Geo Group Seeks to Overturn Order Limiting Use of Adelanto Processing Center

Geo Group, a prison operator, has filed motions in a California federal court in an effort to reverse an intake prohibition order issued three years ago. This order restricts the utilization of the Adelanto processing center based on pandemic-related conditions. The company has expressed concern that Immigration & Customs Enforcement (ICE) may abandon the facility due to the outdated Covid-19 limitations imposed by the court.

Geo Group, together with three unions representing over 350 employees at the facility, is taking these actions to protect both its employees and the substantial revenues it earns from ICE. In late 2019, ICE entered into a 15-year contract with Geo Group for secure residential housing and care services at the facility. The contract consists of a five-year base period which will end on December 19 of this year, followed by optional two five-year extensions. This agreement generates approximately $85 million in annual revenue for Geo Group, according to a securities filing.

Recently, on December 18, Geo Group received a new task order from ICE indicating that the performance period for the five-year base contract would conclude on February 19. The following day, ICE stated that while no final decision had been made, it must consider the impact of ongoing injunctions that hinder the full utilization of the facility.

Geo Group's motivation for challenging the intake prohibition order is rooted in protecting its employees and defending the vital revenue stream provided by its contract with ICE.