State of Louisiana
Department of Public
Safety and Corrections
Corrections Services
Request for
Information (RFI) for
Purchase of Prison and
Management Services
RFI # 400PUR028/337
Due: February 11, 2011

:

Presented by

10 Burton Hills Boulevard
Nashville, Tennessee 37215
Phone: (615) 263-3000
Fax: (615) 263-3090
www.cca.com

State of Louisiana RFI
Purchase of Prison and Management Services
RFI #400PUR028/337
February 11, 2011

CCA Response to
STATE OF LOUISIANA
DEPARTMENT OF PUBLIC SAFETY AND CORRECTIONS
CORRECTIONS SERVICES
REQUEST FOR INFORMATION (RFI) FOR
PURCHASE OF PRISON AND MANAGEMENT SERVICES
RFI #400PUR028/337
Due Date: February 11, 2011, close of business
Cover Letter

TABLE OF CONTENTS
APPENDIX 1 – RESPONSE FORM
Completed Response Form, Appendix 1 ................................................................................................
EXECUTIVE SUMMARY
Introduction of Respondent .................................................................................................................. 2
Contact Information ............................................................................................................................. 2
CORPORATE BACKGROUND AND EXPERIENCE
Description of CCA ............................................................................................................................. 3
History of CCA .................................................................................................................................... 3
Corporate Structure, Organization, Years in Business ........................................................................ 3
Project Experience ............................................................................................................................... 6
Summary of Qualifications, Ability, Willingness to Comply .............................................................. 7
COST ESTIMATE
Cost Estimate ....................................................................................................................................... 9

Lucibeth Mayberry
Vice President and Deputy Chief Development Officer

February 9, 2011

Mr. Ron Granier, Deputy Undersecretary
Louisiana Department of Public Safety and Corrections
504 Mayflower Street
Baton Rouge, LA 70802
RE:

Request for Information (RFI) RFI #400PUR028/337
Purchase of Prison and Management Services

Dear Mr. Granier:
CCA is pleased to present our response to the Department of Public Safety and Corrections' Request
for Information as part of the Department's ongoing planning for the delivery of correctional services
within the State. As the State's preferred provider for the operation and management of the Winn
Correctional Center in Winn Parish, CCA hopes to continue our longstanding partnership in
corrections for many years to come.
We have provided our response in the format requested by the RFI to include an Executive Summary,
Corporate Background and Experience, and a Cost Estimate. Please don't hesitate to contact me if
further information is needed in this process or to clarify any information provided in our response.
Sincerely,

Lucibeth Mayberry
Vice President and Deputy Chief Development Officer

10 Burton Hills Boulevard, Nashville, Tennessee 37215, Phone: 615-263-3000, Fax: 615-263-3090, www.cca.com

APPENDIX 1
EXECUTIVE SUMMARY
Corrections Corporation of America (CCA)
Lucibeth Mayberry, Vice President and Deputy Chief Development Officer
10 Burton Hills Boulevard
Nashville, Tennessee 37215
lucibeth.mayberry@cca.com

Responder Name:
Responder Representative's Name:
Street Address:
City, State and Zip Code:
Primary Email Address:

michelle.barker@cca.com
(615) 263-3246
(615) 263-3076

Secondary Email Address:
Primary Telephone:
Secondary Telephone:

CORPORATE BACKGROUND AND EXPERIENCE
The responder should attach a brief description of the company
including a brief history, corporate structure/organization and
number of years in business. Responders should also describe
their experience with prison management of this type with
other states or governmental agencies of comparable size and
scope.

lOption 1 Cost Range (minimum to maximum)

Iyear 1-20

Option 2 Cost Range (minimum to maximum)

Year 1-3
Year 4-20

$40.01-$42.01 - year 1 w/annual escalator TBD

$31.35 - 1 negotiated annual escalator for year 2 and 3
$42.71-$44.71 w/annual escalator TBD for years 5-20

CONFIDENTIAL - PROPRIETARY - NOT FOR DISTRIBUTION

State off Louisiana RFI
Purchase of
o Prison and Managgement Services
RFI #4400PUR028/337
Feb
bruary 11, 2011

