Since the early 1980's, several difficulties have arisen in efforts to expand correctional industries, including limited funds and the need for research on new products and markets. One way correctional industries have chosen to meet these challenges is by involving the private sector. In some cases, private sector companies completely manage and operate prison industries. Potential benefits of private-government partnerships in the correctional industry field include increased sales potential, a real world work environment for inmates, reduced financial risk, improved access to specialized skills, public relations benefits, ability to establish innovative correctional facility operations, and product name recognition. Private sector firms also obtain benefits, such as reduced labor costs, access to government markets, available labor for evening shifts, and access to ready- to-use factory space. Private-government partnerships, however, create many challenges and should not be underestimated. Parameters for partnership programs are described, along with the Federal Prison Industries model. Critical planning areas associated with the development of a private-government partnership for correctional industries are noted. 2 footnotes