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Transparency data

DfE Government Major Project Portfolio data, September 2017 (csv)

Updated 4 July 2018
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Project Name Priority School Building Programme 1 30 Hrs Free Childcare Project Apprenticeships Reform Programme PSBP Private Finance Priority School Building Programme 2
Department DfE DfE DfE DfE DfE
IPA Delivery Confidence Assessment (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 MPA Annual Report) Amber/Green Amber Amber Green Amber/Red
Description / Aims The Priority School Building Programme One (PSPB1) is meeting the condition need of the school buildings in the very worst condition across the country. PSBP1 Capital will rebuild and/or refurbish 214 schools through capital grant with the vast majority of schools expected to be handed over by the end of 2017, two years earlier than originally announced. To ensure value for money for the public sector, schools are grouped together to make projects (or batches) that will be commercially attractive and drive strong competition. This grouping of projects also allows us to take advantage of economies in procurement in terms of both time and cost. PSBP1 Capital has 68 schools worth over œ10m of which 67 have their design and build contracts awarded. The future pipeline of projects, determining requirements on steel sourcing, have been signalled to the market pre-procurement. This gives potential bidders sufficient time to prepare for competitive bidding under ESFA frameworks; alternative frameworks and OJEU procurements. The Government has legislated through the Childcare Act 2016 to introduce an entitlement to 30 hours of free childcare for working parents of 3 and 4 year olds (the extended entitlement). The extended entitlement was rolled-out nationally from September 2017 with early implementation in some areas from September 2016 in keeping with commitments made by the Prime Minister. A multifaceted transformation programme, aiming to deliver against 4 key strategic objectives: ú To meet the skills needs of employers - and the country by being high quality, relevant programmes that result in apprentices becoming fully competent in their occupationú To create progression for apprentices - by creating high quality programmes that result in apprentices becoming fully competent with transferrable skills in an occupation that offers progression.ú To widen participation and social mobility in apprenticeships ? to ensure that more people from a diverse range of backgrounds have access to the benefits of apprenticeships at all levels. ú To create more quality apprenticeships - through our campaign work and by creating a sustainable funding system and a high quality apprenticeships offer. We have successfully developed and implemented a new employer levy and funding system, designed and implemented a new digital online IT system which enables employers to manage their apprenticeship programmes and established a new Institute for Apprenticeships all of which completed in April 2017. We are supporting transition from apprenticeship frameworks to new employer designed standards, establishing ways to raise BAME participation rates by 20%, designing a policy to ensure inclusive apprenticeships to support social mobility and, with the support of the Institute, significantly uplifting the quality and quantity of apprenticeships. We will also implement a comprehensive strategy to support employers and providers to understand the changes to the apprenticeship system and ensure that the wider market is ready. Delivering 46 schools in the worst and most urgent need of rebuild using HMT's PF2 approach. Within the Public School Building Progrmme 2 (PSBP2) individual blocks of accommodation at 277 schools will be rebuilt and/or refurbished using capital grant. The schools will be handed over by the end of 2021. To ensure value for money for the public sector, schools in both phases of the programme are grouped together to make projects (or batches) that will be commercially attractive and drive strong competition. This grouping of projects also allows us to take advantage of economies in procurement in terms of both time and cost. PSBP2 has 41 schools worth over œ10m, one of which has its design and build contract awarded. The future pipeline of projects determining requirements on steel sourcing have been signalled to the market pre-procurement. This gives potential bidders sufficient time to prepare for competitive bidding under EFA frameworks; alternative frameworks and OJEU procurements.
Departmental commentary on actions planned or taken on the IPA RAG rating. A number of external factors continue to impact the programme, the most significant being the recovery of the construction market. We continue to experience a lack of interest from contractors in the new batches of schools being released into procurement and contractors continue to seek additional funding. This has resulted in delays against our internal delivery programme, expenditure slipping backwards and an increase in the overall cost to deliver the programme. Since the Amber delivery confidence assessment, DfE has continued to work closely with HMRC to resolve a number of Childcare Service technical issues affecting parent applications, effectively communicate the 30 hours application process to parents and encourage early applications for the spring and summer terms, to avoid disappointment. DfE and its delivery contractor, Childcare Works, are providing targeted and tailored support to a small number of high risk local authorities (LAs) to ensure plans are in place to deliver sufficient 30 hours childcare places to meet demand in the summer term. DfE has also awarded œ7.7m grant funding to 147 LAs to fund a range of activity that will directly support delivery of 30 hours childcare in the summer term. Provider register published. Institute for Apprenticeships established. Apprenticeship levy in effect. Private Finance team continue to closely monitor contractor performance to ensure schools are handed over to schools in suitable condition. To date construction is complete on 45 of the 46 schools and the remaining school is ahead of schdule. We do not anticipate any further delays as construction is almost complete We continue to review and adapt our market strategy to identify further opportunities and solutions to drive value for money for the projects remaining in the programme pipeline. There is growing evidence of a significant increase in demand for construction capacity leading to cost pressures to deliver the programme to the agreed timeframe and capital budget. This is being addressed as more detailed feasibility assessments are made of the individual projects. PSBP2 is at an early stage of development and the SRO is confident that good progress is being made.