2.3.1

E
EXECUTIV
E SUMMA
ARY

CCA is the nation’s largest, most experrienced ownner and opeerator of partnership
p
p
prisons
–
correctional services provided in partnersship with government
g
agencies. CCA fouunded the
partnershhip corrections industry and
a today manages
m
64 operating
o
faccilities with a total designn capacity
of nearlyy 89,000 inm
mate beds; only
o
the fedeeral governm
ment and thrree states (C
California, Texas,
T
and
Florida) operate larg
ger systemss. Our misssion, in parrtnership wiith governm
ment, is to provide
p
a
c
s
system
in thhe United
meaningfful public service by opperating thee highest quuality adult corrections
State. We
W support the
t Departm
ment's missioon to enhancce public saafety throughh the safe annd secure
incarceraation of offen
nders with proven
p
rehabbilitative straategies that successfully
s
y reintegrate offenders
into socieety, as well as
a to assist inndividuals and
a communnities victimized by crimee.
For morre than 20 years, CCA
A has partnnered with the
t
State off Louisianaa providing complete
correctional services at the Winnn Correctionnal Center loocated in Wiinn Parish. In
I March 19990, Winn
Correctioonal Center opened as the first paartnership prrison in Louuisiana and the first paartnership
medium--security prisson in the United
U
States. ACA accrreditation waas achieved at the facilitty in June
1991, a status
s
that haas been mainntained throuugh its most recent reacccreditation inn May 2009.
As a fulll-service pro
ovider, incluuding designn/build serviices and ow
wned and maanaged-only facilities,
CCA dellivers value to our partners through complete coorrectional services mannagement. Our
O strong
financial status coup
pled with thhe company''s experiencced, respecteed managem
ment further positions
CCA as a capable, reeliable partneer who is weell-equipped to fulfill thee requiremennts of the RF
FI.
CCA is headquarterred in Nashvville, Tenneessee, wheree Lucibeth Mayberry
M
seerves as the principal
contact for
f this projeect. Contact informationn and a brieff biography for
f Ms. Mayyberry are prrovided as
follows:
Principaal Contact:
Address:
Telephon
ne:
Fax:
E-Mail:

Lucibethh Mayberry, Vice Presiddent and Depputy Chief Development
D
Officer
10 Burtoon Hills Bouulevard
Nashvillle, Tennessee 37215
Direct (6615) 263-32446; General (615) 263-33000 ext. 32446
(615) 2663-3090
lucibeth..mayberry@
@cca.com
Vice Presiident and Deputy
D
Chieef Developm
ment Officerr
Lucibeth Mayberry
M
w named Vice
was
V Presidennt and Deputty Chief Devvelopment
Officer in 2008. She began her career
c
with CCA
C
in 20003 as Seniorr Director,
State Parttnership Reelations, whhere she maanaged relattionships foor CCA’s
various staate partners throughout the nation. In her preseent role, shee provides
continued oversight of
o the company's proposal developm
ment departtment and
assists thhe Chief Developmen
D
nt Officer in managiing the Paartnership
Developm
ment divisionn, including developingg key strateggies with otther CCA
departmennts. She holdds a bacheloor’s degree from
f
the Uniiversity of Tennessee,
T
a Juris Dooctor from Vanderbilt
V
U
University,
annd a Masterr of Laws inn Taxation
from the University
U
off Florida.

2

State of Louisiana RFI
Purchase of Prison and Management Services
RFI #400PUR028/337
February 11, 2011

