THE REPORT DOCUMENTS A REVIEW OF THE BUREAU'S POLICIES, PROCEDURES, AND RECORDS WITH REGARD TO THE USE OF STATE, LOCAL, AND PRIVATE FACILITIES TO HOUSE FEDERAL PRISONERS. IN ADDITION, INTERVIEWS WERE CONDUCTED WITH BUREAU PERSONNEL AND OTHER OFFICIALS, BUREAU ACTIVITIES AT TWO REGIONAL OFFICES WERE EVALUATED, AND FIELD STUDIES WERE CONDUCTED IN SEVERAL 'PROBLEM CITIES' (BALTIMORE, BOSTON, CLEVELAND, DETROIT, PHILADELPHIA, ST. LOUIS, AND WICHITA). THE REPORT REVEALS THAT NON-FEDERAL FACILITIES HOUSED AN AVERAGE OF 5,000 FEDERAL PRISONERS PER DAY IN FISCAL 1976 AT A COST OF APPROXIMATELY $24.6 MILLION. THESE PRISONERS WERE AWAITING TRIAL, SERVING SHORT SENTENCES, OR STAYING FOR OTHER REASONS, SUCH AS OVERCROWDING IN FEDERAL INSTITUTIONS. STATE AND LOCAL INSTITUTIONS HAVE ALSO BECOME OVERCROWDED, AND AS A RESULT, FINDING HOUSING FOR FEDERAL PRISONERS IS BECOMING INCREASINGLY DIFFICULT. FOUR ALTERNATIVES ARE NOTED: CONTRACTING WITH AVAILABLE JAILS AND TRANSPORTING PRISONERS AS NECESSARY; BUILDING AND OPERATING FEDERAL FACILITIES; PROVIDING FEDERAL ASSISTANCE TO LOCAL JAILS TO EXPAND AND IMPROVE THEIR FACILITIES; AND USING MILITARY CORRECTIONS FACILITIES. IT IS RECOMMENDED THE ATTORNEY GENERAL DETERMINE THE MOST ECONOMICAL LONG-RANGE SOLUTION FOR EACH MAJOR METROPOLITAN PROBLEM AREA BY CONSIDERING WHETHER SMALLER FEDERAL FACILITES CAN BE BUILT AND OPERATED ECONOMICALLY, INVESTIGATING THE USE OF MILITARY FACILITIES, AND IDENTIFYING INSTANCES IN WHICH INCREASED FEDERAL ASSISTANCE COULD SOLVE THE PROBLEM. THE REPORT IS CRITICAL OF THE BUREAU'S PAST CONTRACTING PRACTICES AND OFFERS RECOMMENDATIONS FOR IMPROVING THOSE PRACTICES.