Transcript Slide 1

National Improvement and
Efficiency Partnership
National Improvement and Efficiency Partnership
Built Environment Conference
Local Solutions for a New Era
28th September 2010
Agenda
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Chair’s Opening Address
Irene Lucas, Acting Permanent Secretary, CLG
Baroness Hanham, Parliamentary Under Secretary of State, CLG
Procurement and Skills
Workstream Workshop Briefing
Lunch
Workstream Workshop Sessions
Feedback from Workshops
Helen Bailey, Director of Public Services, HM Treasury
Paul Morrell, Chief Construction Advisor, BIS
Q&A Panel
Chair’s Concluding Summary
Local Solutions for a New Era
Andrew Smith
Chief Executive, Hampshire County Council
• An opportunity to hear developing policy from the Minister
• Link central government efficiency and spending
proposals with local government responses
• Facilitate new thinking and behaviours in built
environment solutions: “Asset Reduction Boom”
• Offer cross-council collaboration and learning
• Introduce the National Productivity Workstream:
Procurement, Capital and Shared Assets
Local Solutions for a New Era
The starting point: solution for the South East
HCC as the Lead Authority for IESE
• Employs own professional
teams; e.g. 70 no. architects
• Owns 5,000 assets
• Historically had variable
experience of contractors
• So put in place Hants
frameworks and ran for 4
years
• Operated to an open &
collaborative ethos
…so scaled the Hants.
regional framework to serve the SE
region as IESE
Local Solutions for a New Era
The Development of IESE Workstreams
• Managed Construction Frameworks – Developed capacity
that could be scaled up
• Clusters – Delivered it from different councils
• Consultancy – Located in councils
• Asset Management – Recognised the contribution to
efficiencies
• Common supply chains and standards – Search for costs
• Highways Frameworks and Asset Management
• Critical friend expertise
Local Solutions for a New Era
Benefits Evidencing
• Better quality projects for less
• Initial savings have been identified of
£78m on £1.9bn or 4.1%
Local Solutions for a New Era
Map of Authorities
IESE region contains;
7 counties
12 unitaries
= 74 authorities
55 districts
Plus; 5 police authorities, 8 Fire Authorities,
FE Colleges, Universities…
The creation of the NIEP
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Building on the nine Improvement and Efficiency
Partnerships (IEPS)
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Demonstrating local government sector
leadership and collaborative working in different
geography.
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Raising the performance bar and becoming a
stronger voice with central government and the
private sector.
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Developing new procurement models for adoption
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Developing the Collaborative Education
Partnership (CEP)
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Actively joint working in SW, SE, London and NE
Local Solutions for a New Era
Hampshire County Council’s HQ Refurbishment
Collaborative procurement
Asset rationalisation
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75% more staff accommodated
30% more space efficient
(staff per floor area)
4500m2 reduction in the council’s
use of office space
£200,000 per annum on running
costs
50% reduction in energy costs
• Design team hand-picked using existing
framework arrangements and OJEU
competitive tender.
• HCC/MACE/Bennetts undertaking
programme and change management,
FF&E design, move management and
facilities management
in-house.
• Early engagement with the main
contractor on completion of the feasibility
stage.
Staff Benefits
• 100% staff satisfaction
• Improved productivity and communication
• Moved from 1:1 to 3:2
Local Solutions for a New Era
Primary Schools Programme
Local Solutions for a New Era
One School Pathfinder Programme
Manor Green - RBWM
Bexhill – East Sussex
Bognor – West Sussex
St Bart's – West Berks
Teddington – LB Richmond
Loxford – LB Redbridge
Garth Hill, Bracknell Forest
Cressex - Bucks
Local Solutions for a New Era
Advantages for authorities
• Provides a route map to save money: scale the activity up
• Collaboration reduces duplicated effort and cost: developed once
and rolled out to many
• Proven delivery
• Accelerates learning: overcomes capacity issues
• Actively helps new less expert clients
• Builds expert capacity and partnership
• Promotes local control
• Benefits accrue to all authorities
Local Solutions for a New Era
NIEP for the Built Environment Workstreams
Local Solutions for a New Era
Improvement and Efficiency South East
National Improvement and Efficiency Partnership
Chair’s Concluding Summary
Local Solutions for a New Era
Accelerating the learning
Local Authorities
Benefit
Learning
Local Solutions for a New Era
Integration of Capital and Assets
Savings equal one new care home
Example of a joined up programme
£ benefits
20%+
Reduced need
Construction,
procurement,
Source:
SE RIEP
/Reading
BC estimate
10-15%
Construction,
procurement
Source:
HCC
Care Home
case study
2-5%
Construction,
procurement
Source:
SE RIEP
Opportunities
Hampshire County Council (HCC) saved £6million on a 10
• Understand need
care homes/£60 million programme by utilising common
• Shared services
design, procurement, via a construction framework, and
• Assets and capital assessed
supply chain strategy methodology. Benefits only possible
• Driver for strategic
because of the whole programme approach and
procurement programme
Commissioning
application of lessons learnt
which
could
include
greening
approach
agenda SMEs and
apprentices
Two tier cost reduction examples
Opportunities
• Economic
Joined
Joined
Ten year IT deal across two tiers with
development
up
up
Virgin
• Inter authority
programme
programme
Havant Public Services Village – shared
collaboration
(multi
(multi
services savings 20% +
Opportunities
projects)
projects)
lost as time passes
Scaling up resulted in:
• 10% saving of construction cost
Opportunities
• Net cost saving of £150/m2
One off
One off
One off
• Better delivery
• Halving of pre construction periods
project
project
project
• Predictability
• c. 40% saving in professional time
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Elapsed time
Time
Local Solutions for a New Era
How to do it?
Local Solutions for a New Era
The Barriers
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Council sovereignty
‘Not invented here’
Local capacity
Supply chain management behaviour
Collaborative arrangements do not exist
The obstacles are not technical. Local Government can now
define, procure and deliver some of the most complicated
projects in government.
Local Solutions for a New Era
Can the model be replicated - adopted for wider use?
If so, where?
Follow the money …
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50% of spend is through third party suppliers
External spend for public sector in England is £221bn…
of which £50bn is local government
96% of our external spend is in 4 areas
Construction
Corporate
Asset Management services
Social care
Waste
Local Solutions for a New Era
Are there any real barriers to collaboration locally
and nationally?
Local Solutions for a New Era
National Productivity Workstream
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Built on the success of the NIEP
Led by Andrew Smith, Chief Executive HCC
Procurement, Capital and Shared Assets
Represents half of total local government spend
Cross sector membership
Route maps to deliver efficiencies
New models of delivery
What should you do?
Local Solutions for a New Era
Ten key actions
• Carry out a spend analysis
• Develop a procurement plan – or borrow someone else’s
capacity
• Use someone else’s capacity or build it collaboratively
• Aggregate your expenditure and use existing commodity
arrangements – think years rather than months
• Develop an asset reduction strategy:
– utlise space
– reduce occupancy
– share accommodation, management, assets, people and
services
Local Solutions for a New Era
Ten key actions
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Use existing templates: originality is expensive!
If you haven’t got the capacity find a partner
Collaborate – helps aggregation leverage
Analyse prices and specifications
Manage demand – do you need it in the first place?
Local Solutions for a New Era