An operational audit was conducted at each of the three facilities, an audit similar to the annual inspection process conducted by the Tennessee Department of Corrections' Office of Compliance. The inspection instruments provided for a thorough inspection of all the functional components of each facility. Each inspector used a form that scored the degree of compliance of an operational component with institutional policy, American Correctional Association standards, and other applicable rules and regulations. Two audit inspections were conducted at the three facilities. There were elements within each reviewed area where one facility received a higher rating than another facility; however, there were also elements within each area where one facility received a lower rating. In total, the facilities all rated very high and were nearly identical in overall performance. There was no significant difference in security and safety performance among the three facilities during the evaluation period, and the program and activity index was the same for all facilities. The report recommends the creation of an independent contract monitoring and operational compliance capability for corrections contracts when a comparative evaluation will be conducted. The potential conflict and the complexities require a separate contract monitor. Another recommendation is that State restrictions and Department of Corrections policy be reviewed to provide maximum flexibility for corrections operation contractors, so they may use their business and marketplace creativity, with appropriate legal safeguards. Extensive tables