Arizona intends to purchase a privately run state prison but still have it run by a commercial company.

The state will pay $150,000 to buy the Marana Community Correctional Treatment Facility, a 500-bed minimum security prison that houses prisoners with drug and alcohol problems.

The Arizona Capitol Times reports that a provision in contracts for the state's five privately run prisons allows the state to buy each as the contract expires.

The Corrections Department says the purchase will allow the state to save $850,000 a year.

The department is seeking bids from companies interested in running the prison after the state takes possession on Oct. 5.

Utah-based Management and Training Corp. has managed the prison since it opened in 1994 and a spokesman says the company will submit a bid to continue running it.