$100 Million Private Prison Contract Signed

Idaho prison officials signed a $100 million contract with Corrections Corp. of America on Tuesday morning, after a judge cleared the way late Monday by lifting a restraining order.

Idaho’s first private prison, a 1,250-bed medium- and minimum-security facility to be built on state land south of Boise, will be built and run by CCA. The state decided to privatize as a way to save money while housing an inmate population that has been skyrocketing for the past decade.

State Sen. Stan Hawkins, R-Ucon, had sued to delay the contract until the Legislature could review it. Hawkins contended the state could have saved more money by picking a less expensive bid from among the eight it received. CCA’s bid was the fourth-highest of the eight, but cost was just one of three factors in the selection.

The other two were the quality of the plans to build and run the prison, and the company’s qualifications for the job. CCA is the nation’s largest private prison company.

The CCA’s proposal is estimated to cost $27 million less, over three years, than a comparable state prison. Construction is to start early next year and be complete by the fall of 1999.