{"data":{"id":"us-ok/okla.-stat.-tit.-57-57-561.1","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 57, § 57-561.1","heading":"Private prison contractors - Requests for proposals or","body":"negotiated contracts.\n\nA. Except as otherwise provided by subsection K of this\n\nsection, prior to entering into a contract with any private prison\n\ncontractor for construction or operation, or both, of a correctional\n\nfacility, the Department of Corrections shall establish a process\n\nfor requesting proposals or negotiated contracts from such\n\ncontractors. The Department of Corrections shall develop criteria\n\nfor the process by which a contractor for the construction or\n\noperation, or both, of a private prison is to be awarded a contract.\n\nThe criteria shall be subject to approval by the State Board of\n\nCorrections. The criteria for selection of a site for a proposed\n\nfacility to be constructed or operated, or both, by a private\n\ncontractor shall include, but shall not be limited to, the\n\navailability of medical services, support services, transportation\n\nservices and the availability of potential employees who would be\n\nqualified to perform required functions at a state correctional\n\nfacility.\n\nB. Any contract between the Department of Corrections and a\n\nprivate prison contractor, whereby the contractor provides for the\n\nhousing, care, and control of inmates in a nondepartmental facility\n\noperated by the contractor, shall contain, in addition to other\n\nprovisions, terms and conditions:\n\n1. Requiring the contractor to provide said services in a\n\nfacility which meets accreditation standards established by the\n\nAmerican Correctional Association;\n\n2. Requiring the contractor to receive accreditation for said\n\nfacility from the American Correctional Association, within three\n\n(3) years of commencement of operations of the facility;\n\n3. Requiring the contractor to obtain written authorization\n\nfrom the governing board of any municipality in which the facility\n\nis to be located, or if the facility is not to be located within a\n\nmunicipality, written authorization from the board of county\n\ncommissioners of the county in which the facility is to be located;\n\nand\n\n4. Granting the Department the option at the beginning of each\n\nfiscal year pursuant to an agreement, to purchase any such facility,\n\nwith or without inventory or other personal property, at a\n\npredetermined price, which shall be negotiated and included in a\n\nschedule or a formula to be contained in the original agreement.\n\nSuch agreements relating to a correctional facility, the\n\nconstruction of which was financed or is to be financed by\n\nobligations issued from a local governmental entity the repayment of\n\nwhich is to be made in whole or in part from rentals from the State\n\nof Oklahoma or the Department of Corrections, shall be submitted to\n\nthe Council on Bond Oversight as provided in subsection I of this\n\nsection.\n\nC. A contractor proposing to enter a contract with the\n\nDepartment of Corrections for construction or operation, or both, of\n\na correctional facility pursuant to this section must demonstrate:\n\n1. The qualifications and the operations and management\n\nexperience to carry out the terms of the contract; and\n\n2. The ability to comply with the standards of the American\n\nCorrectional Association and with specific court orders.\n\nD. In addition to meeting the requirements specified in the\n\nrequests for proposals, a proposal for the construction and\n\noperation of a correctional facility must:\n\n1. Provide for regular, on-site monitoring by the Department of\n\nCorrections;\n\n2. Acknowledge that payment by the state is subject to the\n\navailability of appropriations;\n\n3. Provide for payment of a maximum amount per fiscal year;\n\n4. Demonstrate a cost benefit to the State of Oklahoma when\n\ncompared to the level and quality of programs provided by state-\n\noperated facilities that have similar types of inmates at an\n\noperational cost not more than the cost of housing inmates in\n\nsimilar facilities and providing similar programs to those types of\n\ninmates in state-operated facilities. The Department of Corrections\nscal year;\n\n4. Demonstrate a cost benefit to the State of Oklahoma when\n\ncompared to the level and quality of programs provided by state-\n\noperated facilities that have similar types of inmates at an\n\noperational cost not more than the cost of housing inmates in\n\nsimilar facilities and providing similar programs to those types of\n\ninmates in state-operated facilities. The Department of Corrections\n\nshall be responsible for determining the cost/benefit of the\n\nproposal;\n\n5. Permit the state to terminate the contract for cause;\n\n6. Contain a proposed per diem operational cost per inmate for\n\nthe initial year and subsequent years of operations;\n\n7. Subject to appropriations, provide that cost adjustments may\n\nbe made only once each fiscal year, to take effect at the beginning\n\nof the next fiscal year using as the maximum percentage