CCA Awarded a New Federal Bureau of Prisons Contract for the Continued Management and Expansion of McRae Correctional Facility

CCA CXW announced today that pursuant to a competitive re-bid it has received a new contract from the Federal Bureau of Prisons for the expansion and continued management of CCA's McRae Correctional Facility in McRae, Georgia. Under the new contract CCA will have the ability to house up to 2,275 male inmates for the BOP after completing a 454-bed expansion of the McRae facility. The contract, awarded as part of the Criminal Alien Requirement XII Solicitation, becomes effective December 1, 2012, and has an initial four-year term with three two-year renewal options or up to 10 years if all renewal options are executed. Under the new CAR 12 contract, following a 90-day ramp period for the incremental population, CCA will receive a fixed monthly payment based on a guaranteed population equal to 90% of the expanded rated capacity and a per diem payment for each additional inmate thereafter. Under the provisions of the award, the Company could earn revenues of up to approximately $152.0 million during the initial four-year term of the contract, or up to $401.0 million if all renewal options are executed. All other terms of the contract remain essentially the same as the current contract. CCA has managed populations for the BOP at the McRae facility since 2002. CCA will begin the 454-bed expansion of the McRae facility in the fourth quarter of 2011 and expects construction to be complete in the fourth quarter of 2012. The total cost of the expansion is estimated to be $17.1 million. CCA expects to receive a Notice to Proceed on or about December 1, 2012 and to begin receiving additional inmate populations shortly thereafter.