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

2. 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

3. 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

4. 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

5. 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

6. 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

7. Map of Authorities IESE region contains; 7 counties
12 unitaries = 74 authorities
55 districts
Plus; 5 police authorities, 8 Fire Authorities,
FE Colleges, Universities…

8. 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

9. 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

10. Primary Schools Programme
Local Solutions for a New Era

11. 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

12. 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

13. NIEP for the Built Environment Workstreams
Local Solutions for a New Era

14. Improvement and Efficiency South East
National Improvement and Efficiency Partnership
Chair’s Concluding Summary
Local Solutions for a New Era

15. Accelerating the learning
Local Authorities
Benefit
Learning
Local Solutions for a New Era

16. 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

17. How to do it?
Local Solutions for a New Era

18. 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

19. Can the model be replicated - adopted for wider use?
If so, where?

20. 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

21. Are there any real barriers to collaboration locally and nationally?
Local Solutions for a New Era

22. 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

23. 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

24. 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