2013 Report details for project: Shared Services Futures Project

Project name: Shared Services Futures Project - there is only one report for this project
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Organisation: DFT (D9) - see all reports for this organisation
Report year: 2013 (data is from Sept 2012)
Category: Transformation - see all reports for this category
Description: The Shared Services Futures (SSF) project was established to develop, evaluate and deliver a new approach to the future sourcing of back office shared services functions by the Department for Transport (including its Executive Agencies). The DfT Board confirmed in April 2010 that running shared services is not “core business” for the DfT and subsequently the SSF Project was set up. Phase 1 of the project (August-November 2010) considered the potential for transfer to another Government Department or the private sector – as well as a base case of continued in-house provision. After Phase 1 the Project Board recommend to the DfT Board progressing divestment as a preferred option for the Shared Service centre subject to market testing. The DfT Board decided on the 9th December 2010 that its preferred option would be to sell Shared Services to a private sector provider. In taking this decision, the Board has committed to buying Shared Services from the new owner for up to 10 years and plan to require the new owner to retain a significant presence in Swansea. The Project is undertaking a competitive dialogue to deliver its chosen provider. Following a procurement process, 3 preferred bidders were chosen in late 2011 and Competitive Dialogue started in February 2012. This process is due complete in October 2012 and contract award is targeted for December 2012. The SSF project is also a key deliverable for the Next Generation Shared Services Programme (NGSS) which is managed by the Cabinet Office. This Programme is focused on the centralisation of transactional functions for Finance, HR, Payroll and Procurement into 2 Independent Shared Service Centres (ISSC). SSF will therefore be ISSC 1 and it is currently planned that the centre will include a low cost type ERP option, with smaller government departments joining this centre through using a call off arrangement. The key objectives are to identify and deliver an approach to the future provision of back office shared services to the Department which offer increased value for money by: a) delivering the required services and maintaining acceptable minimum quality levels (“delivers acceptable service”); b) standardising processes and outcomes sought from shared services wherever realistically possible, affordable and cost effective including through minimising and prioritising change requests (“standardised approach”); c) reducing significantly the management time and attention devoted to, and the need for future up front capital investment in, shared services provision (“reduces demands on DfT”); d) achieving material and continued overall cost savings within the current (2011/12-2014/15) and subsequent spending periods (“achieves cost efficiency”); e) minimising the risk to ongoing service delivery (“offers acceptable risk”); and which is also f) Consistent with wider Government initiatives and so supported by the Efficiency and Reform Group (“consistent with wider objectives”).
DCA (RAG): Amber/Red
DCA text: As a project we produced a detailed Project Plan that gave us a critical path to project end, specifically taking into account the approvals process in the run up to contract award. This would ensure a more effective approach to planning and delivery.
Start date: 2010-12-10
End date: 2014-12-31
Schedule text: There was some slippage in the Project, but that was predominantly down to lack of resource i.e. we had a very small team operating in many workstreams at one time. However, with the use of the aforementioned project plan, we can ensure committing to the contract award date.
Baseline: £0.50m
Forecast: £0.50m
Variance: 0.00%
Variance text:
Whole Life Cost: £3.20m
WLCost text: A large majority of our admin budget was on consultancy spend; we were aware that these costs would increase in the run up to project end but we foresaw no consultancy spend in the next financial year. This would allow us to manage our budget more effectively going forward.
Notes1:
Notes2:
Sourcefile: DFT_2013.csv

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