Part 3  The private sector has brought benefits to the Prison Service

This part of the report shows that the use of the PFI has helped sustain an alternative group of prison providers. These providers have generated an alternative market which, through market testing, has reduced costs and acted as an incentive to improve prison performance. However, there is evidence that recent bids from both sectors may have been negotiated at a price that was so tightly scoped as to hinder the performance of the prison. Furthermore, although the Prison Service has benefited by gaining experience of contract management, the exchange of innovation and good practice between the two sectors appears to be limited.