|Project name: ||Logistics Commodities Services Transformation - there are 6 reports for this project: 2013, 2014, 2015, 2016, 2017, 2018 |
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|Organisation: ||MOD (D17) - see all reports for this organisation |
|Report year: ||2016 (data is from Sept 2015) |
|Category: ||Military - see all reports for this category |
|Description: ||The Logistics, Commodities and Services (LCS) Operating Centre in MOD provides commodity procurement, storage and distribution services for the Armed Forces. The LCS(T) programme is designed to undertake a major reform of the LCS, developing a service of the right size for current military requirements and reducing cost through upgrades to both the inadequate current facilities, and the modernisation of the processes in operation. |
|DCA (RAG): ||Amber |
|DCA text: ||Good progress continues to be made in regard to programme delivery. Service Commencement Date (SCD) was reached, as planned, on 1 August 2015 with nearly 1200 staff (1600 posts) transferring to the LCS(T) Delivery Partner (Team Leidos). Unions noted the TUPE transfer as an example of best practice.
Prior to proceeding with SCD, a Readiness Checkpoint Review (RCR) was undertaken to confirm that both parties were ready to proceed and that there was no increased risk to operational output. The RCR was conducted in early July, with the IPA providing independent assurance, and reported to a specially convened principals meeting prior to 1 August 2015. On the basis of the review's findings the recommendation was to proceed to SCD as planned. The programme was reviewed in February 2016 and a further review is planned for July 2016.
Recruitment to the Commissioning and Management Organisation(CMO) is progressing well with all posts now being covered (either on a permanent or temporary basis) and the permanent Head of the CMO has been appointed.
Building of the Defence Fulfilment Centre commenced 16 October 2015, this is a two month slip in the build programme and will result in a rephrasing of Capital Expenditure costs across financial years FY15/16 and FY16/17.
Given the continued progress the team is confident that the programme will deliver the benefits identified in the Main Gate Business. However the transition required is complex. |
|Start date: ||2011-08-01 |
|End date: ||2018-02-01 |
|Schedule text: ||The Business Case was approved by the MOD's Investment Appraisal Committee and the Defence Board in January 2015. Original Outsourcing Service Commencement Date (SCD) per the Main Gate Business Case was 01/07/15, actual SCD was 01/08/15. |
|Baseline: ||£113.52m |
|Forecast: ||£119.29m |
|Variance: ||5.08% |
|Variance text: ||At 30/09/15, the FY15/16 Forecast expenditure was expected to reflect a £5.8m acceleration of costs on the Defence Fulfilment Centre (DFC), however, at the time of writing a delay to commencement date of the build will lead to a £27m underspend in FY15/16 with expenditure slipping to FY16/17. The DFC is Firm priced, so the re-profiling from FY15/16 to FY16/17 does not impact the overall cost to the project. |
|Whole Life Cost: ||£652.42m |
|WLCost text: ||Total whole life implementation costs are Forecast at £647m, reflecting a small reduction from the Allocated Budget of £652m.
Forecast net benefits over the 13 Year appraisal period of £402m reflects an improvement on the Target net benefits of £336m. This largely arises from reprofiling an element of the Service Delivery Benefits. |
|Notes1: || |
|Notes2: || |
|Sourcefile: ||IPA_2016.csv |
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Acknowledgement: GMPP data has been re-used under the Open Government Licence.