Memorandum from the Ministry of Defence
INTRODUCTION
1. The Ministry of Defence (MOD) is one
of the largest landowners in the UK with a diverse estate measuring
some 240,000 hectares (1% of the UK mainland). The built estate
measures approximately 80,000 hectares comprising naval bases,
barracks and camps, airfields, research and development installations,
storage and distribution centres, communications facilities, family
quarters and town centre careers offices. The rural estate measures
some 160,000 hectares of training areas, small arms, test and
evaluation and aerial bombing ranges. This includes 175 Sites
of Special Scientific Interest for which MOD has direct management
responsibility, the largest number in Government Ownership. The
department also owns 772 listed buildings and 1,057 scheduled
monuments. [1]The
overseas estate consists largely of garrisons in Germany, Cyprus,
the Falkland Islands and Gibraltar. There are also major training
facilities in Canada, Cyprus, Germany, Norway, Poland and Kenya,
with other facilities in Ascension Island, Belize, Brunei, Nepal,
Singapore and the United States. The total defence estate is valued
at around £18 billion.
2. The defence estate must support the military
task set out in the Defence Strategic Guidance and adapt to meet
evolving needs. It is consequently kept under review in order
to ensure that it is the right size and quality to support the
effective and efficient delivery of defence capability in line
with acknowledged best practice. The Secretary of State launched
the refreshed Estate Strategy[2]
in 2006 which sets out the principles by which the defence estate
will be managed and developed in order to support operational
training and to create a place were people want to live and work.
3. In 2003, a new organisational structure
was created to manage the vast majority of the defence estate.
The structure essentially separated the supply and demand functions.
It is thus for the Service and other Top Level Budgets (TLBs)
to set and fund their future estate requirements in output terms
(demand), and for Defence Estates (DE) to meet these in the optimum
and most cost-effective way (supply) with funds for the maintenance
and delivery of projects transferring to DE. DE merged with the
former Defence Housing Executive in 2004 to take responsibility
for the management of Service Families Accommodation in UK. It
also became a TLB in its own right in April 2005. The former Army
Training Estate and other single-Service training estate organisations
were incorporated within DE from April 2006 to form the Defence
Training Estate. At the same time, DE became the single balance
sheet owner for land and buildings and this is reflected in their
accounts. In light of these changes, DE ceased to be an Agency
in April 2007.
4. In parallel, contractual arrangements
have been revolutionised including the Prime Contracting Initiative,
examples of which are set out below. Prime Contracting is the
application of the principles of Smart Acquisition to estate procurement.
Implementation of Prime Contracting is at the core of the MOD's
drive to improve the value for money it obtains from expenditure
on both the construction and maintenance of the estate. This is
achieved through improved management and efficiencies in planning,
supply chain management, incentivisation, continuous improvement,
economies of scale and partnering. Contractual arrangements for
the Overseas and Volunteer estate are also being transformed along
similar lines with a strong emphasis on partnering.
5. These initiatives have meant that for
the MOD as a whole, the last 6 years has been one of huge change
for the estate both in the structure and responsibilities of DE
and other TLBs, and the way land and property owned by the MOD
are managed.
DE—ROLE AND
GOVERNANCE
6. The Defence Management Board (DMB) chaired
by the Permanent Under Secretary (PUS), is the Department's executive
management board and provides senior level leadership and top-level
management of MOD. The Defence Estates Committee (DEC), chaired
by the 2nd PUS acts on behalf of the DMB to oversee development
of policy for the estate, the implementation of estate strategy
and policy, DE's performance, and the relationship between DE
and estate users (Customer Estate Organisations through Customer
Supplier Agreements). The DEC considers each year the totality
of estate programmes and investment across the MOD to inform the
annual planning round. The Minister (Armed Forces) has the opportunity
to chair the DEC if matters of policy are being discussed, with
the Under Secretary of State and Minister for the Veterans being
responsible for day-to-day estate issues
7. DE derives its objectives from the MOD
Departmental Plan ("owned" by the DMB) which reflects
the Public Service Agreement between MOD and the Treasury. The
Service Delivery Agreement agreed between MOD Centre and individual
TLBs informs the DE Corporate Plan for the management of the estate.
Attached at Annex A is a report on the performance of DE against
the Key Targets for 2005-06, taken from its Annual Report and
Accounts for that year (the latest audited accounts). In addition,
at Annex B, is an analysis of additions for 2005-06 covering assets
under construction/land and buildings. Copies of the DE Corporate
Plan for 2007-2012 which set out the Key Targets DE is required
to deliver, are also attached.
