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Select Committee on Public Accounts Twenty-Second Report


4  The role of the Office of Government Commerce in improving office property performance

17. OGC aims to deliver £1 billion to £1.5 billion of savings across the whole government civil property estate by 2013.[47] The High Performing Property (HPP) is OGC's key initiative to deliver the required changes but, given the limited success of previous initiatives, it is unclear why HPP will succeed in achieving the savings target.[48] Departments were due to meet two key milestones under HPP in December 2007, but only five out of sixteen departments delivered the necessary asset management plans by that date. OGC expects that the remainder will not be complete until September 2008. It is unclear whether departments will deliver the required quality of asset management plans by this revised deadline.[49]

18. OGC believes that meeting the milestones is essential to being able to assess the value and likelihood of achieving the projected savings. The current range in predicted savings from HPP is large, the source of savings is ambiguous, and there is no detailed plan for how the savings will be achieved.[50] It is unclear how savings will be quantified and who stands to benefit from better management of the estate.[51]

19. Under the Transforming Government Procurement initiative, OGC has a role in monitoring, challenging and intervening, as well as offering support and guidance.[52] However, it is questionable how much real influence or power OGC has with departments to engender the necessary degree of change given that only five out of sixteen departments met the first major HPP milestone.[53] OGC believes it can strengthen its ability to influence and persuade by making responsible staff more aware of their accountability for departments' property through public reporting of departments' performance against key metrics.[54]

20. Some departments are building experienced property teams and are creating and implementing well considered office property strategies.[55] However, departments have not learnt enough from their peers or regularly shared property management expertise and good practice across government.[56] OGC has undertaken little work to identify the skills required to manage government's property portfolio, assess current gaps in departments' skills and to build the necessary capabilities to deliver efficiencies from office property.[57]


47   Q 18 Back

48   Q 46 Back

49   Qq 47-52, 54-55 Back

50   Q 18 Back

51   Q 18, 150 Back

52   Q 63 Back

53   Q 47 Back

54   Q 155 Back

55   Qq 7, 66 Back

56   Q 5 Back

57   Q 66 Back


 
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Prepared 22 May 2008