GEO - The GEO Group (GEO) - A USMS Contract Renewal

USMS Renewal. On Thursday, GEO reported that the U.S. Marshals Service has exercised the current contract option period to continue to utilize the 770-bed Western Region Detention Facility in San Diego, California, which is effective through September 30, 2023. The existing contract also has two additional two-year contract option periods, which if exercised by the USMS, would be effective through September 30, 2025 and September 30, 2027, respectively. GEO’s Western Region Detention Facility contract with the USMS had been operating under a 90-day contract extension which was scheduled to end on June 30, 2022.A Precedent? Western was under a direct contract with the USMS. It was renewed in spite of the Executive Order given the lack of alternatives in the region, in our opinion. GEO has two additional direct contracts with the USMS, both expiring in 2023. Its possible we could see the same outcome at renewal, although it is too early to tell. Read More >>