Reducing Reoffending – the bidding begins (Part 1)

The MoJ's highly anticipated Transforming Rehabilitation procurement was launched last week through the publication of the OJEU notice. Following extensive consultation, this programme will completely overhaul the current probation system through the introduction of payment-by-result contracts directly related to reductions in reoffending.

The following 5 points will be of interest to any organisation looking to seize this opportunity:

1. Contract Package Areas (CPA's)

England and Wales will be divided into 21 CPA's (each forming a "Lot" in the procurement). Full Lot details are set out in the OJEU notice with annual contract values ranging from approximately £12m million in Norfolk & Suffolk to £65 million in Metropolitan & City of London.

2. Term

Current indicative contract length is set to be between 7 and 10 years with an option for the MoJ to extend each contract for a further period of 3 years.

3. Conditions

Much of the detail is unknown at this stage however potential bidders will be interested to understand the implications of the right of audit conditions which require transparency of operational and financial data plus "unfettered access to all matters in respect of the contract".

We believe this to be a very onerous obligation which could result in a high level of commercial information becoming publicly available when winning bidders take ownership and begin running the Community Rehabilitation Companies (CRC's) due to the MoJ's plans to retain a 'golden share' in each CRC.

4. Procedure

The MoJ is intending to run a process similar to the EU's negotiated procedure. This may be familiar to some bidders however as the procurement concerns a mixed transaction containing Part B services the MoJ say that it may depart from the process at any time.

5. Registration

As the procurement progresses the MoJ has reserved its right to provide additional or new information to registered Bidders only and therefore it is important for interested organisations to get involved at this early stage.

Interested? Here's how you can get involved:

Tier 1 Providers (Prime Contractors)

Bidders are encouraged to register as soon as possible by e-mailing rpprocurement@justice.gsi.gov.uk as the deadline for submission of the Pre-Qualification Questionnaire is noon on 31st October 2013.

In our second instalment we will be providing a high level review of the PQQ documentation.

Tier 2 & 3 Providers (Sub-contractors)

The MoJ is simultaneously running a separate registration process for potential supply chain partners - organisations offering support services such as housing, education and employment are encouraged to visit [the MoJ's competition site  http://www.justice.gov.uk/transforming-rehabilitation/competition] for more information.

If you would like to discuss any of the points raised by this alert in more detail, please get in touch with one of the team.