and service level agreements (SLAs) established within the contract's Performance Work Statement (PWS). These metrics define the expected standards for critical services such as medical care response times, food quality and safety, transportation reliability, and overall facility management. Robust monitoring mechanisms, including regular inspections, audits, and reporting requirements, are necessary to ensure compliance. The government's ability to track and enforce these SLAs directly impacts the quality of services provided to detainees and the overall accountability of the contractor. Without detailed knowledge of these metrics and monitoring processes, assessing the contract's effectiveness is challenging.

What is the potential impact of this contract on the overall federal spending for immigration detention and related services?

This $22.3 million contract represents a significant portion of federal spending allocated to detention management services for a specific facility and time period. When aggregated with numerous other similar contracts across the country, it contributes to the substantial overall federal expenditure on immigration detention. Understanding the trends in this spending—whether it is increasing or decreasing, and the factors driving these changes (e.g., policy shifts, detainee populations)—is crucial for fiscal planning and policy evaluation. Analyzing this single contract within the broader context of ICE's detention budget provides insight into the government's resource allocation priorities and the financial scale of its detention operations.

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

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

Financial Breakdown

Contract Ceiling: $22,352,229

Exercised Options: $22,352,229

Current Obligation: $22,340,169

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: HSCEDM11D00003

IDV Type: IDC

Timeline