Benzinga | Sep 9, 2021 04:38PM EDT

The GEO Group Says Has Not Been Notified By USMS Of Intent To Exercise Next Two-Year Option Period Under Current Contract

As has been previously disclosed, The GEO Group (NYSE:GEO) ("GEO") has three direct contracts with the U.S. Marshals Service ("USMS"). One of these direct contracts involves the 770-bed Western Region Detention Facility in San Diego, California.

GEO's Western Region Detention Facility contract with the USMS extends through September 30, 2027, inclusive of option periods, and is currently operating under a two-year option period which is scheduled to end on September 30, 2021. GEO has not been notified by the USMS of its intent to exercise its next two-year option period under the current contract. Given the need to comply with the January 2021 Presidential Executive Order to discontinue U.S. Department of Justice contracts with privately-operated criminal detention facilities (the "Executive Order"), GEO has proposed various alternative contracting structures to the USMS that would allow the Western Region Detention Facility to remain in operation in compliance with the Executive Order.

The Western Region Detention Facility has provided federal detention capacity and transportation services on behalf of the USMS for over 20 years and we believe is ideally suited to provide these essential services for individuals facing federal criminal charges due to its close proximity to the U.S. District Courthouse for the Southern District of California in downtown San Diego. Any alternative to the San Diego location of the USMS detention facility is likely to be in Central or Northern California. Such a distant alternative location will impact the timely access by friends, relatives, and legal representatives of individuals presently housed at the Western Region Detention Facility in San Diego.

As a result, the efforts to keep the Western Region Detention Facility in operation have received the support of a diverse group of bipartisan and non-partisan stakeholders. GEO is hopeful that a transition to a new alternative contracting structure would allow the Western Region Detention Facility and its approximately 300 employees and union members to continue to provide high quality services on behalf of the USMS.