8. Parts of the estate management remain
outside DE's responsibility. These include works undertaken by
other TLBs, for instance certain PFIs such as Allenby/Connaught,
the Defence Training Review and the three Naval Dockyards. These
"legacy" projects have been managed from inception by
the relevant TLBs and their transfer to DE at this stage would
not add value. It is stressed, however, that DE is fully integrated
with the relevant project teams to ensure that all the inter-dependencies
are properly managed.
FINANCIAL PERFORMANCE
9. DE, in line with all other parts of the
MOD, agrees annual budgets with the Department in line with HM
Treasury's control framework. These are in respect of Direct Resource,
Indirect Resource and Capital expenditure net of the market value
of land and buildings to be sold during the year. Resource consumption
is based on accrued expenditure and not on the amount of cash
spent during the year.
10. During 2005-06 Defence Estates had combined
Direct Resource and Capital budgets of £1.15 billion. Actual
outturn exceeded the agreed budgets by £38million. Of this
£26 million arose due to the inability to complete on the
disposal of a site by the year end due to contractual issues.
The sale was completed in 2006-07. The further £12 million
overspend, which resulted from incomplete in-year transfers from
other MOD budget holders, was forecast and did not result in the
department overspending against either its Treasury or Parliamentary
Controls. The Indirect Resource outturn was within the budget
agreed with the department.
ESTATE RATIONALISATION
11. A key part of the Estate Strategy is
to have an estate consisting of fewer larger sites appropriately
located and making the best use of resources whilst remaining
fully capable of meeting the military need. For some years, the
MOD has been disposing of land and buildings reflecting changes
to military needs. For example, a number of high value sites and
buildings (including Duke of Yorks Headquarters and Chelsea Barracks)
have been or are being disposed of in accordance with Treasury
policy. Since 1999, the Department has disposed of land and buildings
with a value of £1.69 billion pounds. This included reducing
the MOD estate in London from 7 to 3 office buildings in the last
4 years. Future investment will be focused on those sites identified
as anchor locations[3]
(eg High Wycombe, Catterick).
12. In 2005, the Department identified and
funded a further series of rationalisation measures which would
result in streamlined organisational structures and the release
of parts of the estate for re-use or disposal. Those completed
are:
— Merger of FLEET and 2nd Sea Lord
HQs at Portsmouth (achieved April 06)
— The creation of Air Command through
the collocation of Strike Command and Personnel & Training
Command HQs at High Wycombe
Those still in planning are:
— The collocation of the former Defence
Logistics Organisation (now part of Defence Equipment and Supply)
at Abbey Wood, Bristol and Bath
— The planned collocation of HQ LAND
and Adjutant General HQs at Andover (Project HYPERION) in 2009
— The rationalisation of the Chief
of Defence Intelligence's estate
13. Other potential but yet to be approved
rationalisations include the Midlands Medical Accommodation project
which includes the relocation of HQ Defence Medical Education
and Training Agency from Gosport and Keogh Barracks (Aldershot)
to Lichfield, and the provision of SLA, SFA, messing and other
facilities.
14. Other rationalisation projects include:
Colchester PFI; Project Allenby/Connaught PFI (both transforming
their respective Garrisons) and the MOD Estate London (MODEL)
15. PROJECT MODEL represents a significant
rationalisation of the MOD's estate in Greater London, consolidating
the facilities occupied by UK forces onto modern, integrated,
fit-for-purpose facilities at Northolt. The Project is funded
through disposal receipts from the sale of sites rendered surplus
to requirements, and involves an innovative procurement strategy:
"Prime Plus Contracting", which seeks the involvement
of industry as an integrator of the four key project outputs:
construction works, disposal of sites, finance and re-location
of personnel. It releases 100 hectares of brownfield land for
redevelopment.
LONG TERM
ESTATE DEVELOPMENT
PLAN
16. The Defence Estate Strategy 2006 outlined
a commitment to produce a long-term (20 year) strategic plan for
the development of the estate by the end of 2007. This plan, known
as the Defence Estate Development Plan, is currently being drafted
with customer engagement from the individual TLBs and is scheduled
to be completed by December 2007. The intention is to review the
Plan biannually to ensure that it continues to meet evolving requirements.
17. There is an aspiration to develop Defence
Communities in environments where civilian and military personnel
and their families want to live and work both now and in the future,
whilst recognising the sustainable development needs of others.
