Boca-based prison operator gets contract renewal despite Justice Department’s goal to end private management

Source: Marcia Heroux Pounds, Sun-Sentinel, September 30, 2016

Despite the U.S. Justice Department’s announcement in August that it would end private contractor management of federal prisons, Boca Raton-based prison operator The Geo Group announced Friday it has received a two-year contract renewal for D. Ray James Correctional Facility in Georgia. D. Ray James in Folkston, Ga., was among the three prisons that had the most incidents per capita, according to the Justice Department’s Office of Inspector General report, which was cited in the decision to reduce and eventually end private management of federal prisons. Geo said the Federal Bureau of Prisons has extended its contract for the prison, which houses up to 1,900 inmates, through Sept. 30, 2018. … On Friday, the Justice Department referred calls to the Bureau of Prisons. Bureau of Prisons spokesman Justin Long said Friday that the decision is “consistent with the memo from the Deputy Attorney General on phasing out our reliance on private prison facilities.” He said the Bureau of Prisons has renegotiated the contract for D. Ray James prison, reducing costs by $4.2 million. Geo was among three private contractors whose prison management was analyzed during fiscal years 2011-2014. The others were Corrections Corp. of America, and Management and Training Corp. The three contractors managed 12 percent of the nation’s prison population at a cost of $639 million in fiscal 2014. The report said disturbances at the prisons resulted in “extensive property damage, bodily injury, and the death of a correctional officer.” …


Source: Brian Sonenstein, ShadowProof, September 30, 2016

The federal Bureau of Prisons is extending its two year contract for the D. Ray James Correctional Facility, a Geo Group-operated private prison in Folkson, Georgia, according to a company press release.  The announcement is the second about-face this prison’s contract has seen since the Obama administration announced it would begin to draw down BOP contracts to operate private prisons in August. Under the terms of the renewed agreement, GEO Group will house up to 1,900 federal inmates while receiving a fixed payment from the government for 1,800 beds through September 30, 2018. GEO Group’s previous contract with BOP included a fixed payment for 1,962 beds. … Today, GEO Group’s Chairman and CEO George Zoley said, “We are very appreciative of the continued confidence placed in our company by the Federal Bureau of Prisons with this important contract renewal.” “We are pleased to have been able to accommodate the BOP’s need for fewer beds at the D. Ray James Correctional Facility with no disruption to the facility’s operations or the level of rehabilitation programming,” he added. The company says it “does not expect to revise its previously issued guidance as a result of this renewal.” According to that guidance, last updated on April 28, 2016, the company expects 2016 revenues to be between $2.18-2.20 billion. …