PROJECT SUMMARY
Capital planning for the Virginia Department of Corrections (VDOC) occurs nearly 10 years in advance, but changes in laws and operations have created the need for additional facilities at a faster rate. Population growth and altered parole standards nearly doubled the number of correctional facilities over the past decade, and it was soon clear VDOC needed a new strategy to address the strains of funding so many capital projects. The passage of the Public-Private Education Facility and Infrastructure Act of 2002 (PPEA) has made it possible for VDOC to efficiently and cost-effectively finance and construct new facilities.

The first two correctional facilities to be built via PPEA standards were the Green Rock and Pocahontas Correctional Centers. Balfour Beatty Construction, the projects’ private sector partner, was able to deliver two facilities in a short period of time while minimizing costs to and time commitment from VDOC staff.

 PROJECT OBJECTIVES
During state procurement processes, much time is spent acquiring land, hiring a design team and procuring construction services. This process typically is lengthy and results in change orders and other unexpected costs, as the public entity takes on a considerable amount of risk. Due to funding scarcity, it was necessary for the correctional facilities to be built quickly at the lowest cost possible. Under these conditions, VDOC decided that the design-build process would most effectively meet its service goals.

PROJECT DESCRIPTION
Partners
The public sector partner is the Virginia Department of Corrections. VDOC includes probation and parole districts; day reporting, diversion and detention centers; drug court programs; and central support centers that manage activities with local correctional facilities and the Interstate Compact for Probationers and Parolees and provide staff support for the parole board.

The private sector partner is Balfour Beatty Construction. Balfour Beatty Construction provides general contracting; at-risk construction management; and design-build, preconstruction and turnkey services. Balfour Beatty Construction operates four full-service divisions across the United States, focusing on regional market delivery and client service.

Implementation Environment–Legislative and Administrative
The Commonwealth of Virginia’s Public-Private Education Facilities and Infrastructure Act of 2002 (PPEA) authorizes public-private partnerships. The Act exempts these PPP projects from the Virginia Procurement Act. (Code of Virg., title 56, ch. 22.1 § 575.1 – 575.18, [2008].) Prior to these two correctional facilities, qualifying projects under PPEA had typically not been valued over $40 million. See the James F. Oyster Bilingual Elementary School case study for information about the origins of the PPEA: www.ncppp.org/cases/index.shtml.

Financial Agreement
At a combined total of $127.6 million, the two correctional facilities are now valued at $140 million. The Green Rock Correctional Center ($66.2 million) opened in early 2007. The Pocahontas Correction Center ($61.4 million) opened in September 2007. By constructing the two simultaneously, Balfour Beatty Construction established economies of scale and project efficiencies.

Contract Provisions
The general contract scope for the two projects included site design and development, design-build and construction services while not exceeding the negotiated price of the facilities. Both facilities were completed in 943 days from the issuance of the Notice to Proceed to the Department’s final acceptance.

Implementation Metrics
Each new facilities includes 1024 beds, though the average daily population at the Pocahontas facility is about 910 and at the Green Rock facility is about 987. This illustrates the Department’s forward thinking in anticipation of the prison needing to accommodate more inmates in the future.

Commentary
The two facilities, originally contracted for $125 million, were only about $2.6 million over budget. Though the facilities are not at capacity, they were built to supplement the increased prison population in Virginia. This increased need for more prisons may have persuaded Balfour Beatty to design a facility that had a greater capacity for expansion. At present, the facilities can accommodate between 30 and 110 more inmates, based on daily averages. However, this extra space is sufficient in the short-term.