This website uses cookies primarily for visitor analytics. Certain pages will ask you to fill in contact details to receive additional information. On these pages you have the option of having the site log your details for future visits. Indicating you want the site to remember your details will place a cookie on your device. To view our full cookie policy, please click here. You can also view it at any time by going to our Contact Us page.

Prison service made 'common mistakes' in its first outsourcing efforts

07 February 2020

Details of the report on the outsourcing of services by Her Majesty's Prison & Probation Service (HMPPS) have been released by the National Audit Office (NAO).

After outsourcing services to Amey and Carillion in 2015, it had expected to make savings of £79m but "failed to achieve these", said the NAO, which provided a number of reasons for the failure.

These included an "inaccurate and incomplete understanding of its assets, their condition and required services".

One of the recommendations of the PFM Editorial Advisory Board has been for more intelligent procurement of FM services, including a complete understanding of each facility and estate and what is required to maintain it and meet all future objectives.

HMPPS had also failed to carry out sufficiently robust due diligence and "severely underestimated" costs for dealing with vandalised  and failing assets.

One of the results of its failures was paying out more than £160m in the 2018/19 financial year against a predicted sum of £17.7m, which meant that extra costs of £142.6m were paid.

The two companies' performance has been monitored by HMPPS since services were outsourced five years ago and the NAO said Carillion provided a "poor and highly variable" response prior to its demise in January 2018.

Although Amey had been found to have missed some of its key performance indicators (KPIs), it was seen to have performed at a better level than Carillion and had continued to improve.

The NAO said the errors committed by the HMPPS in its attempt to outsource its service and save money were due to the "common mistakes made in first-generation outsourcing" that have been made by other organisations.

HMPPS is now faced with funding major repairs to more than 40% of UK prisons over the next three years, said the NAO, with the cost estimated at £900m.


Print this page | E-mail this page

https://www.fsifm.com/en-gb/
http://edition.pagesuite-professional.co.uk/Launch.aspx?EID=64be7372-6bff-4efa-9323-0fdfb3a5c764


MOST VIEWED...

View more articles
Article image

Why the Law Says You Need a Nappy Bin Disposal Service

At home, parents are used to disposing of their babies’ used nappies the same way they do any other domestic waste - bagging it up and sticking it in the r...
Article image

Collaboration key to achieving FM and real estate aims

An indirect route into his FM role has seen Chris Spratt discover a passion for the highly varied role and the benefits it provides to managing agents and ...
Article image

No visas for low-skilled workers under current government post-Brexit plan

Calls for the UK government to rethink its immigration proposals are growing, following the announcement of its immigration policy set to take effect in Ja...

Benchmarking maintenance

BSRIA has just published this year's operation and maintenance benchmarking report as a guide for building operators to evaluate their performance against ...
Article image

Crown Workspace’s new Head of Interiors will focus on growth and sustainability

Crown Workspace’s new Head of Interiors, Ashley Lawrence, is looking to take the business to the next stage by pressing home its sustainability message....
Article image

Initial Hygiene Twins Toilets Supporting Better Sanitation in Africa

Initial has done its bit to flush away poverty by twinning nearly 30 toilets with loos in central Africa. The company has twinned 15 toilets in their head ...