HEADLINE: Wackenhut Corrections Australian Subsidiary Contracts for 710-Bed Prison at Brisbane, Queensland, Australia
DATELINE: PALM BEACH GARDENS, Fla., Aug. 23
A wholly owned subsidiary of Wackenhut Corrections Corporation (NYSE: WHC), Australasian Correctional Management Pty Limited (ACM), has been selected by the Department of Corrective Services Queensland, Australia as the preferred supplier, subject to contract negotiations, to continue to operate the 710-bed Arthur Gorrie Correctional Centre in Brisbane.
The new contract, effective December 23, 2002, is valued at approximately $ 13.3 million US per annum in revenues, for a period of 5 years, with a 5-year extension option. The total value of the five-year contract is approximately $ 66.5 million US, not including the annual C.P.I. indexing, or the five-year option term.
ACM has managed the facility since its opening in June 1992. The current contract was due to expire and it was put out to tender by the Department in March this year.
George C. Zoley, Chairman and Chief Executive Officer of Wackenhut Corrections, said, "ACM has developed a strong working relationship with the Department of Corrective Services since the Centre was opened. ACM represents best value for money and its selection indicates not only that it can reliably operate the facility, but also that it has a flexible approach in meeting the changing needs of the Department. We look forward to continuing this successful partnership."