Prisons
This section presents evidence of savings from competition and contracting in prison management from the English speaking world and Europe. This mainly comes from the United States where private and not-for profit organisations have been extensively involved in providing support services in the custodial sector since the 1970's. Australia and the UK have more recently (since the early 1990's) opened prison operations to competition whilst in Europe this market has not been as extensively developed or studied.
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United States
Assessment of Kentucky's Privatization Efforts: Performance Audit (PDF) Auditor of Public Accounts, 2006 Comparisons of the average cost of the state's public and private facilities. US
Competition in Corrections: Comparing Public and Private Sector Operations (PDF) Nelson, Julianne, 2005 The CNA Corporation This study analysed the performance of the Taft Correctional Institution over the period 1998-2002, comparing it with (i) the hypothetical cost for Bureau of Prisons (BOP) management of the same facility, (ii) the actual costs of managing three similar low security institutions of similar age, and (iii) 11 other low security institutions operated by the BOP. US
Contracting for Imprisonment in the Federal Prison System: Cost and Performance of the Privately Operated Taft Correctional Institution McDonald, Douglas C. and Carlson, Kenneth, 2005 Abt Associates Inc. The authors compared the estimated costs of managing the facility under contract with an estimate of what it would have cost if the government had managed the same facility by benchmarking it against other low-security federal prisons. US
The Effectiveness of Juvenile Correctional Facilities: Public versus Private Management (PDF) Bayer, Patrick and Pozen, David E., 2005 Journal of Law and Economics, 48, pp549-589. The authors compared costs and recidivism rates for juvenile correctional facilities in Florida over the period 1997 to 1999. Since higher recidivism rates will result in higher costs of detention in future years, the authors also undertook a cost-benefit analysis of the different classes of facility - state, county, for-profit and not-for-profit. US
Governments' Management of Private Prisons McDonald, Douglas and Patten, Carl Jr, 2003 Abt Associates Inc. This study was based on a mail survey of 53 correctional agencies in 28 jurisdictions in 1997 and compared the market for contracted prisons with that for prisons built on a speculative basis, also known as the 'spot' market. US
The Interrelationship Between Public and Private Prisons (PDF)
Blumstein, James F. & Cohen, Mark A., 2003
Association of Private Correctional and Treatment Organizations
A study using US data on prisons from 1990-2001 which tested whether 'the existence of private prisons to manage a portion of a state's prison population has the effect of moderating the growth in costs per prisoner in the public sector'.
The Pros of Privately-Housed Cons: New Evidence on the Cost Savings of Private Prisons (PDF) Mitchell, Matthew , 2003 Rio Grande Foundation Using data published by the US Bureau of Justice Statistics, the author compared state-wide, per-prisoner costs of incarceration for the year 2001. He used statistical analysis to test whether lower per-prisoner costs were associated with the percentage of prisoners in private custody. US
To Management, Corrections Corporation of America Lattimore Black Morgan & Cain , 2003 A firm of certified public accounts collected and analysed national data between 1989 and 2001 on state expenditures on prisons in order to test whether the presence of competition in government corrections (in the form of private management companies) would serve to reduce the rate of growth of states' operational expenditures on corrections. US
Public-Private Prison Comparison Arizona Department of Corrections , 2001 A comparison of the daily per capita costs of three privately managed prisons and all similar state-operated facilities. US
South Bay Correctional Facility Provides Savings and Success; Room for Improvement (PDF)
Office of Program Policy Analysis and Government Accountability (OPPAGA), Florida, 2000
OPPAGA Private Prison Review, Report No 99-39
Lake City Correctional Facility Experienced Start-Up Problems, But It Has Improved (PDF)
Office of Program Policy Analysis and Government Accountability (OPPAGA), Florida, 2000
OPPAGA Private Prison Review, Report No 99-33
Taft Prison Facility: Cost Scenarios (PDF) Nelson, Julianne, 1999 National Insitute of Corrections, Department of Justice The study compared Taft with three virtually identical prisons recently-opened and operated by the Bureau of Prisons (BOP) to see if contracting with a private company would save the taxpayer money. US
Are Private Prisons More Cost-Effective Than Public Prisons? A Meta-Analysis of Evaluation Research Studies Pratt, Travis C. and Maahs, Jeff, 1999 Crime & Delinquency, 43:3, pp358-371 A meta-analysis of 33 public and private prisons analysed in 24 studies, using statistical methods to control for prison size, age and security level, in order to ascertain the significance of ownership for inmate cost per day. US
