NCJ Number
231793
Date Published
January 2007
Length
29 pages
Annotation
This is the summary of a full report that provides guidance to government entities on the issues that should be examined when making decisions about privatizing a prison or major prison function.
Abstract
In the United States, 34 States and the Federal Government are contracting with private companies for correctional services. Whether the product or service is providing health care or food service in various institutional settings, or prison construction and management in general, some elected officials are contracting with private companies in an effort to balance government budgets without cutting services or raising taxes. Contractually managed prisons across the country have saved governments time and costs at a rate of 5-20 percent per year for a project over the life of 4-10-year contracts through their construction and operation. Such savings, however, require careful contracting, consistent monitoring, and the willingness of government agencies to work with private corporations as partners. The most important issues in privatization are the implementation of accountability systems and a focus on quality, cost savings, and outcomes. Other issues discussed in this report are legal issues pertinent to whether a governmental agency can contract with a private company for government services, the development of enabling legislation, the transfer of risk, risk control, financial considerations, and "best-value" selection criteria. The report also identifies and discusses "road blocks" that impede progress in corrections privatization. These are in the areas of political considerations and ad hoc and organized groups that argue against contracting any government services. Guidance for practitioners involved in privatization focus on communication as the key in the public-private partnership, along with standards for incarceration, contract features, and monitoring. Appended examples of private-prison cost analyses; a checklist for elected officials, corrections officials, and practitioners; and 36 notes