PHILIPSBURG — The GEO Group, Inc. announced Wednesday 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 Decatur Township near 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 issued a statement late Wednesday regarding the announcement.
"The Clearfield County Commissioners 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," the statement read. "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."