Corrections awards CoreCivic inmate-transfer contract

On August 7, 2018, the Centro de Periodismo Investigativo (CPI) reported that the Department of Correction and Rehabilitation (DCR) awarded on July 31 a contract of more than $10 million to CoreCivic — the leading U.S. private prison company — for the Out of State inmate-transfer program. Rosselló administration goal: relocate in stages over five years 3,200 inmates (30% of the prison population) to private mainland prisons; first phase ~1,200 toward La Palma Correctional Center in Arizona, via CoreCivic’s TransCor airline.

On July 30, DCR’s Bidding Board, with AAFAF present, awarded the sole competing firm. In the May proposal, the per diem was $63–$67; AAFAF asked to lower it to $55–$59, but secretary Erik Rolón told CPI the awarded contract kept “more or less the same per diem.” Exceeding $10 million, the deal requires Oversight Board evaluation and approval. At report close, the Board said it had not yet received the documentation; AAFAF said negotiation had not culminated.

The program is not in the certified Fiscal Plan; the plan does recommend closing nine prisons amid falling population. Rights groups and more than 50 lawyers signed opposition in April. The Legal Aid Society questioned transparency, voluntariness, notice to legal counsel and destination services. California audits (2015–2018) flag “critical” health problems at La Palma. In 4Q 2017, CoreCivic reported revenue of $440.6 million.

Precedent: under Fortuño — when Rolón was DCR Legal Affairs director — a CoreCivic transfer to Cimarron (Oklahoma) cost $10,410,847 without proven savings; inmates returned after a riot over unmet services. Award and Board review threshold do not equal disbursement or conviction. This note does not impute a crime.