2.3.2 CORPORATE BACKGROUND AND EXPERIENCE
Description of the Company
CCA specializes in owning, operating and managing prisons and other correctional facilities for
governmental agencies. In addition to providing fundamental inmate residential services (health care,
food service, security), 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 help reduce recidivism and to prepare inmates for their
successful reentry into society upon their release. CCA facilities establish Community Relations
Committees to encourage communication of activities conducted both inside the facility and the
larger outside community.
CCA's facility management includes government partners from 15 states, the District of Columbia,
the Federal Bureau of Prisons (BOP), the United States Marshals Service (USMS), Immigration and
Customs Enforcement (ICE), and nine local government municipalities. The company maintains a
varied client base nationwide housing adult male and female inmates; youthful offenders; detainees;
pre-trial; pre-release; sentenced; and minimum, medium, close and maximum-security inmate
classifications. Of the approximately 80,600 inmates under our care, over 25,600 are housed under
contracts with the federal government; more than 52,700 are housed through our state government
partners; with nearly 2,300 from local municipalities.
History of CCA
CCA began offering inmate housing and correctional services alternatives to government agencies in
1983 upon securing a contract with the U.S. Department of Justice and former Immigration and
Naturalization Service or INS (now "ICE") in Houston, Texas. This bold initiative launched a
successful new industry in America, and many other firms have followed suit in offering partnership
corrections.
From this one facility, CCA has grown to 64 facilities housing approximately 80,600 inmates.
CCA's history with the State of Louisiana began one of the company's earliest partnerships which has
continued beyond 20 years. Through a competitive solicitation, the Department selected CCA to
operate it's then new prison in Winn Parish in 1989. Under CCA management, the facility has
undergone several expansions since that time, bringing the facility to its current capacity of 1,538.
Our relationships with the State and the Department were foundational for CCA and the industry, and
we continue to place a high value on this partnership today.
Corporate Structure, Organization, Years in Business
CCA is a publicly held Maryland corporation originally incorporated in Tennessee in January 1983,
with headquarters located in Nashville, Tennessee. Accordingly, the company has been in the
business of providing correctional services to our government partners for 28 years. Of our nearly
17,000 employees, over 360 are assigned to our central office, referred to within the organization as
the Facility Support Center or "FSC." The FSC title highlights the fact that the primary function of
our headquarters team is to serve and support our facilities nationwide.

3

State of Louisiana RFI
Purchase of Prison and Management Services
RFI #400PUR028/337
February 11, 2011

The company is governed by a Board of Directors and managed by a six-member executive
management team that includes the position of President/Chief Executive Officer, as well as five
Executive Vice Presidents: Chief Operations Officer, Chief Development Officer, Chief Financial
Officer, Chief Human Resources Officer and General Counsel. A total of 16 Vice Presidents report
to the various members of the executive management team and provide oversight to the following
departments: Facility Operations; Finance, Accounting and Inmate Trust; Legal Affairs and Quality
Assurance; Partnership Development; Facility Contract Management; State Partnership Relations;
Federal/Local Partnership Relations; Real Estate and Facility Maintenance; Inmate Programs; Health
Services; Communications; Treasury; Human Resources; and Technology. Each of these central
office disciplines designates appropriate personnel to work with facility staff to ensure that policies,
government regulations, contract requirements and partner expectations are constantly met.
Oversight for CCA’s 64 facilities is distributed among three operational business units, each headed
by a Vice President, with each unit containing two divisions of approximately 11 facilities each.
Facility Wardens report to a divisional Managing Director who reports directly to the Facility
Operations Vice President of his/her business unit (see chain of command from the Vice President
through Warden as illustrated for both the Winn and Allen facilities on the CCA Organizational Chart
following this page).
We operate our facilities in accordance with both company and facility-specific policies and
procedures. The policies and procedures reflect the high standards generated by a number of sources,
including the American Correctional Association, the Joint Commission on Accreditation of
Healthcare Organizations, the National Commission on Correctional Healthcare, the Occupational
Safety and Health Administration, federal, state and local government guidelines, established
correctional procedures, and company-wide policies and procedures that may exceed these
guidelines. Outside agency standards, such as those established by ACA, provide us with the
industry’s most widely accepted operational guidelines in addition to individual contractual
requirements. Our facilities not only operate under these established standards but are consistently
challenged by management to exceed these standards.

4

CCA
Facility Support Center (Central Office)
Organizational Chart

P RESIDENT I nd

CHIEF EXECUT1VE OF FICER
DAMON T. HIN INGER

CllielH<,oman

Chief Finuncia l Oll"ooer
(Execu ~ ,,",

ViC<! P,esidcot
Finance
O!I,,;d Gall\nkle

Vice President
TechnO'Ogy &- CIotel
InlQlTTlation Ollie...

