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DOC Chooses Not To Privatize Prison Services, Lack Of Cost Savings


LANSING, MI (WTVB) - The Michigan Department of Corrections announced Friday it would not pursue the privatization of $350 million in prison services, which would have been the largest such privatization in state history. The reason was a lack of required cost savings. None of the proposals that came in response to requests for proposal issued in June and July of last year met the mark.

Department of Corrections Director Dan Heyns said consideration of the bids is based on a number of things with cost certainly one of them. But he added that you also have to evaluate the service and any risk it might pose for corrections. The low bidders on contracts would have saved the DOC between 3 and 4-and-a-half percent.  According to Civil Service Commission rules, privatization must show at least a 10 percent savings to be pursued