increase, if\n\nany, an increase not to exceed the previous year's Consumer Price\n\nIndex for All Urban Consumers (CPI-U) as prepared by the United\n\nStates Bureau of Labor Statistics, except as otherwise provided by\n\nsubsection K of this section;\n\n8. Have an initial contract term of not more than one (1) year,\n\nwith an option to renew for additional periods not to exceed twenty\n\n(20) years;\n\n9. If the proposal includes construction of a facility, contain\n\na performance bond approved by the Department that is adequate and\n\nappropriate for the proposed contract;\n\n10. Provide for assumption of liability by the private vendor\n\nfor all claims arising from the services performed under the\n\ncontract by the private vendor;\n\n11. Provide for an adequate plan of insurance for the private\n\nvendor and its officers, employees, and agents against all claims,\n\nincluding claims based on violations of civil rights arising from\n\nthe services performed under the contract by the private vendor;\n\n12. Provide for an adequate plan of insurance to protect the\n\nstate against all claims arising from the services performed under\n\nthe contract by the private vendor and to protect the state from\n\nactions by a third party against the private vendor, its officers,\n\nemployees, and agents as a result of the contract;\n\n13. Provide plans for the purchase and assumption of operations\n\nby the state in the event of the bankruptcy of the private vendor;\n\nand\n\n14. Contain comprehensive standards for conditions of\n\nconfinement.\n\nE. At the beginning of each fiscal year, the Department of\n\nCorrections shall determine the budgeted average daily cost per\n\ninmate. The budgeted average daily cost per inmate shall include\n\nall direct and indirect costs incurred by the Department. There\n\nshall be a separate computation of budgeted average daily cost for\n\nmaximum security, medium security, minimum security, and community\n\nfacilities. This information shall be presented to the State Board\n\nof Corrections for informational purposes only. After the close of\n\neach fiscal year, the Department shall determine the actual average\n\ndaily cost per inmate for the operational costs at each major\n\ncategory of correctional facility. The actual average daily cost\n\nper inmate shall include all direct and indirect costs incurred by\n\nthe Department. There shall be a separate computation of the\n\naverage daily rate for maximum security, medium security, minimum\n\nsecurity, and community facilities. The Department shall present to\n\nthe State Board of Corrections at its January meeting comparative\n\ndata on budgeted daily cost versus actual daily cost, and, after\n\nappropriate review and analysis, the Board shall adopt as a final\n\naction of the Board an average daily cost per inmate by facility\n\ncategory for the immediately preceding fiscal year.\n\nF. If a request for proposal process is utilized and no\n\nproposals conform to the established criteria, the Department shall\n\nprepare an additional request for proposals. The Department of\nd Reformatories Page 190\n\nappropriate review and analysis, the Board shall adopt as a final\n\naction of the Board an average daily cost per inmate by facility\n\ncategory for the immediately preceding fiscal year.\n\nF. If a request for proposal process is utilized and no\n\nproposals conform to the established criteria, the Department shall\n\nprepare an additional request for proposals. The Department of\n\nCorrections shall evaluate the proposals within thirty (30) days of\n\nreceipt from the prospective contractor. The Department of\n\nCorrections shall specifically determine whether a proposal meets\n\nthe requirements of paragraph 4 of subsection D of this section by\n\ncomparing the daily rate for housing and care of inmates pursuant to\n\nany proposed contract with a private contractor to the daily rate\n\nfor housing and care of inmates at the comparable type of facility\n\noperated by the Department of Corrections using the information\n\nprovided pursuant to paragraph 6 of subsection D of this section.\n\nThe Department shall evaluate proposals taking into account any\n\ndirect or indirect costs that would continue to be paid by the\n\nDepartment of Corrections including, but not limited to,\n\ntransportation, records management, discipline, general\n\nadministration, management of inmate trust funds, and major medical\n\ncoverage. Such costs shall be added to the proposed per diem of the\n\nprivate vendor when comparing the total per diem costs of the state\n\noperating facilities.\n\nG. If the Department of Corrections proposes to enter into a\n\ncontract for the construction or the operation, or both, of a\n\nprivate prison, the Department shall compare both the capital costs\n\nand the operating costs for the facility to the imputed capital\n\ncosts and the projected operating costs of a comparable facility\n\nconstructed and operated by the Department of Corrections.