Houses of Parliament - Restoration and Renewal Programme

Government Property Agency

Client Problem Statement

The Palace of Westminster is home to the UK’s Houses of Parliament and is a 1,000,000 sq ft Grade 1 listed UNESCO World Heritage site. The Palace was last renovated in the 1940s following significant bomb damage from WW2.

Following years of underinvestment, the building has an antiqued infrastructure which requires major renovations, without which 'irreversible damage may be done to the building' which would lead to Parliament no longer being able to occupy the Palace.

Our role

Deloitte were appointed to undertake an Independent Options Appraisal (IOA) on how to deliver the multi-million restoration and renewal programme. It was crucial to carry out an in-depth analysis of potential scenarios for undertaking the renovation works. The IOA report identified for each scenario:

- Indicative costs
- Timescales
- Risks & Benefits

Deloitte were also appointed to develop the overall Delivery Model programme for the restoration. Since The Palace of Westminster does not fall under the jurisdiction of any government department, there was not a strategic sponsor. Deloitte’s proposal included establishing a Sponsor Body and Delivery Authority to deliver the programme.

The Delivery Model outlined the initial procurement strategy, which included defining capabilities required by the new sponsor and client organisations. The strategy also identified how the required capabilities would be procured across the Operating Model.

Benefits and outcomes

The delivery options were reviewed gra a Joint Committee comprising of the House of Commons and House of Lords. The Joint Committee recommended the restoration works would be undertaken as a single-phase intervention. The recommendation was endorsed by Parliament and legislated to establish the Sponsor Body and Delivery Authority via the ‘Parliamentary Buildings (Restoration and Renewal) Act 2019.

HS2 Programme Controls

Government Property Agency

Client problem statement

In 2018 HS2 Ltd commenced the process to pass through a critical milestone - Phase One ‘Notice to Proceed’ (NtP), which marks the authorisation to finalise contracts for major construction works. As part of the Department for Transport’s (DfT) approval to issue NtP, HS2 Ltd needed to provide the DfT confidence in its capability to deliver the programme.

Programme controls was identified as a key area for improvement, and “Programme ATLAS” was founded to support improvements focussing on data & systems, reporting and process implementation.

Our role

Deloitte developed a new programme controls vision and strategy in the form of a high-level operating model, Programme ATLAS was split into three separate projects.

Following a period of testing and training, the newly configured and integrated systems went live to over 150 programme controls practitioners. Consistent data structures across all programme controls systems enabled the integration of cost, schedule and risk data. Live programme data was integrated into the data and reporting platform, allowing programme reports to be auto populated for the first time.

Benefits and outcomes

Deloitte helped HS2 Ltd to demonstrate the necessary change in capability to provide the DfT with the confidence to issue Notice to Proceed.

Programme ATLAS delivered the following significant benefits to HS2 Ltd:

·increasing the quality and consistency of programme controls information,
·an aligned set of data structures across the programme
·best practice processes supporting more effective decision making
·reduction in the level of manual effort required to produce monthly reports

Corporate Occupiers

Global Bank

Client problem statement

Our role

We worked with our client to design an integrated planning, budgeting and billing process. We then enabled this process though a bespoke technology solution that provides a high degree of automation and allows multiple users access a single source of financial information. Finally, once we had built it, the client asked us to take on the ongoing management of the technology solution and we now provide a managed service covering hosting, application management and functional enhancements delivered by a dedicated team.

The value we brought to this project was our ability to blend real estate, accounting and digital skills in response to the client’s needs and deliver all aspects of the project lifecycle the project from strategy to build to operate.

Benefits and outcomes

The managed service partnership has now been in place for six years. It has transformed the transparency of the plan and recharges. The ongoing enhancements, delivered by the dedicated managed service team, have allowed the client to easily incorporate significant changes such as the adoption of IFRS 16, changes in functional scope and changes to recharge methodology. Further functional enhancements include “what if” capabilities, which allows them to model in real time the financial impact of changes to the portfolio.

