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Private Prisons: Cost Savings and BOP's Statutory Authority Need to Be Resolved

GGD-91-21 Published: Feb 07, 1991. Publicly Released: Mar 12, 1991.
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Highlights

Pursuant to a congressional request, GAO provided information on the use of privately operated prisons and jails by federal, state, and local governments.

Recommendations

Matter for Congressional Consideration

Matter Status Comments
Congress should grant BOP the explicit statutory authority to design and implement demonstration programs and projects to fully test and evaluate the benefits and limitations of privatization. Such legislation should specifically authorize BOP to contract for privately operated prisons for demonstration purposes and, among other concerns, should address the need for adequate controls in those contracts to preserve the rights of federal prisoners, ensure contractor accountability, and provide for effective government oversight.
Closed – Not Implemented
No congressional action has been taken. BOP and Department of Justice (DOJ) legal offices have taken the position that BOP has authority. GAO concluded that this recommendation would not be implemented by DOJ. Recommendation is closed.

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Justice Should Congress grant BOP authority to test privately operated prisons, the Attorney General should direct the National Institute of Justice (NIJ) to assist BOP in determining the benefits and limitations of privatization. In this regard, NIJ should help design and build into BOP tests a research component that would allow for empirical evaluations to demonstrate privatization's advantages, disadvantages, and conditions for greatest potential.
Closed – Not Implemented
BOP officials do not believe they need NIJ assistance to evaluate the advantages and disadvantages of privatization. BOP officials said they will do their own evaluation.

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Topics

Correctional facilitiesCost effectiveness analysisFacility managementFederal facilitiesLocal governmentsPrisonersPrivatizationState governmentsPrivate sectorImprisonment