Availability is a key factor in the payment mechanism

1.2  The Commissioner for Correctional Services pays a monthly performance-related service charge in respect of both the capital expenditure and the budgeted running costs of delivering the contracted service - the unitary charge. The unitary charge budget and adjustment mechanism (e.g. for inflation) are fixed at contract signature. Furthermore, contractors are paid an additional amount for each place provided in excess of the fixed number of places. A prisoner place is available provided the prison meets certain standard requirements, whether or not the Prison Service allocates a prisoner to it. These include access to healthcare, the opportunity for exercise, and the availability of clean bedding, clothes and three meals a day. If these standard requirements are not available, the number of available prisoner places will be reduced and thus the amount paid to the contractor will be reduced accordingly.

7

 

 

Typical Operational Requirements of a PFI contract

 

 

1.

Keeping prisoners in custody - for example, the number and type of searches to be carried out;

 

 

2.

Maintaining order, control, discipline and a safe environment - for example, the provision of a system of incentives and earned privileges for prisoners

 

 

3.

Providing decent conditions and meeting prisoners' needs - for example, safeguarding prisoners' personal property;

 

 

4.

Providing positive regimes - for example, the provision of education and counselling services;

 

 

5.

Preparing prisoners for their return to the community -for example, pre-release courses;

 

 

6.

Delivering prison services - for example, selection and recruitment policies for prison staff and provision of probation and health care staff;

 

 

7.

Community relations - for example, facilitating access to the prison for invited members of the community.

 

 

Source: National Audit Office analysis of the PFI Contracts