PPP DATABASE Strategic Service-Delivery Partnerships for local authority ICT, corporate and technical services in Britain.

Transcription

1 PPP DATABASE Strategic Service-Delivery Partnerships for local authority ICT, corporate and technical services in Britain Dexter Whitfield

2 Contents Introduction Table 1: PPP: Strategic Service-delivery Partnerships for local authority ICT, corporate and technical services in Britain ( ) Table 2: SSPs in procurement Table 3: Regional distribution of SSPs Table 4: Employment model in operational SSPs Table 5: Contracts and market share of main contractors in operational SSPs Table 6: Summary of operational SSP market share Table 7: Local authorities which chose in-house option and rejected SSP January Dexter Whitfield, Director Adjunct Associate Professor, Australian Institute for Social Research, University of Adelaide Mobile Tel Web: The is committed to social justice, through the provision of good quality public services by democratically accountable public bodies, implementing best practice management, employment, equal opportunity and sustainable development policies. The Unit continues the work of the Centre for Public Services which began in _

3 Introduction A Strategic Service-delivery Partnership (SSP) is a long-term, multi-service, multimillion pound Public Private Partnership (PPP) between a local authority and a private contractor. Between 50 to 1,000 staff are transferred to a private contractor or transferred or seconded to a Joint Venture Company (JVC). Contracts are usually ten years with an option for a further five years. SSPs usually cover ICT and related services such as revenues and benefits, financial and legal services, customer contact centres, human resources, payroll and often include property management. Some SSPs include architectural, highways, engineering and other technical services. SSPs are service contracts with relatively small capital expenditure for equipment and buildings. They are funded through local authority revenue budgets via monthly payments to a private contractor who may frontload investment and recoup the costs in the latter stages of the contract. SSP objectives usually include the transformation of public services, increased employment and social and economic aims. The Database will be updated on a regular basis. Please reference the PPP Database. Please read the following Notes The employment data uses actual numbers of jobs. The contract value ( m) is the total value announced at contract award. Table 1 is based SSP contract awards. Tables 2 5 are based on operating contracts and thus exclude Bedfordshire County and West Berkshire which terminated their SSP contracts in The operational contract analysis is based on the main contractor and does not include those with a secondary partner or subcontracting role see note Table 6. Single service contracts have been excluded. Sources: Local authority SSP documentation, Cabinet/Executive Board reports, private sector websites and ESSU reports. See Strategic Services-delivery Partnerships section in Outsourcing and PPP Library Takeovers and mergers: HBS Business Services was acquired by Mouchel Parkman in August Amey PLC was acquired by Ferrovial, the Spanish infrastructure services company in _

4 Table 1: PPP: Strategic Service-delivery Partnerships for local authority ICT, corporate and technical services in Britain ( ) Local authority Date started Total value m No of staff Transfer or secondment 4 Contractor Services Length of contract Bath & N transfer HBS Services ICT and related Somerset *Bedfordshire CC June transfer HBS Services ICT and related ***Birmingham July Secondment Capita ICT and related City Blackburn MBC July transfer Capita ICT and related Bradford MBC choice IBM/Serco ICT Bromley LBC transfer Liberata ICT and related Cumbria CC Feb transfer Capita Property, finance, Human resources East Riding UA Edinburgh City Essex CC Hammersmith LBC Lincolnshire CC Liverpool City Liverpool City Knowsley MBC October transfer Arvato Services, Berttelsmann (Germany) ICT and related transfer BT ICT 15 May transfer BT ICT 2002 Oct transfer/jvc Agilisys ICT and related ,088 transfer HBS Services ICT and related Secondment BT ICT and related Oct transfer to Mouchel Highways, JVC Parkman traffic, property, Liverpool estates transfer to JVC Mouchel Parkman & Liverpool 2020 Architectural, engineering, landscape Mendip DC July transfer Capita ICT and related 12 Middlesbrough June 250 1,045 transfer HBS Services ICT and related 2001 Milton Keynes Jan transfer HBS Services ICT and related 12 Norwich City transfer Steria UK ICT/BPR Oldham MBC Transfer to JVC 12 Mouchel Parkman/HBS/ Agilisys ICT and related, property & professional services Pendle Feb transfer Liberata ICT and related 15 **Redcar & transfer Liberata ICT and related Cleveland Rochdale MBC Secondment Mouchel Parkman/ ICT and related, highways, 15 Rotherham MBC Secondment Salford MBC Feb Secondment Sandwell MBC 2007 _ Agilisys property, design, BT ICT and related 12 Capita Engineering, highways, planning & property transfer BT/Liberata ICT and related 15 12

