Agenda Item   



                                                                                                                        ASR Control  17-000330




legal entity taking action:

Board of Supervisors

board of supervisors district(s):


SUBMITTING Agency/Department:

Probation   (Approved)

Department contact person(s):

Stacey J. McCoy (714) 937-4701 



Chris Bieber (714) 645-7003



Subject:  Renewal of Contract with GEO Reentry Services, LLC for Day Reporting Services


      ceo CONCUR

County Counsel Review

Clerk of the Board


Approved Agreement to Form




3 Votes Board Majority




    Budgeted: Yes

Current Year Cost: $201,392

Annual Cost: FY 2017 -18   $2,229,221




    Staffing Impact:


# of Positions:

Sole Source: No

    Current Fiscal Year Revenue: N/A

  Funding Source: State: 100% (AB 109, SB 678)

County Audit in last 3 years: No



    Prior Board Action: 04/26/2016 #18, 05/12/2015 #35, 03/04/2014 #19




Approve the third contract renewal with GEO Reentry Services, LLC for the provision of day reporting center services, with the addition of a second site at a cost not to exceed $916,275, for a new total annual contract amount not to exceed $2,430,613, for the period June 1, 2017, through May 31, 2018, and a revised four-year cumulative contract total amount not to exceed $6,943,513, renewable with Board approval for one additional twelve-month period.






Approval of the contract renewal with GEO Reentry Services, LLC for day reporting center services, with the addition of a second site, will provide greater accessibility for supervised adult offenders to receive evidence-based programming for reducing recidivism.






The Public Safety Realignment Act (Realignment) was signed into law on April 4, 2011, and took effect on October 1, 2011.  Realignment transferred to the 58 California counties the responsibility for supervision of felons released from prison, excluding high-risk offenders, whose commitment offenses are non-serious and non-violent.  Realignment created an opportunity for counties to determine an appropriate level of supervision and services to address both the needs and risks of individuals released from prison and local jails into the community.  With the implementation of Realignment, the Probation Department (Probation) became responsible for supervising two additional categories of offenders:  (a) Postrelease Community Supervision (PCS); and (b) Mandatory Supervision (MS).  These two populations are supervised by Probation's AB109 Field Services Division.


Under Realignment, Probation introduced the adult Day Reporting Center (DRC) as a collaborative and evidence-based one-stop delivery site for providing various immediate, community-based sanctions such as treatment programs, drug testing, and counseling services.  The goal of the DRC is to provide offenders with a combination of intensive treatment and programming, onsite supervision, and immediate reporting of behavior to assigned Deputy Probation Officers (DPOs). The DRC currently provides services to the Realignment PCS and MS populations, collectively known as "AB109 Offenders", along with offenders on formal probation.  This latter category of formal probationers, designated as "General Supervision Offenders", benefits from receiving programming and treatment within the full service DRC environment, services which are otherwise unavailable to meet their similar needs.  A majority of these individuals have lengthy criminal arrest records and have been identified and assessed as "high-risk" to reoffend.  The DRC provides an additional programming option and supervision tool for DPOs in Probation's Adult Field Supervision Division.


The DRC is currently contracted to GEO Reentry Services, LLC (GEO), as originally approved by the Board on March 4, 2014, for the period June 1, 2014, through May 31, 2015, in an amount not to exceed $1,504,300.  The Board approved subsequent annual renewals of the contract with GEO, on May 12, 2015, and on April 26, 2016.  GEO is a division of The GEO Group, Inc., which includes BI, Inc., the entity that operated Probation's Santa Ana pilot DRC location between June 2012, and May 2014.  GEO continues to use the evidence-based programming introduced by BI, Inc. at the DRC, including intermediate sanctions of community-based treatment programs, drug testing, and counseling services.


Pricing for GEO's DRC services is based on the following fee structure:


Average Daily Total Per Month of DRC Participants Served



Monthly Rate



 Maximum Annual Cost


$70,000 flat fee

$   840,000



$1,241,500 for 100 participants



$1,504,300 for 140 participants


While all DRC participants have access to the same level of services, GEO tracks numbers served by type of offenders, since their supervision is supported by different funding sources.  The AB109 offenders are funded by Realignment monies; services to General Supervision offenders are offset by Senate Bill 678 (SB 678). 









