DHS ICE Spends $14.3M on Detention Facility Management by GEO Group Under Full and Open Competition

Contract Overview

Contract Amount: $14,309,342 ($14.3M)

Contractor: THE GEO Group, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2006-10-01

End Date: 2007-09-30

Contract Duration: 364 days

Daily Burn Rate: $39.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: OTHER (NONE OF THE ABOVE)

Sector: Other

Official Description: FUNDING ASSOCIATED WITH THE MANAGEMENT&OPERATIONS OF A CONTRACTOR-OWNED/CONTRACTOR-OPERATED DETETION FACILITY FOR FEDERAL DETAINEES

Place of Performance

Location: AURORA, ADAMS County, COLORADO, 80010

State: Colorado Government Spending

Plain-Language Summary

Department of Homeland Security obligated $14.3 million to THE GEO GROUP, INC. for work described as: FUNDING ASSOCIATED WITH THE MANAGEMENT&OPERATIONS OF A CONTRACTOR-OWNED/CONTRACTOR-OPERATED DETETION FACILITY FOR FEDERAL DETAINEES Key points: 1. The contract awarded to The GEO Group, Inc. for detention facility management represents a significant expenditure in the Facilities Support Services sector. 2. Competition was full and open, suggesting a potentially competitive bidding process for this service. 3. The contract duration of 364 days is standard for service contracts of this nature. 4. The specific service code (561210) indicates a focus on facilities support, which can be a complex and costly area.

Value Assessment

Rating: fair

The contract value of $14.3 million for a 364-day period appears within a reasonable range for managing a contractor-owned/operated detention facility, though specific benchmarks for this niche service are difficult to ascertain without more granular data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which theoretically allows for the widest possible range of bidders and promotes price discovery. However, the specialized nature of detention facility management might limit the number of truly competitive bids.

Taxpayer Impact: Taxpayer funds are being utilized for the management and operation of a federal detainee facility, a necessary but potentially high-cost service.

Public Impact

Ensures operational capacity for federal detainee management. Supports the Department of Homeland Security's mission in immigration enforcement. Impacts local economies through contractor employment and operations. Raises questions about the cost-effectiveness and oversight of private detention facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns in specialized facility management.
Reliance on a single contractor for critical detention services.
Limited transparency in operational costs for contractor-owned facilities.

Positive Signals

Awarded through full and open competition.
Supports essential government functions.
Contract value is clearly defined for the period.

Sector Analysis

This contract falls under Facilities Support Services, a broad category that includes the operation and maintenance of various types of facilities. Spending in this sector can vary widely depending on the complexity and security requirements of the facility.

Small Business Impact

The data indicates the awardee is The GEO Group, Inc., a large corporation. There is no explicit information provided regarding small business participation or subcontracting opportunities within this specific contract.

Oversight & Accountability

Oversight is crucial for contractor-owned/operated facilities to ensure compliance with federal standards, humane treatment of detainees, and cost control. The Department of Homeland Security, specifically U.S. Immigration and Customs Enforcement, is responsible for this oversight.

Related Government Programs

Facilities Support Services
Department of Homeland Security Contracting
U.S. Immigration and Customs Enforcement Programs

Risk Flags

Contract awarded to a single large corporation.
Potential for high operational costs in specialized services.
Reliance on contractor for essential government function.
Limited transparency on specific performance metrics.
Need for robust ongoing oversight to ensure compliance and cost-effectiveness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $14.3 million to THE GEO GROUP, INC.. FUNDING ASSOCIATED WITH THE MANAGEMENT&OPERATIONS OF A CONTRACTOR-OWNED/CONTRACTOR-OPERATED DETETION FACILITY FOR FEDERAL DETAINEES

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 $14.3 million.

What is the period of performance?

Start: 2006-10-01. End: 2007-09-30.

What is the benchmark cost per detainee per day for similar facilities managed by other contractors or government entities?

Determining a precise benchmark cost per detainee per day is challenging without access to proprietary data from comparable contracts. However, industry reports and government audits often highlight significant variations in per diem costs, influenced by factors like facility size, location, security levels, and the scope of services provided. A thorough analysis would require comparing this contract's total cost against the average daily population and the specific services rendered, benchmarked against publicly available data or GAO reports on detention operations.

What are the key performance indicators (KPIs) used to measure the effectiveness of The GEO Group's management of the detention facility?

Effectiveness is typically measured through KPIs related to facility safety, security, detainee welfare, and operational efficiency. This includes metrics such as incident rates (fights, escapes, self-harm), health service delivery timeliness, compliance with detention standards, staffing levels, and adherence to budget. Regular performance reviews and audits by ICE would assess The GEO Group's performance against these KPIs to ensure contract compliance and service quality.

What is the potential risk associated with the 'full and open competition' method for this specialized service?

While 'full and open competition' is generally preferred, the risk for specialized services like detention facility management lies in the potential for a limited number of qualified bidders. If only a few companies possess the necessary expertise, security clearances, and infrastructure, the competition may not be as robust as intended, potentially leading to higher prices or less favorable terms. Ensuring adequate pre-qualification and outreach is key to mitigating this risk.

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

Offers Received: 1

Pricing Type: OTHER (NONE OF THE ABOVE) (3)

Evaluated Preference: NONE

Contractor Details

Address: 621 NW 53RD ST STE 700, BOCA RATON, FL, 23

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $14,309,342

Exercised Options: $14,309,342

Current Obligation: $14,309,342

Parent Contract

Parent Award PIID: HSCEOP06D00010

IDV Type: IDC

Timeline