Obligation GeoCorp Inc 5.125% ( US36159RAG83 ) en USD

GeoCorp Inc

100 % ▲

Etats-unis

US36159RAG83 ( en USD )

5.125% par an ( paiement semestriel )

31/03/2023 - Obligation échue

Prospectus brochure de l'obligation GEO Group Inc US36159RAG83 en USD 5.125%, échue

2 000 USD

300 000 000 USD

36159RAG8

B+ ( Très spéculatif )

B1 ( Très spéculatif )

GEO Group Inc. est une société américaine qui conçoit, construit, finance, possède et gère des installations correctionnelles, des centres de détention et d'autres installations gouvernementales aux États-Unis et à l'international.

L'Obligation émise par GeoCorp Inc ( Etats-unis ) , en USD, avec le code ISIN US36159RAG83, paye un coupon de 5.125% par an.
Le paiement des coupons est semestriel et la maturité de l'Obligation est le 31/03/2023

L'Obligation émise par GeoCorp Inc ( Etats-unis ) , en USD, avec le code ISIN US36159RAG83, a été notée B1 ( Très spéculatif ) par l'agence de notation Moody's.

L'Obligation émise par GeoCorp Inc ( Etats-unis ) , en USD, avec le code ISIN US36159RAG83, a été notée B+ ( Très spéculatif ) par l'agence de notation Standard & Poor's ( S&P ).

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Filed Pursuant to Rule 424(b)(3)
Registration No. 333-188958
Prospectus
$300,000,000

Offer to Exchange
Up to $300,000,000 aggregate principal amount
of our 5 1/8% Senior Notes due 2023
(which we refer to as the new notes)
and the guarantees thereof each of which have been registered
under the Securities Act of 1933, as amended,
for a like amount of our outstanding
5 1/8% Senior Notes due 2023
(which we refer to as the old notes)
and the guarantees thereof.

The New Notes:

·
The terms of the new notes are identical to the old notes, except that some of the transfer restrictions, registration rights and additional interest provisions

relating to the old notes will not apply to the new notes. We refer to the old notes and the new notes collectively as the notes.
Terms of the Exchange Offer:

·
We are offering to exchange up to $300,000,000 of our old notes for new notes with materially identical terms that have been registered under the Securities

Act of 1933.

·
Subject to the satisfaction or waiver of specified conditions, we will exchange the new notes for all old notes that are validly tendered and not withdrawn

prior to the expiration of the exchange offer.

·
The exchange offer will expire at 5:00 p.m., New York City time, on October 11, 2013, which is the 21st business day following commencement of the

exchange offer, unless extended.

·
Tenders of old notes may be withdrawn at any time before the expiration of the exchange offer.

·
We will not receive any proceeds from the exchange offer.

·
The exchange of outstanding original notes will not be a taxable exchange for U.S. federal income tax purposes.
The new notes will not be listed on any securities exchange.
Each broker-dealer that receives new notes for its own account pursuant to the exchange offer must acknowledge that it will deliver a prospectus in
connection with any resale of such new notes. The letter of transmittal states that by so acknowledging and by delivering a prospectus, a broker-dealer will not
be deemed to admit that it is an "underwriter" within the meaning of the Securities Act of 1933, as amended, or the Securities Act. This prospectus, as it may
be amended or supplemented from time to time, may be used by a broker-dealer in connection with resales of new notes received in exchange for old notes
where such old notes were acquired by the broker-dealer as a result of market-making activities or other trading activities. We have agreed that, for a period
of up to 180 days after the effective date of the registration statement of which this prospectus is a part, we will make this prospectus available to any broker-
dealer for use in connection with any such resale. See "Plan of Distribution."
Investing in the new notes involves risks. See "Risk Factors," beginning on page 17.

Neither the Securities and Exchange Commission nor any other federal or state securities commission has approved or disapproved of these securities or
determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.

