ONE ASPECT OF THIS PHENOMENON IS THAT SUPERVISION AND/OR PROVISION OF SERVICES TAKES PLACE IN THE OPEN COMMUNITY INSTEAD OF WITHIN CLOSED INSTITUTIONAL SETTINGS. THE SERVICES INCLUDE PRETRIAL DIVERSION OF 'IN LIEU' REFERRALS TO COMMUNITY PROGRAMS; PROBATION SUPERVISION; PRERELEASE PROGRAMS FOR PERSONS COMMITTED TO THE DEPARTMENT OF CORRECTIONS; AND PAROLE. THE STUDY ATTEMPTS TO INCREASE THE UNDERSTANDING OF THE PRIVATE SECTOR IN PROVIDING SERVICES TO JUSTICE AND CORRECTIONS AGENCIES. THE STUDY ADDRESSES HOW AND BY WHOM PERSONS ARE REFERRED TO THE PRIVATELY OPERATED PROGRAM IN LIEU OF TRIAL OR FURTHER AGENCY DISPOSITIONS, WHAT KINDS OF CASES ARE REFERRED AND ACCEPTED, AND WHAT IS ACCOMPLISHED IN SUCH ARRANGEMENTS WHICH MIGHT NOT OTHERWISE RESULT IF THE PRIVATE ORGANIZATION DID NOT OPERATE. THE REPORT EXAMINES THE HISTORICAL, LEGAL, AND ADMINISTRATIVE CONTEXT FOR CONTRACTING; CHARACTERIZES REFERRAL AND SERVICES; DISCUSSES COSTS AND SOURCES OF SUPPORT; AND PRESENTS ISSUES IN PLANNING AND RESEARCH. FOR THE COMPLETE REPORT CONTAINED IN VOLUME 2, SEE NCJ-43738.