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Prison suppliers suing Virginia DOC
By Richmond Times-Dispatch
Published: 09/19/2003


Several suppliers to state prison commissaries are suing the Virginia Department of Corrections to end a privatization plan they say is hurting Virginia businesses.
In a lawsuit filed in Richmond Circuit Court, three Virginia-based vendors claim the corrections department is breaking the law by allowing a private company, Keefe Supply Co. of St. Louis, to use inmate labor in the prison commissaries Keefe Supply is operating.
'You can't provide inmate labor to a private enterprise as a subsidy,' said Ian J. Wilson, a lawyer for the Richmond firm Hirschler Fleischer PC, which is representing the plaintiffs. 

A spokesman for the Department of Corrections declined to comment on the lawsuit filed last week.
Traditionally, prison officials have managed commissaries, where inmates can buy toiletries, snacks, paper and other items. Officials at each prison have chosen their own vendors through competitive bidding.
That began to change in 2002 when the agency started to privatize commissaries. The state contracted with Keefe Supply to take over the management of five commissaries in a pilot program. Keefe Supply's contract has since been expanded to include 28 more prisons, according to the suit.
The corrections department has said the privatization will save the state $1.2 million a year. Ten other prison commissaries are run by the agency.
The three plaintiffs are Highland Beef Farms Inc., a Reston-based supplier of packaged meats and cheeses; Ashland-based Virginia Snacks Inc., a supplier of snack foods; and Roanoke-based Lee Hartman & Sons Inc., which supplies electronics such as radios.
They argue that the privatization is hurting Virginia businesses by essentially granting a monopoly to a company based in another state.
The owner of Virginia Snacks said the loss of commissary sales would put him out of business.
Keefe Supply pays the department a monthly commission of 6.5 percent on all sales. Inmates work in the commissaries, and Keefe Supply reimburses the state for the labor. Inmates are typically paid 35 to 45 cents an hour.
The lawsuit claims that violates state law, which allows the department to provide inmate labor only for government, nonprofit or civic organizations.



Comments:

  1. kanucmenow on 02/01/2014:

    I think that privatization of any aspect of the prison system is adding to the outcry against "prison industry". By creating a market for the use of not only prisoners, but also the families of prisoners, as is the case in situations such as many of our prisons' telephone systems, we as a society are promoting incarceration of our citizens on a long-term basis as a means of lining our pockets. THIS MUST STOP!


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