CCA and Bay County Jail and Annex

After much deliberation, CCA has notified the Bay County Commission this week that we plan to provide notice of our intent to exercise our option under the agreement to terminate the operational management contract for the Bay County Jail and Annex in Panama City, Florida, effective October 9, 2008.

This difficult decision is not related in any way to CCA’s operational performance. Since CCA’s early years, we have managed Bay County Jail with pride and a special fondness for its significance in the company’s and nation’s history as the first jail system in the country entirely turned over to the private sector, with a contract that began in 1985.

For some time, CCA has been operating the jail at a financial loss. The staff required to manage both the existing jail and annex – and the staffing needs we anticipate for the new Bay jail we are constructing and which will be complete this summer – are critical concerns. Maintaining acceptable salary levels for employees, which helps retain staff and provide a positive work environment, is an additional factor in this decision.

At this time we do not know if the County will issue a Request for Proposal for the continued management of the jail, or if the Sheriff’s office will consider assuming the management responsibility. If there is an RFP issued, CCA will assess at that time whether or not we will respond.

Through this transition, CCA will continue to provide quality management until the expiration of the existing contract. Additionally, CCA will work in good faith to ensure a successful transition of management to the future operator. Of course, one of our top priorities also is to ensure that our dedicated employees have every opportunity for continued employment at Bay County Jail or with CCA. Because of our continued growth, there will be opportunities for some Bay jail employees who wish to retain their career with CCA to transfer to another facility within the CCA system.

Please rest assured that our decision to relinquish management of Bay County Jail is not indicative in any way regarding the stability of other CCA contracts with federal, state and local customers. We want all of you, along with our customers and community partners, to know that CCA continues to experience growth at both the federal and state level, as well as retain consistency in management of our county contracts. The company’s financial earnings are increasing, as is our bed capacity. We continue to aggressively seek opportunities to recruit the brightest and best employees and to retain the dedicated employees who help us maintain safe and secure correctional facilities every day.

Publicly, we thank all of our Bay County Jail and Annex employees for their commitment to safe correctional operations. We are proud of their contributions and accomplishments.