The study reviews the relevant literature and the experiences of jurisdictions in Florida and other States with the privatization of jails and prisons. According to the U.S. General Accounting Office, 18 local jails in seven States were operated by private contractors as of November 1990. Currently, local jails in two Florida counties are operated by private firms. There is still little conclusive evidence to support the view that the traditional advantages of the private sector in goods and services provision can be extended to the operation and construction of detention and correctional facilities. Also, the courts have yet to address directly fundamental constitutional and legal issues of privatization on a national scale; therefore, the courts have not defined the extent to which private sector involvement in the construction and operation of jails is permissible under current law. In addition to financial, constitutional, and legal issues, a number of administrative and political issues such as the quality of services and ensuring accountability in facility operations should be considered and addressed by local government officials who contemplate the privatization option. In the political realm, local officials must address the opposition to privatization that exists among significant interest groups. There are also issues of public accountability, management opposition, and public attitudes toward the privatization option. 25-item bibliography