J<;tln Pleiller
Vice President ond
TrU$I.Ire.
Patiick SWindle

Re!iOl.l~'

(ExeOJ~"" Vice

Voce President)

Todd Mul" nge<

onI_

""'esidrnl)

8rian CoUin.

-

VicePr~nt

HurnenRO'$<1Jrcu
JilTl'nyTum ..
Man&ging Dired..-,

-

Orlllol'llzation
DewI<:v"",nt
SI. nI"II and SI.II
Training
Stephen Kaiser

""--

Real Est,1e
F...... BetenOOJrf

MIo... ~

Cllie r Cc;t .. ~iO'1' om"",
(""<'CUtM: Vice President)
Richard P. Se~...

-"'~

Dn<:t(l',

.(iIIt~M_ ~

""""'-'
Jake BIIeI!
IMnlging Dftdcr,
Prctect~

"'""""
Mln.~
Pr ~

Gon ... 1COII"""I
(ExeculM: Vice President)

Oirtoc«:r,
o.velopment

0""

f-

Vice Pr"';denl .... d
DepJty General

"'""~

"""

'---

MIIn l gr." DOro!dor

Assurance
Don Murl1lY

Qu~1i!y

Sen;", Vice President
J. Michael Quinton

Vice ~idenl
Inmale f>ro<,jrarrl$
DenniS Bndby

Vice PrHid"",
He alth Services
Herb Spiwak

Vice P, .. !.>dent
Operaticns- Untt 1
Ronald Thomp$Oll

OperllllMS - Unit 2
0...., Sw...,.on

Manog,ng Drecla00"",,,,, II
Jim Schomlg

MaMgi. g Drector
D,,~m FV
Jaclc Gam...-

Monaging Direclo<
DM"'onVi

Ma Mg,ng D"'<;!er
Division I
LBfle !!J air

Managing Dt«Ior
Divi~ on III
Ml: loc!V Turner

Man.!ing Di.,..;!o<
OMsion V
Kevin Myers

Wlnn

Vice PreSident

Con"~on81

Cen''''
Wor den

1

Vice PrUldenl

- Un" 3
steve Cmry

Opera~o",

Cha~e$ Ma ~ i n

Allen Co<re<:tionai
Ceo,...
Warde n

Chief DevelQPmenl OIIieer
(ExeoJ~"" Vice ""'"oldent)

Mltoony l. Grende

Vice President
PtI~n"'$hlp

[)eveh>pme nt
NataSh" Metcelf

Vice President

Vice President end

I-

Deputy Ct1ief
Development Of~ c ...

--,

Lueit>eth Ma'jt>erTy
Oiredor

CommtJnicaticns
LOIIi ~e Gnlnt

De\1: lq:ment
Mchelle S.rh .

Vice PreSidenl
FedOl1l lJ\.ocal
PftltneUhip Reletion.
13M VerHulSl

Manall'"
Pr<:JpO$al
Deve lopment
Pam H<:M'e1i

Vice President
stale Portnrr$hip

Manegilg Dr"';!or
Pr<:JpO$al
Deve lopment
enan Fe rrell

Re l. tion~

ElrOd Regens

Meneg,ng Director,
Stille P.rtner$hlp
Re l' ti""s
Kelly o...Mm

Managing D,,..;!«
P. ~ nershiP

De"" lopmen t
Corl.", MelendeZ

Senier Directer
Blate f'artne,SI1 'p
Re l. lion.
Ben Shu$le ,

5

State of Louisiana RFI
Purchase of Prison and Management Services
RFI #400PUR028/337
February 11, 2011

Experience with Projects of this Type
CCA owns 47 correctional and detention facilities in 15 states and the District of Columbia; one of
which we lease to a third-party operator, two which are idle, and one which is currently under
construction in Georgia. We also own two corporate office buildings, one housing CCA's
headquarters and the other serving as headquarters to TransCor, the nation's largest prisoner
transportation company and a wholly-owned CCA subsidiary. Additionally, we currently manage 21
correctional and detention facilities owned by government agencies, including the State's Winn
Correctional Center in Winnfield, Louisiana. CCA has proven, substantial experience and a long
history in successfully owning and maintaining large correctional facilities across the United States.
During the past 28 years, CCA's experience includes acquisition and transition of numerous facilities
to CCA ownership and management. A few examples where CCA purchased existing operating
facilities include the following:


Bent County Correctional Facility, Las Animas, Colorado: CCA assumed management and
ownership of this facility in 1996. Open since April 1993, Bent was initially managed by the
Bent County Board of Commissioners under a lease/purchase agreement with Dreyfus, a
company that handled the sale of bonds for the first phase of the facility’s construction. The
facility, which originally housed 335 adult male felons, presently has a capacity of 1,420 and
houses inmates for the State of Colorado.



