The Department for Work & Pensions (DWP) was approaching the end of its 20-year PRIME contract with Telereal Trillium, which saw the transfer of asset ownership, lease liabilities, management and associated services from DWP to Telereal Trillium in 1998.
With a large portfolio of properties and services to transition, DWP engaged Incendium in March 2016 as market experts to provide commercial, transaction and Target Operating Model (TOM) leadership and support.
Goal
To provide commercial, transaction, organisational design and real estate services consulting to achieve a smooth transition from the PFI contract to a new operating model.
Challenges
- An expansive portfolio of over 800 properties, managed either directly or through third party suppliers.
- To manage the smooth transition from a single provider to a TOM of six providers.
- New TOM required DWP Estates to have a radical new organisation designed and implemented in shape and skill set.
- To balance workstream interdependencies and tensions to ensure the best outcomes for DWP whilst maintaining operational stability.
- To drive efficiency and ensure best value in all areas.
- A best-in-class solution was paramount – the DWP Estates team aims to be recognised across Government as a leader in their field.
Solution
- Incendium worked closely with DWP to deliver an integrated transition, redesigning and remapping all functional processes across estates and supply chain as well as overseeing technology platform mobilisation.
- Incendium delivered tangible benefits including:
- Transactions: Secured 100% of required properties; deals & leases across 854 properties within 2 years; £60m+ of incentives delivered.
- Commercial: Secured £200m Security Package against a baseline of zero coverage; Lifecycle works negotiation and settlement of £60m; Other settlements worth circa £10m.
- Capital projects: 140 capital projects managed in an 18-month window; Enabled reduction of footprint of 200k sqm.
- Supply Chain: Procurement & Mobilisation of new supply chain from a single provider to TOM of six providers; total savings in excess of 10%.
- Incendium also provided interim management support in key roles within the new DWP estates organisation post PRIME to ensure successful bedding-in of the new supply chain.
- The programme won two prestigious Civil Service Awards in 2018 for Transformation (DWP HR Awards) and Commercial (Civil Services Awards).
