PHILIPSBURG, Pa. (WJAC) — The GEO Group announced Wednesday that the Federal Bureau of Prisons will not be renewing their contract for the Moshannon Valley Correctional Facility in Clearfield County.

The contract, which GEO officials say generated about $42 million in annualized revenue, is set to expire March 31.

The GEO Group is an equity real estate investment trust that specializes in designing and operating secure facilities processing centers and community reentry centers in the United States and across the world.

GEO officials say they plan on marketing the Decatur Township-based, 1,878-bed Moshannon Valley Correctional Facility to other federal and state agencies.

“GEO has operated the Moshannon Valley Correctional Facility under a public-private partnership with the Federal Bureau of Prisons for more than a decade,” said George C. Zoley, Chairman and Chief Executive Officer of GEO. “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.”

Moshannon Valley Correctional Center has been providing correctional services on behalf of the Federal Bureau of Prisons since 2006, according to the GEO Group.

The Clearfield County Commissioners released the following statement:

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. This facility employs over two hundred and fifty 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.

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