\n\nH. The Department of Corrections shall deliver to the State\n\nBoard of Corrections the top three qualified prospective private\n\nprison contractors identified pursuant to this section and pursuant\n\nto Section 561 of this title together with the information reviewed\n\nand analyzed by the Department of Corrections during analysis of the\n\nproposals as required by this section. The Board of Corrections\n\nshall evaluate the information provided and shall make a final\n\ndecision selecting the contractor within fifteen (15) days of\n\nreceipt of the information.\n\nI. Any contract subject to the provisions of this section\n\nentered into by the Board of Corrections shall be subject to the\n\napproval of the Council on Bond Oversight in the same manner as\n\nprovided by law for the review of issuance of obligations by State\n\nGovernmental Entities as prescribed by Section 695.8 of Title 62 of\n\nthe Oklahoma Statutes.\n\nJ. Before submission of the proposed contract to the Council on\n\nBond Oversight, and prior to the date as of which the proposed\n\ncontract is executed by the Board of Corrections, the Attorney\n\nGeneral and the Director of the Office of Management and Enterprise\n\nServices shall review the proposed final version of the contract.\n\nThe Attorney General and the Director of the Office of Management\n\nand Enterprise Services shall have a period of fifteen (15) days\n\nfrom receipt of the proposed final version of the contract to\n\napprove the contract and execute the document. If either the\n\nAttorney General or the Director of the Office of Management and\n\nEnterprise Services has objections to the proposed contract, the\n\nobjections shall be communicated in writing to the Department of\n\nCorrections. The Department of Corrections shall take appropriate\n\naction regarding the objections and shall resubmit the proposed\n\ncontract for additional review. The Attorney General and the Office\n\nof Management and Enterprise Services shall have an additional\n\nfifteen-day period to approve the proposed contract and to execute\ne\n\nobjections shall be communicated in writing to the Department of\n\nCorrections. The Department of Corrections shall take appropriate\n\naction regarding the objections and shall resubmit the proposed\n\ncontract for additional review. The Attorney General and the Office\n\nof Management and Enterprise Services shall have an additional\n\nfifteen-day period to approve the proposed contract and to execute\n\nthe document. Failure of the Attorney General or the Director of\n\nthe Office of Management and Enterprise Services, respectively, to\n\nact within the fifteen-day period shall constitute approval of the\n\nrespective official to the proposed final version of the contract.\n\nThe contract shall contain a separate signature block or line for\n\nsignature by the Attorney General and the Office of Management and\n\nEnterprise Services. The contract shall contain a statement to be\n\nexecuted by the Attorney General and the Director of the Office of\n\nManagement and Enterprise Services that each one of them,\n\nrespectively, has reviewed the proposed contract for compliance with\n\nthe provisions of this section and Section 561 of this title, and\n\nall other applicable provisions of law and that the contract\n\nconforms with those requirements. Neither the private prison\n\ncontractor nor the State Board of Corrections shall execute the\n\ncontract until the document has been executed by the Attorney\n\nGeneral and the Director of the Office of Management and Enterprise\n\nServices as required by this subsection unless the approval of the\n\nrespective official has been made as a result of failure to take\n\naction within the fifteen-day period prescribed by this subsection.\n\nK. The State Board of Corrections may renew a private prison\n\ncontract which is in effect for any time period during the fiscal\n\nyear ending June 30, 2009, if the Board determines that the renewal\n\nof such contract will result in a reduced per diem in the fiscal\n\nyear ending June 30, 2010. If the State Board of Corrections makes\n\nsuch determination, the contract shall not be subject to the\n\nrestrictions of paragraph 7 of subsection D of this section and the\n\nBoard shall negotiate the contract based upon such terms as the\n\nBoard deems to be in the best interest of operational efficiency,\n\nincluding the inmate population, per inmate cost, public safety and\n\nsuch other terms as the State Board of Corrections determines to be\n\nrelevant to such contract. The State Board of Corrections shall\n\nhave the authority to negotiate the term of any contract executed\n\npursuant to the provisions of this subsection subject to the\n\navailability of appropriations to the Department of Corrections each\n\nyear.","path":["OK Code","Title 57"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os57.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"51c8a7011f13ffcffe6dbf9fc54e09e10a5bc44d6f0c961907394a020d5aba8d","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-57-57-561","next":"us-ok/okla.-stat.-tit.-57-57-561.2"},"notice":"GroundRules: Original legal text. Not legal advice."}