We estimate that the initial cost of procuring a Local Education Partnership could be reduced to £6.5 million for Local Authorities about to start. This uses 4Ps' estimates of Local Authority staffing requirements, and assumes that the use of consultants and advisers is restricted to specialist advice and that the time taken in planning and procurement is speeded up to meet PfS's current target of 3 years.
Internal Costs (4Ps' assessment of minimum staffing requirements) |
|
|
Cost heading | Full time equivalent staff over 3 years | £000 |
Project Director | 1 | 320 |
Project Manager | 1 | 240 |
Administrative Document Manager | 0.75 | 90 |
School organisation & education capital teams | 1 | 240 |
Property and Asset Manager | 1 | 75 |
ICT Advisor | 1 | 50 |
Corporate Finance Advisor | 0.6 | 240 |
Legal Advisor | 0.6 | 200 |
Planning Advisor | 1 | 70 |
Stakeholder management team | 3 | 150 |
Training | - | 50 |
Estimated minimum total internal cost of procurement |
| 1,725 |
External Costs (4Ps' assessment of minimum staffing requirements) |
|
|
Legal |
| 400 |
Finance |
| 300 |
Technical |
| 350 |
Insurance |
| 50 |
Design |
| 75 |
Property Surveys |
| 100 |
Estimated minimum total external cost of procurement |
| 1,275 |
Bidders cost (PwC assessment of cost post procurement review) |
|
|
Winner's bidding costs charged to Local Authority |
| 3,000 |
Cost of setting up the LEP (legal and administration cost of setting up companies) |
|
|
LEP set up costs charged to Local Authority |
| 500 |
Total cost to Local Authority of establishing a LEP (including designs of first schools) |
| 6,500 |