State takes bids for prison firm

Wednesday, March 24, 2004 | 9:03 a.m.

CARSON CITY -- The state has started accepting bids from private companies to run the women's prison in North Las Vegas after Corrections Corp. of America pulls out Oct. 1.

The bidding process was opened Monday, and proposals must be submitted by May 1, said Darrel Rexwinkel, assistant director for finance in the state Department of Corrections.

Rexwinkel told the state Prison Board Tuesday the bids would be evaluated and then brought for approval to the state Board of Examiners and the Legislative Interim Finance Committee.

Gov. Kenny Guinn, chairman of the Prison Board, raised the possibility that he might have to use his emergency powers to keep the prison open if the contracts are not approved by the various state boards.

"We have to have a fall-back position," Guinn said. "I don't want to look at a crisis."

He referred to a similar situation at Summit View, the juvenile detention center in North Las Vegas that was shut down when the private contractor pulled out. It has now re-opened under state operation.

Corrections Department Director Jackie Crawford said the state could not shut down the women's prison. She said she intends to submit a "request for proposal" so her plan can be compared to the bids from private industry to run the prison.

Corrections Corporation of America built and has operated the prison since 1997. The state paid CCA a set amount per inmate that was adjusted for inflation every year.

In 2001, the state bought the buildings and equipment, but CCA continued to operate it. It then served notice it would not renew its contract Oct. 1 because it is losing money.

Rexwinkel said he hopes to have the bids and a tentative agreement ready to present to the June 16 meeting of the Interim Finance Committee.