|Project name: ||DWP People and Locations Programme - there are 2 reports for this project: 2017, 2018 |
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|Organisation: ||DWP (D10) - see all reports for this organisation |
|Report year: ||2018 (data is from Sept 2017) |
|Category: ||Transformation - see all reports for this category |
|Description: ||Designing and delivering a blueprint of our people, teams and locations in 2018 and beyond while optimising the space we use, as we exit the current estates PRIME contract and take on new contractual arrangements from April 2018.
The Programme will deliver a right sized estate. This will meet current and future business needs, refreshing and redesigning, where appropriate, office environments to support more flexible and new ways of working. It will do this whilst addressing underutilisation of around 30% of paid space that has built up throughout the PRIME contract.
Based on the current set of assumptions we are aiming to deliver a saving for the Department on estate running costs in excess of £100m per annum averaged over ten years, from April 2018. This will be achieved through a combination of paying for less space, cheaper rents and new facilities management arrangements; all in line with the Government future estates strategy. In addition, the Programme is an enabler of wider transformation of the Department, including Smart Working and modernising our estate.
The Programme is complying with Section 1.06.1 of accompanying GMPP guidance regarding Ministerial request for confirmation of programmes with a steel component. |
|DCA (RAG): ||Amber/Red |
|DCA text: ||All but 2 x recommendations from the IPA Project Assessment Reviews (PARs) and Major Projects Review Group (MPRG) prior to June 2017 have been completed/actioned. Those carried forward were:
The formal sign-off of lease agreements needs to be completed at the optimum time and recognising value for money objectives. The PLP needs to ensure that, using appropriate management information, explicit decisions are made on the basis of trade-offs between the time available and the achievement of value for money.
PLP needs to de-risk the delivery of the procurement of the ETOM (Estates Target Operating Model). It should produce both a detailed procurement plan and TT (Telereal Trillium) exit strategy and develop a critical path. Working with partners, the PLP needs to identify and remove current significant barriers to progress by securing early additional resources and simplifying the procurement process. The PLP should ensure that appropriate contingencies are introduced and managed.
The June 2017 IPA brought a further 8 x recommendations which are being actively managed, with action managers appointed for each one. All 8 remained outstanding as at 30 September 2017. The recommendations from the June IPA were:
The Programme Team develops end to end plans for each individual site together with a robust integrated Programme plan including a Gantt chart with activities from other programmes where there are interdependencies.
Business Continuity plans, primarily for the Capex impacted sites, should be refreshed and or created to ensure fitness for purpose for the short to medium term.
The Programme Team to agree with internal and external approvals bodies the measures to streamline the approvals processes.
Review the Programme Board membership, presentation of Board papers including a dashboard and confirm/communicate the authority of the Programme Manager.
The resourcing of the retained function needs to commence in parallel to the PLP implementation to ensure the right level and type of specialist skills are secured to ensure a seamless handover at the point when the TT contract expires to ensure effective management and maintenance of the VFM driven from the TT exit.
The FBC needs to be updated to reflect full TUPE, contingency, business continuity and Furniture, Fixture and Equipment (FFE) costs and associated risks must be managed.
As roll out commences, monitor impact on staff and the business, particularly in the job centres/back of house to ensure lessons are learned and changes made for the ongoing roll out. This will include ensuring that people are given the right level/type of support to minimise the personal impact and consequent business disruption.
PLP should prioritise core elements of work against non-essential activities, outlining how the deprioritised activities could be delivered post PLP implementation, including SMART working.
There were a further 3 x recommendations from the 21 July MPRG, one of which was cleared by the end of June leaving the following outstanding as at 30 September: Programme to provide progress updates to MPRG in October on:
The Programmes end-to-end plans for each individual site and how delivery is progressing against the integrated programme plan, including where there are interdependencies with other programmes (particularly Universal Credit).
A summary of the Programmes detailed contingency of continuity plans and the associated DEL costs, assuming that the Programme continues to provide details of site by site planning in the Programme Board papers (should be noted by the HMT any AME costs are incurred).
The Departments plan for the estates and intelligent client function after March 2018, including the contractual relationships between that function, the integrator and the other pillars of the ETOM. This should include an explanation of the incentives that DWP are setting for each of the providers.
Monitored activity is on-going to ensure speedy clearance of all outstanding recommendations. |
|Start date: ||2015-11-19 |
|End date: ||2018-04-27 |
|Schedule text: ||The Programme remains confident it can successfully deliver and effective optimal estate for DWPs future business. This will be achieved whilst protecting customer service, protecting welfare reform, minimising the impact on our people and delivering cost efficiencies.
The PLP remained rated A/R following IPA and MPRG reviews in June and July 2017 respectively. There is acceptance this rating level was awarded due to programme scale and scope.
PLP continued to deliver despite many challenges, the complexity of the old and new commercial arrangements and movement of people to align with departmental strategies. There was significant delivery progress in Q2 17/18 with the Programme scaling up for core delivery to the end of the financial year. Also in this period, a range of contingency measures were agreed at the Programme Board to mitigate the risk to service delivery. These contingency options will be factored into the Departmental financial planning for both 2017/18 and 2018/19. They are also supported by a revised governance structure to ensure timely decision making. The measures may move the delivery of up to c50 offices into the period between October 2017 and April 2018, an increase on previous plans, but will be subject to further Programme Board agreement.
Planned office closures through to Spring 2018 were published on the departmental internet site in July. As the offices close, the number of unassigned people (at risk of redundancy) was found to be significantly lower than anticipated. By the end of Q2 Redeployment panels had already posted over 40% of those identified and were confident that impacts could be minimised. |
|Baseline: ||£329.80m |
|Forecast: ||£230.90m |
|Variance: ||-30.00% |
|Variance text: ||The Programme is now in delivery mode and the variance reflects movement in the delivery schedule with some costs slipping to 18/19 as the programme progresses. |
|Whole Life Cost: ||£5,903.78m |
|WLCost text: ||The increase in budgeted whole life costs is predominantly in recurrent costs. This is due to the slippage and needing to retain some contingency sites longer than originally expected |
|Notes1: || |
|Notes2: || |
|Sourcefile: ||IPA_2018.csv |
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