Estate Performance Measurement System (The Value For Money Model)

Defence Estates

• Our Mission is to:

Deliver Estate Solutions to meet Defence needs

• Our Vision is to:

To provide an estate of the right size and quality, which is managed and developed effectively in line with acknowledged best practice, and is sensitive to social and environmental considerations

The Defence Estate• 243,000 hectares - 1% of UK• 160,000 hectares of rural land• 4000 sites, 65,000 buildings and structures

plus 71,000 Married Quarters• Substantial environmental and built heritage

– 800 SSSI and 688 Listed properties• Book value £21Bn• Annual expenditure £1.5 - £2 Bn• The single most diverse estate in the UK

What Are We Managing ?

Why have EPMS ?

• Prior to 2003 MOD delivered estate services via a large number of disconnected contracts.

• These were rationalised into 5 Regional Prime Contracts let over a 2 year period. The aim of Prime Contracting is to achieve 30% ‘Through Life’ Value for Money efficiency improvements by grouping delivery.

• The Contracts are with different contractors and cover the UK divided into 5 Regions as follows:

Scotland, Central, South West, South East and, East • Other Prime Contracts let to cover the Overseas Estate, Water

and Waste Water Services, Defence Training Estate (2004) and Housing maintenance (2006)

Ford Focus BMW 3 Series

Which Car is better Value For Money?

VFM

Cost

Performance

The same for less...

05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13

Contract Life

VF

M

VFM

Cost

Performance

More for the same...

05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13

Contract Life

VF

M

Cost

Performance

More for less...

05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13

Contract Life

VF

M

VFM

Cost

Performance

More for less...

05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13

Contract Life

VF

M Baseline

Background

• VFM in terms of 3 E’s• Efficiency• Effectiveness• Economy

• NAO advised DE approach ‘in right direction’. Now confirmed as best practice by this year’s NAO audit.

• Recognised by Industry as ‘Best Practice’ approach• Constructing Excellence looking to adopt as

demonstration project

VFM Model

• Developed with support from Industry Specialists

• 6 inter-related Key Indicators (Endorsed by Customer

Estate Organisation’s)

• Based on Smart Acquisition Principles

• Data capture designed to be automatic from the

Estate Information Systems (EIS)

The EPMS Key Performance Indicators

EPMS consists of 6 Key Performance Indicators as follows:

KPI 1. Estate Condition

KPI 2. Programme Effectiveness

KPI 3. Efficiency

KPI 4. Customer Satisfaction

KPI 5. Safety

KPI 6. Sustainability

Proportion of assets at Target Condition

Variance from Target Condition

Fitness For Purpose

Asset Utilisation

Condition Improvement

Deliver agreed funded Core Services programme

Deliver agreed funded Core Works programme

Deliver agreed funded MNW programme

Deliver agreed funded Injections programme

Achievement of response times

Output efficiency

Maintenance Costs

Utilities Costs

Overheads

Customer Satisfaction

Customer Complaints

Collaborative Working

H&S enforcement Notices served

Reportable incidents / 100000 employees

Assets meeting Statutory Compliance

Reportable environmental incidents

SSI’s in favourable condition

Energy consumption

C02 emissions / Employee

DE SHEF audit A standard achieved

Contractor audit standard achieved

EPMS Performance Framework

What is EPMS?

• EPMS has been designed to show whether or not DE has achieved its 30% through life value for money efficiencies through the overall score derived from performance against each of the KPIs.

• To do this it has been necessary to establish the component reporting sub systems that provide the detailed information to feed the KPIs within EPMS.

• It has taken some 2 years to achieve this and work remains ongoing.

What does EPMS look like?

• The following slide shows the systems from which EPMS will draw data.

• Some are ORACLE based others are MS based.• Data will initially be largely drawn manually but it is

expected that EPMS will in the long-term draw data automatically from ‘expert’ systems such as:– Project Programme Management (PPM),– Assets Management (EPT), and– Environmental Management (DREAM) Systems

EPT

SHEFMIS

11iPPM

DREAM

EPT Key Elements

• Single Physical Asset Condition Grading Methodology– Single system of assessing physical asset condition to be applied across the MOD

estate

• Integrated Estate Management Plans (IEMP)– A plan for the forward maintenance of an MOD establishment which takes into account:

• Strategic Purpose• Current Asset Condition• Target Condition• Asset Importance• Functional Priority• Sustainability• Investment Planning• Wider Initiatives

• Target Condition– A specified level of condition for an asset which is agreed by the Customer, DE and

Prime Contractor and used to gauge performance

Target Condition

-10 -9 -8 -7 -6 -5 -4 -3 -2 -1 0 +1 +2 +3 +4 +5 +6 +7 +8 +9 +10

Target Condition

Variation from Target Condition

No

Ass

ets

2003 Baseline

Current

RPC Scotland

Where are today?

• Project Manager appointed in Jan 07.• User Requirement Document finalised in March 07

and Programme Board agreement given to acquisition of a Commercial Off The Shelf (COTS) given.

• Competition run in May/June 07. 20 tenderers invited using OGC Catlist.

• 6 responses received.• Two down selected for clarification• One selected (Performance Soft)

Where will we be in 3 months time?

• Super User training completed 3 – 5 Sept 07• Initial Operating Capability by end Sept 07• Users trained by end November 07 including ‘Train

the Trainers’.• Live data from supporting expert systems loaded for

at least 5 of the Regional Prime Contracts in at least 2 if not 3 of the KPIs.

• Ongoing RPC assessment programme completed by mid Jan 07.

Key Issues over the next 3 months.

• Coherency of data from expert systems.• Training to support roll out and ongoing assessment

programme.• Communications to manage the change that EPMS

will bring.• Avoiding Mission creep. Performance Soft is a very

powerful tool and we have aspirations as to where we can go after EPMS deployment is complete.

• But we need to build solid foundations before the walls go up and the roof goes on!!

EPMS – THE FINAL SLIDE

Any Questions?