In this context, the Army is considering "Super Garrisons"—distributed
geographic entities that seek to concentrate formations and units
in a coherent, efficient and effective manner thus improving military
output. The model has already been developed in Aldershot, Catterick,
Colchester and around Salisbury Plain but there is also an aspiration
to develop a West Midlands Super Garrison based upon the RAF Stafford
site and potentially RAF Cosford.
18. The Royal Navy already effectively has
Super Garrisons centred around the three naval bases at Portsmouth,
Plymouth and Faslane. The Royal Marines are progressively consolidating
units in the Southwest of England. The equivalent for the RAF
is a long term rationalization onto fewer, larger "hub"
airfields. The most advanced of these is the development of RAF
Brize Norton as the prime Defence Air Port of Departure (and it
will become the Air Transport and Air to Air refuelling hub).
Meanwhile the Joint Helicopter command is examining the benefit
of a Support Helicopter Main Operating Base (Project Belvedere)
with potential implications for airfields at Lyneham, Dishforth,
Wattisham, Gutersloh, Benson and Odiham.
MAINTENANCE OF
THE ESTATE
Prime Contracting
19. The Department let five Regional Prime
Contracts between 2003 and 2005, covering the five geographical
areas of Scotland, South West, South East, Central and East for
the delivery of maintenance and construction of the built estate
in Great Britain. Following the transfer of housing to DE in 2004,
DE took on the responsibility for placing a national Housing Prime
Contract to replace regional contractual arrangements. These Prime
Contracts provide single points of responsibility for the management
and delivery of projects and integrated estate services on most
MOD establishments, and in total replaced over 600 individual
contracts. In addition the LANDmarc contract covering the maintenance
of the Army training estate is now managed by DE.
Service Accommodation
20. There has recently been a greater focus
of Parliamentary and media attention on standards of Service Accommodation
(both Families and Single Living). The position is that much is
already at a high standard but more needs to be done to bring
all accommodation up to the highest appropriate standard. The
problems relate to a housing stock dating in large part from the
1950s and 1960s and to a legacy of under-investment, because the
occupiers of the estate often used cuts in maintenance funding
as a balancer or regulator of their budgets. Programmes to improve
the standards of both kinds of accommodation are in place and
are outlined below.
Service Family Accommodation (SFA)
21. The provision of housing for personnel
and families is determined by the Defence Living Accommodation
Strategy (DLAS). This aims to meet changing needs and aspirations
through a `mixed economy' comprising quality public funded SFA
in the right locations to support mobility and choice for those
individuals who choose greater stability. Initiatives to assist
choice include: the long service advance of pay scheme, under
which eligible individuals can apply for up to £8500 as a
loan to assist with house purchase; and the joint Housing Advisory
Office, the role of which is to brief and educate personnel about
future housing opportunities.
22. DE is currently responsible for some
49,000 Service family homes in mainland Great Britain. Most of
those in England and Wales were sold to Annington Homes Ltd in
1996 and leased back by MOD. MOD retained the responsibility for
maintenance and upgrade. Annual rent to Anningtons is around £140
million per year.
23. DE manages SFA in mainland UK (overseas
SFA is managed by the appropriate Top Level Budget holder). There
are around 20,000 moves in and moves out of SFA each year. Accommodation
charges, recommended by the Armed Forces Pay Review Body, are
deducted from the pay of Service personnel, and DE receives these
sums.
24. We accept that the initial service offered
by the Housing Prime Contract was not up to the standards anticipated
or required. This was caused by a large number of outstanding
cases inherited from the old system, and by other causes which
have now been rectified. 97% of emergency calls are currently
being responded to within 3 hours of being notified where there
is an immediate health and safety risk. In every case any make-safe
process will be completed within 24 hours. This compares very
well with the old system. Moreover, 82% of urgent calls are currently
being responded to within 5 working days, and within 20 working
days for routine repairs. The helpdesk is now operating very well,
with all calls being answered in less than 2 minutes, and reported
missed appointments are now down to around 1%. We are working
hard to improve the performance in this critical area of service
delivery. The average repair time taken to fix boilers/heating
systems has also reduced since April 2006, despite the fact that
more calls were received and no occupant is left without alternative
heating while the problem is fixed. Finally, customer satisfaction
levels have also improved with the latest statistics showing a
94% level of satisfaction (29% excellent, 49% good and 16% satisfactory).
