National Improvement and Efficiency Partnership Built Environment Conference Local Solutions for a New Era 28th September 2010

Agenda 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 Building on the nine Improvement and Efficiency Partnerships (IEPS) Demonstrating local government sector leadership and collaborative working in different geography. Raising the performance bar and becoming a stronger voice with central government and the private sector. Developing new procurement models for adoption Developing the Collaborative Education Partnership (CEP) Actively joint working in SW, SE, London and NE Local Solutions for a New Era

Hampshire County Council’s HQ Refurbishment 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 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 Local Solutions for a New Era

Primary Schools Programme Local Solutions for a New Era

One School Pathfinder Programme Cressex - Bucks Manor Green - RBWM Bexhill – East Sussex Bognor – West Sussex St Bart's – West Berks Teddington – LB Richmond Loxford – LB Redbridge Garth Hill, Bracknell Forest 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 £ benefits Savings equal one new care home Example of a joined up programme 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 Opportunities Understand need Shared services Assets and capital assessed Driver for strategic procurement programme which could include greening agenda SMEs and apprentices 20%+ Reduced need Construction, procurement, Source: SE RIEP /Reading BC estimate Commissioning approach Two tier cost reduction examples Ten year IT deal across two tiers with Virgin Havant Public Services Village – shared services savings 20% + 10-15% Construction, procurement Source: HCC Care Home case study Opportunities Economic development Inter authority collaboration Joined up programme (multi projects) Joined up programme (multi projects) Opportunities lost as time passes 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 2-5% Construction, procurement Source: SE RIEP Opportunities Better delivery Predictability One off project One off project One off project Elapsed time Time Local Solutions for a New Era

How to do it? Local Solutions for a New Era

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. Local Solutions for a New Era

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 Asset Management Corporate 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 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 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