The Search for the Frugal Grail: An Empirical Assessment of the Cost-Effectiveness of Public Versus Private Correctional Facilities Pratt, Travis C. and Winston, Melissa R., 1999 Criminal Justice Policy Review, 10, pp.447-471 Statistical analysis of data collected by the Department of Justice from the 1992-93 census of juvenile facilities across the United States. The census included detention centres, shelters, reception and diagnostic centres, training schools, ranches, camps, farms and halfway houses. The sample consisted of 635 public and 2126 private institutions. US
Review of Bay Correctional Facility and Moore Haven Correctional Facility (PDF)
Office of Program Policy Analysis and Government Accountability (OPPAGA), Florida, 1998
The Florida Legislature, Report No 97-68
Comparing the Costs and Performance of Public and Private Prisons in Arizona Thomas, Charles W., 1997 Arizona Joint Legislative Committee A study commissioned by the Arizona Department of Corrections, of a privately operated low risk institution, for the financial year 1995-96. The operating costs were compared with the average operating costs for all similar state-operated prisons. US
Cost Effectiveness Comparison of Private vs Public Prisons in Louisiana: A Comprehensive Analysis of Allen, Avoyelles, and Winn Correctional Centers (PDF) Archambeault, William G. and Deis, Donald R., 1996 Department of Accounting, Louisiana State University A comparison of three medium-maximum security prisons in Louisiana, two managed privately and one managed by the state. US
Controlling Prison Costs in Wisconsin (PDF) Mitchell, George , 1996 Wisconsin Policy Research Institute Report, Vol 9, No 10, pp24-28. A comparison of two prisons - Jackson Correctional Institution in Wisconsin (public) and Prairie Correctional Facility in Minnesota (private). US
Performance Audit of Gadsden Correctional Institution (PDF)
Office of Program Policy Analysis and Government Accountability (OPPAGA), Florida, 1996
The Florida Legislature, Report No 95-48
A review of Florida's first contract prison which looked at the contract to construct and manage the Institution in its first year of operation and compared it with a similar state institution.
Department of Corrections Privatization Feasibility Study (PDF)
Legislative Budget Committee, Report 96-2, 1996
State of Washington
As part of a policy investigation into the feasibility of contracting prison management, the Legislative Budget Committee conducted its own brief case studies comparing public and private prisons in Tennessee and Louisiana.
Review of Correctional Privatization (PDF)
Office of Program Policy Analysis and Government Accountability (OPPAGA), 1995
State of Florida, Report No 95-12
A preliminary review by the state auditor of projected savings for one private female prison and three male prisons over similar public facilities.
Cost Comparison of Correctional Centers State of Tennessee Legislative Fiscal Review Committee, 1995 A comparison of the operating costs of the South Central Correctional Center, in the first full year of operation, with the average cost to the state of operating the Northeast Correctional Center and the Northwest Correctional Center, for 1993-94. US
Comparing Public and Private Correctional Facilities in California: An Exploratory Study Sechrest, Dale K and Shichor, David, 1993 Mays,G and Gray, T.(eds), Privatization and the Provision of Correctional Services: Context and Consequences Anderson Publishing Company Preliminary reports of a study of two public and one private community correctional facilities (CCFs) in California for the year 1991-92, with comparison of their performance against prisons operated by the California Department of Corrections (CDC). US
Breaking the Mold: New Ways to Govern Texas (Web Page) Sharp, John , 1991 Texas Comptroller of Public Accounts, Texas Performance Review, July 1991, Volume 2, PS4 As part of the Texas Performance Review, the Comptroller of Public Accounts published average costs per prisoner day for 1991 for state, new 'prototype' prisons and privately-managed facilities. The Comptroller also compared the cost of public and private operation of 500-, 1,000- and 2,250-bed units. US
Contracts for Correctional Facilities and Services: A Staff Report to the Sunset Advisory Commission Texas Sunset Advisory Commission, 1990 The Sunset Advisory Commission compared the actual cost of managing four pre-release facilities in Texas, operated by two prison management companies, with the estimated cost if the state had operated equivalent facilities. US
The Costs of Operating Public and Private Correctional Facilities McDonald, Douglas C., 1990 Douglas C McDonald (ed), Private Prisons and the Public Interest, Rutgers University Press, pp86-106 at pp92-96 A comparison of twelve immigration detention centres, seven facilities operated by the United States Immigration and Naturalization Service, and up to five facilities managed for the INS by private companies, covering the period 1984 to 1989.