25. Housing stock condition is categorised
from Standard 1 for Condition (the best) to Standard 4 (the worst).
Definitions of each category are at Annex C. Over the last 6 years,
the percentage of housing stock at Standard 1 has risen from 41%
to 59%. It is worth noting that Standard 1 for Condition is higher
than the Decent Homes Standard set by the Department for Communities
and Local Government. In addition, a further 36% is at Standard
2 with the rest at Standards 3 and 4. There is an ongoing programme
of upgrades agreed with customers, with a minimum of 600 planned
for this financial year. A refreshed longer term SFA upgrade programme
will be submitted for Ministerial approval later this year. A
total of £35 million is also planned to be spent on life-cycle
replacements, for example boiler replacements and internal and
external decoration.
Single Living Accommodation (SLA)
26. SLA is being progressively upgraded
through a number of contracts. The Single Living Accommodation
Modernisation (SLAM) Project has so far delivered over 6,000 new
bedspaces with a further 3,000 to be delivered by the end of this
financial year. The second phase of this Project was announced
by the Prime Minister on 11 January. This will provide a minimum
of 3,800 upgraded bedspaces.
27. Running in parallel with Project SLAM
and working to comparable timescales, are a number of separate
and existing projects to modernise SLA: in Scotland partially
through the Regional Prime Contract, Project CHALLENGER in Northern
Ireland, the Programme to Upgrade and Modernise Accomodation (PUMA)
in Germany and separate projects for Gibraltar and Cyprus, as
well as projects such as Allenby/Connaught and Colchester PFIs.
28. Upgraded SLA usually provides single
en-suite rooms for trained personnel of all ranks. These greatly
improved living conditions are expected to have a beneficial impact
on recruitment and retention of servicemen and women with a consequent
enhancement in their operational effectiveness. The new accommodation
has received widespread approval from Service personnel who occupy
it; 37% of those in the new accommodation say it will influence
their decision to remain in the Services.
29. In total, across MOD just over 20,000
new or upgraded single living bed spaces have been delivered between
2001-02 and the end of the present financial year. And a further
20,000 will be delivered over the next three years.
PROJECT AQUATRINE
30. Project Aquatrine is one of the Government's
most significant Public Private Partnership projects that has
transferred the responsibility for the operation and maintenance
of MOD's water and wastewater assets and infrastructure throughout
Great Britain to three private sector providers.
31. The project comprises three 25-year
Private Finance Initiative arrangements, known as Packages, worth
£2.3Bn in total covering Great Britain. The Project has enabled
the transfer of environmental risk to those in the private sector
who are best placed to manage it and enabled the MOD to focus
more on its core activities.
THE VOLUNTEER
ESTATE
32. The UK Volunteer Estate (VE) comprises
facilities in which the Territorial Army, Royal Naval Reserve
and Royal Marines Reserve and the Royal Auxiliary Air Force (RAuxAF)
can be trained. It also encompasses facilities used by the MOD
sponsored youth organisations, Army Cadet Force, the Air Training
Corps and the Combined Cadet Force. The VE is spread throughout
the UK, its concentration matching population density and is maintained
by 13 Reserve Forces' and Cadets' Associations (RFCAs) who receive
funding for estate work through customer budgetary structures.
33. From 1 April 2007, DE has become responsible
for maintaining the VE to meet the operational requirements of
customers, but will continue to use the RFCAs to deliver estate
services to the VE. This does not apply to the RAuxAF who are
predominately based on RAF stations maintained by RPCs. DE is
working with the new `Director Volunteer Estate' within the Council
of RFCAs to bring about the necessary changes to the RFCA `supply
chain' which will give them flexibility and empowerment whilst
establishing an appropriate level of assurance for DE. The benefits
of the changes are: to achieve stable funding for the VE; allow
for a greater degree of planning by the RFCAs; a greater consistency
in the service customers receive; and enable the VE to be managed
on a national basis so that resources go to areas of greatest
need.
MEASURING ESTATE
CONDITION
34. Due to the wide variety and nature of
the numerous contractual arrangements previously in place to maintain
the MOD estate no single measure of estate condition was previously
available. With the introduction of Prime Contracting and the
creation of DE this has facilitated in the development of the
Estate Performance Measurement System (EPMS) and the Estate Planning
Tool (EPT).
35. The EPMS is being been developed to
provide a central performance management system, which allows
performance data to be shared across both DE and the customer
community. EPMS measures performance across six key, customer
identified, areas; Estate Condition, Programme Effectiveness,
Efficiency, Customer Satisfaction, Safety and Sustainability.
