Lawmaker raises flags on private prison bids

Ann Imse, Rocky Mountain News

Published June 9, 2006 at midnight

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A state representative is calling for an audit on the bidding for the state's new private prisons for men, saying both finalists have serious problems, and one has been aided by a former state prison official.

An audit could hamper the Department of Corrections' attempt to rush construction of 2,250 new private prison cells. The state is running out of space for its fast-growing inmate population, and wants the first 750 beds constructed and open in just 20 months.

The contract is worth about $45 million a year at current rates.

Rep. Buffie McFadyen, D-Pueblo West, said in her letter to the Legislative Audit Committee that Nolin Renfrow had been DOC's director of prisons until he retired recently. She said he quickly went to work as a consultant for The Geo Group, formerly Wackenhut, on a private prison proposal that has become a finalist.

"It is reasonable to assume Geo may have had, or has, what could be considered proprietary information. At the very least, Renfrow may have given his client, Geo, an unfair bidding advantage," McFadyen wrote in her letter.

But Renfrow denied having any role in the bid request, saying he ran operations for existing prisons. He said the bid was handled by DOC's purchasing section.

"I saw the (bid document) the same day everyone else did. I had to sign in and buy a copy of it."

Renfrow also said his new work - as a prison consultant - was cleared by the attorney general's office. "They said it's not a conflict of interest."

He also said he was under contract with Geo's bid partner, not Geo.

DOC spokeswoman Patti Micciche confirmed that Renfrow had been director of prisons before retiring. She said he did not write the bid request, or serve on the selection committee

McFadyen also questioned why Geo is a finalist at all, when it has been unable to build another private prison it contracted to build for DOC three years ago. Geo has run into repeated zoning issues on that planned facility in Pueblo and has yet to break ground.

She also questioned why Geo is asking Pueblo to use city bonds to finance that prison, when the company won the bid with the promise of private financing.

McFadyen also raised issues about the second finalist, Corrections Corp. of America. CCA had a riot at one of its private prisons in Crowley County in 2004. She asked if CCA and the DOC have corrected all the problems found in the riot report and a subsequent state audit.

Micciche said DOC has implemented all 16 recommendations made in that audit.

Geo and CCA officials were unavailable for comment late Thursday afternoon.

Finally, McFadyen said she was unhappy with the DOC's statement that it could refuse both finalists and simply negotiate a contract without bidding. She said it should concern all taxpayers "that no bid process is mandatory for an obligation of this type."

Prison officials told the legislature earlier this year that they generally have negotiated contracts with private prisons rather than use a competitive bid like this one.

Micciche noted that three bids were disqualified, leaving the two finalists. "That's disappointing. We would rather have a greater selection to choose from," she said.

McFadyen said she is not worried about delaying the new prisons for three to six months for an audit on a contract that will cost the state for years to come.

The Legislative Audit Committee meets Monday.

imsea@RockyMountainNews.com or 303-892-5438

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