Comparison of Privately and Publicly Operated Corrections Facilities in Kentucky and Massachusetts Hatry,Harry P; Brounstein Paul J. and Levinson, Robert B. , 1989 Bowman, Gary W, Hakim, Simon and Seidenstat, Paul(eds.); Privatizing Correctional Institutions Transaction Publishers pp.193-212 Studies comparing public and private (both for- and non-profit) custodial facilities in Kentucky and Masachussets. US
Comparing Costs of Public and Private Prisons: A Case Study Logan, Charles and McGriff, Bill W., 1989 ational Institute of Justice Reports, 216; Charles H Logan, Private Prisons: Oxford University Press (1990), pp.105-117 A study of Silverdale Detention Centre, a 350-bed minimum to medium security facility in Hamilton County, Tennessee, over three years from 1985 to 1988, comparing the actual costs involved in contract management, with the estimated costs of county management. US
Prisons for Profit: Public Justice, Private Interests (PDF) Donahue, John D, 1988 Economic Policy Institute Donahue compared 1,040 public and 1,996 private custodial centres for juveniles across the United States, using data from 1982 and 1985. US
Report on a Study of Issues Related to the Potential Operation of Private Prisons in Pennsylvania Pennsylvania Legislative Budget and Finance Committee, 1985 Staff of the Legislative Budget and Finance Committee compared the per diem costs of six publicly operated federal immigration detention facilities with five privately managed facilities. US
Private Sector Operation of a Correctional Institution: A Study of the Jack and Ruth Eckerd Youth Development Center, Okeechobee, Florida National Institute of Corrections, 1985 US Department of Justice A study of the Jack & Ruth Eckerd Youth Development Center in Okeechobee, Florida in its first year and a half of operation under contract. Two approaches were adopted - (i) a before-and-after comparison; and (ii) comparability with a similar state-run institution. US
Private Contractor Work Release Centers: The Illinois Experience Chi, Keon S., 1982 Innovations, Council of State Governments A study comparing 11 public and 7 contracted work release facilities in Illinois. US
United Kingdom
List of Resources:
Appendix 1: Supplementary Memorandum to PAC Report HM Prison Service, 2001 Public Accounts Committee, The Refinancing of the Fazakerley PFI Prison Contract, Thirteenth Report Session 2000-01, House of Commons, 26 March 2001, A report submitted by the Prison Service to the House of Commons Public Accounts Committee on the contract prices for all prisons negotiated under the Private Finance Initiative up to that point in time. UK
Review of Comparative Costs and Performance of Privately and Publicly Operated Prisons, 1998-99 (PDF) Park, Isabelle , 2000 Home Office Research, Development and Statistics Directorate Part of a series of quantitative studies, starting with the Coopers and Lybrand report in 1996, comparing costs per prisoner and per place amongst a sample of private and public prisons which also looks at escapes, assaults, time spent in purposeful activity and drug testing. UK
Review of Comparative Costs and Performance of Privately and Publicly Operated Prisons, 1997-98 (PDF)
Woodbridge, Jo , 1999
Home Office Research, Development and Statistics Directorate
(see 1998-9 report above )
Review of Comparative Costs and Performance of Privately and Publicly Operated Prisons, 1996-97
Woodbridge, Jo, 1997
Home Office Research, Development and Statistics Directorate
Prison Service Report, No. 3. A series of research reports comparing the performance of privately-managed prisons and public sector comparators.
Review of Comparative Costs and Performance of Privately and Publicly Operated Prisons
Prison Service Research Report, No.1, HM Prison Service, 1996
Coopers & Lybrand
A series of research reports comparing the performance of privately-managed prisons and public sector comparators.
The PFI Contracts for Bridgend and Fazakerley Prisons (Web Page)
National Audit Office (NAO), 1997
The Stationery Office
A report on the expected benefits of contracting design, construction and management of the first two prisons under the Private Finance Initiative.
Australia
List of Resources:
Value for Money from NSW Correctional Centres (PDF) Public Accounts Committee , 2005 Legislative Assembly of New South Wales The Public Accounts Committee compared the performance of two public correctional centres - Kempsey and Dillwynia - established under the threat of exposure to market-testing, with two broadly comparable public prisons managed under the traditional model, for the year 2004-05. One of its recommendations was that at least one private prison should be maintained in the state for benchmarking purposes and to encourage innovative management techniques. Australia
Economic Aspects of Prison Privatization: The Queensland Experience Brown, Allan, 1994 David Biles and Julia Vernon (eds), Private Sector and Community Involvement in the Criminal Justice System, Australian Institute of Criminology, pp103-117 Comparison of a privately managed prison at Borallon and a publicly managed facility, Lotus Glen Correctional Centre, in the Australian state of Queensland in 1991-92 and 1992-93. Australia
Contract Management in Corrections: The Queensland Experience Macionis, Stan, 1994 Paul Moyle (ed), Private Prisons and Police: Recent Australian Trends, Pluto Press, pp179-193 A comparison by the Queensland Corrective Services Commission of Borallon (private) and Lotus Glen (public) for the year 1992-93. Australia
The Pros of Private Prisons Wynder, Monte, 1993 Australian Accountant, 63, 10, pp19-22 A comparison of the operating costs of a privately managed facility, Borallon, with a publicly managed prison, Lotus Glen, , for the year 1991-92. Australia
Europe
List of Resources:
Rapport Annuel sur le fonctionnement des établissements du Programme 13000, Année 1996 (PDF) Ministère de la Justice, 1998 In 1987, the French government entered into contracts for the construction of and the management of support services in 25 new prisons across four regions. These have been described as 'semi-private' prisons since correctional services were still provided by the public sector. In each region, one prison was retained entirely under public management as a way of benchmarking private sector performance. A study was undertaken of financial and qualitative performance during 1995 and 1996. France