36. The web-enabled EPT provides a central
database to store and analyse data on estate condition. EPT captures
condition data using a single physical condition grading methodology
and allows this information to be analysed to inform improvement
and future investment. A cornerstone of EPT and EPMS is `Target
Condition'. This is the required condition for an asset, as agreed
by the customers, and is captured and held in the establishments'
Integrated Estate Management Plans (IEMPs). The Target Condition
for an asset takes into account the assets importance in supporting
military capability, safety, sustainability and any future plans
for the use of the asset. At present the single physical condition
grading methodology and EPT are only in use for DE maintained
estate (excluding family accommodation) although we are looking
to broaden the scope into accommodation and non-DE maintained
areas
37. An additional Accommodation Module is
being developed for EPT to allow condition data to be readily
accessible for both Service Family Accommodation (SFA) and Single
Living Accommodation (SLA). The EPT will also capture factors
for the Scaling and location of accommodation.
SUSTAINABLE DEVELOPMENT
38. The development, occupation and use
of the defence estate can have a significant impact on the environment.
However, MOD has continued to build on its reputation as a good
steward by developing strategies, procedures and processes to
identify and manage environmental and sustainability impacts in
support of Government policies and targets. These management approaches
are being integrated into the contractual arrangements of private
partners by DE working with the suppliers individually and through
Supplier Associations, to ensure that the Department's best practice
requirements are supported through its procurement activities
(at Woodbridge Airfield, for example, 98% of all waste material
was recycled during an £80M rebuild). As a major landowner,
MOD has considerable environmental responsibilities and challenges
to face.
39. The Government's approach to Sustainable
Development is set out in its new strategy `Securing the Future',
launched 7 March 2005. It is committed to ensuring that sustainable
development is at the heart of policy making and estate management
of all its central departments and executive agencies. MOD achieved
the target placed on all departments to produce a focused, sustainable
development action plan by December 2005.
40. The MOD fully supports the development
and implementation of "Sustainable Operations on the Government
Estate', launched in 2006, the main vehicle for improving, assessing
and managing the performance of the Government estate covering
all the key environmental and social impacts and setting challenging
targets.
41. DE supports 2nd PUS as the Department's
Sustainable Development Champion and as chair of the new cross-Government
Sustainable Development Operations Board which is supported by
a cross-Government Sustainable Operations Working Group chaired
by a DE Director at official level. Since 2000 a sustainability
appraisal has to be completed for every policy, programme or project.
DE has developed a suite of tool-sets and strategies to help to
deliver this commitment. The Environmental and Sustainability
Appraisal Tool Handbook and the Defence Related Environmental
Assessment Methodology provide Project Managers with a series
of checklists for identifying significant environmental impacts
of future developments. These are widely perceived as setting
standards of best practice in Government.
42. Environmental Management Systems that
comply with International Organisation for Standardisation (known
worldwide as ISO) 14001 are being introduced at all major MOD
sites. These require site managers to identify impacts of site
occupation, to set targets to reduce significant impacts and to
monitor and report progress through an Annual Management Review
and a periodic MOD Audit process.
43. Integrated Land Management Plans are
used to assess and manage impacts at all principal training areas.
These 5-year rolling plans ensure that defence-related activities
at the site take account of the requirement for nature conservation,
woodland protection, heritage management and public access. Smaller
sites are adopting less detailed plans known as Integrated Rural
Management Plans.
44. External Stakeholder Liaison on environmental
issues is carried out through a series of consultation committees.
An annual Statutory Bodies and non-Governmental Organisation Conference
is supported by a Liaison Committee for the Environment which
in turn has Advisory Sub-Groups in England, Scotland and Wales.
45. A network of some 180 voluntary Conservation
Groups support the Department by monitoring habitats and species,
providing input to management plans and even practical work in
support of nature conservation and archaeology on the rural estate.
Sanctuary Magazine and associated Sanctuary Award records and
recognises their efforts as well as promoting MOD's environmental
and heritage policies.
ENERGY MANAGEMENT
46. Energy supply is essential to support
MOD operations but it is recognised that increasing energy consumption
and costs and climate change will have significant impacts for
the Department. The MOD consumes two thirds of the energy used
by Government and spends around £28M a year on non-operational
energy. It has some 4,000 sites of which 220 account for 76% of
all energy consumed by MOD. These sites are now being targeted
to identify opportunities to improve energy efficiency and reduce
consumption.
