PFI Prison Expiry and Transfer Tranche 3

Government Transformation and Service Delivery

Record date: 31 March 2026

Whole-life cost: £3.3bn
Published schedule: 15/12/2022 – 31/07/2029
NISTA delivery confidence: Not disclosed
Senior responsible owner: James Smith

What the project is for

The PFI Tranche 3 Project will oversee the exit and transfer of operational services at HMP Dovegate, HMP Doncaster, HMP Oakwood and HMP Rye Hill in a safe, effective and efficient manner. The Tranche 3 project includes the re-procurement of the Prison Operator Services Framework to ensure that HMPPS continues to have an efficient vehicle for delivering operator competitions. The project also includes delivery of up to 345 prisoner places through the construction of an additional houseblock at HMP & YOI Parc.

Departmental delivery commentary

Compared to financial year 24/25-Q4, the NISTA Delivery Confidence Assessment (DCA) rating at 25/26-Q4 has remained at Amber. This is primarily due to the addition of the HMP Rye Hill houseblock to project scope, and ongoing costing and scheduling challenges which continue in HMP & YOI Parc.

Schedule

Compared to financial year 24/25-Q4, the project's end date at 25/26-Q4 has increased from 28/01/28 to 31/07/29. This is primarily due to the addition of remaining HMP Rye Hill activity to project scope, and the need to finalise the schedule for the HMP & YOI Parc Houseblock.

Cost

Compared to financial year 24/25-Q4, the project's Whole Life Costs at 25/26-Q4 decreased from £4,614.55m to £3,335.69m. This is primarily due to successful procurement competitions yielding savings against forecasted affordability thresholds. This figure does not reflect the transfer of HMP Rye Hill competition re-run. All costs have been reported in 2024/25 base prices in line with NISTA requirements. This is a change from previous years where costs were reported in nominal prices. All costs reflect this accounting reduction regardless of any actual changes.

Benefits

This project currently reports no monetised benefits. The project seeks to realise efficiencies in future operating costs following the transfer of service to new operator contracts when compared to the PFI contracts. The project benefits also include the focus on the continued quality of service across the PFI contracts until expiry, and following the transfer of service, improvements in service quality in the new contract in line with the key Departmental priorities.