                                 CODE OF VIRGINIA

STATE CORRECTIONAL FACILITIES; PRIVATE CONTRACTS (§ 53.1-262)

The Director, subject to the provisions of the Virginia Public Procurement Act
(§ 2.2-4300 et seq.), is hereby authorized to enter into contracts with prison
contractors for the financing, site selection, acquisition, construction,
maintenance, or leasing of prison facilities, or any combination of those
services, subject to the following requirements and limitations:

1. Contracts entered into under the terms of this chapter shall be with an
entity submitting an acceptable response pursuant to a request for proposals. An
acceptable response shall be one that meets all the requirements in the request
for proposals. However, no contract for correctional services may be entered
into unless the private contractor demonstrates that it has:
			a. The qualifications and experience necessary to carry out the terms of this
contract;			b. The financial resources to provide indemnification for liability
arising from prison projects;			c. Evidence of past performance of similar
contracts which shall include the experience of persons in management with such
entity and may include the experience of the parent of such entity; and			d. The
ability to comply with all applicable federal and state constitutional
standards; federal, state, and local laws; court orders; and correctional
standards.

2. Contracts awarded under the provisions of this chapter, including contracts
for the provision of correctional services or for the lease or use of public
lands or buildings for use in the operation of facilities, may be entered into
for a period of up to 30 years, subject to the requirements for annual
appropriation of funds by the Commonwealth.

3. No contract for correctional services shall be entered into unless the
following requirements are met:
			a. 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; and			b.
The contractor provides an adequate plan of indemnification, specifically
including indemnity for civil rights claims. The indemnification plan shall be
adequate to protect the Commonwealth and public officials from all claims and
losses incurred as a result of the contract. Nothing herein is intended to
deprive a prison contractor or the Commonwealth of the benefits of any law
limiting exposure to liability or setting a limit on damages.

4. No contract for correctional services shall be executed by the Director nor
shall any funds be expended for the contract unless:
			a. The proposed contract complies with any applicable regulations that may be
promulgated by the Director;			b. An appropriation for the services to be
provided under the contract has been expressly approved as is otherwise provided
by law;			c. The correctional services proposed by the contract are of at least
the same quality as those routinely provided by the Department to similar types
of inmates; and			d. An evaluation of the proposed contract demonstrates a cost
benefit to the Commonwealth when compared to alternative means of providing the
services through governmental agencies.

HISTORY: 1991, c. 705; 1992, c. 654; 1995, c. 694; 1998, c. 818; 2020, c. 759;
2025, c. 337.