HC Deb 21 April 1998 vol 310 cc606-7W
Mr. Donohoe

To ask the Secretary of State for Social Security what initiatives her Department is undertaking to involve the private sector in Benefits Agency business; which companies are involved; which areas of Benefits Agency core business are affected; when the results are expected; and if she will make a statement. [38990]

Mr. Keith Bradley

[holding answer 20 April 1998]There are currently two initiatives under way within the Benefits Agency involving the private sector. Neither has yet reached a contract stage. The Accommodation and Office Service (AOS) Project is exploring whether further private sector involvement could improve the delivery of office related services. The Area Directorates and Partnering Team (ADAPT 98) Project involves three private sector consortia working in partnerships with three BA Area Directorates in order to gain a full understanding of BA operations and to formulate proposals for improvements in service delivery.

The administration of these initiatives is a matter for Peter Mathison, the Chief Executive of the Benefits Agency. He will write to my hon. Friend.

Letter from Peter Mathison to Mr. Brian M. Donohoe dated 21 April 1998: The Secretary of State for Social Security has asked me to reply to your recent Parliamentary Question asking what initiatives her Department is undertaking to involve the private sector in Benefits Agency (BA) business; which companies are involved; which areas of BA core business are affected and when the results are expected. There are currently two initiatives under way within the BA involving the private sector. Neither has yet reached a contract stage. Accommodation and Office Services (AOS) Project The AOS Project is exploring whether further private sector involvement could improve the delivery of office related services, mainly within the BA. The services involved are typing and word processing, messengerial, fleet management, shuttle buses, secretarial, reprographics, some archival storage, post opening and despatch, stationery and telephony. The companies invited to tender to provide the services are: Rentokil Initial Management Services, Haden Building Management Limited, SERCO Government Services Limited, AMEC Facilities Limited and Partnership Property Management Limited. On current timetable, a decision is expected in the summer. Area Directorates and Partnering Team Project (ADAPT 98) The ADAPT 98 Project involves three private sector consortia working in partnerships with three of the BA's Area Directorates (ADs). The private sector partners are: Eisis, a consortium comprising EDS as the prime contractor with AT Kearney, Price Waterhouse Management Consulting Ltd and Manpower Plc as subcontractors. Eisis are partnering AD1 East London and Anglia; Equip, an alliance between Capita and AT&T with Aon Risk Services, Bull Information Systems and Group 4. Equip are partnering AD10 Yorkshire; and SeAD, a consortium led by Sema Group and made up of Sema Group, WS Atkins and Deloitte and Touche with Hays plc and Nat West Bank Group as sub-contractors. SeAD are partnering AD4 West Country. The partnerships between the private sector and the ADs began on 13 August 1997 and will last for up to 12 months. During this Partnership Period, the private sector partners' primary activity is to gain a full understanding of BA operations and to formulate proposals for improvements in service delivery. We expect to receive proposals from all the private sector partners by the end of the Partnership Period. There are no predetermined outcomes to the Project and no commitments have been given about the nature and timing of any contracts which may be let following the Partnership Period. Proposals will be evaluated against Ministers' criteria for use of the private sector as well as value for money considerations. I hope that this is helpful.