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UPDATED: The GEO Group: Federal Bureau of Prisons Will Not Renew Contract for Mo-Valley Correctional Facility

by Gant Team
Wednesday, January 20, 2021
in Local News, Top Stories
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Photo courtesy of Moshannon Valley Correctional Center Web site

Photo courtesy of Moshannon Valley Correctional Center Web site

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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.”

Clearfield County Commissioners John A. Sobel, board chairman, Tony Scotto and Dave Glass issued the following statement to local news media on Wednesday afternoon.

“[We] were extremely disappointed to learn that the Federal Bureau of Prisons has decided to not renew their contract with the Moshannon Valley Correctional Facility owned by the GEO Group Inc., after March 31, 2021. 

“This facility employs over 250 individuals and the loss of these family-sustaining jobs will be a significant blow to the local economy, particularly that of the Moshannon Valley.

“The commissioners are currently in communication with federal and state officials in the hope of finding a suitable use for the facility with other federal or state agencies.

“We hope that the GEO Group is able to successfully market this great resource so that the facility is able to continue to employ many Clearfield County citizens for years to come.”

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.

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