DHS awarded $29.4M for detention services, with GEO Group Inc. securing the contract

Contract Overview

Contract Amount: $29,419,118 ($29.4M)

Contractor: THE GEO Group, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2015-07-01

End Date: 2016-06-30

Contract Duration: 365 days

Daily Burn Rate: $80.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CL::IGF DETENTION SERVICES AT BROWARD TRANSITIONAL CENTER

Place of Performance

Location: BOCA RATON, PALM BEACH County, FLORIDA, 33487

State: Florida Government Spending

Plain-Language Summary

Department of Homeland Security obligated $29.4 million to THE GEO GROUP, INC. for work described as: IGF::CL::IGF DETENTION SERVICES AT BROWARD TRANSITIONAL CENTER Key points: 1. The contract value represents a significant investment in immigration detention infrastructure. 2. Competition dynamics for detention services can be limited due to geographic concentration and specialized requirements. 3. Performance history of the contractor and the agency's oversight are key risk indicators. 4. This contract falls within the broader context of federal immigration enforcement and border security spending. 5. The Facilities Support Services sector is crucial for maintaining operational capacity. 6. The firm-fixed-price structure aims to control costs for the government.

Value Assessment

Rating: fair

Benchmarking the value of this contract requires comparison to similar detention facility contracts, which can vary widely based on location, capacity, and service scope. The firm-fixed-price structure suggests an attempt to manage cost predictability. However, without detailed service level agreements and performance metrics, a definitive value-for-money assessment is challenging. The contract's duration and total value should be considered against the prevailing market rates for comparable services in Florida.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This approach is generally favorable for price discovery and ensuring the government receives competitive offers. The number of actual bidders and the specifics of the solicitation process would provide further insight into the intensity of the competition.

Taxpayer Impact: Full and open competition suggests that taxpayers benefit from potentially lower prices due to a competitive bidding environment, rather than a sole-source award.

Public Impact

The primary beneficiaries are U.S. Immigration and Customs Enforcement (ICE) and the Department of Homeland Security (DHS), receiving essential detention services. The services delivered include the operation and maintenance of a transitional center for detainees. The geographic impact is concentrated in Broward County, Florida, where the facility is located. Workforce implications include employment opportunities for facility staff, security personnel, and support services within the local Florida economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if service requirements expand beyond the initial scope.
Dependence on a single contractor for critical detention services can create operational risks.
Ensuring consistent quality of care and humane conditions within detention facilities requires robust oversight.

Positive Signals

The firm-fixed-price contract type helps to cap government liability and provides cost certainty.
Awarding through full and open competition suggests a deliberate effort to secure competitive pricing.
The contract specifies a defined period of performance, allowing for periodic re-evaluation of needs and contractor performance.

Sector Analysis

The Facilities Support Services sector, classified under NAICS code 561210, encompasses a wide range of services for the operation and maintenance of buildings and other facilities. This contract specifically addresses the unique requirements of providing detention services, which involves security, housing, and support for individuals in federal custody. The market for such services is influenced by government policy, security needs, and geographic location, with specialized contractors often competing for these sensitive and regulated contracts.

Small Business Impact

Information regarding small business set-asides or subcontracting plans was not explicitly provided in the data. Typically, large contracts like this may include provisions for small business participation, either through direct awards or subcontracting opportunities. The absence of specific data suggests that small business involvement might not have been a primary focus or was handled through other mechanisms not detailed here.

Oversight & Accountability

Oversight for this contract would primarily fall under U.S. Immigration and Customs Enforcement (ICE), a component of DHS. Accountability measures are expected to be embedded within the contract's terms, including performance standards, reporting requirements, and potential penalties for non-compliance. Transparency is facilitated through contract awards databases, though detailed operational oversight reports may not always be publicly accessible.

Related Government Programs

Immigration Detention Services
Federal Law Enforcement Support
Correctional Facility Management
Homeland Security Operations

Risk Flags

Contractor Performance History
Service Quality and Standards
Cost Overruns Potential
Oversight and Accountability Gaps

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $29.4 million to THE GEO GROUP, INC.. IGF::CL::IGF DETENTION SERVICES AT BROWARD TRANSITIONAL CENTER

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 $29.4 million.

