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  • indian_cycle_buyer indian_cycle_buyer Mar 21, 2005 10:06 AM Flag

    Lost Tulsa Contract!!!!!!!!!!

    They bid again for the Tulsa contract. Why would they do that if it wasn't profitable.

    Meanwhile, this just in, from Indiana:
    State inmates returning from Kentucky prisons
    New DOC chief says move will save Indiana millions
    March 21, 2005

    J. David Donahue not only left the Kentucky Department of Corrections to take over Indiana's prison system; he's bringing more than 800 Hoosier prisoners with him.

    Reversing the Indiana Department of Correction's stance under Democratic administrations, Donahue is telling state lawmakers that housing the prisoners in empty Indiana prison beds is cheaper than contracting with a private prison in Kentucky, even if more guards must be hired.

    "Primarily, it's driven by economics," said Donahue, a former top executive with a Louisville, Ky.-based private prison operator. "We have available capacity that we need to use."

    More recently, the Daniels administration served notice that by the end of May it will move 611 others from the 656-bed Otter Creek Correctional Facility at Wheelwright, Ky.

    State officials are canceling a contract with Corrections Corp. of America, which built and staffs the private prison. The contract had been expected to last through January 2011, according to company filings with the Securities and Exchange Commission.

    The state's contract with the corporation had been projected to cost $10.8 million this year. That's roughly $45 a day per inmate when the prison is full. Indiana officials had said the price of keeping an inmate in a Hoosier prison was $55 a day.

    But Donahue recently told the Senate Appropriations Committee that, with more than 2,000 open beds, the state should look instead at the incremental cost of housing each additional inmate.

    Donahue said moving an inmate into an unused bed there would cost just $11.47 a day.

    Past estimates failed to factor in that the cost of serving each inmate declines as vacant bunks are filled, Donahue said.

    "Beds, mattresses, those kinds of things are already there," he said. "Those are not new costs."

    Donahue's boss, Gov. Mitch Daniels, said he couldn't be more pleased.

    "It's a multimillion-dollar savings," Daniels said, "and it never made sense to me to hire citizens of other states when we could hire Hoosiers to guard prisoners in space we already have."

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    • "They bid again for the Tulsa contract. Why would they do that if it wasn't profitable. "

      The new bid would have made it profitable? Maybe why they didn't get it?

      • 1 Reply to pcbondsman
      • Based on the numbers published in the Tulsa World their bid this go around was considerably lower than the current per diem. I guess they wanted to lose more money.
        The one thing that I have not seen discussed is the effect these losses will have on profitability. CCA's is top heavy and their Corporate Overhead will now have to be covered by less revenue. This hit to the bottom line is in addition to the emminent increase in their General Liability rates as a result of the Colorado, Oklahoma and Mississipi riots and the homicide of the female inmate. Time to bail!!!!!!!! (no pun intended.

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