2015 Report details for project: Shared Services Implementation Programme

Project name: Shared Services Implementation Programme - there are 4 reports for this project: 2014, 2015, 2016, 2017
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Organisation: DFT (D9) - see all reports for this organisation
Report year: 2015 (data is from Sept 2014)
Category: ICT - see all reports for this category
Description: The Shared Services Implementation Programme (SSIP), follows on from the successfully completed work of the Shared Services Futures Project which facilitated procurement and contract award (February 2013) for the future provision of back office shared services functions to the Department for Transport (including its Executive Agencies). Following the latter procurement process, three preferred bidders were chosen in late 2011 and Competitive Dialogue started in February 2012. Dialogue concluded and final tenders were received, evaluated and Preferred Bidder announced in December 2012. The Full Business Case was approved by the DfT Board Investment & Commercial Committee (BICC), Ministers and HM Treasury by 15 February 2013. On 28 February, the contract was awarded to arvato (part of the Bertlesman Group). The SSIP is 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).Divestment of the DfT SSC will form ISSC 1 (June 2013). The Shared Services Implementation Programme will facilitate a phased migration of DfT Business Units to the Provider's new solution, with all DfT Business Units initially scheduled to be on the new system by October 2014.
DCA (RAG): Amber/Red
DCA text: The overall Programme schedule had been delayed due to issues identified during user testing of the system. However, since September 2014 good progress has been made, following an updated delivery plan introduced in August 2014. o The plan now focuses on moving a single business unit during the initial phase, rather than multiple migrations; o The introduction of more detailed contractualised arrangements for specification and delivery tracking of key products; and o improved task monitoring arrangements. There will be further refinement of the client migration model to minimise complications associated to later phases of the overall programme.
Start date: 2010-12-10
End date: 2015-10-01
Schedule text: The remaining programme deliverables will be subject to continuing close supervision and monitoring.
Baseline: £21.70m
Forecast: £23.91m
Variance: 10.20%
Variance text: Financial variance has resulted from the re-planned timelines for delivery of the various tranches of migrations to Shared Services, brought about by the client readying of the systems solution and the testing of that system by migrators to determine the change management impacts and internal training requirements to adopt the new procedures and procedures. The consequence has been that individual DfT business units have had to maintain their respective project delivery team longer than originally intended, but these relatively minor costs have been off-set by negated operational running costs of the new system, which are proportionately higher for the initial migrations.
Whole Life Cost: £222.27m
WLCost text: The Financial benefits have been calculated by taking the cost of services if the Shared Service centre remained in DfT ownership (Budget) and cost for core service under the divestment case (F/C) and comparing the difference. There are a number of benefits which have not been monetised in the business case including avoided costs, for example MCA would need to spend c£6m to upgrade its IT system if it did not migrate to ISSC1. Soft benefits have not been monetised. The remainder is the aggregate costs over the remaining 5 years
Sourcefile: IPA_2015.csv

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Acknowledgement: GMPP data has been re-used under the Open Government Licence.