§ Ms HarmanTo ask the Secretary of State for Social Security (1) if he will make a list of the estimated savings arising from each(a) outsourcing and (b) private finance project within his Department for each of the next three years: [12197]
(2) if he will list the timetable for each (a) current and (b) planned (i) outsourcing and (ii) private finance project within his Department indicating the date for the signing of contracts. [12196]
§ Mr. BurtThe information is not available in the format requested.
The business involvement of the private sector in the Department of Social Security is part of a wider programme of change to transform our business by delivering improved services at a significantly reduced cost.
The information relating to estimated savings is as follows.
The outsourcing to the Royal Mail of Child Support Agency post opening is estimated to save £20,000 in 1996–97 and £35,000 in both 1997–98 and 1998–99.
The Benefits Agency-Post Office Counters Ltd. project is cost neutral but, over the life of the project, we expect programme savings in the order of £1,200 million.
Savings of 60 per cent. will be achieved over the life of the national insurance recording system 2 (NIRS2) contract—up to 2004—compared with what it was estimated the cost would have been had NIRS2 been procured conventionally No breakdown between years is possible.
Savings estimates are not available for those projects that have not reached the award of contract stage. Individual estimates might prejudice commercial negotiations. From previous departmental experience, areas that have been subject to private finance initiative, outsourcing and market testing have achieved long-term savings.
Information relating to current and planned projects is in the table. The projects listed have been established to test use of the private sector where it can contribute investment and new ideas to help achieve efficiency in our business. Timetables are subject to the procurement meeting our business needs.
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Department of social security—private sector projects Project Timetable Benefits Agency—current projects ADAPT 98 A competition to select private sector companies to work in partnership in three area directorates 1 OJEC advert—14 September 1996 Shortlist of suppliers—early 1997 2 SSR—early 1997 Contract sign—spring 1997 PROSPECT 98 Outsourcing Child Benefit operations 1 OJEC advert—early 1997 Shortlist of suppliers—spring 1997 2 SSR—Summer 1997 Contract sign—spring 1998 IMPACT 97 Outsourcing Benefits Agency medical services 1 OJEC advert—17 June 1996 Shortlist of suppliers—20 August 1996 2 SSR—20 November 1996 Contract sign—spring 1997 BA POCL Private finance initiative to automate payment of DSS benefits through post office counters and introduce 1 OJEC advert—30 August 1994 plastic benefit card. Initial trial in 10 post offices. Shortlist of suppliers—9 December 1994 2 SSR—13 April 1995 Contract sign—15 May 1996 Trial start 21 October 1996 Contributions Agency—current projects NIRS2 Private finance initiative to replace national insurance recording system (NIRS1) 1 OJEC advert—13 August 1994 Contract sign—24 May 1995 Phased roll out from 10 February 1997— 6 April 1999 Newcastle estates redevelopment 1 OJEC advert—4 January 1995 Private finance initiative to rationalise and improve accommodation of DSS agencies in Newcastle 2 ITT—24 January 1996 Contract sign—spring 1997 Planned projects Enquiry centre Proposals for an Enquiry Centre to deal with telephone calls and some written correspondence are developed. A firm timetable has not yet been agreed. Information Technology Services Agency—current projects ACCORD (Access to corporate data) 1 OJEC advert—7 August 1996 Private finance initiative to award a contract for delivery of a range of IS/IT services. SSR—spring 1997 Three private sector organisations have been shortlisted to work as a joint team with 1 ITT—Summer 1997 DSS staff to identify requirements. Contract sign—autumn 1997 SASA (Stand Alone Support Applications) 1 OJEC advert—15 April 1996 SSR—25 June 1996 Outsourcing the development and support of those small, non-strategic computer applications 1 ITT—early 1997 Contract sign—spring 1997 Child Support Agency—current projects Royal Mail Contract sign—22 May 1996 Outsourcing post opening in 6 CSA Centres Phased roll out 2 September 1996–17 February 1997 Planned projects Facilities Management Support services outsourced in 5 of 6 CSA Centres. Position of sixth centre to be considered at contract renewal during 1997 Departmental—current projects PRIME (Private sector Resource Initiative for Management of the Estate) 1 OJEC advert—28 June 1996 Private Finance Initiative to transfer ownership and management of DSS premises to the private sector Shortlist of suppliers—1 November 1996 Contract sign—autumn 1997 PARENT PLUS Outsourcing four of the twelve pilot areas running a new service to help lone parents into work Advert—25 November 1996 3 ITT-early 1997 Contract sign—spring 1997 1. There are no planned projects for the departmental headquarters, Benefits Agency and ITSA. 2. Future timetable dates are provisional and subject to ministerial approval. 1 Official Journal of the European Community. 2 Statement of service requirements. 3 Invitation to tender.