Cibola County Correctional Center, Milan, New Mexico: CCA assumed management and
ownership of this 376-bed prison from Cibola County in 1998. Built in 1992 as a combined
48-bed jail to house local prisoners and a 328-bed correctional center for New Mexico state
inmates, the facility also previously housed inmates for the United States Marshals Service
and the State of Idaho. The facility presently has a capacity of 1,129 and houses inmates for
the Federal Bureau of Prisons.



Correctional Treatment Facility, Washington, D.C.: This 866-bed facility was constructed
by the District of Columbia Department of Corrections and opened in May 1992 as a
specialized medium-security institution housing both adult males and females. CCA assumed
management in 1997 under a 20-year lease purchase and management agreement. The
facility presently has a capacity of 1,500 and houses inmates for the District and the United
States Marshals Service.



Crowley County Correctional Facility, Olney Springs, Colorado: This facility was built and
financed by Dominion Venture Group. Under a management contract with Dominion, the
facility was managed by Correctional Services Corporation until late 2000 when Dominion
assumed management. CCA purchased the 1,200-bed medium-security facility from an
affiliate of Reckson Associates Realty Corporation in January 2003. The facility presently
has a capacity of 1,794 and houses inmates for the State of Colorado.



Davis Correctional Facility, Holdenville, Oklahoma: This medium-security correctional
facility, originally consisting of 960 beds, was owned and developed by the Holdenville
Industrial Authority. The facility opened in April 1996 under CCA management and was

6

State of Louisiana RFI
Purchase of Prison and Management Services
RFI #400PUR028/337
February 11, 2011

purchased by CCA in 1997. The facility presently has a capacity of 1,670 and houses inmates
for the State of Oklahoma.


Eden Detention Center, Eden, Texas: Originally built, owned and operated by independent
operator Roy Burnes, the 1,000-bed facility began housing inmates for the Federal Bureau of
Prisons in 1989. CCA began managing the facility in 1995 through a management contract
with the Eden Correctional Facilities Corporation and the City of Eden which had purchased
the facility. In 1999, CCA purchased the facility from the city and retained management
through a Residential Services Agreement. The facility presently has a capacity of 1,422 and
continues to house inmates for the BOP.

In addition to the examples cited above, CCA has purchased and assumed operation of many more
existing correctional facilities through the acquisition of various other partnership provider
companies. CCA has successfully activated 61 facilities and assumed operation of an additional 42
facilities from other partnership providers or agencies. We have extensive experience in successfully
purchasing, acquiring and transitioning facilities while continuing safe, secure facility operations.
Summary of Qualifications, Ability and Willingness to Comply with State Requirements
Summary of Qualifications
As demonstrated throughout our response, CCA's broad management experience translates into a
national correctional system with industry credibility and considerable resources. This allows us to
adapt quickly to the needs of our government partners by implementing initiatives that ensure safety
and security and the continuing application of best correctional practices. Further, CCA has a strong
and stable financial status which, coupled with our extensive experience in facilities acquisition,
makes for a sound choice for the State to transition ownership of Winn and Allen to CCA.
Summary of Ability
In summary, the company's national recognition in recent years serves to highlight CCA's
management skills and abilities as acknowledged by the following organizations:


Nashville Business Journal magazine selected CCA as the Best in Business Award 2010
winner in the category of businesses with more than 500 employees. With Nashville being
home to many distinguished large companies, such as Dollar General, Nissan, HCA and
Tractor Supply, being recognized as the best is a tremendous honor.



