Three international prison companies are competing to run the Mt Eden-Auckland Central Remand Prison, with one of the lead contenders having pulled out.
Corrections requested proposals in May to run the prison following the Government's decision to seek private involvement in new prisons, and deputy chief executive Sandi Beatie said three short-listed proposals would now undergo a "rigorous" evaluation.
"We will also be carrying out reference checks and visiting prisons they manage.” Proposals have been received from G4S, GEO, and Serco, while an earlier short-listed prospect, Kalyx, withdrew its bid last month.
That followed a strategic decision by its French parent company, Sodexo, to not pursue business opportunities in Australia and New Zealand.
Green MP David Clendon raised concerns in June about the British company, saying it had in the past been the subject of a damning report on how it ran the Harmondsworth Detention Centre in England.
Ms Beatie said strict processes were in place to ensure a "fair, open and transparent" selection process, which was being monitored by independent auditors.
She said Corrections wanted an experienced company with a sound track record, which could perform "as well as, if not better than current standards".
The department expected the successful contractor to be known by the end of January.
NZPA