The date of this prospectus is September 13, 2013.
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TABLE OF CONTENTS

Disclosure Regarding Forward-Looking Statements

ii

Summary

1

Risk Factors

17
The Exchange Offer

40
Use of Proceeds

49
Selected Historical Financial Information

50
Description of Other Indebtedness

54
Description of Notes

57
Certain U.S. Federal Income Tax Considerations

101
Plan of Distribution

102
Legal Matters

104
Experts

104
Where You Can Find More Information

104

This prospectus incorporates important business and financial information about us that is not included in or delivered with this prospectus. This information is
available without charge to security holders upon written or oral request to The GEO Group, Inc., 621 NW 53rd Street, Suite 700, Boca Raton, Florida 33487,
Attention: Investor Relations, Telephone: (561) 893-0101.
In order to obtain timely delivery, you must request the information no later than October 4, 2013, which is five business days before the expiration of
the exchange offer.
We have not authorized anyone to provide any information or to make any representation other than those contained or incorporated by reference in
this prospectus. We take no responsibility for, and can provide no assurance as to the reliability of, any other information that others may give you.
We are not making an offer to exchange the new notes for the old notes in any jurisdiction where it is not permitted.
You should not assume that the information appearing in this prospectus or the documents incorporated by reference herein is accurate as of any date
other than the respective dates of such documents. Our business, financial condition, results of operations and prospects may have changed since that date. We
will amend, update or supplement this prospectus to the extent required by law.
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DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS
This prospectus and the documents incorporated by reference herein contain "forward-looking" statements. "Forward-looking" statements are any statements that
are not based on historical information. Statements other than statements of historical facts included in this prospectus, including, without limitation, statements
regarding our future financial position and results of operations, business strategy, budgets, projected costs and plans and objectives of management for future
operations, are "forward-looking" statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "will,"
"expect," "anticipate," "intend," "plan," "believe," "seek," "estimate" or "continue" or the negative of such words or variations of such words and similar expressions.
These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions, which are difficult to predict. Therefore, actual
outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements and we can give no assurance that such forward-
looking statements will prove to be correct. Important factors that could cause actual results to differ materially from those expressed or implied by the forward-looking
statements, or "cautionary statements," include, but are not limited to:
·
if you fail to follow the exchange offer procedures, your original notes will not be accepted for exchange;
·
if you fail to exchange your original notes for new notes, they will continue to be subject to the existing transfer restrictions and you may not be able to sell them;
·
the old notes and the related guarantees by certain of our subsidiaries are, and the new notes will be, effectively subordinated to our and the subsidiary
guarantors' senior secured indebtedness and structurally subordinated to the indebtedness of our subsidiaries that do not guarantee the notes;
·
there is no public market for the notes;
·
our ability to timely build and/or open facilities as planned, profitably manage such facilities and successfully integrate such facilities into our operations without
substantial additional costs;
·
our ability to remain qualified for taxation as a real estate investment trust, or REIT;
·
our ability to fulfill our debt service obligations and their impact on our liquidity;
·
the instability of foreign exchange rates, exposing us to currency risks in Australia, Canada, the United Kingdom and South Africa, or other countries in which we
may choose to conduct our business;
·
our ability to activate the inactive beds at our idle facilities;
·
our ability to maintain occupancy rates at our facilities;
·
an increase in unreimbursed labor rates;
·
our ability to expand, diversify and grow our correctional, detention, re-entry, community-based services, youth services, monitoring services, evidence-based
supervision and treatment programs and secure transportation services businesses;
·
our ability to win management contracts for which we have submitted proposals, retain existing management contracts and meet any performance standards
required by such management contracts;
·
our ability to control operating costs associated with contract start-ups;
·
our ability to raise new project development capital given the often short-term nature of the customers' commitment to use newly developed facilities;
·
our ability to estimate the government's level of dependency on privatized correctional services;
·
our ability to accurately project the size and growth of the U.S. and international privatized corrections industry;
·
our ability to successfully respond to delays encountered by states privatizing correctional services and cost savings initiatives implemented by a number of
states;

