GEO Group To Discontinue Lawton Correctional Facility Contract In Oklahoma

(RTTNews) - The GEO Group Inc. (GEO) said it will discontinue its contract with the Oklahoma Department of Corrections for the company-owned, 2,600-bed Lawton Correctional and Rehabilitation Facility, which is set to expire on June 30, 2024, unless extended for an additional three months under terms proposed by GEO.

Upon extensive consideration of the current funding levels and resources relative to the present service requirements, the company has determined that it is no longer willing to manage the 2,600-bed Lawton Correctional and Rehabilitation Facility without changes to financial and operational terms, GEO Group said.

GEO Group has proposed a new three-month transition agreement starting July 1, 2024, allowing for an orderly relocation of inmates if new funding and contract terms cannot be mutually agreed upon.

GEO Group noted that the discontinuation of the Lawton Correctional and Rehabilitation Facility contract will not have a material impact on its financial guidance.

Additionally, as a result of recent significant damage caused to the physical plant and equipment at company-owned, 1,940-bed Great Plains Correctional Facility, the company has issued a default notice to the State of Oklahoma under lease agreement for the Great Plains Correctional Facility, which is currently operated and maintained by the Oklahoma Department of Corrections. The default notice provides for a cure period of 30 days for the State of Oklahoma to carry out all necessary physical plant and equipment repairs at an estimated cost of $3 million.