Total Improvement

“changing times, changing minds”

Andrew Smith, Chief ExecutiveHampshire County Council

• 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

The Big Idea

£ benefits

Time

0Elapsed time

Commissioning

approach

One off

project

Joined

up

programme

(multi

projects)

Joined

up

programme

(multi

projects)

One off

project

One off

project

2-5%Construction,

procurement

Source:

SE RIEP

10-15%Construction,

procurement

Source:

HCC

Care Home

case study

20%+Reduced need

Construction,

procurement,

Source:

SE RIEP

/Reading

BC estimate

Opportunities• Understand need• Shared services• Assets and capital assessed• Driver for strategic

procurement programme which could include greening agenda SMEs and apprentices

Opportunities• Economic

development• Inter authority

collaboration

Opportunities• Better delivery• Predictability

Savings equal one new care homeExample 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

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

Opportunities

lost as time passes

Two tier cost reduction examples

Ten year IT deal across two tiers with Virgin

Havant Public Services Village – shared services savings 20% +

Hampshire County Council’s HQ Refurbishment

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

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

NIEP for the Built Environment Workstreams

How to do it?

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.

Can the model be replicated - adopted for wider use?

If so, where?

Follow the money …• 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

WasteConstruction Asset Management

Corporateservices

Social care

Possible direction of travel

Are there any real barriers to collaboration locally and

nationally?

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