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·
our ability to develop long-term earnings visibility;
·
our ability to identify suitable acquisitions and to successfully complete and integrate such acquisitions on satisfactory terms, and estimate the synergies to be
achieved as a result of such acquisitions;
·
our exposure to the impairment of goodwill and other intangible assets as a result of our acquisitions;
·
our ability to successfully conduct our operations in the United Kingdom and South Africa through joint ventures;
·
our ability to obtain future financing on satisfactory terms or at all, including our ability to secure the funding we need to complete ongoing capital projects;
·
our exposure to political and economic instability and other risks impacting our international operations;
·
our exposure to risks impacting our information systems, including those that may cause an interruption, delay or failure in the provision of our services;
·
our exposure to rising general insurance costs;
·
our exposure to state and federal income tax law changes internationally and domestically, including changes to the REIT provisions, and our exposure as a result
of federal and international examinations of our tax returns or tax positions;
·
our exposure to claims for which we are uninsured;
·
our exposure to rising employee and inmate medical costs;
·
our ability to manage costs and expenses relating to ongoing litigation arising from our operations;
·
our ability to accurately estimate on an annual basis, loss reserves related to general liability, workers compensation and automobile liability claims;
·
the ability of our government customers to secure budgetary appropriations to fund their payment obligations to us and to continue to operate under our existing
agreements and/or renew our existing agreements;
·
our ability to pay quarterly dividends consistent with our requirements as a REIT, and expectations as to timing and amounts;
·
our ability to comply with government regulations and applicable contractual requirements;
·
our ability to acquire, protect or maintain our intellectual property;
·
the risk that future sales of shares of our common stock could adversely affect the market price of our common stock and may be dilutive; and
·
other factors contained in this prospectus and in our filings with the Securities and Exchange Commission, referred to in this prospectus as the Commission or the
SEC, including, but not limited to, those detailed in our Annual Report on Form 10-K, our Quarterly Reports on Form 10-Q and our Current Reports on
Form 8-K filed with the Commission.

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SUMMARY
The following summary highlights selected information contained or incorporated by reference in this prospectus and does not contain all of the
information that may be important to you. You should carefully read this entire prospectus, including the financial statements and related notes and the
documents incorporated by reference in this prospectus, before making a decision to participate in the exchange offer. As used in this prospectus, unless
otherwise indicated or the context otherwise requires, the terms "The GEO Group, Inc.," "GEO," "GEO Group," the "Company," "we," "our" and "us"
refer to The GEO Group, Inc. and all entities owned or controlled by The GEO Group, Inc., including our wholly-owned taxable subsidiaries.
Overview
We are a real estate investment trust, or REIT, specializing in the ownership, leasing and management of correctional, detention, and re-entry facilities and
the provision of community-based services and youth services in the United States, Australia, South Africa, the United Kingdom and Canada. We own, lease and
operate a broad range of correctional and detention facilities including maximum, medium and minimum security prisons, immigration detention centers, minimum
security detention centers, and community based re-entry facilities.
As of June 30, 2013, our worldwide operations included the ownership and/or management of approximately 72,000 beds at approximately 95 correctional,
detention and re-entry facilities, including idle facilities and projects under development, and also included the provision of monitoring services, tracking more
than 70,000 offenders in a community-based environment on behalf of approximately 900 federal, state and local correctional agencies located in all 50 states.
We provide a diversified scope of services on behalf of our government clients:

·
our correctional and detention management services involve the provision of security, administrative, rehabilitation, education and food services,

primarily at adult male correctional and detention facilities;

·
our community-based services involve supervision of adult parolees and probationers and the provision of temporary housing, programming,

employment assistance and other services with the intention of the successful reintegration of residents into the community;

·
our youth services include residential, detention and shelter care and community-based services along with rehabilitative and educational programs;

·
we provide comprehensive electronic monitoring and supervision services;

·
we develop new facilities, using our project development experience to design, construct and finance what we believe are state-of-the-art facilities

that maximize security and efficiency; and

·
we provide secure transportation services for offender and detainee populations as contracted.
We conduct our business through four reportable business segments: our U.S. Corrections & Detention segment; our International Services segment; our
GEO Community Services segment; and our Facility Construction & Design segment. We have identified these four segments to reflect our current view that we
operate four distinct business lines, each of which constitutes a material part of our overall business. Our U.S. Corrections & Detention segment primarily
encompasses our U.S.-based privatized corrections and detention business. Our International Services segment primarily consists of our privatized corrections and
detention operations in South Africa, Australia and the United Kingdom. Our GEO Community Services segment comprises our community-based services
business, our youth services business and our electronic monitoring and supervision services, all of which are currently conducted in the U.S. Our Facility
Construction & Design segment primarily contracts with various state, local and federal agencies for the design and construction of facilities for which we
generally have been, or expect to be, awarded management contracts.

