DHS/ICE contract for detention management services awarded to The GEO Group, Inc. for over $22.9 million

Contract Overview

Contract Amount: $22,904,058 ($22.9M)

Contractor: THE GEO Group, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2014-09-16

End Date: 2015-09-15

Contract Duration: 364 days

Daily Burn Rate: $62.9K/day

Competition Type: FULL AND OPEN COMPETITION

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 $22.9 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 represents a significant investment in detention management and related services for ICE. 2. The fixed-price contract type suggests a defined scope and predictable costs for the government. 3. The single delivery order indicates a specific, time-bound need rather than an ongoing requirement. 4. The contract was awarded through full and open competition, implying a broad search for qualified vendors. 5. The duration of the contract is approximately one year, suggesting a need for short-term or interim services. 6. The services provided are critical to the operational functions of ICE's detention facilities.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more detailed service level agreements and performance metrics. The $22.9 million for a one-year period for detention management, medical, transportation, and food services at a single facility appears to be within a reasonable range for such comprehensive support. However, a direct comparison to similar contracts is difficult due to variations in facility size, inmate population, and specific service inclusions. Further analysis would require understanding the per-inmate cost or cost per service line item.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that the government sought proposals from all responsible sources. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which can lead to better pricing and service offerings. The agency likely published a solicitation and evaluated proposals based on defined criteria to select the most advantageous offer.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of obtaining competitive pricing and encourages a wider pool of vendors to offer their services, potentially driving down costs.

Public Impact

The primary beneficiaries are U.S. Immigration and Customs Enforcement (ICE) and the Department of Homeland Security (DHS), receiving essential support services for their detention operations. Services delivered include detention management, medical services, transportation, and food services, ensuring the basic needs and security of detainees. The geographic impact is localized to Aurora, Colorado, specifically at the GEO Group's Coca Facility. Workforce implications include employment opportunities for staff at the GEO Group facility, covering roles in security, healthcare, food service, and administration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess the quality and efficiency of services provided.
The fixed-price contract might incentivize cost-cutting that could potentially impact service quality if not closely monitored.
Reliance on a single delivery order for a significant operational function could indicate a lack of long-term strategic planning or a response to an immediate need.

Positive Signals

Awarded through full and open competition, suggesting a robust vetting process for the contractor.
The contract specifies a firm fixed price, providing cost certainty for the government.
The services are critical for the operational continuity of ICE detention facilities.

Sector Analysis

This contract falls within the Facilities Support Services sector, specifically related to government contracting for correctional and detention facilities. This market is characterized by specialized service providers that manage the day-to-day operations of detention centers, including security, healthcare, food, and transportation. Spending in this sector is often driven by government policy and demand for detention services, which can fluctuate. Comparable spending benchmarks would typically involve analyzing per-diem costs for detention services across different facilities and regions.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and there is no explicit mention of subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears minimal for this specific award. However, the prime contractor, The GEO Group, Inc., may engage small businesses as subcontractors for various support functions, though this is not detailed in the provided information.

Oversight & Accountability

Oversight for this contract would primarily fall under the purview of U.S. Immigration and Customs Enforcement (ICE) officials within the Department of Homeland Security. They are responsible for monitoring contractor performance against the terms of the contract, ensuring compliance with service level agreements, and approving payments. While specific Inspector General (IG) jurisdiction is not detailed, the DHS Office of Inspector General typically oversees federal contracts to identify waste, fraud, and abuse. Transparency is facilitated through contract award databases, but detailed performance reports are often internal.

Related Government Programs

DHS/ICE Detention Operations
Federal Correctional Facility Management
Government Contracting for Support Services
Immigration Detention Services

Risk Flags

Potential for cost overruns if scope is not well-defined.
Risk of service quality degradation due to contractor cost-cutting.
Dependency on a single provider for critical services.
Limited flexibility to adapt to changing operational needs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $22.9 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 $22.9 million.

What is the period of performance?

Start: 2014-09-16. End: 2015-09-15.

What is the historical spending pattern for detention management services at the GEO Group Coca Facility in Aurora, CO?

