The consideration of constitutional dimensions focuses on the delegation doctrine as applied to Federal delegation to public and private bodies and State delegation of management functions, rule-making authority, and adjudicative powers. Also considered is the development of the State application doctrine and its implications for prison and jail privatization. A model contract covers goals and responsibilities of the parties, private financing and the physical plant, general contract terms (e.g., renewal, compensation, indemnification, operating standards, and accreditation), employee selection and training requirements, and personnel policies and discrimination. Also considered are such inmate issues as classification, transfer, discipline, parole, use of force, and inmate labor. Other contract provisions relate to monitoring, termination, and contractual disputes. Following a review of Federal statutory authorization to designate privately operated places of confinement, a model statute and commentary is provided that includes enabling legislation and provisions regarding site selection, operating standards, liability and sovereign immunity, monitoring, use of force, and employee training. Emphasis in the model documents emphasize the need for total accountability if this critical Government function is to be contracted out. Approximately 850 references.