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Latino Daily News

Wednesday December 28, 2011

GEO Will Continue to Manage South Texas Immigration Facility, $45 Million in Revenue Expected

GEO Will Continue to Manage South Texas Immigration Facility, $45 Million in Revenue Expected

Photo: Immigration Detention Centers Texas

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The GEO Group (“GEO”) announced today that it has signed a contract with U.S. Immigration and Customs Enforcement (“ICE”) for the continued management of the company-owned 1,904-bed South Texas Detention Center (the “Center”) located in Pearsall, Texas.

The new contract will have a term of approximately five years effective through November 30, 2016. Under the terms of the agreement, the contracted capacity at the Center will be 1,800 beds with a 75 percent occupancy guarantee and the ability to surge to 1,900 beds.

The new contract is expected to generate approximately $45.0 million in annualized revenues at the full occupancy level of 1,800 beds.

GEO has had its share of issues from prisoner uprisings to deaths to lawsuits related to its detention centers.  Earlier this month New York officials were urging the probe of the Queen’s GEO facility citing ‘unjust’ treatment of prisoners that included long period of solitary confinement. 

GEO is one of the largest private prisoner operators in the U.S.