Analyzing historical spending for this specific contract requires access to prior contract awards and modifications for the GEO Group Coca Facility. The provided data is for a single delivery order from September 2014 to September 2015, totaling $22,904,058.24. To understand historical patterns, one would need to examine previous contracts awarded to The GEO Group, Inc. or other entities for services at this facility, or for similar services by ICE in the region. Trends in spending could reveal increases or decreases in service costs, changes in contract duration, or shifts in the scope of services required over time. Without this historical data, it's impossible to determine if the $22.9 million represents an increase, decrease, or stable level of spending compared to previous periods.

How does the per-unit cost of services under this contract compare to industry benchmarks for similar detention facilities?

Determining the per-unit cost requires breaking down the total contract value by the specific services rendered and the volume of services provided (e.g., cost per detainee per day for housing, cost per meal, cost per medical visit). The provided data aggregates all these services under a single firm fixed price for the entire contract duration. Without detailed breakdowns of service quantities and unit prices, a direct comparison to industry benchmarks is not feasible. Generally, detention facility costs are influenced by factors such as facility size, security level, detainee demographics, location, and the comprehensiveness of medical and support services. A thorough benchmark analysis would necessitate obtaining detailed service delivery data and comparing it against publicly available cost data for comparable facilities managed by government agencies or private contractors.

What are the key performance indicators (KPIs) used to evaluate The GEO Group's performance under this contract?

The provided contract data does not specify the Key Performance Indicators (KPIs) used to evaluate The GEO Group's performance. Typically, contracts for detention management services include KPIs related to security (e.g., incident rates, escapes), healthcare (e.g., response times for medical emergencies, access to care), food services (e.g., nutritional standards, meal satisfaction), transportation (e.g., on-time performance, safety), and facility maintenance. Performance is usually assessed through regular government inspections, audits, and reporting requirements outlined in the contract's Performance Work Statement (PWS). The absence of specified KPIs in the summary data makes it difficult to ascertain the government's specific expectations and how contractor performance was measured and managed.

What is the track record of The GEO Group, Inc. in managing similar federal contracts, particularly for ICE?

The GEO Group, Inc. is a major private operator of correctional and detention facilities in the United States and internationally. They have a significant track record of managing contracts with federal agencies, including Immigration and Customs Enforcement (ICE) and the Federal Bureau of Prisons (BOP). Their experience spans decades and involves operating a wide range of facilities, providing services such as housing, security, food, medical care, and transportation for detainees and inmates. While they have extensive experience, their performance has also been subject to scrutiny and criticism regarding conditions within facilities, use of force, and cost-effectiveness. A comprehensive assessment of their track record would involve reviewing past performance evaluations, any contract disputes or penalties, and public reports on their operations.

What are the potential risks associated with relying on a single contractor for comprehensive detention management services?

Relying on a single contractor for comprehensive detention management services presents several potential risks. Firstly, it can reduce competition, potentially leading to higher costs over time if contract renewals are not competitively re-bid. Secondly, it creates a dependency on that specific contractor; if the contractor experiences financial difficulties, operational failures, or significant performance issues, it could disrupt essential services, impacting detainees and government operations. Thirdly, a lack of competition might lessen the incentive for the contractor to innovate or improve service quality beyond the minimum contractual requirements. Finally, it concentrates significant operational control and responsibility within one entity, requiring robust government oversight to ensure accountability and adherence to standards.

How does the contract's firm fixed-price (FFP) structure influence risk allocation between the government and the contractor?

A Firm Fixed-Price (FFP) contract structure places the majority of the cost risk on the contractor. Under an FFP agreement, the contractor agrees to perform a specified scope of work for a predetermined price, regardless of the actual costs incurred. This means that if the contractor's costs exceed the agreed-upon price, the contractor absorbs the loss. Conversely, if the contractor can complete the work for less than the agreed price, they retain the profit. For the government, the primary benefit of an FFP contract is cost certainty; the total price is fixed, making budgeting easier. However, this structure can incentivize contractors to minimize costs, potentially impacting quality if not carefully monitored. It is best suited for requirements with well-defined scopes where cost and performance risks are relatively low.

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

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: $22,904,058

Exercised Options: $22,904,058

Current Obligation: $22,904,058

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