Project - Start Date (Latest approved start date) 19/07/2011 11/05/2015 08/05/2015 19/07/2011 01/05/2014
Project - End Date (Latest approved end date) 19/09/2021 30/09/2018 01/04/2021 01/07/2043 31/12/2022
Departmental narrative on schedule, including any deviation from planned schedule (if necessary) PSBP1 has met the target of delivering the majority of its schemes by Dec-17 as anticipated. The project remains on schedule, with 30 hours childcare places being delivered nationwide from September 2017. The project closure date has been extended to 30 September 2018 to enable the project to effectively monitor and manage a full year of delivery before moving to a business as usual state, rather than as a result of any delay to national rollout. Critical milestones and schedule remain on track. Transfers minimum vialble service Apr 2018, Non-Levy Beta Apr 2018, Frameworks to standards shift complete Mar 2020. No deviation from planned schedule. Schedule nearly complete and no anticipated delays PSBP2 although in the early stages does not at this point indicate any overall delays in delivery.
2017/18 TOTAL Baseline œm (including Non-Government costs) œ381.85 œ409.10 œ2,036.10 œ186.50 œ402.25
2017/18 TOTAL Forecast œm (including Non-Government costs) œ319.29 œ436.90 œ1,684.10 œ190.10 œ100.91
2017/2018 Variance %age -16% 7% -17% 2% -75%
Whole Life Cost TOTAL Baseline œm (including Non-Government costs) œ2,313.79 œ1,920.72 œ11,347.50 œ2,652.00 œ2,089.31
Departmental narrative on budget/forecast variance for 2017/18 (if variance is more than 5%) PSBP1 is heading towards the final stages of the programme and the schemes with contracts awarded over the last few months and those still awaiting financial close are the more problematic schemes. This has led to inevitable slippage and has impacted the delivery profile. Since then, the programme has delivered the majority of its schemes by 31st December 2017. The 7% variance from baseline costs for 2017-18 are primarily as a result of updates to account for changes to ONS population projections, which have increased the forecast of the Dedicated Schools Grant (DSG) to fund the extended 30 hours entitlement. 30 hours entitlement is a demand-led project and the DSG costs are modelled on what we currently know and understand about the population and estimated take-up of the offer. The 2017/18 forecast costs are 17% below baseline as we are forecasting a participation budget underspend in 2017/18. This budget is very difficult to forecast as there is a lot of uncertainty around employer behaviour following the introduction of the new levy. Starts delivered since introduction of the Levy in May continue to be very low and show a reduction of 61% compared to the same time last year. The new levy has transformed the way that ÿApprenticeships operate in addition to the transition from frameworks to standards. This is a lot of change for both employers and the market to get used to . Employer behaviour is hard to predict and it is very difficult to accurately forecast spend during a period of such uncertainty. Our updated forecast for 2017/18 reflects the reduction in the number of starts and also the slippage in our other spending plans as the need for enhancements to the Apprenticeships Funding Service are assessed. This has resulted in an expected underspend compared to baseline in 2017/18. As employers have 2 years to spend their levy funds It is likely that spending will increase in the next financial year resulting in higher than expected costs in 2019/20 and onwards. There is still a high level of uncertainty around these forecasts . Enhancements and changes to the Apprenticeships Funding Service are still being planned and the split between investment in change and Recurring new costs reflects current known plans. This will be updated as further enhancements obtain ministerial approval. Budget variance less than 5% PSBP2 was originally forecast to follow a smooth construction spend profile, however during the roll out, it immediately became clear that some of the forecasts were too ambitious; with the initial œ77m planned for 2016/17 underspent by more than œ50m. The main drivers behind this were that PSBP2 was mainly a block-based programme with a high percentage of refurbishment works. Feasibility studies were more complex compared to PSBP1, which meant they lasted longer. A major realignment in spring 2017 has allowed the programme to kick-off a number of feasibilities at once, reducing the time deficit and leading to relatively easier transitions in procurement and construction. This has ensured we maintain the original overall programme duration.
Departmental Narrative on Budgeted Whole Life Costs Initial capital investment to address the poor condition of school buildings will avoid significant future costs to deal with a deteriorating estate and help to avoid any incidences of basic need pressure created through obsolescence. The whole life costs are made up of: the resource costs associated with delivering the 30 hrs project by Sept 2018; capital budget which will enable the creation of new childcare places; and the Dedicated Schools Grant (DSG) to fund the extended 30 hrs entitlement for the remainder of the Spending Review period. Whole Life costs are currently within profile in the Strategic Outline Business Case The CDEL forecast changed in 2017/18 as it now include the CDEL scores for the Aggegator Vehicles's (AV)) own financial assets (loans to Borrower SPVs). DfE reached agreement with HMT in Autumn 2016 that the AV had a net CDEL score through removing the CDEL score for the AV's financial liabilities. Initial capital investment to address the poor condition of school buildings will avoid significant future costs to deal with a deteriorating estate and help to avoid any incidences of basic need pressure created through obsolecence.