Global Pharmaceutical

Global Bank

Client's problem statement

The clients had a complex portfolio with over 800 buildings in more than 70 countries, spanning R&D, Manufacturing, Offices, HQ, Warehouse, DC, and other non-manufacturing sites.

Their operating model comprised varying levels of Facilities Management (FM) outsourcing maturity across locations and was typically driven at local levels and so required a global strategy to standardise and harmonise the FM and Real Estate processes and suppliers globally to:

- Improve the customer experience
- Retain of the best talent and maintain their reputation of being the best place to work in Pharmaceuticals
- Be a leaner and more efficient Facilities and Real Estate Organisation

Our role

As part of a two phased approach our role focused on supporting the client to help manage procurement and facilities spend, deliver annual cost savings to fund future growth and translate procurement activities into highly efficient and transactional buying activity.

Deloitte undertook analysis of the current FM spend to build a business case focussed on potential savings, through the design and implementation of the below initiatives:

- A leaner, consolidated supply chain with clear ownership and compliance assurance procedures
- Harmonised contract terms and service levels, processes, and performance measurement across sites with similar operations creating opportunities to monitor and optimise resources and performance; and
- An optimised service delivery model and transformation of in-house FM responsibilities.

Deloitte was key in supporting the client with the implementation of the global IFM initiative and worked closely with stakeholders to obtain buy in across the organisation and develop a global communications plan. We introduced tools and templates to enhance their global procurement capabilities as well as developing a site-by-site business case to further highlight the financial and non-financial opportunities associated with an IFM approach. We supported the client in engaging with the FM market, tender preparation and selection.Benefits and outcomes

The global IFM initiative was successfully rolled out across the organisation, generating both financial and non-financial savings across their business. The roll out was successful thanks to our detailed communications plan and support for training and onboarding of teams at site levels.

Public Sector Occupiers

Government Property Agency

Client Problem Statement

The Government Property Agency (GPA) was established by the Office of Government Property (OGP) in 2018 to deliver a new commercially driven approach to managing central government ‘general purpose’ property (e.g., offices). Its aim is to improve operational efficiency, the civil service experience and make best use of the estate.

Deloitte has worked with both the OGP and GPA from the outset, supporting across several critical business areas.

Prior to establishing GPA, OGP required support to develop options for an estate charging model. As GPA has moved through set-up, development, and full operations, it has required support at different stages, reflecting the maturity of the model.

Our role

We initially advised OGP on options for an estate charging model to incentivise better use of the government estate, drawing on financial analysis and comparator organisation models.

Following the decision to establish GPA, Deloitte provided secondees to the set-up team.

In 2019/20, we worked with the GPA executive team and Board to facilitate the development of a ten-year strategy published in 2020 to provide a forward look for the maturing organisation. This sets out GPA’s contribution to net zero; transforming the civil service; growth across the UK; and better value.

More recently, Deloitte has been operating at the heart of GPA’s Digital and Technology activity. We supported the development of critical enterprise architecture and data governance framework to support change within the organisation. Deloitte also supports GPA’s workplace services directorate as they introduce a new integrated workplace management system.

Benefits and outcomes

Deloitte’s estates charging model work with the OGP helped define the levers available to the centre of government to make better use of their property and improve efficiency across a fragmented landscape of ownership and management. This informed the decision to establish the GPA.

The GPA’s ten-year strategy has assisted the organisation in the definition and communication of a clear ambition and business objectives, supported by a roadmap for change to enable growth.

Deloitte’s specialist technology support is helping GPA to achieve its ambitions to become an insight-driven organisation. Establishing a rigorous, consistent approach to data and technology is enabling GPA to deliver greater value for taxpayers and give civil servants a more consistent workplace experience.

MOD: Future Accommodation Model

Government Property Agency

Deloitte has supported the MOD in gaining approval from the Investment Approvals Committee and People Committee for the full rollout of FAM. This relied not only upon a compelling HMT Green Book aligned business case but also supporting stakeholders understand the benefits the programme will bring to Service personnel.