The contract termination was driven primarily by costs, according to the WSJ. Unlike most CXW ICE contracts, the center has been operated under a costlier model because it was initially opened in 2014 to house families, then was transitioned in 2021 to detention primarily of individual adults. Despite the expected short-term challenge of the contract termination, longer term we expect rising demand from ICE under the traditional detention model. In fact, last month ICE / DHS issued an RFI for detention capacity in the Chicago, Harlingen, Texas & Salt Lake City markets. CXW's Midwest regional center in Leavenworth, Kansas has capacity and potentially could represent a well-positioned solution.

14 Jun 2024
CXW: Revising Estimates Believe CXW Relationship with ICE Remains Strong

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CXW: Revising Estimates Believe CXW Relationship with ICE Remains Strong
- Published:
14 Jun 2024 -
Author:
Marla Backer -
Pages:
7 -
The contract termination was driven primarily by costs, according to the WSJ. Unlike most CXW ICE contracts, the center has been operated under a costlier model because it was initially opened in 2014 to house families, then was transitioned in 2021 to detention primarily of individual adults. Despite the expected short-term challenge of the contract termination, longer term we expect rising demand from ICE under the traditional detention model. In fact, last month ICE / DHS issued an RFI for detention capacity in the Chicago, Harlingen, Texas & Salt Lake City markets. CXW's Midwest regional center in Leavenworth, Kansas has capacity and potentially could represent a well-positioned solution.