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Competitive Strengths
Leading Corrections Provider Uniquely Positioned to Offer a Continuum of Care
We are the second largest provider of privatized correctional and detention facilities worldwide, and the largest provider of community-based re-entry
services, youth services and electronic monitoring services in the U.S. corrections industry. We believe these leading market positions and our diverse and
complementary service offerings enable us to meet the growing demand from our clients for comprehensive services throughout the entire corrections lifecycle.
Our continuum of care enables us to provide consistency and continuity in case management, which we believe results in a higher quality of care for offenders,
reduces recidivism, lowers overall costs for our clients, improves public safety and facilitates successful reintegration of offenders back into society.
Attractive REIT Profile
Key characteristics of our business make us a highly attractive REIT. We believe that, fundamentally we are in a real estate-intensive industry. Since our
inception, we have financed and developed dozens of facilities. We have a diversified set of investment-grade customers in the form of government agencies,
which are required to pay us on time by law. For the fiscal year ended December 31, 2012, we generated 67% of our net operating income from facilities we
owned or leased. As of December 31, 2012, we owned or leased 55% of the facilities at which we provided services. We have historically experienced customer
retention in excess of 90%. Our strong and predictable occupancy rates generate a stable and sustainable stream of revenue. This stream of revenue combined with
our low maintenance capital expenditure requirement translates into steady, predictable cash flow. The REIT structure also allows us to pursue high return on
invested capital growth opportunities which may be capital intensive in nature.
Large Scale Operator with National Presence
We operate the sixth largest correctional system in the U.S. by number of beds, including the federal government and all 50 states. We currently have
operations in 33 states and offer electronic monitoring services in every state. In addition, we have extensive experience in overall facility operations, including
staff recruitment, administration, facility maintenance, food service, security, and in the supervision and education of inmates. We believe our size and breadth of
service offerings enable us to generate economies of scale which maximize our efficiencies and allow us to pass along cost savings to our clients. Our national
presence also positions us to bid on and develop new facilities across the U.S.
Long-Term Relationships with Diversified Set of High-Quality Government Customers
We have developed long-term relationships with our federal, state and other governmental customers, which we believe enhance our ability to win new
contracts and retain existing business. We have provided correctional and detention management services to the U.S. federal government for 26 years, the State of
California for 25 years, the State of Texas for approximately 25 years, various Australian state government entities for 21 years and the State of Florida for
approximately 19 years. For the fiscal year ended December 31, 2012, no one customer accounted for more than 17% of total revenues and no state government
customer accounted for more than 4% of total revenues.
Recurring Revenue with Strong Cash Flow
Our revenue base is derived from our long-term customer relationships, with contract renewal rates and facility occupancy rates both in excess of 90% over
the past five years. We have been able to expand our revenue base by continuing to reinvest our strong operating cash flow into expansionary projects and through
strategic

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acquisitions that provide scale and further enhance our service offerings. Our consolidated revenues have grown from $1,085 million in 2010 to $1.5 billion for
the fiscal year ended December 31, 2012. We expect our operating cash flow to be well in excess of our anticipated annual maintenance capital expenditure needs,
which would provide us significant flexibility for growth capital expenditures, future dividend payments, acquisitions and/or the repayment of indebtedness.
Sizeable International Business
Our international infrastructure, which leverages our operational excellence in the U.S., allows us to target foreign opportunities that our U.S.-based
competitors without overseas operations may have difficulty pursuing. We currently have international operations in Australia, Canada, South Africa and the
United Kingdom. Our International Services business generated $212 million of revenues, representing 14% of our consolidated revenues, for the fiscal year ended
December 31, 2012. We believe we are well positioned to continue to benefit from foreign governments' initiatives to outsource correctional services.
Experienced, Proven Senior Management Team
Our Chief Executive Officer and Founder, George C. Zoley, has led our company for 31 years and has established a track record of growth and profitability.
Under his leadership, our annual consolidated revenues from continuing operations have grown from $40.0 million in 1991 to $1.5 billion for fiscal year ending
December 31, 2012. Mr. Zoley is one of the pioneers of the industry, having developed and opened what we believe was one of the first privatized detention
facilities in the U.S. in 1986. Our Chief Financial Officer, Brian R. Evans, has been with our company for over twelve years and has led the integration of our
recent acquisitions and financing activities. Our top six senior executives have an average tenure with our company of over 14 years.
Summary Risk Factors
Set forth below is a summary of certain risk factors applicable to our business and the exchange offer.

