GEO Group (GEO) Awarded 10-Year Contracts by BOP for 3,532 Existing Beds in Big Spring, Texas

May 26, 2017 6:56 AM EDT

Get instant alerts when news breaks on your stocks. Claim your 1-week free trial to StreetInsider Premium here.

The GEO Group (NYSE: GEO) (“GEO”) announced today that it has been awarded two ten-year contracts, inclusive of renewal option periods, by the Federal Bureau of Prisons (“BOP”) for the continued housing of criminal aliens under the custody of the BOP at the company-owned 1,800-bed Big Spring Facility and the company-owned 1,732-bed Flight Line Facility, which on a combined basis were previously referred to as the Big Spring Correctional Center in Texas.

The two ten-year contracts were awarded to GEO under a long-standing procurement commonly referred to as Criminal Alien Requirement (CAR) 16, which was issued by the BOP in 2015. The contracts are expected to generate total combined revenues of approximately $664 million over their full ten-year terms, and their expected financial contribution in 2017 is in-line with the assumptions which were included in GEO’s most recently issued financial guidance.

“We are very appreciative of the continued confidence placed in our company by the Federal Bureau of Prisons,” said George C. Zoley, GEO’s Chairman and Chief Executive Officer.

GEO has had a long standing public-private partnership with the BOP that dates back to the 1990s. GEO’s facilities are highly rated and provide high-quality services in safe, secure, and humane residential environments.

“We’re pleased to have been able to strengthen our long-standing partnership with the BOP with these important contract awards. Our Big Spring and Flight Line Facilities will play an important role in helping the agency meet its long-term need for high quality, cost-effective services that comply with the BOP’s mandated standards,” added Mr. Zoley.



Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

Corporate News, Management Comments

Related Entities

Dividend