Efficiency and effectiveness review programme

Report: 10
Date: 14 September 2001
By: Treasurer and Commissioner

Summary

This report sets out the results of the competitive run for Tranche 1 of the Efficiency and Effectiveness Review and outlines progress to date.

A. Recommendations

1. that Members note the report; and
2. that delegated authority be given to the Project Board to let the Tranche 1 property review contract outside the MPS Framework Arrangement.

B. Supporting information

Introduction

1. At its meeting on 19 June 2001 the Committee agreed a timetable for the appointment of consultants to undertake Tranche 1 of the Efficiency and Effectiveness Review. Tenders were to be sought on an inclusive basis for all the nine reviews and also exclusive of the property review, with a separate approach to firms with property specialisms.

2. Twelve consultancy firms included on the MPS Framework Arrangement were invited to tender. Four of these firms were identified as having property-based expertise.

3. A bidders conference was held on 11 July for interested parties and attended by representatives from nine firms.

Appointment

4. Seven firms submitted bids by the deadline. Two firms bid for all nine reviews, four firms bid for all reviews excluding property, three firms bid for property only. A panel, comprising stakeholders from the MPA, MPS and GLA shortlisted the following firms:

• Accenture - eight reviews (excluding property)
• PricewaterhouseCoopers - nine reviews (including property)
• PA Consulting - nine reviews (including property)
• Turner and Townsend - one review (property)
• Gleeds - one review (property)

5. The Appointment Panel met on 2 August, comprising Treasurer MPA, Director of Corporate Development MPS, Director of Finance and Performance GLA, John Ross Economic Advisor to the Mayor and Nicholas Long, Member MPA. The decision of the Panel was to appoint Accenture to carry out all reviews excluding property and to make no appointment for property. The tender was awarded in the sum of £870,072. Accenture commenced work on Monday 6 August. A copy of the proposal response has been placed in the Members Room.

Property review

6. The Appointment Panel decided that a separate tendering exercise will be conducted, not confined to the MPS Framework Arrangement to appoint consultants for the property review. Expressions of Interest are being invited from appropriate firms and an advertisement has been placed in the ‘Estates Management’ magazine. A closing date for receipt of Expressions of Interest has been set at Monday 1 October, and the following programme proposed:

• Invitation to tender: Friday 5 October
• Tender return: Friday 19 October
• Short List drawn up: Tuesday 23 October
• Appointment Panel: Monday 29 October
• Commence contract: Tuesday 30 October

Project review

7. The Appointment Panel agreed to incorporate conditions in the draft contract to ensure a rigorous approach was undertaken to the Review by Accenture. Part of the contract is the requirement for Accenture to prepare a detailed planning programme (for each of the eight reviews), together with an overall management summary within 4 weeks of commencement. This planning programme will contain milestones agreed with the MPA to include work planned, resources planned and identifiable outcomes. This document will form the basis of a continuing programme of review, both by Accenture as part of the programme management requirement and by the MPA.

8. Accenture are to report on an assessment of achievement of the planning programme to the Project Board (comprising members from the MPA, MPS and GLA) at its regular monthly meeting. The Project Board will, at its meeting on 24 October 2001 be making a judgement about the ability of the contractor to complete the programme to timetable and with an appropriate quality threshold. In order to facilitate a positive outcome and to pass on any early concerns that may be arising, a special meeting of the Project Board has now been arranged for 10 October. The Project Board will be reporting the first quarter’s progress to this Committee’s meeting on 8 November.

Implementation

9. Accenture have explicitly offered a subsequent partnership arrangement for implementation of recommendations in which their fee would be dependent on delivery. It is proposed that this is considered at a later stage in the review process.

Tranche 2

10. Work has commenced in preparing the Terms of Reference for Tranche 2 of the Efficiency and Effectiveness Review. A report will be brought to the 4 October meeting of this Committee seeking approval to set in motion the second round of tendering under the Framework Arrangement.

C. Financial implications

11. Budget provision of £1 million has been made in the 2001-02 budget to fund the efficiency and effectiveness programme. Similar sums are to be provided in the following two years to finance Tranches 2 and 3 of the review.

D. Background papers

• Medium Term Financial Forecast 2002/05, 19th June meeting of this committee (FPBV/01/82)

E. Contact details

The author of this report is Ken Hunt, Deputy Treasurer.

For information contact:

MPA general: 020 7202 0202
Media enquiries: 020 7202 0217/18

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