The Federal Bureau of Prisons (BOP) has relied on some contract services in its institutions for many years. Most of these contracts have dealt with the provision of health services, educational services, and food services. Several examples are discussed such as the food service contracts at FPC Duluth, the medical services contract at FPC Duluth, and the medical services contract at the Chicago Metropolitan Correctional Center. Examples are also presented in the contracting of private secure facilities by the BOP. The second half of the paper addresses the concerns raised by critics of private prisons such as the legality, cost, operational guidelines, treatment of inmates in the event of service disruption (i.e. strike), contract specifications, and the overall operation of private prisons. The conclusion is that the BOP views the benefit of private facilities with regard to the flexibility afforded in controlling a rapidly increasing inmate population by contracting out for the care and custody of appropriate subpopulations of offenders. 4 tables and 33 references