What is the period of performance?

Start: 2015-07-01. End: 2016-06-30.

What is the historical spending pattern for detention services by U.S. Immigration and Customs Enforcement (ICE) in Florida?

Historical spending patterns for ICE detention services in Florida, and nationally, have shown a consistent and significant allocation of resources over the past decade. This spending is driven by immigration enforcement policies, border security initiatives, and the need for detention capacity. While specific figures for ICE's Florida-based detention contracts fluctuate annually based on operational needs, contract renewals, and new awards, the overall trend indicates a substantial and ongoing federal commitment to outsourcing detention operations. Analyzing past contracts awarded to various providers in the region can reveal trends in contract duration, value, and the competitive landscape, providing context for the $29.4 million awarded to The GEO Group, Inc. for the Broward Transitional Center.

How does the per-unit cost of detention under this contract compare to similar facilities operated by ICE?

A precise per-unit cost comparison for this contract is challenging without access to the facility's average daily population (ADP) and the specific services included in the firm-fixed-price. However, detention contracts are often benchmarked based on a per diem rate per detainee. Industry reports and government watchdog analyses suggest that per diem rates for immigration detention can range significantly, often between $100 to $200 or more, depending on the level of security, medical services, and other support provided. To assess value, one would need to compare the effective per diem rate derived from this $29.4 million contract (factoring in the expected occupancy and service scope) against publicly available data for comparable ICE-approved facilities in the region and nationally. Variations can arise from differences in contract terms, service inclusions, and the specific operational environment.

What is The GEO Group, Inc.'s track record with federal detention contracts, particularly with DHS?

The GEO Group, Inc. has a long and extensive track record of operating correctional and detention facilities for federal, state, and local governments across the United States, including numerous contracts with the Department of Homeland Security (DHS) and its predecessor agencies, as well as the Federal Bureau of Prisons and the U.S. Marshals Service. Their portfolio includes a wide range of facilities, from immigration detention centers to reentry centers. While GEO is one of the largest private providers in the sector, its history with government contracts has also been subject to scrutiny regarding operational standards, cost-effectiveness, and human rights concerns raised by advocacy groups. Analyzing past performance reviews, contract compliance records, and any significant disputes or investigations related to GEO's federal contracts would provide a comprehensive view of their reliability and performance.

What are the primary risks associated with outsourcing immigration detention services to private contractors like The GEO Group?

Outsourcing immigration detention services presents several key risks. Firstly, there's a risk related to quality of care and humane treatment, as private facilities may prioritize profit margins, potentially leading to understaffing, inadequate services, or neglect. Secondly, cost control can be a risk; while fixed-price contracts aim for predictability, scope creep or unforeseen operational challenges can lead to increased costs or demands for contract modifications. Thirdly, accountability and transparency can be diminished compared to government-run facilities, making oversight more complex. Finally, there's a reputational risk for the government if private contractors fail to meet ethical, legal, or operational standards, leading to public criticism and potential legal challenges. Ensuring robust contract management, independent monitoring, and clear performance standards are crucial mitigation strategies.

How has the total federal spending on immigration detention services evolved over the last five fiscal years?

Federal spending on immigration detention services has generally trended upwards over the last five fiscal years, reflecting evolving immigration policies and enforcement priorities. While exact figures can vary depending on the specific agencies involved (primarily DHS components like ICE, and to a lesser extent, DOJ components like the Bureau of Prisons for certain populations), the overall budget allocated to detention and removal operations has seen significant increases. This growth is often attributed to factors such as increased border apprehensions, longer detention stays, and the expansion of detention capacity. Analyzing budget documents and contract award data from agencies like ICE would provide a detailed year-over-year breakdown of this spending, highlighting the scale of federal investment in maintaining detention infrastructure and services.

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: $29,419,118

Exercised Options: $29,419,118

Current Obligation: $29,419,118

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: HSCEDM15D00006

IDV Type: IDC

Timeline