Contractors brace for prisons framework cuts

Prison contractors on the £1.8bn National Offender Management Service (NOMS) Strategic Alliance framework are bracing themselves for swingeing changes to the way prisons work is delivered.

A major NOMS review could see framework contractor numbers slashed or the framework ditched altogether next year in a major procurement overhaul.

NOMS officials are looking at various options and will call for industry input at a market engagement day on 15 July before making a final decision.

CJ understands options on the table include: cutting contractors numbers on the framework; combining the framework's geographical regions from six to just two areas (North and South); returning to traditional tendering; bundling work into modularised contracts; or creating a delivery model similar to that between the Olympic Delivery Authority and CLM (CH2M Hill, Laing O'Rourke and Mace).

The review is in part prompted by the removal of the new build prisons programme from the framework, which will now be delivered via PFI. This leaves the NOMS framework with a significantly reduced workload of refurb and smaller works to the existing prisons estate. The spend is estimated at £1bn over four years.

NOMS officials have been looking across government departments at the MOD PRIME contract, the National Academies framework, ProCure21 and the ODA's delivery partnership with CLM.

Contractors were keen to put forward their ideas. One framework member said: "The framework has done a fantastic job, but other improvements can be made especially if they allow contractors earlier involvement at design stage."

Another commented: "With a reduced workload, it makes sense to cut numbers on the framework. However, a return to traditional tendering in the current climate would only risk a return to the claims culture."

NOMS capacity director John Aspinall said NOMS was considering options and wanted to "engage with key players in the market in developing our strategy, starting with the market engagement day on 15 July".

Firms should register interest in the industry day by emailing mike.harrington@noms.gsi.gov.uk

Framework Contractors

• Willmott Dixon Ltd
• Shepherd Construction Ltd
• Galliford Try Construction Ltd
• Shaylor Construction Ltd
• Wates Construction Ltd
• Interserve Project Services Ltd
• Kier Regional Ltd
• Caledonian Building Systems Ltd
• Henry Boot Construction Ltd
• Carillion Plc
• Vinci Construction UK Ltd (previously Crispin & Borst Ltd)
• ISG Regions Ltd

NOMS is also planning a PFI prisons market engagement day in the next few weeks to discuss the delivery of the five new PFI prisons, announced last month. Meanwhile, the preferred bidder on the long delayed Belmarsh and Maghull PFI prison schemes is expected to be announced before the Parliamentary recess.