This amendment will amend the Agreement between CCA and Williamson County dated effective February 1, 2010. It will provide consent to CCA's request to subcontract its obligations under the Agreement to its wholly owned subsidiary, CCA of Tennessee, LLC. In accordance with the terms of the amendment, CCA will continue to be bound by its original covenants and agreements contained in the Agreement between CCA and Williamson County, including specifically CCA’s obligation to fully indemnify, defend, and hold harmless the County and its officials, agents, representatives, employees and officers, pursuant to Paragraph 6 of the Agreement. This continuing indemnity obligation includes, without limitation, the pending lawsuit styled, Sarah Doe et al v. Jerald Neveleff et al, Cause No 1:11-CV-907-LY, In the United States District Court for the Western District of Texas, Austin Division, and any appeal of that suit or related litigation.
CCA's counsel has provided the following as an explanation for why CCA wants to subcontract with CCA of Tennessee, LLC:
CCA is in the process of formalizing an internal corporate restructuring. There is a lack of consistency in how CCA's management contracts are organized internally that has developed over the past 30 years. For example, there are differences in the CCA entity name under which the contracts are written; some are in the name of the parent company, and some are in the name of a wholly owned subsidiary. Based on a review of the contracts, our attorneys have recommended we clean up these inconsistencies. This restructure is also recommended to best accommodate the legitimate differences between the various management contracts (e.g. managed only contracts versus CCA owned and managed contracts).To that end, CCA intends to subcontract or assign certain facility management and operational services to its wholly-owned subsidiary, CCA of Tennessee, LLC. We currently expect this internal restructuring to occur on or around January 1, 2013. This restructuring is purely internal in nature and will have no operational impact on our services to you and no change at all to the fundamental cost structure of the contracts or the contract terms/per diems. The transition will be seamless. The same CCA management teams and staff will continue to operate our facilities in the same manner and at the same high level of performance that both you and our company expect of them. CCA will continue to provide our government partners full indemnification for our operations as we have always done. |