27 January

The first step towards contract managing a prison has been made with the release of a Request for Information by Corrections Chief Executive Barry Matthews.

Mr Matthews says the Request For Information initiates Corrections’ process to select a contractor to manage a prison operated by the Department. The site has yet to be determined.

The Government is looking to the private sector to bring world-wide expertise and increased innovation and efficiency to the New Zealand prison system and to share improvements across the Corrections system.

Parliament last year passed legislation which enables the operation of a prison to be contract managed on a case-by-case basis.

The Minister has two preferred sites. Corrections is currently consulting with staff, unions, Māori and other key stakeholders on the proposal to contract manage the Mt Eden/ Auckland Central Remand Prison. The Minister’s other preference is a proposed new prison in South Auckland.

“We are looking for experienced and innovative companies to tender on a stand-alone basis, or to partner with other, possibly local, companies.”

Potential providers will need to supply a range of information about their financial status, legal reputation, and their previous experience including with indigenous populations.

“Companies will need to have extensive experience and a proven track record. Prisons are complex, high-risk organisations and the safety of the public, staff, and other prisoners will be a key consideration when shortlisting providers.”

Contractors will need to maintain at least the same standards as those being achieved at Corrections prisons, and employ sufficient suitable staff to meet their legal and contractual obligations.
 
The RFI also invites other parties that are interested in contributing to the contract management of a New Zealand prison to respond. Their expressions of interest will be passed onto experienced short-listed prison management companies.

The RFI is available on GETS (www.gets.govt.nz) and responses are due on 1 March 2010.

For further information, contact the Communications Desk, Department of Corrections, Phone: (04) 460 3365, After hours: (021) 761 828, Email: commdesk@corrections.govt.nz

Note to reporters:

• Contract management was previously used at the Auckland Central Remand Prison between 2000-2005, until the legislation was repealed by the then government
   
• The Department of Corrections operates 20 prisons, currently holding 8,251 prisoners
   
• The RFI document describes the policy and Corrections environment in New Zealand. It identifies the key attributes sought from contract managers and requests evidence to demonstrate them. It also sets out the procurement process that will be used and how the department will evaluate and shortlist parties.
   
• Contract management is used in similar countries to New Zealand:
  • Australia has used contract management for twenty years and about eight prisons are contracted out, including four out of 13 prisons in Victoria. In October the New South Wales state government announced that an existing publicly managed prison would be contract managed.
     
  • The United States introduced contract management in 1992 and today over 100 prisons are privately managed. Contract management was first used in the United Kingdom in 1992 and today involves about a dozen prisons.

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