(a) Prior to the awarding of any contract to provide correctional services as defined in § 41-24-102(2)(F), the state shall establish objective performance criteria and cost criteria for both the state and private contractor. The performance criteria shall measure the quality of management, security and safety, personnel training, inmate programs and treatment and other topics deemed appropriate. The performance criteria and cost criteria shall be established and incorporated as requirements in any proposed request for proposal and any contract and shall be used as the basis for any comparison between the state and any contractor.

(b) For any contract to provide correctional services as defined in § 41-24-102(2)(F), the initial contract term shall be for a period of three (3) years in order to allow the contractor sufficient time to demonstrate its performance and to provide sufficient information to allow a comparison of the performance of the contractor to the performance of the state in providing similar services; provided, however, to allow sufficient time for completion and review of any comparative evaluation, that the initial term may exceed three (3) years by a period of up to four (4) months as necessary to make the end of the initial term coincide with the state's fiscal year. The initial contract may include an option to renew for an additional period of two (2) years, subject to this section. The comparison or comparative evaluation between the state and private contractor shall not serve as the basis for contract renewal pursuant to subsection (c), but shall serve as a consideration.

(c) After the first two (2) years of operation, but before renewing the initial contract, the performance of the contractor shall be compared to the performance of the state for similar services as set out in the contract. The contract may be renewed only if the contractor is providing essentially the same quality of services as the state at a cost of five percent (5%) lower than the state as set out in the contract, or if the contractor is providing services superior in quality to those provided by the state at essentially the same cost as set out in the contract. For the purposes of this subsection (c) and for comparison, “essentially the same” means the difference is no greater than five percent (5%). For the purpose of this section and comparison “superior” means a difference greater than five percent (5%). The methodology for determining the measurement of five percent (5%) differences shall also be set out in the request for proposal and contract.

(d) The quality of services provided by the contractor and by the state shall be compared by a committee designated by the speakers of the senate and the house of representatives. The committee shall determine the quality of services provided by the contractor and the state by applying the performance criteria set out in the request for proposal and contract pursuant to subsection (a) and provide a numerical score for the state and the contractor. The committee shall report its determination to the parties responsible for determining whether the contract should be renewed.

(e) The fiscal review committee, or, in the absence of that committee, any other committee designated by the speakers of the senate and the house of representatives, shall compare the cost measures as established in this chapter and set out in the request for proposal and the contract for service and provide a prisoner per day cost for the state and the contractor. The committee shall report its determination to the parties responsible for determining whether the contract should be renewed.

(f) Notwithstanding any law to the contrary, a contract to provide correctional services as defined in § 41-24-102(2)(F) may be extended beyond the term specified in subsection (b) as determined necessary and appropriate by the commissioner for the purpose of evaluating the department’s operational strategy for the use of the contract facility. Any such extension may be for a period not to exceed twelve (12) months. A contract amendment accomplishing such an extension shall require the approval of the authorities listed in § 41-24-104(a)(1) and the opportunity for review and comment by the entities listed in § 41-24-104(a)(2).