NAICS 922140 Quarterly Industry Report
Correctional Institutions
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 922140Sector: Public Administration (92)Updated: Q1 2026
About This Report
This industry profile for Correctional Institutions (NAICS 922140) uses data from the Bureau of Justice Statistics[1], U.S. Census Bureau[2], and the SBA[3]. Fair Market Value analysts examine incarceration statistics, correctional employment data, and facility operations specific to NAICS 922140. Additional data is drawn from Bureau of Labor Statistics[4].. Quarterly updates reflect changes in sentencing policy, correctional staffing levels, and facility conditions across federal, state, and local systems.
Industry Definition & Overview
Correctional Institutions (NAICS 922140) encompasses government establishments primarily engaged in managing and operating correctional institutions. This classification covers federal prisons, state penitentiaries, county jails, juvenile detention facilities, and other government-run incarceration facilities. Privately operated prisons under government contract are excluded from this code and classified under NAICS 561210.
The Bureau of Justice Statistics[1] tracks correctional populations through multiple survey programs. Federal prisons are operated by the Bureau of Prisons, which manages over 120 facilities across the country. State departments of corrections run prison systems ranging from a handful of facilities in smaller states to over 100 institutions in states like Texas and California. County jails, numbering roughly 3,000 nationwide, typically hold individuals awaiting trial or serving sentences of one year or less.
Correctional employment represents a major segment of government payroll. Guards, administrative staff, counselors, medical personnel, and maintenance workers make up the workforce. The Census Bureau's ASPEP survey[2] identifies corrections as one of the largest functional categories of state government employment. Annual operating costs per inmate vary from $25,000 in lower-cost states to over $100,000 in high-cost jurisdictions like New York and California, reflecting differences in staffing ratios, healthcare obligations, facility age, and ongoing maintenance requirements across diverse institutional settings.
What's Included in This Industry
- Federal prisons operated by the Bureau of Prisons
- State prisons and penitentiaries
- County and municipal jails
- Juvenile detention centers and youth correctional facilities
- Immigration detention facilities operated by government
- Military brigs and correctional facilities
- Work release centers and community correctional facilities
- Government-operated halfway houses for re-entry
- Detention centers for pre-trial detainees
- Boot camp and shock incarceration programs
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Sector | Public Administration | 92 |
| Subsector | Justice, Public Order, and Safety Activities | 922 |
| Industry Group | Justice, Public Order, and Safety Activities | 9221 |
| NAICS Industry | Correctional Institutions | 92214 |
| National Industry | Correctional Institutions | 922140 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 922110 | Courts | Courts that sentence offenders to incarceration, issue commitment orders, and conduct hearings on inmate petitions and post-conviction relief motions |
| 922130 | Legal Counsel and Prosecution | Prosecutors who secure convictions leading to incarceration and public defenders who represent inmates in appeals and post-conviction proceedings |
| 922150 | Parole Offices and Probation Offices | Parole and probation offices that supervise individuals released from correctional institutions and manage community supervision caseloads |
| 922120 | Police Protection | Police agencies that arrest individuals who ultimately enter correctional custody after processing through the criminal justice pipeline |
| 922160 | Fire Protection | Fire protection agencies that provide emergency response services to correctional facilities and coordinate with institutional safety personnel |
| 922190 | Other Justice, Public Order, and Safety Activities | Other justice establishments including medical examiner offices and forensic laboratories that interact with correctional systems on cause-of-death inquiries |
Frequently Asked Questions
Common questions about this industry.
What types of facilities are classified under NAICS 922140?
NAICS 922140 covers all government-operated correctional facilities, including federal prisons, state penitentiaries, county jails, juvenile detention centers, military brigs, and work release centers. The Census Bureau[7] excludes privately operated prisons, which fall under 561210.
How is the U.S. correctional system structured?
Federal prisons are run by the Bureau of Prisons with over 120 facilities. State departments of corrections operate prison systems in each state. County sheriffs typically manage local jails. Juvenile corrections may be administered by separate state agencies or county departments depending on the jurisdiction.
Does the SBA set a size standard for NAICS 922140?
No. The SBA[8] does not assign size standards to Sector 92 codes because they cover government entities. Private vendors supplying goods and services to correctional facilities use their own NAICS codes for SBA eligibility.
What NAICS codes are closely related to 922140?
Related codes include 922110 (Courts), 922130 (Legal Counsel and Prosecution), 922150 (Parole and Probation), 922120 (Police Protection), and 922190 (Other Justice). The Census Bureau[9] groups all under the justice, public order, and safety subsector.
What private-sector industries commonly serve correctional facilities?
Food service contractors (NAICS 722310), healthcare providers (NAICS 621491), technology vendors (NAICS 541512), and security staffing firms (NAICS 561612) are major contractors. Commissary operators, telecommunications providers, and construction companies also serve the corrections market.
What activities are included under NAICS 922140?
Activities include housing inmates, providing meals and healthcare, maintaining facility security, conducting inmate counts and searches, managing classification systems, operating educational and vocational programs, and processing intake and release. The Bureau of Justice Statistics[1] tracks these operations through multiple data collection programs.
Can businesses contracting with correctional facilities qualify for SBA loans?
Where are correctional institutions concentrated geographically?
State prisons are distributed across all 50 states, often located in rural areas. Federal facilities span the country with concentrations in the Southeast and Southwest. County jails exist in virtually every county seat. Texas, California, Florida, and New York operate among the largest state prison systems measured by inmate population.
Sources & References
Government datasets and editorial sources used in this report.
- [1]Bureau of Justice Statistics bjs.ojp.gov
- [2]Census Bureau's ASPEP survey census.gov
- [3]SBA sba.gov
- [4]Bureau of Labor Statistics bls.gov
- [5]7(a) loan program sba.gov
- [6]504 loan program sba.gov
- [7]Census Bureau census.gov
- [8]SBA sba.gov
- [9]Census Bureau census.gov
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