Transcript Document
Total Improvement “changing times, changing minds” Andrew Smith, Chief Executive Hampshire County Council The Big Idea • Procure once on behalf of many (50 authorities) • Get collaboration and aggregation benefits (£2bn of leverage – 10% savings, 142 projects) • Invest in supply chain management not just top line cost • Build national leadership – further leverage • Leave local choice in place • Sponsored by CLG Savings equal one new care home Example of a joined up programme £ benefits 20%+ Reduced need Construction, procurement, Source: SE RIEP /Reading BC estimate Opportunities • Understand need • Shared services • Assets and capital assessed • Driver for strategic procurement programme which could include greening Commissioning agenda SMEs and approach apprentices Hampshire County Council (HCC) saved £6million on a 10 care homes/£60 million programme by utilising common design, procurement, via a construction framework, and supply chain strategy methodology. Benefits only possible because of the whole programme approach and application of lessons learnt Two tier cost reduction examples 10-15% Construction, procurement Joined up programme (multi projects) Source: HCC Care Home case study Joined up programme (multi projects) Opportunities • Economic development • Inter authority collaboration Opportunities lost as time passes 2-5% Construction, procurement One off project Source: SE RIEP One off project 0 One off project Elapsed time Time Ten year IT deal across two tiers with Virgin Havant Public Services Village – shared services savings 20% + Opportunities • Better delivery • Predictability Scaling up resulted in: • 10% saving of construction cost • Net cost saving of £150/m2 • Halving of pre construction periods • c. 40% saving in professional time Hampshire County Council’s HQ Refurbishment Asset rationalisation • 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 Collaborative procurement • 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 NIEP for the Built Environment Workstreams How to do it? The Barriers •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. Can the model be replicated adopted for wider use? If so, where? Follow the money … • • • • 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 Possible direction of travel Are there any real barriers to collaboration locally and nationally? Opportunities • • • • Benefits of aggregation Reshape the market Savings / efficiency – dialogue with supply chain Local government leadership of national programme • Local choice • Cross departmental and organisational working/geography