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Transparency data

FCO Government Major Projects Portfolio data, September 2015

Updated 7 July 2016
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Project Name ABUJA New Office and Residence UKERP Technology Overhaul Movement of Personal Effects Contract ICT Re-procurement
Department FCO FCO FCO FCO FCO
IPA RAG rating (A Delivery Confidence Assessment of the project at a fixed point in time, using a five-point scale, Red – Amber/Red – Amber – Amber/Green – Green; definitions in the IPA Annual Report) Amber Amber/Red Amber Amber Amber/Green
Description / Aims To provide a secure modern fit for purpose HMG office compound for both BHC and DFID in Abuja, Nigeria. The project supports the wider Cabinet Office strategy of consolidating the HMG Estate in Central London in KCS. The project will deliver savings from 2016/17 in operating costs and promotes Diplomatic Excellence. • Providing reliable, resilient and easy to use technology across our global network. • Enabling mobile and flexible working, ‘Official’ where possible, ‘Official-Sensitive’ where really necessary. • Providing customer interaction and service provisions which are digital by default, delivering information and knowledge management capabilities, encouraging innovation and a culture of working together. To provide the continuation of the movement of personal effects (e.g. Heavy Baggage, UAF, Car Freight) to HMG staff and their dependents posted overseas from September 2016 The Programme was tasked with procuring and transitioning to a new Service Management and Integration (SMI) service and a successor Desktop Infrastructure (DI) service to replace our business critical “Firecrest” managed service contract with the then incumbent, Hewlett Packard (HP). The Programme was established to prepare for and carry out the necessary procurement activity, put in place and transition to the DI and SMI contracts, maintain service continuity as the HP contract expired, enhance the systems and services and deliver significant cost savings in doing so.
Departmental commentary on actions planned or taken on the IPA RAG rating. Amber is appropriate at this stage in the project given the challenges with achieving the required quality of workmanship in Nigeria using local labour. Additional exPat supervision and UK supplier input has been procured to support the main contractor with the remainder of the works and completion of the construction works is now set for June 2016 with occupation by the end of 2016. Gate 4 has now taken place and the project received an Amber DCA. Amber/Red remains the FCO's overall view given the problems encountered by the main contractor in delivering specialist aspects of the design, which have resulted in one part of the construction works being a year late - now due to complete by end of March 2016. OAB was handed back to GPU on programme and all staff are now based in KCS. Amber DCA is appropriate at this time. The FCO Board has agreed Tech Overhaul funding as part of its own SR exercise; we are working to mitigate our top risks that relate to getting the technical build right for our devices, finalising our design and roadmap for Cloud, and working with our security community to ensure we have the appropriate security wrap for this Tier 1/Official programme Agree with DCA. Recommendations discussed and impementation underway: • OBC completed (and approved) with clear set of options, financial assessment • Delivery stage (mobilisation period) discussed and planned at Project Boards • Liaising with PAG Partners to better understand internal governance procedures. • Benefits planned drafted, measured alongside a RAID and monitored at Project boards The FCO is making good progress. Gate 4a (April 15) concluded that further good progress had been made on the Programme since Gate 4 (Sept 14), including a successful roll-out of the SMI toolset (also used by the DI) under joint FCO/SMI management. Subsequently, the DI phase two transition to new operational services has been completed with the last contractual transition milestone under review. The FCO, SMI and DI have made reasonable progress in responding to the other recommendations in Gate 4a, though it is acknowledged that more needs to be done (particularly on benefits management). Nevertheless the issues continue to be managed through an Action Plan. The FCO therefore considers it is in a good state of readiness for both successful Programme closure in Q1 2016 and on-going management of the BAU services. Programme Closure is slightly later than planned (end of Dec 2015) but the Programme remains on schedule for its IPA Exit Review (end Mar-early April 2016).
Project - Start Date (Latest approved start date) 01/01/2011 01/06/2011 01/11/2015 06/07/2015 01/01/2011
Project - End Date (Latest approved end date) 01/12/2016 01/08/2016 01/03/2018 30/09/2016 18/12/2015
Departmental narrative on schedule, including any deviation from planned schedule (if necessary) Data not provided Data not provided Data not provided Current MOPE contract expires 31 August 2016. New contract must be in place by 31 August after an approx. 2 month mobilisation period Data not provided
2015/16 Budget (£million) £18.80 £31.26 £25.56 £0.00 £27.29
2015/16 Forecast (£million) £18.80 £31.26 £13.40 £0.00 £31.95
Variance Budget / Forecast %age Budget variance less than 5%. Budget variance less than 5%. 52.43% Budget variance less than 5%. 17.08%
Total budgeted whole life costs (£million) (including Non-government costs) £46.00 £64.90 £105.50 £42.50 £161.10
Departmental Narrative on Budget / Forecast variance for 2015/16 where more than +/- 5% Budget variance less than 5%. Budget variance less than 5%. Delays introduced as a result of awaiting the outcome of the SR15 Settlement were necessary to ensure that the Department could afford to deliver the full scope of Tech Overhaul, this explains the variance to the 15/16 allocation. Budget variance less than 5%. Variance mainly due to the need to keep the legacy disaster recovery site open for longer than planned (as the project to replace it has had delays) and additional SMI operational costs to extend the scope of the SMI service.
Departmental Narrative on Budgeted Whole Life Costs Whole life costs remain as reported in the last annual report and in line with budget approvals. Whole life costs remain within the approved budget, but contingency remain is tight and being closely monitored for the final stage of the project. In December 2015 the FCO Board of Management approved the full scope of Tech Overhaul and a budget envelope of £105.5m. The Programme is currently progressing through the internal FBC approvals process and expects external HMT / CO approval at the end of March 2016 Predicted annual project costs for the FCO are £8.5 million. Full potential 5 year costs from 2016 - 2021 (3 years, +1 +1) for the FCO are £42.5 million. A cross- whitehall contract total cost could be £12.5 (per annum), £37. 5 (over 5 years). The whole life costs include transition costs and operational costs. Previous returns also included costs to refresh and enhance the desktop infrastructure but these were superseded or impacted by the Technology Overhaul Programme. The ICT Procurement Programme was therefore descoped to remove its transformational elements and its budgeted whole life costs have been reduced accordingly. The descoped programme remains on course to deliver substantial operational cost savings.