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Corrections requests interim 2% rate increase for pre-release centers while RFP process proceeds

2330966 · February 17, 2025

Summary

The Department of Corrections requested a 2% rate increase for pre-release centers to cover inflation during a planned procurement and said it expects a six-month analysis before reissuing an RFP; committee asked what happens if the contract expires on June 30.

Department of Corrections (DOC) financial staff told the subcommittee that DP381 would add a 2% rate increase for pre-release centers to cover inflationary pressures while the department completes a planned analysis and reissuance of a request for proposals (RFP).

DOC CFO Natalie Smith said the current contract expires June 30. DOC is conducting a roughly six-month analysis of the referral and screening process with current providers; the analysis will inform the next RFP. Smith said the department is working with the State Procurement Bureau and agency attorneys on either a short-term extension or a transition contract to bridge to a new long-term procurement.

Staff said the DP381 numbers increased slightly (about $60,000 for the biennium) because an additional facility had been omitted from an earlier cheat sheet. Committee members asked whether leftover funds would revert if a new contract is executed before the end of the biennium; staff said funds act like other appropriations and can be restricted for a purpose but, absent a restriction, departments have some authority to reallocate within appropriations law.

Committee members asked the department for a timeline and for details about training and staffing investments; DOC agreed to provide a draft RFP and the analysis results as they become available.

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