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DOC Chooses Not To Privatize Prison Services


LANSING, MI (WTVB) - The Department of Corrections (DOC) today announced 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 cost savings. None of the proposals that came in response to Requests For Proposal (RFP) issued in June and July of 2012 met the mark. "I think you've got to evaluate any bid like that on the basis of three things. Cost is certainly one thing, but you also have to evaluate the service and the risk for corrections," said Department of Corrections Director Dan HEYNS.

 The low bidders on contracts would have saved the DOC between 3 and 4.5 percent.  According to Civil Service Commission (CSC) rules, privatization must show at least a 10 percent savings to be pursued.