3.12 The role of the CPU has been to negotiate PFI contracts, monitor their application through the Controller's team and enter into further negotiations when deciding on financial deductions and contract changes. The experience gained has helped in the successful development of SLAs in public prisons. Contracting involves a strong separation of purchaser and provider, giving the purchaser a powerful incentive to demand high performance, good quality evidence of the true level of performance and firm action to improve poor performance. Contracting cannot occur without the specification of and monitoring of delivery against agreed performance outcomes. In short, contracting creates strong incentives for better accountability. The SLA at Manchester incorporates an incentive fund, £200,000 in 2002/03, which will be distributed evenly to staff in the form of a bonus once any deductions have been made for under-performance.29 The Governor is using this fund to motivate his staff to meet the performance targets specified in the SLA.
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29 This would be approximately £280 per employee assuming no monetary deductions due to under-performance and a staffing level of 712 (May 2002 figures).