47. In April 2006, the Estate Utilities
Board (EUB) was formed at the direction of the DEC, to deliver
a comprehensive programme of work to drive down energy and water
consumption across the whole estate and to explore different avenues
and opportunities with site-based teams and industry partners.
The EUB has developed a non-operational energy management strategy
out of which will fall site-specific energy action plans. A programme
plan has been established and works streams developed, to identify
savings and drive through efficiency.
48. In moving towards a carbon neutral office
estate by 2012, the MOD is using the agreed Office of Government
Commerce (OGC) definition of the MOD civil estate and work continues
to agree the exact list (building by building) with OGC. Plans
to deliver carbon neutrality for the office estate have yet to
be fully developed, but will probably be achieved through a combination
of energy efficient measures, increased use of renewable technologies
and offsetting. While more work is required, it is expected that
carbon reduction projects currently being undertaken on the estate
could offset emissions that cannot be eliminated. By 2005-06,
the department had achieved around 6% reduction in carbon emissions
based on 1999-2000 levels.
HERITAGE
49. The MOD owns many older buildings and
fully recognises the importance of heritage for the nation and
how the historic environment can enhance the working environment.
This cultural resource supports the ethos and heritage of MOD.
50. The Department's heritage portfolio
represents over half the Government's histotic environment assets,
and in the UK includes over 800 historic buildings, in excess
of 9,000 archaeological monuments (of which more than 900 are
scheduled) and nine Registered Parks and Gardens. Areas of the
estate also fall within 6 World Heritage Sites and a number of
defence sites have been designated as or are located within Conservation
Areas. The Overseas estate also contains important historic features,
such as classical remains in Cyprus and historic buildings in
Gibraltar (a candidate World Heritage Site).
51. The Department endeavours to be imaginative
in examining the options for the re-use of historic buildings
when set against operational priorities and other alternatives.
Annex A
DEFENCE ESTATES—KEY TARGETS—2005-06
2.14 The performance targets laid out in
the table below are consistent with the targets set out in the
Defence Estates Corporate Plan 2005-2010.
| KT1—To improve the defence estate in a sustainable manner to improve its fitness for purpose and condition.
|
| 1a. Improve Single Living Accommodation (SLA) to Grade 1 (Project SLAM and SLA Parallel Projects (PP), including overseas).
| Project SLAM—3,570 SLAM bedspaces were delivered in year against a target of 2,500.
SLA Parallel Projects—3,055 bed spaces were delivered against a target 5,300.
| Target exceeded—The Defence Estates SLAM Programme delivered an additional 1,070 bedspaces, exceeding the target by over 40%.
Target not achieved—The number of bedspaces delivered by the TLBs has failed to meet the target[4].
|
| 1b. Improve Service Families Accommodation (SFA) by completing the upgrade of properties to Standard1 for Condition (S1FC) as part of the programme to upgrade all core stock required for the longer term.
| Delivery of minimum number of upgraded properties (600).
| Target exceeded—1,705 upgraded properties complete at end of Qtr 4. (Exceeding target by 184%).
|
1c. To improve and maintain the defence estate.
| The target condition for the built estate has been established with customers. This now forms a baseline against which the performance of Regional Prime Contracting (RPC) will be measured in future.
| Target achieved—in line with prime contracting roll out programme.
|
1d. Sites of Special Scientific Interest (SSSI) in Satisfactory Condition (95% by 2010).
| 79% of SSSIs have met the criteria for satisfactory condition.
| Target exceeded—Target of 75% of MOD sites in England.
|
| KT 2—To provide an estate of the right size through the consolidation of assets.
|
| 2a. Provide an estate of the right size through implementing agreed Estate Rationalisation (ER) milestones.
| Evidence of performance is reflected in the contribution to the achievement of a number of estate related projects, for example the progress of TLB Co-locations.
| Target achieved—Progress towards estate of the right size resulting in a rationalised estate with financial receipts obtained through site disposal.
|
| 2b. Achieve Accrued Estates Disposal Receipts (Gross)
| Achieve accrued Estates Disposal Receipts (gross) of £250m.
| Target exceeded—Receipts of £257.5m (excluding assets transferred to the Private Sector).
|
| KT 3—To improve customer satisfaction and service delivery.
|
| 3a. Decrease customer dissatisfaction with the quality of property provided as SFA.
| Housing Directorate has now completed the development of the new survey which will be rolled out in 2006-07.
