After 15 years of managing Alaska prisoners housed out-of-state, Corrections Corporation of America (CCA) has lost its contract to Cornell Corrections.
Cornell's will charge the state about $19,446,000 a year to house 900 prisoners, while CCA's plan would have cost $18,724,000 -- $722,000 less a year.
Either way the state will realize savings over the $20,669,000 it now pays through a contract with CCA.
The 770 inmates serving time at CCA's Red Rock Correctional Center in Arizona will be moved late this year to Cornell's Hudson Correctional Facility in Colorado, a 1,250-bed center now under construction. The move -- via special U.S. Marshals Service planes -- is expected to cost Alaska more than $200,000, Alaska Department of Corrections spokesman Richard Schmitz said.
The Department of Corrections denied a protest of the award filed by CCA attorneys, who said they won't launch further appeal.
In the protest, CCA attorneys Charles Cole -- a former Alaska Attorney General -- and Stephen Williams argued that Cornell Corrections of Alaska lacks the basic experience the state requires, and that a preference system for Alaska-based bidders was misused.
Cornell's bid was more costly than CCA's for the three-year term, but a proposal evaluation panel awarded Cornell's plan more points because of the company's status as an Alaska entity.
Points matter as a committee rates the proposals in several categories. According to CCA's protest, the company gained more points than Cornell in five other evaluation categories.