At the Fiscal Year 2026 (FY26) budget hearing, Department of Corrections (DOC) officials told lawmakers that a $16 million contract to design a new prison facility has been canceled due to unexpectedly high costs.
Administrative Division of Finance for DOC, Antone Aguon, said the selected firm, EXP, had submitted a price quote that exceeded initial estimates, prompting the agency to withdraw the procurement and reconsider its strategy.
DOC Director Fred Bordallo clarified that the $4 million previously appropriated for debt service was not part of this year’s budget request.
The DOC now plans to move forward with a phased approach, utilizing the $5 million in available debt service funding, aiming to secure up to 12,000 new beds eventually.
Senator Chris Duenas advised the agency to break the project down into more manageable phases.
Meanwhile, the agency is requesting nearly $6 million more than the governor’s spending ceiling for FY 26. Lawmakers also questioned how the $9.2 million held in reserve by the Bureau of Budget and Management Research could impact DOC’s operations.
Budget hearings continue this week as senators review spending across government agencies.
