Personnel Administration and Pay Organisations (Hansard, 20 February 1997)

§ 7. Mr. Soames

The Armed Forces Personnel Administration Agency will be launched on 1 April 1997. The aim of AFPPA is the cost-effective provision, on a tri-service basis, of data and systems for the payment of military personnel, and to support the personnel management function, in peace, including crisis, transition to war and war. The agency will be formed from the Directorate of Naval Personnel Services and the Directorate of Naval Pay and Pensions at Gosport; the Directorate of Administrative Information Systems (Army) at Worthy Down, near Winchester; and the Directorate of Administrative Information Systems (RAF) and the RAF Pensions Branch at Innsworth, near Gloucester. In addition, a small agency headquarters office will be created at Innsworth in the first instance. On formation, the agency will employ some 1,000 civilian 721W and 200 military staff. It is also the intention, at a later date, that pay, pensions and personnel administrative elements of the recently formed Army Personnel Centre in Glasgow should come within the agency.

The agency proposal followed a feasibility study which concluded that personnel administration offered scope for significant harmonisation and, eventually, the development of an integrated tri-service computer system. Arrangements are in hand to contract a private sector partner under the Government's private finance initiative to deliver most of the services required of the agency. The partner would also be responsible for developing and operating new computer systems to improve efficiency, whilst at the same time shouldering much of the business risk involved.

AFPAA has developed a comprehensive set of performance indicators, including measures to monitor the quality, timeliness and efficiency of its outputs. The chief executive has been set the following targets for the agency's first full year:

Pay, allowances and pensions payments. Whilst making 100 per cent. of payments of pay, allowances and pensions by the due date, the number of errors per 1,000 payments not to exceed 10 for pay and allowances, and not to exceed five for pensions.

Accuracy of personnel records and liabilities data. Determine measures to set base line of completeness and accuracy of the record of service.

Currency of personnel records and liabilities data. Update all records within three days of receipt of valid input.

Responsiveness. Resolve inquiries across all three services within 10 working days of receipt.

Customer satisfaction. Develop systematic and objective methods of ensuring customer satisfaction, in consultation with the owner and customers.

Private sector participation. Agree a private finance initiative service delivery contract with a private sector partner by July 1997, to provide significantly better value for money than the public sector comparator.

Efficiency. Develop cost ratios and implement appropriate measures for benchmarking efficiency. in core personnel administration services.