2017 Report details for project: New Employment Model

Project name: New Employment Model - there are 5 reports for this project: 2013, 2014, 2015, 2016, 2017
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Organisation: MOD (D17) - see all reports for this organisation
Report year: 2017 (data is from Sept 2016)
Category: Transformation - see all reports for this category
Description: To design and deliver a New Employment Model for Regular and Reserve Service Personnel.
DCA (RAG): Amber/Green
DCA text: The programme has worked closely with both the Infrastructure Projects Authority and Defence Portfolio and Approvals Secretariat in 2016/17 which culminated in the exit of NEM from both the Government and Defence Major Project Portfolio’s in Dec 2016. This recognised the progress NEM has made and reflects the robust plans in place to close the programme by end of Dec 2017. NEM was not a savings exercise, rather its objective was to modernise the offer (supporting lifestyle choice and domestic stability) while also fixing elements of policy that were proving a known barrier to retention. It has delivered a suite of projects (initiated in SDSR10) that has delivered positive changes to the terms and conditions of service for Armed Forces personnel. Now in the final stages of delivery, having implemented the majority of its components, the programme is expected to close by the end of 2017, with transition continuing to the nominal end-of-life of the programme in 2020 and beyond.
Start date: 2011-05-02
End date: 2021-10-01
Schedule text: The original programme baseline date for closure of the programme was 1 Oct 2021, reflecting the inclusion of transition protection and benefit realisation monitoring activity within plans; however with the establishment of a central Programme Management Office supporting the People Portfolio, the programme is able to release its remaining resource and handover benefits realisation monitoring to business as usual mechanisms earlier than originally anticipated. However, many of the benefits of NEM will not be fully realised for a number of years and this is reflected in the business case which details a 10 year benefit profile to 2020/21.
Baseline: £95.15m
Forecast: £92.37m
Variance: -3.00%
Variance text: Budget Variance less than 5%
Whole Life Cost: £211.07m
WLCost text: The Whole Life Costs of £211.07m reflects an amalgam of staff costs, IT change budget, costs incurred by DIO to conduct accommodation surveys, external support/assistance and costs to provide pay protection for those moving to the new pay model. In 2016/17 the programme will underspend by a total of £2.78m against the original in year baseline, and by an estimated £13.09m (6.2%) over the full 10 year profile. This is due mainly to scope change and the lack of IT reference data which led to an over estimation of costs.
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Sourcefile: IPA_2017.csv

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