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Correctional Facilities

How to Choose a Private Prison Operator
Friday, September 18, 2009

According to analysts reported in recent Reuters article, states can save between 10 to 20 percent on the cost of housing an inmate from outsourcing to private players.  In addition to saving you money, outsourcing to a private operator allows you to cure overcrowding issues as they have the ability to quickly build without all the red tape governments face.

When outsourcing prison operations to a private operator, consider the following seven steps adopted by the Oklahoma Department of Corrections from and the NIJ report "Issues in Contracting for the Private Operations of Prisons and Jails". The steps ensure this crucial and large budget line item is correctly managed to provide positive benefits for both the government entities and inmates.

1. Determine your goals and what you want to get out of outsourcing to a private operator 

  • Do you want to simply add more beds quickly?
  • Are you seeking more economical operations?

2. Develop public policy on private prison operations. The policy will include a long range plan that specifies how privatization fits into the plan. What degree of facilities and services will be offered to outsourced private contractors?

3. Determine how to define success and if the private operator delivered successful correctional services.

4. Devote careful attention to ensure the contract provides adequate protection of inmate rights and protects you from liability claims.

5. Use a competitive bidding process when contracting to avoid favoritism and or impropriety.

6. Make sure the following items are included in the RFP or contract: 

  • The responsibilities of each party
  • Expected levels of performance
  • Staffing patterns
  • Inmate activity plans
  • Treatment plans
  • Detailed operation plans
  • Sanctions for not meeting performance benchmarks or standards
  • A clear payment structure
  • Re-bid provisions on a relatively short basis
  • Explicit description of inmate type and level of offender
  • Minimum and maximum inmate population levels

 7. Once a private operator is contracted, make sure to monitor the contract to ensure all provisions and guidelines are followed.

 

Outsourcing prison operations to a private contractor can save the state money while providing the adequate rehabilitative services to an ever-growing inmate population. The above steps ensure your outsourcing experience is beneficial to both the state and inmates.

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