The following chart summarizes the number of offenders served at the DRC and the amounts paid to GEO from contract inception in June 2014, through February 2017:




Contract Term


Type of Offenders Served

Number of Offenders Served - Average Daily Total



Annual Cost






General Supervision
















General Supervision












(as of February 2017)











General Supervision








For the remaining three months of the contract term expiring May 31, 2017, it is estimated that the 12-month average daily total of DRC participants will be 95 (36 AB109 Offenders, 59 General Supervision Offenders), for a 12-month cost of $1,207,483, or 80.3% of the maximum annual contract amount of $1,504,300.


DRC Outcome Indicators

The DRC has positively impacted offender recidivism post-program.  One of the key findings from the 2015 Orange County Day Reporting Center Status Report indicated that as of December 31, 2015, 72% of discharged offenders one year out of the program had no new convictions.  A formal evaluation, currently under review, compared a group of offenders post-program and a group of offenders who did not participate in the DRC.  Results of that evaluation suggested that individuals completing the DRC program had significantly lower recidivism rates than individuals who did not participate in the program.


Additionally, a quarterly survey conducted by GEO staff found that “lack of transportation” was frequently cited as a barrier for attendance and participation at the DRC.  A review of the number of unique referrals to the DRC since its 2012 inception shows the following breakdown by Orange County region of residence:  


Residence by Region

Number of Referrals

Percent of 1,860 Total Referrals

North Orange County



Central Orange County



South Orange County



West Orange County



Other (transient, out-of-county, no known address)






Approximately 26% of the more than 9,000 adults under active supervision reside in the Central Orange County (Santa Ana) region.  From the above table showing the proportion of referrals from the West Orange County region, Probation saw a need for a second DRC site that could potentially better serve those populations closer to home, thus alleviating their transportation barrier to DRC participation.


Proposed DRC Westminster Site

A second DRC site to serve the West County cities has a strong potential for strengthening Probation's regional supervision and planning strategies. With the positive impacts demonstrated at the Santa Ana DRC site, GEO is adequately prepared to continue providing similar services at Probation's West County Field Services Office in Westminster.  The costs of operating the second site will be as follows:



Average Daily Total Per Month of DRC Participants Served



Monthly Rate



Maximum Annual Cost


$47,916.67 flat fee




$926,313 for 75 participants


The flat fee amount of $47,916.67 includes the following additional fixed costs:






Resident Transportation






Program/Education Fees




Indirect and Miscellaneous Fees





The second DRC location will increase the annual contract amount of $1,504,300 by an amount not to exceed $926,313, for a new annual contract amount not to exceed $2,430,613.


The Board's approval to renew the contract with the added site will allow GEO to proceed with a lease arrangement for serving up to 75 participants at any given time.  The second site presents the unique and ideal opportunity of being on the same floor and across the hall from Probation's West County field officers.  The location will be especially effective for regional reporting and supervision purposes, as GEO will conduct intake and programming for DRC participants in close proximity to their assigned DPOs.


The DRC was originally solicited to serve up to 140 offenders at any given time.  Based on the Santa Ana DRC's first three years of operation, the average daily total number of offenders served was 67.  The proposed DRC Westminster site is expected to serve 40 offenders at any given time, for a combined average daily total of 107 offenders at both locations.    


Probation’s experience with GEO has been satisfactory.  The contract does not include subcontractors or pass through to other providers.  See Attachment C for the Contract Summary.


This renewal is being submitted in less than 30 days prior to the expiration of the contract on May 31, 2017, to allow GEO to finalize its lease negotiations for the proposed Westminster site. Probation and GEO also needed the extra time to complete the renewal contract with the fee structure for the new site.






Appropriations and revenue for this contract are included in the FY 2016-17 Modified Budget for Budget Control 057, and will be included in the FY 2017-18 Requested Budget. Funding is comprised of State realignment funds and SB 678.









Attachment A - Contract MA-057-14010529 between GEO Reentry Services, LLC and the County of Orange for the Provision of Day Reporting Services
Attachment B - Contract MA-057-14010529 - Redline Version
Attachment C - Contract Summary