Corporate Responsibility Officer (CRO) magazine ranked CCA 6th on its 2008 list of the
nation’s 100 best citizens. Companies were compared based on business responsibility efforts
in eight categories, such as employee relations, human rights, governance, financial and
philanthropy.



Forbes magazine named CCA the Best Managed Company of its kind in America among 21
companies within the “Business Services & Supplies” category in 2007. The “Best Managed”
rating measured leadership, innovation and execution, as well as financial metrics and
governance ratings.

7

State of Louisiana RFI
Purchase of Prison and Management Services
RFI #400PUR028/337
February 11, 2011

CCA's financial strength and stability is unequaled among our peers. Our current financial stability
and our ability to remain financially stable in the future are demonstrated by the following:


As of December 31, 2010, CCA had $25.5 million in cash and cash equivalents, working
capital of $172.4 million, total assets of approximately $3.0 billion and total stockholders'
equity of $1.5 billion.



As of December 31, 2010, in addition to cash and cash equivalents of $25.5 million, CCA
had $228.2 million available to borrow under its revolving credit facility. This provides CCA
with a total of $253.7 million available to fund operations and facility development without
having to access the capital markets.



CCA has access to the debt and equity capital markets to raise additional funds, if necessary,
to fund short, intermediate and long-term cash needs for operations and for new facility
development.

The company has demonstrated sustained financial strength over our 28-year history with consistent
positive growth. The combination of cash-on-hand and amounts under our line-of-credit, and access
to the debt and equity capital markets, puts CCA head and shoulders above our competitors with
regard to fiscal management. More detailed information concerning CCA's financial status may be
found on our website at http://ir.correctionscorp.com/phoenix.zhtml?c=117983&p=irol-financialInfo.
Willingness to Comply with State Requirements
We have reviewed the RFI and its attachments, including the sample contract (Attachment B), and
the requirements cited therein. CCA is accustomed and comfortable with complying with the State's
requirements under the current contract and would welcome the opportunity to suggest potential
contract terms, such as a clause allowing CCA to return the asset to State ownership under certain
circumstances, that would be supportive of a transaction of this kind. CCA would welcome an
opportunity to further discuss the opportunity to pursue ownership and the continued operation of the
Winn Correctional Center, and ownership, transition and CCA operation of the Allen Correctional
Center located in Kinder, Louisiana.
As we have demonstrated in our response, CCA remains America's leader in partnership corrections.
The company's senior management is grounded in principals that exhibit integrity and reliability in
business, as well as in correctional services management. CCA has established verifiable experience
in facility ownership/acquisition and facility management throughout our 28-year history, along with
the financial credibility needed to achieve the State's desired outcomes with confidence and
assurance. We look forward to further discussions with the Department as the State evaluates the
opportunities presented through this process.

8

State of Louisiana RFI
Purchase of Prison and Management Services
RFI #400PUR028/337
February 11, 2011

2.3.3

COST ESTIMATE

With regard to the financial implications of such an arrangement, our initial analysis indicates that the
annual per diem increase resulting from the purchase of the facility would range from $8.50 - $10.50
per inmate per day in addition to the current operating per diem. For example, given today's base
management per diem of $31.51, the revised aggregate per diem resulting from the purchase of the
facility would be in the range of $40.01 – $42.01. Our calculation is based on an assumed facility
value of $33.0 million. To formalize and increase the precision of a potential offer, key assumptions
such as the value of the facility and an assessment of its useful life would have to be validated and
confirmed.
Beyond this base analysis, we believe that certain contract provisions could allow the best value to be
provided to the state by CCA including: 1) certainty around annual contract escalators, 2) a minimum
occupancy guarantee, 3) property tax abatements and 4) a put provision requiring repurchase of the
facility by the state in the event of material financial deterioration of the facility operations or the
cancellation by the state of the management contract. CCA also believes that there are alternative
financial structures that could allow potentially a meaningful reduction in the proposed per diem rate
through maximization of available bed space within the existing facility. These efficiencies could
help offset the magnitude of the per diem increase that would be required to support the purchase of
one or both of the facilities by CCA.

CONFIDENTIAL – PROPRIETARY INFORMATION – NOT FOR DISTRIBUTION

9