§ Dr. David ClarkTo ask the Secretary of State for Defence what assessment he has made of the compliance with value for money requirement of his Department's Abbey Wood procurement executive headquarters. [2444]
§ Mr. ArbuthnotThe Abbey Wood project has been assessed against value-for-money criteria at all stages since its inception. Two investment appraisals in 1991 justified the selection of Bristol as the location and Abbey Wood as the site for collating the procurement executive. The late 1992 IA, which reappraised alternative accommodation solutions, justified the decision to proceed with the Abbey Wood construction programme. Subsequent appraisals in 1993 assessed the impact of taxation of relocation allowances, and the implementation of changes in management of the common user estate.
During the 1994 defence costs study, 27 options including the base case were appraised to reconsider the cost-effectiveness of the Abbey Wood project in the light of anticipated reductions in the size of the procurement executive headquarters organisation. I As have been scrutinised within the Department, by the Treasury at each major approval stage, and by the National Audit Office.
Value engineering has been applied extensively during the development of the design, resulting in some £27 million being saved in acquisition costs compared with less well optimised schemes. Life cycle costing techniques have been applied to inform major design decisions, with investment appraisals being conducted on design options, resulting in energy efficient and low maintenance cost solutions. Construction contracts have been subject to competition, and proposals evaluated against value for money criteria, taking account of risk assessment.
The cost-effectiveness of options proposed by tenderers were assessed in terms of both capital and life cycle costs, and adopted where better value for money would result. Space standards have been subject to two strategic reviews, resulting in tauter space standards being adopted. A strict configuration control regime has been in force to minimise cost variances arising from changes, yet allowing potential additional savings to be evaluated.
Planning for a comprehensive post-project evaluation has been initiated to enable the overall cost-effectiveness of the collocation of the PE to be assessed upon completion of the project.
§ Dr. ClarkTo ask the Secretary of State for Defence what is the working area per square metre for each person at his Department's procurement executive headquarters at Abbey Wood. [2441]
§ Mr. ArbuthnotWithin the Abbey Wood headquarters office buildings, the basic work space allocation for each employee is:
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Metre2 All staff up to, and including grade 6 6.75 Staff at grade 5 and grade 4 13.00 Staff at grade 3 and above 27.00
§ Dr. ClarkTo ask the Secretary of State for Defence what is the current total estimated cost for the railway and station at Filton being built to service his Department's Abbey Wood procurement executive; and what was the original total estimated cost of the railway and station. [2443]
§ Mr. ArbuthnotThe current estimated cost of the new Filton Abbey Wood station which is being built for Avon county council to serve all the new and existing developments in the area is £885,000. The original estimated cost was £1.056 million.
§ Dr. ClarkTo ask the Secretary of State for Defence what is his Department's estimate of the number of employees at his Department's Abbey Wood procurement executive headquarters who will use the railway station on the site each day. [2445]
§ Mr. ArbuthnotSurveys conducted within the procurement executive indicate that over 500 staff are likely to use Filton Abbey Wood railway station each day.
§ Dr. ClarkTo ask the Secretary of State for Defence how many members of the procurement executive were expected to occupy the Abbey Wood procurement executive headquarters when the scheme was first announced; and how many people employed by the procurement executive are now expected to occupy the building. [2450]
§ Mr. ArbuthnotWhen the scheme was first announced, the planning assumption for PE HQ numbers to be accommodated at Abbey Wood was 4,800 plus a further 500 PE project related and integrated logistics support staff.
Current plans envisage 4,300 plus a further 600 PE project related and integrated logistics support staff.
§ Dr. ClarkTo ask the Secretary of State for Defence how many people were employed in the procurement executive in each of the last three years; and what is his Department's estimate of the numbers to be employed in each of the next five years. [2451]
§ Mr ArbuthnotThe numbers of staff directly employed—military and civilian—in each of the last three years were:
- 1 April 1993: 11,230
- 1 April 1994: 10,760
- 1 April 1995: 7,540
During the financial year 1994–95 some 3,070 test and evaluation staff were transferred to the Defence Research Agency.
The estimated numbers of staff to be employed to meet the anticipated programme requirement in future years, rounded, are:
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- 1 April 1996: 6,600
- 1 April 1997: 6,350
- 1 April 1998: 6,200
- 1 April 1999: 6,050
- 1 April 2000: 5,850
- (excluding Ministry of Defence police employed to support the nuclear contract programme).
§ Dr. ClarkTo ask the Secretary of State for Defence when final planning permission was granted for the Abbey Wood procurement executive headquarters; what is the total size of the site; how many lakes have been built on the site; what is the size of the lakes on the site; if the lakes are stocked with fish; what is the purpose of the suspension bridge situated over one of the lakes; what has been the cost of landscaping the Abbey Wood site; and how many trees were planted as part of the landscaping. [2447]
§ Mr. ArbuthnotDetailed planning permission for the Abbey Wood headquarters was granted in March 1993. The total size of the site is 98 acres. One lake has been built on the site, with a surface area of 22,000 m2 to satisfy National Rivers Authority requirements to contain storm water run-off and prevent flooding of surrounding waterways. Four small ponds, with a total surface area of 600 m2 are integrated into the landscape scheme to satisfy local planning authority requirements for maintaining wildlife corridors and enhancing the ecology of the local area. There are no plans to stock the water features with fish.
Site planning obligations, suitability of land for buildings, and on-site road infrastructure requirements to access car parks and neighbouring land dictated that land to the north-east of the site had to be annexed from the main development, and used for vehicle parking. The bridge provides pedestrian access to the north-east car park, whilst satisfying security requirements. The estimated cost of soft landscaping is £5 per sq m for a total area of 270,000 m2. Once complete, some 5,000 trees will have been planted as part of the landscape scheme which life cycle costing has shown to be more cost effective in terms of upkeep than grass.
§ Dr. ClarkTo ask the Secretary of State for Defence, when he expects to name a new head of the procurement executive. [2448]
§ Mr. ArbuthnotI expect to name a new head of the procurement executive in early 1996, as a result of the open competition which is currently under way.
§ Dr. ClarkTo ask the Secretary of State for Defence who is the prime contractor for the building of the procurement executive at Abbey Wood. [2449]
§ Mr. ArbuthnotThe main contractor for the shell and core construction of the buildings at Abbey Wood is John Mowlem Construction plc.
§ Dr. ClarkTo ask the Secretary of State for Defence what is the current total cost of staff relocation to his Department's Abbey Wood procurement executive headquarters; what this cost was when the project was first announced; and what are these costs per person. [2454]
§ Mr. ArbuthnotTaking account of the post defence costs study restructuring of the procurement executive HQ organisation, the current estimated total cost of relocation of staff to Abbey Wood is £74.5 million. At current economic conditions, and allowing for the changes in taxation of relocation costs announced in March 1993, the original estimated total cost of staff relocation when construction of Abbey Wood was approved was £86.2 million. The current estimated average cost per head is some £22,000. The original estimated average cost per head has been calculated at some £24,000.
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§ Dr. ClarkTo ask the Secretary of State for Defence what has been his Department's estimates in respect of the total cost of the new procurement executive headquarters at Abbey Wood in each of the last four years. [2455]
§ Mr. ArbuthnotThe estimated works cost of the Abbey Wood development in each of the last four financial years—inclusive of site acquisition, construction, fitting out, professional works management fees and VAT—has remained within its approved budget of £248.5 million at 1992 prices—£273.4 million at 1995 prices.