The backlog of major repairs will cost 拢916m to fix.
In 2015 Her Majesty鈥檚 Prison & Probation Service (HMPPS) decided to outsource facilities management to Amey and Carillion but it has not resulted in the savings that it was expecting. Quite the reverse.
The report says: 鈥淗MPPS did not have a clear picture of facilities management services in prisons before outsourcing the service. In 2015, HMPPS opted to outsource facilities management in prisons. HMPPS expected to achieve savings of 拢79m by contracting-out to Amey and Carillion but has failed to achieve these. Its approach contained common mistakes made in first-generation outsourcing. It had an inaccurate and incomplete understanding of its assets, their condition and required services. Due diligence was not sufficiently robust and HMPPS severely underestimated the demand for reactive maintenance work arising from vandalism and failing assets. It expected to pay providers 拢17.7m for variable costs (reactive maintenance costs above an approved threshold of 拢750 for each job, excluding vandalism) by 2018/19 鈥� the fourth year of the contracts 鈥� but has paid 拢160.4m, a difference of 拢142.6m.鈥�
HMPPS measures Amey鈥檚 (and prior to its collapse, Carillion鈥檚) performance against 16 key performance indicators. For the two areas which have the biggest impact on prison maintenance 鈥� high-priority planned and reactive maintenance jobs 鈥� they did not meet HMPPS鈥檚 expectations. However, Amey performed better than Carillion overall and its performance is improving, the NAO says. Carillion鈥檚 performance was poor and highly variable.
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