The Scottish Government

Bid number (for EG use)

Lead bidder

NHSScotland - Property & Environment Forum, Empire House, 131 West Nile Street, Glasgow G1 2RX.
Contact: Paul Kingsmore, Chief Executive
tel: 0141 332 3455
e-mail: paul.kingsmore@pefex.scot.nhs.uk

Brief description of the aims of the project

The project aims to significantly reduce the consultancy and construction cost of the NHSScotland capital investment programme (£2.1bn over three years) by enhancement of the procurement process recognising:

• Limited competent consultancy and construction firms
• Current costly, inappropriate tender processes
• Enhanced input of the supply chain, currently ignored.

Clear description of what the EGF money would be used to buy

1. Develop NSLA's for professional services for public and privately funded capital projects
2. Develop structures enabling long term partnerships between NHSScotland clients and the construction supply chain
3. Revised construction procurement guidance
4. A monitoring team to track projects
5. Training project directors
6. Establish cross sector benchmarking group

Partners to the project likely to commit resources

1. NHS Boards
2. Scottish Executive Health Department including the Private Finance and Capital Unit
3. Glasgow Caledonian University
4. NHS Estates (England) Procure 21 Implementation Team
5. Department of Health, Social Services and Public Safety, Northern Ireland
6. Welsh Health Estates

Names of other organisations with whom the project has been discussed (to assist the introductions process)

1. Joint Premises Project Board (local authorities and NHS)

Evidence that suggested approach has been deployed successfully elsewhere

This approach has been successfully applied by the public sector:

1. NHS Estates (England) - Procure21 and NHS LIFT (Local Improvement Financial Trust)
2. Environment Agency (National Consultancy Framework)
3. Department of Health, Social Services and Public Safety, Northern Ireland
4. Defence Estates - Prime Contracting

Also by the private sector for example

1. British Airports Authority (BAA)
2. Royal Bank
3. British Telecom
4. Marks and Spencer
5. Boots
6. BBC
7. Network Rail

The intention is to learn from the implementation in the public and private sectors and to apply this knowledge to publicly funded and privately funded projects in NHSScotland.

Are there any restrictions to potential for enlargement of the project (i.e. technology, number of partners etc)

No

Benefits projected from the project

The NHS is committed to a £2.1bn capital spend. This project will bring economies of scale and efficiencies in construction procurement.

The project will have an impact within 12 months in respect of consultancy agreements and longer term impact in respect of efficient supply chain working. The project will ensure:

1. Reduced lead in time
2. Early buildability advice
3. Value for money and continuous improvements in clients and supply chain
4. Better design
5. Less adversarial
6. A stimulus to good management
7. Enhanced management of risk
8. Rewards collaboration and penalises adversarialism
9. Better reporting and early warnings

Estimated financial projections

Total

2005/6

2006/7

2007/8

2008/9

Overall project cost

£1.96m

£782k

£850k

£170k

£157k

Is a pilot required - see guidance notes

No

Additionally: why is EG funding required

1. Assist with the process of financial management
2. £2.1billion capital spend in next three years
3. Currently every project is procured and managed independently and separately
4. Speeds up procurement and delivery of frontline healthcare
5. Funding would allow a cross sector approach to construction procurement and efficiency resulting in substantial time and cost savings to the public sector
6. Corporate and financial governance in accordance with government policy

Is this project complementary in any way to other EG work

Yes, with reference to the Scottish Executive document entitled; 'Building a Better Scotland' this project will complement the overall target saving of £166m per annum.

Is "stage 2 development funding" requested?

Yes.

Feasibility and scoping study - within the context of EU Procurement rules: