2010 Arizona Revised Statutes
Title 41 - State Government
41-1609.01 Adult incarceration contracts; criteria

41-1609.01. Adult incarceration contracts; criteria

A. On publication, any request for proposals shall be provided to the joint legislative budget committee for its review.

B. To be considered for an award of a contract, the proposer must demonstrate that it has:

1. The qualifications, operations and management experience and experienced personnel necessary to carry out the terms of the contract.

2. The ability to comply with applicable correctional standards and any specific court order, if required.

3. A demonstrated history of successful operation and management of other secure facilities.

C. The proposer of a contract for correctional services must agree that this state may cancel the contract at any time after the first year of operation, without penalty to this state, on giving ninety days' written notice.

D. A contract may provide for annual contract price or cost adjustments, except that any adjustments may be made only once each year effective on the anniversary of the effective date of the contract. If any adjustment is made pursuant to the terms of the contract, it shall be applied to the total payments made to the contractor for the previous contract year and shall not exceed the per cent of change in the average consumer price index as published by the United States department of labor, bureau of labor statistics between that figure for the latest calendar year and the next previous calendar year.

E. Any price or cost adjustments to a contract different than those authorized in subsection D of this section may be made only if the legislature specifically authorizes the adjustments and appropriates monies for that purpose, if required.

F. An award of a contract shall not be made unless an acceptable proposal is received pursuant to any request for proposals. For the purposes of this subsection, "acceptable proposal" means a proposal which substantially meets all of the requirements or conditions set forth in this section and which meets all of the requirements in the request for proposals.

G. A proposal shall not be accepted unless the proposal offers cost savings to this state. Cost savings shall be determined based upon the standard cost comparison model for privatization established by the director.

H. A proposal shall not be accepted unless the proposal offers a level and quality of services that are at least functionally equal to those that would be provided by this state.

I. Notwithstanding section 41-2546, a contract to provide correctional services as described in this section may be for an initial period of not more than ten years.

J. The initial contract may include an option to renew for two subsequent renewal periods of not more than five years each.

K. The performance of the contractor shall be compared to the performance of this state in operating similar facilities, as provided in this section. The department shall conduct a biennial comparison of the services provided by the vendor for the purpose of comparing private versus public provision of services. The comparison of services shall be based on professional correctional standards specified by the director and incorporated into the contract and shall be used for the purpose of determining if the contractor is providing at least the same quality of services as this state at a lower cost or if the contractor is providing services superior in quality to those provided by this state at essentially the same cost. In conducting the comparison of services the director shall consider:

1. Security.

2. Inmate management and control.

3. Inmate programs and services.

4. Facility safety and sanitation.

5. Administration.

6. Food service.

7. Personnel practices and training.

8. Inmate health services.

9. Inmate discipline.

10. Other matters relating to services as determined by the director.

L. The director of the state department of corrections shall conduct a cost comparison of executed privatization contracts once every five years for each contract.

M. The director of the state department of corrections shall provide the most recent service comparison and cost comparison for contractors who exclusively contract with the department to the joint legislative budget committee for its review.

N. A contract for correctional services described in this section shall not be entered into unless the following requirements are met:

1. The contractor provides audited financial statements for the previous five years, or for each of the years the contractor has been in operation, if fewer than five years, and provides other financial information as requested.

2. The contractor provides an adequate plan of insurance, specifically including coverage or insurance for civil rights claims and liabilities as approved by the risk management division of the department of administration.

3. The contractor agrees to be liable for the costs of any emergency, public safety or security services provided to the contractor by the state or any political subdivision of the state and to reimburse the state or any political subdivision of the state for the cost of any such services.

O. The sovereign immunity of this state does not apply to the contractor. Neither the contractor nor the insurer of the contractor may plead the defense of sovereign immunity in any action arising out of the performance of the contract.

P. A contract for correctional services shall not authorize, allow or imply a delegation of authority or responsibility to a prison contractor for any of the following:

1. Developing and implementing procedures for calculating inmate release dates.

2. Developing and implementing procedures for calculating and awarding sentence credits.

3. Approving the type of work inmates may perform and the wages or sentence credits which may be given to inmates engaging in the work.

4. Granting, denying or revoking sentence credits, placing an inmate under less restrictive custody or more restrictive custody or taking any disciplinary actions.


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