| Target achieved. |
| 3b. Decrease customer dissatisfaction with service delivery to SFA occupants
| Housing Directorate has now completed the development of the new survey which will be rolled out in 2006-07.
| Target achieved. |
| 3c. Increase customer satisfaction with Defence Estates service delivery to Customer Estate Organisations (CEstOs)
| The measure for 2005-06 was overall achievement of Customer Service Agreement (CSAs) to be ? 90%. The CSAs measure delivery against performance targets but contain an element of customer satisfaction. For 2006-07 a separate measure of customer satisfaction will be developed.
| Target achieved |
KT 4—Achieve key milestones for implementation of key MOD Estates Change Initiatives.
|
4a. Regional Prime Contracts | RPC (Central) Contract Awarded November 2005 against a target of September 2005.
RPC (East) Contract Award November 2005 against a target of October 2005.
| Target not achieved—Due to protracted contract negotiations, but in Service Date of April 2006 achieved with Contract Award within Project tolerance of August to December 2005
Target not achieved—Date of Contract award not met but no impact on planned go live date of June 2006.
|
4b. Defence Housing | Housing Prime Contract (HPC) awarded 14 November 2005. Progress made against streamlined Housing Directorate structure.
| Target not achieved—Due to extended contractual negotiations target was August 2005.
|
4c. Project Alexander | Deferred Scope Implementation introduced across Northern Ireland (NI), Germany and UK training estate.
| Target achieved—Implementation achieved by April 2006.
|
4d. Defence Training Estate Rationalisation Study (DTERS).
| Completion of Phase 1 has been achieved. |
Target achieved—All assets now transferred with 2 new organisations up and running, Customer and Supplier Organisations with Commercial and associated finance to manage the assets in place accordingly.
|
| KT 5—Deliver value for money efficiencies.
|
| 5a. Deliver 30% through-life value for money output efficiencies through the introduction of Prime Contracting.
| Following the successful conclusion of pilots for the Estate Performance Measurement System (EPMS) at 9 MOD locations, it was agreed to roll-out a single asset grading methodology, introduce Integrated Estate Management Plans (IEMPs), and demonstrate Value for Money using the developed model and associated performance indicators, across the defence estate.
| Target achieved—Demonstrated 3% through-life Value For Money (VFM) efficiency target for 2005-06 in Prime Contracts against baseline.
|
5b. To deliver output efficiencies from Project SLAM.
| £5.04m. This figure is taken directly from the Departmental Efficiency Programme.
| Target achieved—Delivered profiled efficiency.
|
5c. To deliver output efficiencies from Project Aquatrine.
| £11.04m. This figure is taken directly from the Departmental Efficiency Programme.
| Target achieved—There is already improvement with significant investment in infrastructure taking place.
|
5d. To deliver the savings from the introduction of the Housing Prime Contract (HPC).
| Initial restructuring of "soft" housing service is underway but further economies are being examined. Restructuring will be complete by April 2007.
| Target not achieved—Due to delay in awarding HPC. The transfer of responsibility for all repairs and maintenance to Services Family Accommodation (SFA) to Housing Prime Contractor completed March 2006. Some Housing Directorate staff remain to be re-deployed.
|
5e. To deliver the savings from restructuring and the merger of DE and Defence Housing Executive.
| New Housing Directorate Head Office structure in place and nine regional structures have been streamlined into two—North and South. Housing Directorate services managed within reduced budget allocation.
| Partially achieved—£2.1m merger savings achieved. £500k unable to be realised due to late completion of final structure.
|
5f. To reduce the management margin of vacant housing to 10% by November 2005 (ie the proportion of working stock that is vacant, excluding housing earmarked for disposal in the next 12 months).
| By November 2005 the management margin was 13%. If, however, the proportion of SFA held vacant awaiting deployments and/or rationalisation decisions by the Services is excluded, the margin reduces to 6.8%. The corresponding figures at 31 March 2006 were 13.9% and 7.9% respectively. The number of empty properties will reduce from 1 April 2006 as Gurkha families take up SFA following changes to their terms and conditions of service.
| Target not achieved—Given the continued uncertainty in respect of many Service deployments and rationalisation studies there is a need to retain a large number of vacant properties (c3,000) to meet potential future requirements. The target of 10% will not be achieved until firm decisions have been taken and implemented.
