§ Mr. FlynnTo ask the Secretary of State for the Home Department what is his current calculation of the costs of preparation for market testing in his Department in terms of(a) payments to consultants and (b) other costs.
§ Mr. Michael ForsythFrom 1 April 1992 to 30 June 1994 expenditure by the Home Office including the Prison Service in support of the competing for quality programme was approximately £1.5 million on payments to consultants—including advice on efficiency improvements for units subject to competition—and approximately £6.5 million on other costs. It is estimated that annual savings of £27 million have been generated by this programme so far.
§ Ms RuddockTo ask the Secretary of State for the Home Department if he will list those parts of the Prison Service which are scheduled to be market-tested, giving in each case the projected timetable and the estimated cost of the market-test.
§ Mr. Michael Forsyth[holding answer 24 October 1994]Responsibility for this matter has been delegated to the Director General of the Prison Service, who has been asked to arrange for a reply to be given.
Letter from Derek Lewis to Ms Joan Ruddock, dated 3 November 1994:
The Home Secretary has asked me to reply to your recent Question about those parts of the Prison Service scheduled to be market-tested.Work is currently underway to market test the management of the vehicle fleet. In addition, plans are being developed to market test the Parole Board Secretariat and one or two establishments. Invitations to tender for the management of the vehicle fleet are expected by the end of 1994 and a decision on the preferred supplier by June 1995. The anticipated staff and consultancy costs of managing this market test are £30,000. The timetable for the market testing of the Parole Board Secretariat has not yet been planned and therefore the estimated costs are not known.Once the Prison Board has decided on which one or two establishments will be market tested, it is estimated that the preferred supplier will be identified within about nine months. The projected staff and consultancy costs for managing each test are expected to be about £100,000.
§ Ms RuddockTo ask the Secretary of State for the Home Department if he will specify, for each individual prison and department within the Prison Service, the exact benefits, financial or otherwise, which have accrued directly as a result of market testing and/or the contracting out of the management of the Wolds, Blakenhurst, Doncaster and Strangeways prisons, and any other market-testing exercise within the agency to date.
§ Mr. Michael Forsyth[holding answer 24 October 1994]The Director General of the Prison Service will write to the hon. Member.
§ Ms RuddockTo ask the Secretary of State for the Home Department if he will list those parts of the Prison Service which have been market-tested to date, giving in each case the cost of the market-test, the date of the market-test and the outcome.
§ Mr. Michael Forsyth[holding answer 24 October 1994]Responsibility for this matter has been delegated to the Director General of the Prison Service, who has been asked to arrange for a reply to be given.
1352WLetter from Derek Lewis to Ms Joan Ruddock, dated 3 November 1994:
The Home Secretary has asked me to reply to your recent Question about those parts of the Prison Service which have been market tested.Work in the Prison Service which has been exposed to competition as part of our Competing for Quality programme comprised of the following market tests and contracting:
1992–93 Programme Contract award Court Escort and Custody Services East Midlands and Humberside Decision announced 6 November 1992 Contracted to Group 4. Blakenhurst Prison Decision announced 3 December 1992 Contracted to UKDS Prison Education service Previously outsourced Decision announced 11 February 1993 All competitions completed and contracts in place. Prison Service Information Contract awarded to SERCO. Technology Group Decision announced 31 August 1992 Contract awarded to SERCO Manchester Prison Decision announced 15 July 1993 In-house win following a market test. Warehousing and Distribution Decision announced March 1993 In-house win following a market test. Facilities Management at Newbold Revel Decision announced 31 August 1994 In-house win for services previously Provided in-house, following a market test.Taylorplan awarded contract for catering and house-keeping Court Escort and Custody Service Metropolitan Area Decision announced 16 December 1993 Contracted to Securicor Doncaster Prison Decision announced 12 January 1994 Contracted to Premier Prison Services Buckley Hall Prison Decision announced 19 July 1994 Contract awarded to Group 4 following a market test Notes:
In addition a number of candidates, initially identified for competition, were withdrawn before formal testing.
The overall cost of managing our Competing for Quality programme up to June 1994 has been about £3 million. This includes all direct running costs, consultancy and overheads.
Savings of at least £17 million a year have been produced and therefore net savings of £14 million have been generated.