The Real Cost of Prisons Weblog

McFadyen said GEO Group lost its contract to build the Pueblo facility because it delayed the start of construction, then tried to renegotiate its contract to get a guarantee that it would be paid for 90 percent occupancy, even if beds were not filled.

"Basically, the state of Colorado was held hostage for four years. They didn’t even break ground," McFadyen said.

In her letter to Ari Zavaras, executive director of DOC, she said, "It would appear that the state’s best interests were not served by allowing GEO group to bid any contract with the state because of its lack of performance on its 2003 award."

Officials with Geo Group could not be reached for comment Monday afternoon.

Alison Morgan, spokeswoman for the DOC, said Zavaras was aware of the letter being sent by McFadyen, but had not seen it Monday.

"Since he was not with the department during the RFP (request for proposals) process, it is an issue that he is still studying and is being briefed on," said Morgan.

"Once he has all the information, including McFadyen’s letter, he would welcome an opportunity to sit down and talk to her."

Call To Rescind Private Prison Contract

MONDAY, MARCH 05, 2007
http://thinkoutsidethecage2.blogspot.com/2007/03/call-to-rescind-private-prison-contract.html

Today, Colorado Citizens for Ethics in Government, CCJRC and Rep. Buffie McFadyen (D-Pueblo West) called a press conference to ask Governor Ritter and of DOC Director Ari Zavaras to terminate the contract that was signed by the State of Colorado and the GEO group to build a 1500 bed private prison in Ault.



CCJRC states that we have no confidence in the integrity of the bidding and procurement process given the clear conflict of interest and misconduct when Nolin Renfrow, who is currently under investigation by the CBI for his role in the negotiations, provided private consultation services to the GEO Group in the development of their bid in response to the 2005 RFP while still employed by the Department of Corrections. Mr. Renfrow's private company stands to make $1 million dollars off the contract.



Given the GEO group's failure to perform on a prior contract t build a private prison in Pueblo, CCJRC doesn't believe that the GEO group could have met the statutory requirements for receiving another contract to build and operate a private prison.



The evidence also suggests that the GEO Group did not submit their bid in response to the 2005 RFP in good faith and failed to disclose their intention to ultimately request public financing and a bed guarantee, if awarded the contract. Since being awarded the contract, the GEO Group's demand for a bed guarantee and/or public financing is an attempt to change the material terms of the contract, which is, in and of itself, grounds to terminate the contract. Neither a bed guarantee nor public financing are in the best interests of Colorado taxpayers and must be rejected.



Colorado Citizens for Ethics in Government issued an open records request today to determine 
whether the GEO Group was legitimately awarded the Ault prison contract and to what extent Mr. Renfrow unlawfully influenced the bidding process.



Tomorrow morning, CCJRC is making a presentation on additional concerns about private prisons before the House Judiciary Committee. If you would like to join us, we will be there at 9:30 in Room 0112 in the basement of the Capitol.