|
Annex B
DEFENCE ESTATES
ANALYSIS OF ADDITIONS—2005-06
ASSETS UNDER CONSTRUCTION/LAND & BUILDINGS
| Projects over £1m | £'000
|
| Single Living Accommodation Modernisation |
143,998 |
| North—Woodbridge Barracks | 51,978
|
| North—Neptune SLA | 32,411
|
| South-Brize Norton Runway, taxiways | 20,313
|
| North—Glencorse SFA | 15,542
|
| Overseas—Project Expenditure | 9,385
|
| North—Aldergrove C site works | 8,469
|
| South—Marchwood Housing | 8,364
|
| North—Core Services Regional Prime Contract
| 7,880 |
| Europe—Proj expend | 6,418
|
| South—Squadron Lines RM Poole | 6,083
|
| North—Coningsby sq Accom | 5,434
|
| South—ATC Tower | 5,315
|
| Housing—Middle Wallop | 4,749
|
| South—Pirbright New MRS | 4,234
|
| South—Ashchurch | 3,816
|
| South—Military Courts Centre Bulford |
3,690 |
| North—Ballykinler FQs Work | 3,496
|
| South—RM Poole | 3,465
|
| North—Prime Contract One | 3,273
|
| North—Cottesmore | 3,196
|
| South—Pirbright JR Kitchen | 3,131
|
| North—Conningsby Accom for E flight 202 Sqd
| 2,916 |
| North—Chilwell | 2,838
|
| South—Bowman Classrooms | 2,731
|
| South—Falklands Jetty | 2,720
|
| South—Chickrell Trg Camp additional capacity
| 2,432 |
| South—Lympstone Galley | 2,391
|
| North—Beith Roof IWC6 | 2,369
|
| North—Chicksands | 2,221
|
| South—South Cerney | 2,046
|
| North—WYG Kineton Felix | 2,016
|
| South—Dalton Barracks | 2,008
|
| North—DCU MPH | 1,941
|
| South—Project EMMA | 1,853
|
| South—Alexander Bks | 1,782
|
| South—RNAS Culdrose | 1,719
|
| South—Hyde Park Barracks Stables |
1,641 |
| North—East DTEG Services | 1,573
|
| South—Accom Phase 1 Kitchen | 1,551
|
| North—Prime Contract One —Ballykinler JRSLA
| 1,445 |
| South—Controlled Humidity Environment Chal 2
| 1,434 |
| North—Coulport RIMS Doors | 1,258
|
| South—South Yard Enclave | 1,196
|
| South—Dry Scuff | 1,175
|
| South—Project STAR | 1,098
|
| 400,994 |
Projects under £1m | 16,115
|
| Aquatrine PFI Residual Interest |
|
| Package A | 3,223 |
| Package B | 1,388 |
| Package C | 3,054 |
| 7,665 |
| TOTAL ASSETS UNDER CONSTRUCTION |
|
| ADDITIONS | 424,774 |
| ACQUISITION OF THE SOMERSET SITE, BRISTOL |
20,994 |
| TOTAL ADDITIONS | 445,768 |
Annex C
Service Families Accommodation: Standard for Condition Definitions
of Categories
Standard for Condition is calculated from 102 different attributes
organised into the following eight categories: Health and Safety,
Sanitary, Kitchen, Energy, Efficiency, Building Fabric, Electrical,
Security and Bedroom Standard. Standard 1 properties achieve a
standard of 1 in all eight categories.
A property assessed as Standard 2 achieves a standard of
1 or 2 in each category, with a standard of 1 usually reached
in at least five categories. Examples of required improvements
are: a thermostatic shower, new kitchen, or an upgrade to loft
insulation.
A property assessed as Standard 3 only achieves a Standard
of 3 in at least one of the eight categories. Usually a Standard
of 1 or 2 is reached in at least half of the categories. Examples
of required improvements are: a complete re-wire and consumer
unit, new kitchen, bathroom, and an upgrade to insulation of lofts
and plumbing.
A property at Standard 4 is typically assessed as Standard
4 in five or fewer categories. Standard 4 properties will typically
require a new bathroom, electrical system, kitchen, insulation
upgrade, and health and safety review.
17 April 2007
1
One listing or schedule may cover more than one building or monument. Back
2
In Trust and On Trust-The Strategy for the Defence Estate. Back
3
Anchor locations are defined as those large sites that have an
indefinite operational future, have capacity or potential for
development, and will be the main foci for future operational
activity and investment. Back
4
Due to later starts to Colchester and Allenby/Connaught PFIs. Back
|