· our ability to satisfy our repurchase obligations under the indenture governing the notes upon a change of control;

· the effect our significant level of indebtedness could have on our financial condition and our ability to fulfill our debt service obligations;

· the significant operating and financial restrictions contained in the covenants in the indentures governing the 7¾% senior notes, the 6.625% senior

notes, and the notes and the covenants contained in the Amended and Restated Senior Credit Facility;

· the adverse effect a general increase in interest rates will have on our cash flows due to our indebtedness with floating interest rates;

· the failure to qualify as a REIT would subject GEO to U.S. federal income tax as a regular corporation and reduce the amount of cash available for

making payments on our indebtedness;

· the effect complying with the REIT requirements may have on our business, including our ability to execute our business plan and the risk it may cause

us to liquidate or forgo otherwise attractive opportunities;

· our lack of experience operating as a REIT, which may adversely affect our financial condition, results of operations, cash flow, per share trading

price of our common stock and ability to satisfy debt service obligations;

· our ability to secure a management contract for a facility or expansion project;

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· the effect of negative conditions in the capital markets that could prevent us from obtaining financing, which could materially harm our business;

· the effect of the loss of any of our facility management contracts on our results of operations and liquidity;

· our ability to successfully identify, consummate or integrate acquisitions;

· our ability to secure contracts to develop and manage new correctional, detention and community-based facilities and to secure contracts to provide

electronic monitoring services, community-based re-entry services and monitoring and supervision services;

· the impact of our dependence on a limited number of governmental customers for a significant portion of our revenues and the effect the loss or a

significant decrease in business from these customers could have on our financial condition and results of operations;

· the impact a decrease in occupancy levels can have on our revenues and profitability;

· the impact of state budgetary constraints on our business;

· the impact on our business and financial condition of our dependence on government appropriations, which may not be made on a timely basis or at

all and may be adversely impacted by budgetary constraints at the federal, state and local levels;

· the effect of public resistance to the privatization of correctional, detention, mental health and residential facilities on our ability to obtain new

contracts or avoid the loss of existing contracts;

· the risks that our international operations expose us to which could have a material adverse effect on our financial condition and results of operations;

· the risks related to our facility construction and development activities that may increase our costs related to such activities;

· the impact that any adverse developments in our relationship with our employees could have on our business, financial condition or results of

operations; and

· the impact technological change can have on our electronic monitoring products and technology and the impact of the level of acceptance of or

resistance to the use of electronic monitoring products that could have a material adverse effect on our business.
For a more detailed explanation of certain risk factors, see "Risk Factors" beginning on page 17 of this prospectus.

Business Strategies
Provide High Quality Comprehensive Operations and Cost Savings Throughout Corrections Lifecycle
Our objective is to provide federal, state and local governmental agencies with a comprehensive offering of high quality, essential services at a lower cost
than they themselves could achieve. We believe government agencies facing budgetary constraints will increasingly seek to outsource a greater proportion of their
correctional needs to reliable providers that can enhance quality of service at a reduced cost. We believe our expanded and diversified service offerings
strategically position us to bundle our high quality services and provide a comprehensive continuum of care for our clients, which we believe will lead to lower
cost outcomes for our clients and larger scale business opportunities for us.

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Maintain Disciplined Operating Approach
We refrain from pursuing contracts that we do not believe will yield attractive profit margins in relation to the associated operational risks. In addition,
although we engage in facility development from time to time without having a corresponding management contract award in place, we endeavor to do so only
where we have determined that there is medium-to long-term client demand for a facility in that geographic area. We have also elected not to enter certain
international markets with a history of economic and political instability. We believe that our strategy of emphasizing lower risk, higher profit opportunities helps
us to consistently deliver strong operational performance, lower our costs and increase our overall profitability.
Pursue International Growth Opportunities
As a global operator of privatized correctional facilities, we are able to capitalize on opportunities to operate existing or new facilities on behalf of foreign
governments. We have seen increased business development opportunities including opportunities to cross-sell our expanded service offerings in recent years in
the international markets in which we operate and are currently bidding on several new projects. We will continue to actively bid on new international projects in
our current markets and in new markets that fit our target profile for profitability and operational risk.
Selectively Pursue Acquisition Opportunities
We intend to continue to supplement our organic growth by selectively identifying, acquiring and integrating businesses that fit our strategic objectives and
enhance our geographic platform and service offerings. Since 2005, we have successfully completed six acquisitions for total consideration, including debt
assumed, in excess of $1.7 billion. Our management team utilizes a disciplined approach to analyze and evaluate acquisition opportunities, which we believe has
contributed to our success in completing and integrating our acquisitions.
The Corrections and Detention Industry
We believe our network of facilities and diverse service offerings position us well to capitalize on government outsourcing of correctional management
services. In addition, we believe that long-term trends related to prison inmate population growth, acceptance of privatization and lower cost of private
corrections operations favor an increase in the outsourcing of correctional management services. Following are the key reasons for this outsourcing trend:
U.S. Correctional Population Growth
Currently, approximately one in every 107 U.S. adults is in jail or prison and one in every 34 U.S. adults is under some form of correctional supervision.
The total population under correctional supervision in the United States, which includes sentenced adults in jails or prisons and those under community supervision
on probation or parole, has increased to over 7.0 million.
Persistent Overcrowding of Correctional Facilities
Federal and state legislatures historically have had difficulty enacting expansion of prison capacity due to budgetary constraints and the disfavor that voters
generally exhibit toward such expenditures. As a result, prison capacity in the U.S. often lags prison populations, leading to persistent prison overcrowding.
According to the Bureau of Justice Statistics, as of year-end 2011, 24 states were operating at or above 100% of their highest capacity and the Federal prison
system was operating at 138% of its highest rated capacity. Lower costs associated with the construction and operation of private facilities, as well as the
availability of private capital, are leading federal and state jurisdictions throughout the United States to increasingly explore working with private service
providers as a viable and cost-effective alternative to capital intensive projects such as new prison construction.

