3.4: Asset Management
Managing assets more effectively, to release value from public sector assets and state-owned property with a more strategic
approach to office location
Other Information:
Actions: improving collaborative procurement -- We are publishing procurement data for the biggest spending departments, showing
the level of compliance with approved collaborative deals. By Budget 2010, we will publish data showing the uptake of approved
collaborative deals in the wider public sector, and we will publish updated data for the use of approved collaborative deals
in central government. We will use technology to improve procurement and lower costs by: • Publishing plans for the use of
e-auctions by the end of 2010, building on the work of the office of government Commerce (ogC). e-auctions can result in savings
of up to 30% in some categories of spend21 • Establishing a new single online portal,22 which will house all government contracts
worth more than £20,000 and go live in 2010/11. this will be free for businesses through the Business link website We will
strengthen procurement capability, by building on the ogC’s work and publishing a second wave of procurement Capability reviews.
We will also ensure that each department has a Director responsible for service delivery, accountable for making the improvements
in contract development and management outlined in the Julius report. Actions: managing the public sector estate and working
practices more effectively -- We will explore different management and ownership options for the public sector estate, including
the feasibility of creating one or more property companies that could own and manage portfolios of public sector properties,
for example grouped by geographical location, asset class or department. the development of new public property and service
companies will broaden the range of asset types that the government plans to assess, which in due course is expected to provide
opportunities for value realisation and for private sector participation. Ian Smith will lead a review on the scope for further
Civil Service relocations, analysing the service delivery and value for money arguments for moving further posts, to report
by Budget 2010. the review will set out what specific efficiencies this might bring and outline how at least 10% of all Civil
service posts currently based in london and the south east can be relocated in the medium term. We will also require ALBs,
including regulators, to demonstrate they are located in the most efficient and effective part of the country. We will also
develop regional strategies for the government estate, building on the successful pilot in the West Midlands. Actions: managing
asset ownership more effectively -- We are publishing an OEP asset portfolio alongside today’s report. this portfolio sets
out those state-owned assets which government might seek to commercialise over the medium term. the oeP asset portfolio includes
a new framework to govern which government activities should be managed as a business and which should be sold. For those
activities which are best managed as businesses in the public sector, we will separate the ownership role from the customer
and policy role, with a presumption that they should be incorporated. We will publish initial conclusions on which government
activities should be managed as businesses, by Budget 2010, using the framework described above. We will also report on progress
on the commercialisation of assets that are included in the oeP asset portfolio.
Indicator(s):
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