Full Report - National Audit Office

part three3.1 The Department is rolling out new management andcontracting arrangements which should deliver significantbenefits. These arrangements have widespread support.Culture change remains a risk and uncertainties overboth programmes and funding are potentially hamperingdelivery. The Department has developed systems forperformance and risk management but both are stillmaturing. However, there is no current mechanism toensure that the full benefits of the new arrangements aredelivered department-wide. This final part of the reportconsiders the extent to which the Department has put inplace the means of delivering a better quality estate.A new structure for the managementof the estate combined with newcontracting arrangements is beingrolled out and is alreadydelivering benefitsThe new structure for the management of thedefence estate is nearing completion3.2 The Department conducted a thorough and wellresourced study into the best way to realise the DefenceEstate Strategy ‘In Trust and on Trust’ and to deliver new,improved procurement methods, such as prime contracting.Drawing widely on experience and best practice in theDepartment and elsewhere, the study analysed the strengthsand weakness of the old arrangements and considereda number of options for the future. The study found thattraditional ways of procuring and managing the estatehad been inefficient; for example, the multiplicity ofmaintenance contracts managed by various budget holdershad meant that significant funds devoted to maintenancewere going on administration. It also found that poorinformation about the estate had meant that investmentdecisions were not always soundly based.3.3 The Department proposed a changed organisationalstructure in 2001, the key characteristics of which aresummarised at Figure 5. The project was called ProjectAlexander. Under the new arrangements, Defence Estatesis responsible for managing the defence estate includingthe letting of all new construction and maintenancecontracts. These arrangements which have been endorsedby the Defence Management Board have widespreadsupport in the Department.5Project Alexander proposals for new arrangements Prime contracting as the principal driver of the needfor change Clearly defined customer-supplier relationships Responsibility of the customer in planning and fundingestate requirements A new cross-Departmental delivery organisation A central role for a new senior-level DefenceEstate CommitteeSource: Ministry of Defence.MINISTRY OF DEFENCE: MANAGING THE DEFENCE ESTATE17