In Kentucky, the study examined the Marion Adjustment Center, a privately operated minimum-security facility. In Massachusetts, researchers worked with the Department of Youth Services to select two matched pairs of facilities, one of each pair being privately operated and the other publicly operated. Performance information for the facilities was obtained from agency records, perspectives of public and private officials and staff, offenders' perspectives, and the researchers' own observations. The costs of privately and publicly operated facilities were similar for all three pairs. No capital costs were included in the analysis. Generally, both staff and inmates gave better ratings to the services and programs at the privately operated facilities; escape rates were lower; there were fewer disturbances by inmates; and staff and offenders felt more comfortable at the privately operated facilities. Based on the findings, the study concludes that privately operated correctional facilities for minimum-security adult males and for difficult juvenile offenders constitute an appropriate option for State governments. 6 tables.