Press Release - Government Communications Headquarters (GCHQ):
New Accommodation Programme
25 May 2003
Sir John Bourn, head of the National Audit Office, reported to
Parliament today that GCHQs new headquarter building, which will
cost GCHQ about 46 million a year, and which was procured through a
PFI deal, was on track to be delivered on time and within its
finally determined budget; and it was handled well
overall.
During the 21 month gap between the appointment of the preferred
bidder and contract signature in June 2000 the bid increased by
21%; most of this was negotiated in a competitive environment. The
increase was mainly due to addressing omissions from the bid which
would otherwise not have met GCHQs requirements but was also to
cater for an increase in the number of staff to be
accommodated. GCHQ was able to satisfy itself that the
increase was reasonable.
To sustain the flow of vital intelligence to the Government, 24
hours a day and under its own control, GCHQ retained responsibility
for moving its technical capability into the new building. In doing
so, GCHQ failed initially to consider all the implications of the
move. As a result, before Ministerial approval or signing of any
contract, estimates for the technical move increased more than ten
fold from 40 million to 450 million (over and above the 1,247
million total cost of the 30 year PFI deal.) To reduce the cost of
that move to 308 million, GCHQ is staging the process and keeping
open part of one of its existing sites until 2012 which will
involve extra running costs of 43 million.
GCHQ houses one of Europes largest computer complexes and the
new accommodation exhibits radical differences from most office
building projects. The New Accommodation Programme is a very
complex change programme and GCHQ has introduced a sophisticated
system of programme management from which other Government
Departments might learn.
Sir John Bourn said today:
"When a Government Department is considering major
investment in new accommodation, the full scope of the requirement
really must be properly defined from the outset. In this case
GCHQ failed to consider all the implications of the fact that it
was relocating its entire business capability to a new building and
that transition of its computer systems to the new premises was a
major factor.
"However, other Government Departments might learn
lessons from the way that GCHQ developed its programme management
arrangements for this major hybrid change programme. Departments
should follow best practice and should especially focus on
introducing programme management procedures to identify, plan and
then deliver all the benefits attainable from their PFI
programmes."
Notes for Editors
- GCHQ provides intelligence and information assurance services
for the Government under the terms of the Intelligence Services Act
1994. Ministerial responsibility for GCHQ rests with the
Secretary of State for Foreign and Commonwealth Affairs. Dr
David Pepper, Director GCHQ, is Accounting Officer for the
organisation and Sir David Omand, the Security and Intelligence
Co-ordinator and Permanent Secretary in the Cabinet Office is the
Principal Accounting Officer for the Single Intelligence
Account.
- Press notices and reports are available from the date of
publication on the NAO website at www.nao.org.uk.
Hard copies can be obtained from The Stationery Office on 0845 702
3474.
- The Comptroller and Auditor General, Sir John Bourn, is the
head of the National Audit Office which employs some 800 staff. He
and the NAO are totally independent of Government. He certifies the
accounts of all Government departments and a wide range of other
public sector bodies; and he has statutory authority to report to
Parliament on the economy, efficiency and effectiveness with which
departments and other bodies have used their resources.
Press Notice 52/03
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