APPENDIX TWO Partnerships for Schools' programme management

Programme management provided by Partnerships for Schools

Benefits of PfS as thProgramme Manager

 

Example

National Audit Office comment

PfS provides national leadership for the programme

  Accountability for the delivery of the programme lies with PfS' chief Executive

  Single gateway for the national programme

  Clear regional and thematic responsibilities within Senior management Team

  Champions programme in the media and with other stakeholders

PfS is clearly identified by all stakeholders as the driving force behind delivery of the programme. By providing a single point responsible and accountable for delivery of the programme it improves leadership, transparency and accountability and increases the long-term chances of the programme's success.

Skilled professional people

  Specialist staff on PFI, programme management, design, education, IcT, contracts and procurement

  Non-Executive Board members with relevant experience

  Incentive schemes tied to programme delivery

PfS provides a vehicle for attracting specialist staff, who would be difficult to fit into the general civil service structure.

PfS provides support for Local Authorities

  Standardised documents

  Strategy and procurement guidance

  Technical guidance

  Mediation and problem solving

PfS provides good overall support to Local Authorities planning or procuring their projects, but is not yet providing enough support for operational projects. PfS has to balance the role of funding gatekeeper and supporting Local Authorities, sometimes causing tension in the relationship with local projects.

Managing the portfolio of projects

  Determines flow of projects

  Risk and opportunity management

  Finance management of the programme

PfS manages the timing, flow and overall scope of the programme, with direction from the Department. It delivers the Department's requirements for more structured programme management and greater control of the overall progress of the programme compared to the Department's other strategic capital programmes. It also provides detailed and up to date real time monitoring of progress on each project, collected through its face to face contact with each project. But it has tended to be over optimistic in its expectations and some projects continue to slip against PfS's timetable.

Management of private sector capacity

  Reviews bidder interest in current and upcoming projects

  Educates bidders on upcoming projects

  consults sector on procurement process

  Keeps sector informed through bulletins of proposed OJEU dates, indicative funding and PFI content

PfS has built up a network of companies involved in the programme. The scale of the BSF programme requires an expansion of the market focused on the building and refurbishment of schools and the provision of education ICT. PfS provides a central focus to promote the programme with the private sector in a way that could not be done by individual Local Authorities, and provides expertise on the private market not present within the Department.

Effective cost control

  Funding allocation model with associated guidance to LAs

  Procurement review

PfS has helped keep the capital costs of individual projects under control and the overall cost of the programme to the Department down.

Quality control

  Business cases scrutinised by PfS Education and Design teams

  Checks changes to standard procurement terms and conditions

  Uniformity creates economies of scale

  Benchmarking capital costs for all Schools and Facilities management for PFI Schools

PfS monitors progress of each project, reviews each business case and encourages Local Authorities and schools to consider what they need to progress their project. PfS also promotes standardisation of documentation and terms and conditions, with the aim of achieving procurement efficiencies over the whole programme. Occasionally these are worse than Local Authorities believe they could get on an individual deal.

Learning and knowledge management

  Lessons learnt database (PfS website) 

  Facilitation and Networking

PfS has been effective at learning lessons from the early projects and changing the processes for later projects. It also facilitates networking between Local Authorities. But to date, most attention has been on facilitating learning on the planning and procurement stage, and not enough on the operational stage.

Cost of PfS as the Programme Manager

 

Example

National Audit Office comment

Overhead administration costs

See paragraph 4.5

Central programme management inevitably brings greater central administration costs over devolved funding streams, but, at one per cent of programme costs, they are broadly comparable to similar programmes.

Advisory and set-up costs

See paragraph 4.7

Advisory and set up costs have been increased by the complicated structure of PfS and the need for a lot of additional technical, legal and financial advice on the LEP model.

Reduced local flexibility

PfS provides rigorous challenge to Local Authorities considering:

non standard delivery models

  different funding routes (PFI or conventional)

Central programme management creates tension with local autonomy. PfS encourages Local Authorities to conform to its approach to achieve economies of scale and benefits over the whole programme, but this reduces the opportunities of each Local Authority to tailor its own approach to local circumstance. Where Local Authorities have pursued their own approach, PfS has not always been able to provide them with as much support.

Increased local administrative burden

  Central review of outline business cases 

  Provision of benchmarking information

Local Authorities need to undertake additional exercises to help PfS monitor progress and costs, causing some increased administrative burden. However, some of these exercises, such as the provision of benchmarking information, will benefit the Local Authorities.

Delay caused by increased set-up time of the programme

  Getting PfS fully operational caused a year's delay

Pathfinders and early waves could not start procurement until PfS was formally launched, delaying the programme by around a year (see part 2). Early projects also encountered problems as PfS settled down. For instance, many complained about a high churn rate amongst their contacts with PfS, because as PfS expanded its number of staff it moved people around from project to project to decrease its staff to project ratios.

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