CoreCivic Announces New Contract Award To Resume Operations At West Tennessee Detention Facility

Core Viewpoint - CoreCivic has been awarded a new contract to resume operations at the West Tennessee Detention Facility, which has been idle since September 2021, under an intergovernmental services agreement with ICE [1][2]. Contract Details - The intergovernmental services agreement (IGSA) is set to expire in August 2030, with potential for extension through bilateral modification [2]. - The agreement includes a fixed monthly payment and an incremental per diem payment based on detainee populations, with expected annual revenue of approximately $30 million to $35 million once fully activated [2]. Financial Impact - The contract is anticipated to have a minimal impact on earnings in Q3 2025, becoming accretive to earnings starting in Q4 2025, with full activation expected by the end of Q1 2026 [2]. Operational Expansion - CoreCivic has reactivated four previously idle facilities, totaling approximately 6,600 beds, and has made available over 1,000 additional detention beds to ICE through contract modifications [3]. - The reactivation of the West Tennessee Detention Facility is expected to create over 200 jobs in the local community [3]. Company Overview - CoreCivic is a diversified government-solutions company that provides a range of services including corrections and detention management, alternatives to incarceration, and government real estate solutions [4]. - The company is the largest owner of partnership correctional, detention, and residential reentry facilities in the U.S. and has been a reliable partner for government for over 40 years [4].