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Local, State and Federal Budgetary Constraints
As the total population of United States prisoners has grown, overall correctional costs have risen at an unsustainable rate. According to the National
Association of State Budget Officers, between 1988 and 2011 national state spending on corrections (i.e. jails, prisons, community supervision) rose more than
400%, increasing as a percentage of total state general fund spending to over 7.5%. For all levels of government (i.e. local, state, and federal), total corrections
spending has increased to approximately $52.0 billion annually, which represents an increase of 193% since 1988. We believe these growing expenditures are
causing concern among law and policy makers, who are facing increasing budgetary concerns related to a slower economy and lower tax receipts, which in turn
presents opportunities for the privatized correctional facility industry because it offers governments a cost-effective solution to reduce their correctional service
costs and avoid making large capital investments in new prisons. However, it is possible state and federal budget constraints could have adverse effects on our
industry resulting in governments unexpectedly terminating contracts, seeking price reductions in connection with contract renewals or amending criminal laws and
regulations to reduce prisoner headcount by reducing or eliminating mandatory minimum sentencing guidelines, especially those relating to non-violent drug
possession or technical parole violations.
Government Agencies Moving Toward Privatized Correctional Facilities
According to the Bureau of Justice Statistics, the number of inmates housed in private facilities has grown from 90,815 at year-end 2000 to 130,941 at
year-end 2011, representing a compound annual growth rate of 3.4%. Notably, the federal government increased its use of privately operated facilities at a
compound annual growth rate of 8.6%. The Bureau of Justice Statistics estimates that as of year-end 2011, approximately 8.2% of the total incarcerated population
in the United States was housed in private facilities, potentially providing significant growth opportunities for privatized providers through increased market
penetration.
Increased Federal Government Focus on Homeland Security and Illegal Immigration
On the federal level, the Department of Homeland Security's increased focus on the implementation of new federal detention standards has led to the
consolidation of detention beds into modern facilities. As such, private operators have partnered with the U.S. Immigration and Customs Enforcement ("ICE") to
build new, modern facilities that meet or exceed the Department of Homeland Security's detention standards and significantly improve the conditions and services
for the detainee population. The federal government has focused primarily on the detention and deportation of detainees with criminal backgrounds. The average
daily population of ICE beds has grown from less than 20,000 in fiscal year 2005 to approximately 33,000 in fiscal year 2011. In fiscal year 2011, ICE had
396,906 removal cases, including 216,698 convicted criminals.
Old and Antiquated Public Prisons
According to the Bureau of Prisons ("BOP"), as of 2010, one-third of BOP's 115 institutions are over 50 years old. Older beds are typically inefficient and
more expensive to operate. Private prisons tend to have more modern facilities that can provide the same services as public facilities at a much lower cost.
Growth in U.S. Correctional Population Driving Need for Alternative Solutions
The number of offenders under community correctional supervision, including those on parole or probation, has grown almost four-fold since 1980 to
approximately 7 million offenders. According to the Pew Center on the States, electronic monitoring technology offers policy makers a spectrum of options to more
intensely monitor offenders under community supervision at significant cost savings. The number of individuals being monitored by electronic technologies,
including radio frequency, which we refer to as RF, and global positioning system, which we refer to as GPS, devices, has increased significantly over the last five
years, and we estimate that

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