5 Sheffield City Somerset CC and Taunton Deane DC Southampton City transfer Liberata ICT and related October 2007 October secondment to JVC Southwest One IBM and Mouchel Parkman ICT and related and property management transfer Capita ICT, property management and related Suffolk CC June secondment BT ICT and related 2004 **Swansea City January 0 1 transfer CapGemini ICT 2006 Swindon Feb transfer Capita ICT and related 15 Thurrock transfer Vertex ICT and related *West Berkshire June transfer Amey ICT and related 2002 Westminster LBC Nov transfer Vertex ICT and related Total 35 7,261 14,576 Source:, PPP Database, * Contract terminated ** Contract reduced in scope *** Contract expanded Table 2: SSPs in procurement In Procurement Glasgow City South Tyneside MBC Sefton MBC Shortlisted companies or Preferred bidder Serco BT Mouchel Parkman and Agilisys Capita (withdrawn) Accord Plc Capita Symonds Mouchel Parkman Services ICT and related services, HR and asset management Lot A Technical Services Sheffield City (retender) Arvato Government Services BT Capita Liberata Capita Fujitsu IBM Capita IBM Mouchel Parkman Lot B Finance and Information Services Package 1: ICT, revenue and benefits, HR, payroll, financial Package 2: Property and FM Source:, PPP Database, _

6 Table 3: Regional distribution of operational SSPs Region No of % Total % No of % SSPs value m jobs North East , North West , , Yorkshire & Humber , , North , , East Midlands West Midlands Eastern , , London South East South West , Wales Scotland Total , , Source:, PPP Database, Table 4: Employment model in operational SSPs Employment model No of contracts No of jobs Percentage Transfer 23 8, Transfer to JVC Secondment to JVC 7 4, Choice of transfer or secondment Total 33 13,858 0 Source:, PPP Database, _

7 Table 5: Contracts and market share of main contractors Local authority Date started Total value m No of staff Transfer or secondment Agilisys Hammersmith LBC Oct transfer/jvc Sub total Percentage share Arvato Services East Riding UA October transfer Sub total Percentage share BT Edinburgh City transfer Essex CC May transfer Liverpool City Secondment Rotherham MBC Secondment Sandwell MBC transfer Suffolk CC June Secondment Sub total 1,394 2,800 Percentage share Capgemini **Swansea City January transfer Sub total 0 1 Percentage share Capita Group ***Birmingham City July Secondment Blackburn MBC July transfer Cumbria CC Feb transfer Mendip DC July transfer Salford MBC Feb Secondment Southampton City October transfer Swindon Feb transfer Sub total 1,762 3,040 Percentage share IBM Bradford MBC choice Somerset CC and Taunton October Secondment Deane DC Sub total Percentage share Liberata Bromley LBC transfer Pendle Feb transfer **Redcar & Cleveland transfer Sheffield City transfer Sub total 643 1,285 Percentage share Mouchel Parkman Bath & N. Somerset transfer Lincolnshire CC ,088 transfer Liverpool City October Knowsley MBC Middlesbrough June ,045 transfer Milton Keynes Jan transfer Oldham MBC Transfer/JVC Rochdale MBC Secondment 7 _

8 Sub total 1,361 3,893 Percentage share Steria Norwich City transfer Sub total Percentage share Vertex Thurrock transfer Westminster LBC Nov transfer Sub total 667 1,000 Percentage share Total 33 contracts 6,892 13,858 Source:, PPP Database, * Contract terminated ** Contract reduced in scope *** Contract expanded Table 6: Summary of operational SSP market share Private contractor No of contracts % share by value 5 share by number of staff Agilisys Arvato BT Capgemini Capita IBM Liberata Mouchel Parkman Steria Vertex Total Source:, PPP Database, Note: Excludes secondary partner or subcontractors: Agilisys Rochdale and Oldham Mouchel Parkman Somerset/Taunton Deane Liberata Sandwell Serco Bradford 8 _

9 Table 7: Local authorities which chose in-house option and rejected SSP Local authorities which retained in-house provision Barnsley MBC Dacorum District Isle of Wight Kent County Newcastle City North East Lincolnshire Northamptonshire County Decided not to proceed with BT bid in May 2003 because first three year payments could not be guaranteed. Risk of frontline services being cut to meet contractually-binding investment requirements. Withdrew from preferred bidder negotiations with Northgate in 2001/02. Decided to adopt an internal strategic transformational approach drawing on private expertise instead of outsourcing to a strategic partner. Terminated preferred bidder negotiations with HBS Business Services in Established in-house improvement strategy. Awarded 200m to in-house service and rejected rival BT bid on grounds of value for money and quality of service improvements in In 2006 the City excluded ICT from the BSF project following a mandatory bid in which the in-house service scored significantly better than the BSF consortia. Originally had in-house strategy, then 12 year 175m contract with Capita for ICT, regeneration and environment with 348 staff to be seconded to JVC. Contract start planned for November 2007 but Cabinet decided that a mutual commercial agreement could not be reached. The Leader stated the contract had to be delivered without adding a penny to council tax and this could not be guaranteed. Withdrew during procurement process from joint partnership with Milton Keynes in Salford City Decided against SSP approach for corporate services in 2001 and did not commence procurement. Wakefield MBC Walsall MBC Decided not to pursue a SSP after research of Liverpool, Newcastle and Middlesbrough. Wakefield s healthy financial reserves meant that a mixed economy approach would be more effective. 650m project requiring transfer of 1,500 staff to Fujitsu Services abandoned in January 2006 at the preferred bidder stage. Planned to create 750 new jobs. said "strong service improvements achieved by the local authority in the past few years, felt that it is now better placed to meet the needs of local people without the joint venture. Source:, PPP Database, _