The study employed a nominal group technique panel of 11 people in Delano, Calif. Five key trends were selected for study analysis: retention and recruitment of personnel, corrections versus public safety, transition to operating under California Department of Corrections rules, lack of consistent State guidelines, and high-risk inmates assigned to returned to custody (RTC) facilities. Five events were identified as being the most critical: major problem in RTC facilities with no response capability, major lawsuit causing a financial crisis, major scandal involving profit motive, State rule changes, and political groups reacting to real or perceived RTC problems. After gathering survey data and evaluating key trends and political events, several policies were identified as being of prime importance. The key policy in successful future operation of a contract State prison for parole violators was determined to involve the design of a recruitment, training, and retention program that includes career enhancement features. Strategic and transition management plans to implement the recommended policies are included, and supplemental study information is appended. 32 references, 6 tables, and 5 figures