The Executive Order only applies to agencies that are part of the DOJ, which includes the
BOP and USMS. U.S. Immigration and Customs Enforcement (ICE) facilities are not covered by the Executive Order as ICE is an agency of the Department of Homeland Security, not the DOJ. However, it is possible that the federal government
could choose to take similar action on ICE facilities in the future. For the three months ended March 31, 2021, contracts for ICE Processing Centers, not including the Alternatives to Detention contract, accounted for approximately 23% of our
total revenues.
President Bidens administration may implement additional executive orders or directives relating to federal
criminal justice policies and immigration policies which may impact the federal governments use of public-private partnerships with respect to correctional and detention needs, including with respect to our contracts, and/or may impact the
budget and spending priorities of federal agencies, including the BOP, USMS, and ICE.
COVID-19
We have been and are currently closely monitoring the impact of the COVID-19 pandemic and the efficacy
and distribution of COVID-19 vaccines on all aspects of our business and geographies, including how it will impact those entrusted in our care and governmental partners. We did incur disruptions during the
three months ended March 31, 2021 from the COVID-19 pandemic and are unable to predict the overall future impact that the COVID-19 pandemic will have on our
financial condition, results of operations and cash flows due to numerous uncertainties.
Contract Terminations/Expirations
On March 5, 2021, we were notified by the BOP that it has decided to not exercise the contract renewal option for the company-owned, 1,940-bed Great Plains Correctional Facility in Oklahoma, when the contract base period expires on May 31, 2021. The contract for the facility generated approximately $35 million in annualized revenues.
On March 15, 2021, we announced that the USMS has decided to not exercise the contract renewal option for our company-owned, 222-bed Queens Detention Facility in New York, when the contract base period ended on March 31, 2021. The contract for the facility generated approximately $19 million in annualized revenues.
On March 25, 2021, we were notified by the BOP that it has decided to terminate the contract for the county-owned and managed, 1,800-bed Reeves County Detention Center I & II in Texas effective May 10, 2021, which the contract base period was to expire on September 30, 2022. The contract for the facility generated
approximately $4 million in annualized revenues.
We were also initially not awarded the managed-only contracts for the Bay,
Graceville and Moore Haven Correctional and Rehabilitation Facilities in Florida during a recent re-bid solicitation process by the State of Florida, Department of Management Services. We subsequently filed a protest challenging the award of the
contracts, and as a result of the protest and subsequent agreement with the State, we were able to retain the management contract for the Moore Haven Correctional and Rehabilitation Facility. Our contracts for the Bay and Graceville Correctional and
Rehabilitation Facilities have been extended through July 31, 2021 and August 31, 2021, after which these contracts will transition to a different operator. The contracts for these two facilities generated approximately $15 million and $25 million
in annualized revenues respectively.
CEO Succession Plan
On June 1, 2021, we announced that the Board of Directors (the Board) of The GEO Group, Inc. has determined that it is in the
best interests of the Company to implement a succession plan for the Chief Executive Officer position given that the Companys Founder, Chairman and Chief Executive Officer, George C. Zoley, is 71 years old and has served with the Company for
approximately forty years. The primary objectives of the