CCA Announces Contract Award for New Detention Center
Nashville, Tenn., May 19, 2008 - Corrections Corporation of America (NYSE: CXW), the nation's largest provider of corrections management services to government agencies, announced today that it has been awarded a contract by the Office of the Federal Detention Trustee (OFDT) to design, build and operate a new correctional facility located in Pahrump, Nevada, approximately 65 miles outside of Las Vegas, Nevada. CCA’s new 1,072-bed Nevada Southern Detention Center is expected to house approximately 1,000 federal inmates and detainees from the United States Marshals Service as well as potential populations from U.S. Immigration and Customs Enforcement and the Federal Bureau of Prisons.
The contract provides for a guarantee of up to 750 inmates or detainees and includes an initial term of five years with three five-year renewal options. Construction of our Nevada Southern Detention Center is expected to be complete in approximately 18 months, at an estimated cost of $83.5 million.
“We are grateful to have received this award from the Office of the Federal Detention Trustee which will assist the U.S. Marshals in managing their detention populations in the western region of the country,” said John Ferguson, CCA president and chief executive officer. "We are pleased to have been selected as the vendor which submitted the proposal and site that best met the evaluation criteria in this competitive procurement and look forward to continuing our relationship with the OFDT and establishing a presence in the state of Nevada.”
About the Company
CCA is the nation's largest owner and operator of privatized correctional and detention facilities and one of the largest prison operators in the United States, behind only the federal government and three states. The Company currently operates 65 facilities, including 41 company-owned facilities, with a total design capacity of approximately 78,500 beds in 19 states and the District of Columbia. The Company specializes in owning, operating and managing prisons and other correctional facilities and providing inmate residential and prisoner transportation services for governmental agencies. In addition to providing the fundamental residential services relating to inmates, the Company's facilities offer a variety of rehabilitation and educational programs, including basic education, religious services, life skills and employment training and substance abuse treatment. These services are intended to reduce recidivism and to prepare inmates for their successful re-entry into society upon their release. The Company also provides health care (including medical, dental and psychiatric services), food services and work and recreational programs.