Both the STEPS Project Team and the Estates and Contract Management Unit are examples of closer working. The Departments have benefited from the interchange of knowledge and skills and the management of a joint estate. In addition, STEPS has also promoted joint working between the Departments' internal audit teams, with joint audit reporting on the STEPS deal. On 17th March, the Chancellor of the Exchequer announced the re-organisation of the Departments into a single organisation. Any accommodation aspects that emerge during this process will be facilitated by the STEPS deal.
7 |
| Flexibility allowances in the contract |
| Category | Area | % of total estate | Vacation allowances per year (square metres) | Period |
| Flexible |
|
|
|
|
| Vacation at nil cost within specified allowances | 175,000 | 13 | 2,500 | Year 1 |
| Intermediate |
|
|
|
|
| Primary focus on first 5 years. No cost if vacation takes place on or after the date specified. Payment of unavoidable costs if early vacation. | 212,000 | 16 | Varies | Year of transition (varies from property to property) |
| Core |
|
|
|
|
| Occupancy is expected for the full 20 years of the contract but can still vacate within specified allowances | 969,000 | 71 | Nil | Years 1-3
|
| NOTES Annual allowances operate on a cumulative basis, so any part not used can be carried forward to the following year. Unavoidable costs are costs that the contractor may expect to face as a result of the Departments vacating the facility - for example, the costs associated with subletting or re-assigning the lease, or a payment to the landlord for early surrender of the lease. Under the STEPS contract (schedule 14), the Departments will not have to pay any unavoidable costs, where properties are vacated within the contractual allowances. Where Departments decide to vacate core facilities beyond agreed allowances an overhead compensation amount becomes payable. |
| Source: Inland Revenue and HM Customs and Excise |