The GEO Group: Federal Bureau of Prisons Will Not Renew Contract for Mo-Valley Correctional Facility
BOCA RATON, Fla. – The GEO Group Inc. announced today that the Federal Bureau of Prisons has decided to not exercise the contract renewal option for the company-owned, 1,878-bed Moshannon Valley Correctional Facility, in Philipsburg, when the contract base period expires on March 31, 2021.
The contract for the Moshannon Valley Correctional Facility generated approximately $42 million in annualized revenues for GEO. GEO expects to market the Moshannon Valley Correctional Facility to other federal and state agencies.
George C. Zoley, chairman and chief executive officer of GEO, said, “GEO has operated the Moshannon Valley Correctional Facility under a public-private partnership with the Federal Bureau of Prisons for more than a decade.
“Over that timeframe, our employees have delivered high-quality services, providing needed secure residential care on behalf of the federal government. Federal prison populations in the United States have experienced a decline, more recently as a result of the COVID-19 pandemic.
“This decline and other factors may result in future decisions by the Federal Bureau of Prisons to not renew additional BOP contracts. We expect to market the Moshannon Valley Correctional Facility to other federal and state agencies.”
About The GEO Group
The GEO Group is a fully-integrated equity real estate investment trust specializing in the design, financing, development and operation of secure facilities, processing centers and community reentry centers in the United States, Australia, South Africa, and the United Kingdom.
GEO is a leading provider of enhanced in-custody rehabilitation, post-release support, electronic monitoring and community-based programs. GEO’s world-wide operations include the ownership and or management of 123 facilities totaling approximately 93,000 beds, including projects under development, with a workforce of approximately 23,000 professionals.