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The justice secretary told MPs that both Serco and G4S, two of the government's largest private-sector suppliers, had withdrawn their bids to be lead providers in the privatisation of the probation service.
The decision by Serco and G4S to withdraw as "lead providers" from the competition to privatise 70% of the work of the probation service is a setback to the government's plans to introduce its rehabilitation reforms by the next election.
Brokers, Referral and Lead Providers This code of ethics and excellence should not be limited to the industry players, but those they play with too.
Labeling TB strains as totally drug resistant might lead providers to think infected patients are untreatable.
Over-emphasis on substance use could negatively affect clinical care and patient outcomes, as it may lead providers to wrongfully "profile" certain patients who have a history of substance abuse but who also have numerous protective factors.
Funding requirements to use EBTs combined with concerns about their applicability lead providers to feel "pushed into a corner" (Region F, Focus Group 3) and additionally burdened by treatment requirements that do not fit clients' needs.
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The commercial providers in the running for the sought-after "lead provider" contract are Capita and a consortium led by UnitedHealth that includes its lobbying agency Hanover Media, KPMG and BT.
RealD, a California company that is the lead provider of 3-D technology for theaters, last week demonstrated a similar product for televisions at the Consumer Electronics Show in Las Vegas.
But Chris Ham, chief executive of the King's Fund, says a more integrated model will need to be supported by commissioning that makes use of alliance contracts, prime provider and lead provider contracts.
Another option could be the fashionable accountable care organisation (ACO) model whereby a commissioner contracts with one lead provider to ensure the delivery of an agreed domain of activity.
NHS England wants all CCGs to have formally tendered for commissioning support by April of this year via its lead provider framework, but few are likely to comply despite threats of breaching procurement law.
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CEO of Professional Science Editing for Scientists @ prosciediting.com