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2002 Session

Budget Amendments - HB30 (Conference Report)

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Lawrenceville Contract Renewal

Item 421 #8c

Item 421 #8c

First Year - FY2003 Second Year - FY2004
Public Safety
Institutions, Division of FY2003 $1,400,000 FY2004 $1,400,000 GF

Language
Page 312, line 12, strike "$399,495,769" and insert "$400,895,769".
Page 312, line 12, strike "$398,840,579" and insert "$400,240,579".
Page 312, line 36, after "C" and insert "1".
Page 312, line 36, strike "17,159,147" and insert "18,559,147".
Page 312, line 37, strike 17,159,147" and insert "18,559,147".
Page 312, after line 40, insert:
"2.a.  The Department of Corrections shall issue a Request for Proposals for the procurement through competitive negotiation of a private prison management firm to operate the Lawrenceville Correctional Center after the current contract for operation of the facility expires on March 22, 2003.  The Department shall encourage maximum competition for the new contract from all private prison management companies that are capable of operating a facility of this size and level of security.   Upon the completion of the Department's evaluation of the proposals and upon the tentative selection of an offeror on the basis of cost, contractor qualifications, prior record of performance, and other relevant considerations, the Department shall compare the projected cost of operation by the private contractor with the projected cost of operation by the Department using its own employees, and shall prepare a report on its findings.
b.  The Governor shall provide copies of this report to the Chairmen of the Senate Finance and House Appropriations Committees for their review and comment.  Pursuant to § 2.2-4342 B, Code of Virginia, this report, being in the nature of a cost estimate related to a procurement transaction prepared by a public body, shall not be made public nor released in response to a Freedom of Information Act request.
c.  If, after receiving the Chairmen's comments, as well as an analysis of this report by the Department of Planning and Budget, the Governor concludes that it is less costly for the Department of Corrections to operate the facility using its own employees, the Governor shall direct the Department to do so.  If the Governor concludes that it would be less costly to operate the facility with a private contractor, then, provided that a satisfactory contract can be negotiated and provided that the cost of the proposed contract for the operation of the facility by a private vendor can be accommodated within the constraints of the state budget and that the contract is in the general best interests of the Commonwealth, the Governor may authorize the Department to enter into the contract.
d.  Nothing in this item is intended to amend the provisions of the Virginia Public Procurement Act or to prohibit the Department from negotiating a contract with another offeror, if a satisfactory offer cannot be negotiated with the offeror first selected."


Explanation
(This amendment provides an additional $1,400,000 each year from the general fund as a technical adjustment to the base budget for the current cost of the private management contract to operate the Lawrenceville Correctional Center. Language in this amendment also directs the Department of Corrections to compare the projected private cost of operation for this facility with the projected cost of operation with state employees. Based on his review of this proposal, and in consultation with the Chairmen of the Senate Finance and House Appropriations Committees, the Governor may authorize the Department to enter into a new management contract.)