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Total Improvement “changing times, changing minds” Andrew Smith, Chief Executive

Total Improvement “changing times, changing minds” Andrew Smith, Chief Executive Hampshire County Council. The Big Idea. Procure once on behalf of many (50 authorities) Get collaboration and aggregation benefits (£2bn of leverage – 10% savings, 142 projects)

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Total Improvement “changing times, changing minds” Andrew Smith, Chief Executive

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  1. Total Improvement “changing times, changing minds” Andrew Smith, Chief Executive Hampshire County Council

  2. The Big Idea • Procure once on behalf of many (50 authorities) • Get collaboration and aggregation benefits (£2bn of leverage – 10% savings, 142 projects) • Invest in supply chain management not just top line cost • Build national leadership – further leverage • Leave local choice in place • Sponsored by CLG

  3. £ benefits Savings equal one new care home Example of a joined up programme Hampshire County Council (HCC) saved £6million on a 10 care homes/£60 million programme by utilising common design, procurement, via a construction framework, and supply chain strategy methodology.  Benefits only possible because of the whole programme approach and application of lessons learnt • Opportunities • Understand need • Shared services • Assets and capital assessed • Driver for strategic procurement programme which could include greening agenda SMEs and apprentices 20%+ Reduced need Construction, procurement, Source: SE RIEP /Reading BC estimate Commissioning approach Two tier cost reduction examples Ten year IT deal across two tiers with Virgin Havant Public Services Village – shared services savings 20% + 10-15% Construction, procurement Source: HCC Care Home case study • Opportunities • Economic development • Inter authority collaboration Joined up programme (multi projects) Joined up programme (multi projects) Opportunities lost as time passes • Scaling up resulted in: • 10% saving of construction cost • Net cost saving of £150/m2 • Halving of pre construction periods • c. 40% saving in professional time 2-5% Construction, procurement Source: SE RIEP • Opportunities • Better delivery • Predictability One off project One off project One off project 0 Elapsed time Time

  4. Hampshire County Council’s HQ Refurbishment • Collaborative procurement • Design team hand-picked using existing framework arrangements and OJEU competitive tender. • HCC/MACE/Bennetts undertaking programme and change management, FF&E design, move management and facilities management in-house. • Early engagement with the main contractor on completion of the feasibility stage. • Staff Benefits • 100% staff satisfaction • Improved productivity and communication • Moved from 1:1 to 3:2 • Asset rationalisation • 75% more staff accommodated • 30% more space efficient (staff per floor area) • 4500m2 reduction in the council’s use of office space • £200,000 per annum on running costs • 50% reduction in energy costs

  5. NIEP for the Built Environment Workstreams

  6. How to do it?

  7. The Barriers • Council sovereignty • ‘not invented here’ • Local capacity • Supply chain management behaviour • Collaborative arrangements do not exist The obstacles are not technical. Local Government can now define, procure and deliver some of the most complicated projects in government.

  8. Can the model be replicated - adopted for wider use? If so, where?

  9. Follow the money … Construction Asset Management Corporate services Social care Waste 50% of spend is through third party suppliers External spend for public sector in England is £221bn… of which £50bn is local government 96% of our external spend is in 4 areas

  10. Possible direction of travel

  11. Are there any real barriers to collaboration locally and nationally?

  12. Opportunities • Benefits of aggregation • Reshape the market • Savings / efficiency – dialogue with supply chain • Local government leadership of national programme • Local choice • Cross departmental and organisational working/geography

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