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Corrections Corporation of America Announces Contract Award With Federal Bureau of Prisons
| Source: Corrections Corporation of America
NASHVILLE, TN--(Marketwire - April 1, 2009) - Corrections Corporation of America ("CCA")
(NYSE : CXW ) announced today that it has been awarded a contract with the
Federal Bureau of Prisons (BOP) to house up to 2,567 federal inmates at
CCA's recently completed 2,232-bed Adams County Correctional Center in
Mississippi.
The four-year contract, awarded as part of the Criminal Alien Requirement 8
Solicitation ("CAR 8"), also provides for up to three two-year renewal
options and includes contract provisions that are materially comparable to
the Company's other contracts with the BOP, including a 50 percent
guarantee of occupancy during activation period and a 90 percent guarantee
thereafter. CCA expects to receive a Notice to Proceed within 120 days of
the contract award and expects to commence receiving inmates during the
third quarter of 2009. Under the provisions of the award, the Company
could earn revenues of up to approximately $226.4 million during the
initial four-year term of the contract.
"We are delighted that the Federal Bureau of Prisons has chosen our company
in awarding this contract. We currently house more than 8,500 inmates from
the BOP at several of the facilities we own. We believe this new award
reflects the BOP's ongoing commitment to utilize the private sector to
allow the agency the flexibility in managing its bed-space needs in a
reasonable and cost effective manner," stated John Ferguson, Chief
Executive Officer. "We developed our Adams County facility in anticipation
of future demand from our customers, and we believe our ability to
immediately provide a facility capable of meeting the capacity requirements
of the BOP combined with our commitment to providing quality service were
important factors in obtaining this award."
About CCA
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. CCA
currently operates 64 facilities, including 44 company-owned facilities,
with a total design capacity of approximately 85,000 beds in 19 states and
the District of Columbia. CCA 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, our
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. CCA also provides health care (including
medical, dental and psychiatric services), food services and work and
recreational programs. To learn more about CCA, visit
www.correctionscorp.com.
CCA takes no responsibility for updating the information contained in this
press release following the date hereof to reflect events or circumstances
occurring after the date hereof or the occurrence of unanticipated events
or for any changes or modifications made to the press release.