To ask the Secretary of State for Justice under the Government's Transforming Rehabilitation proposals, what the outcome would be if one of the tier one providers in the Community Rehabilitation Companies under Transforming Rehabilitation was to (a) go into receivership and (b) be taken over by another organisation which failed to meet the Government's suitability criteria.
We have a robust and diverse market. During the Pre-Qualification Questionnaire (PQQ) stage of the competition, we tested providers rigorously against a number of criteria, including Economic and Financial Standing, to determine Potential Bidders’ ability to fund a proposed contract. In mid December 2013, the bidders who passed this eligibility test were announced. The list includes a mix of private and voluntary sector partnerships with more than 50 organisations represented – from charities experienced in tackling a range of issues affecting offenders, to small and large British businesses and experienced multinationals. All of these Tier One bidders have experience in working with offenders or across the wider Criminal Justice System.
We do not anticipate supplier failure, but contracts will have the full range of remedies in the case of failure; up to and including contract termination in the case of insolvency, default or persistent breach. NOMS will be able to exercise step-in rights, for example in the case of a breach that materially affects the performance or services, and the NPS will ensure we retain this expertise in the public sector. The contract allows for discussions with another CRC provider to be brought in as provider of last resort in the event that the initial provider fails. No change of ownership may occur without the prior written consent of the Authority, and we would exercise those rights to ensure our stringent suitability criteria are met before the initial provider was taken over.
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