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Public procurement Tim Banfield Director National Audit Office

Public procurement Tim Banfield Director National Audit Office. 27 June 2013. Four aspects:. Why projects matter for government; Our evaluative approach; How we are developing our skills; How we share insights. Why projects matter for government.

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Public procurement Tim Banfield Director National Audit Office

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  1. Public procurementTim Banfield Director National Audit Office 27 June 2013

  2. Four aspects: • Why projects matter for government; • Our evaluative approach; • How we are developing our skills; • How we share insights.

  3. Why projects matter for government • Projects are the currency to deliver change; • 95 percent of government policy is delivered through projects; • The majority of public sector projects do not deliver as expected; • Failures may relate to efficiency (ie not delivering to time/cost/performance) and/or effectiveness (not achieving the desired benefit/policy outcome); • The private sector isn’t much better.

  4. HMT £20m DCLG £115m MoD £150,782m DfID £423m ONS £521m FCO £713m GMPP £384 bn NS&I £840m CO £1,218m HMRC £1,221m DCMS £1,465m DECC £89,068m DEFRA £3,969m DfE £6,699m MoJ £7,736m DfT £46,970m HO HO £12,489m BiS DWP £26,506m £13,201m DoH £19,927m DWP £26951m DoH £20344

  5. Characteristics Contracting with powerful players Management and maintenance of current asset base Complex CBA Governance & accountability Resource constraints Financial management Business transformation Long supply chains Vested interests in projects • Strategically important programmes • High value/risk/ reward • Unique projects, complex & uncertain • Long-term horizons Providers of last resort for strategic national services Management challenges Decommissioning challenges Operational impacts, some managed through third parties Complex accounting Contingency planning and maintain/replace decisions

  6. There are plenty of examples of good project planning and execution……… Few could have envisaged how successful the London 2012 Games would turn out to be. The construction programme was completed on time and within budget, 11 million tickets were sold and our athletes excelled. Crucially, the Games passed off without major transport disruption or security incident. Taken as a whole, the Games were a success by any reasonable measure and it looks as if not all of the Funding Package will be used.

  7. Our evaluative approach

  8. How we look at project delivery (1) Value for money Desired Capability state Current State of Capability Delivery Environment & Complexity Influencing improvement

  9. Would you bet your own money on this project delivering the policy objectives There are ten factors common to projects. They provide a framework to: Understand the specific challenges the project faces; Assess whether the bespoke delivery approach proposed is realistic; Judge whether the project has a good chance of achieving its objectives. Source: NAO analysis of over 3,500 projects

  10. How we look at project delivery (2) Value for money Judgement Desired Capability state Current State of Capability Organisational Competency Delivery Environment & Complexity Portfolio Prioritisation and Management Individual Project & Programmes Intelligence on current portfolio of major projects • Knowledge Base • What works, fails, why and effect • Capability across government • Departmental assessments Influencing improvement

  11. How we are developing our skills

  12. Capability * Expert * Experienced Knowledgeable * Novice * Evaluation Point Time

  13. The Norwegian Approach

  14. How we share insights

  15. The range of assurance options

  16. Five factors influencing successful delivery

  17. Five key elements for initiating successful projects

  18. The 4 Pillars of the Major Projects Authority THE MPA LEADERSHIP ACADEMY GMPP GOVERNMENT MAJOR PROJECTS PORTFOLIO MAJOR PROJECTS LEADERSHIP ACADEMY OPERATING ENVIRONMENT ACHIEVEMENTS & LEARNING • Portfolio Management • On Time • On Budget • Delivering Specified Benefits • World class project leaders • Much improved outcomes • Value for money • Portfolio Management • On Time • On Budget • Delivering Specified Benefits • World class • project leaders • Much improved • outcomes • Value for • money • The ultimate • Approach • The ultimate • Structure • The ultimate • process • Interactive electronic dimension • Advanced access systems • Sophisticated alignment tool

  19. Thinking differently about success • 1. Outputs • Performance • Time • Cost • Quality • 2. Outcomes • How the project is used • Impact • Relevance • Take -up • 3. Benefits • What value is added to society (realisation of policy) • Sustainability • Satisfies needs • Economic effects

  20. Tim Banfield Tel: +44 20 7798 7662 Fax: +44 20 7798 7588 E-mail: tim.banfield@nao.gsi.gov.uk Website:www.nao.org.uk

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