Agenda item

Stuart Whitfield to submit a change request relating to the structure of the Digital Programme and to propose a change to the delivery structure of the Digital Programme.

1.    To approve the change request to restructure three of the Digital Programme’s digital infrastructure projects to create two projects.

2.    To note that the Connected Corridors and Full Fibre at Key Sites projects are proposed to be combined into one project to focus on delivery of new fibreoptic network capacity to meet the spending objectives of the two projects. Subject to further assessment of requirements (where a requirement for new fibreoptic networks is identified) an element of the Connected Campus project may be included in this new project. No change is recommended to the Last Few % infrastructure project or DSP research and development project.

3.    To note revised programme delivery structure and timetable as set out in Appendix 2 to the report.

4.    To note that there is a requirement to notify Welsh and UK Government of the change agreed.

The report was presented by Stuart Whitfield (Digital Programme Manager).

RESOLVED

(1)       To approve the change request to restructure three of the Digital Programme’s digital infrastructure projects to create two new projects.

(2)       To note tha proposal to combine the Connected Corridors and Full Fibre at Key Sites projects into one project to focus on delivery of new fibreoptic network capacity to meet the spending objectives of the two projects.  Subject to further assessment of requirements (where a requirement for new fibreoptic networks is identified) an element of the Connected Campus project may be included in this project.  No change is recommended to the Last Few % project or the DSP Research and Development project.

(3)       To note revised programme delivery structure and timetable as set out in Appendix 2 to the report.

(4)       To note that there is a requirement to notify Welsh and UK Government of the change agreed.

REASONS FOR THE DECISION

The outcome of the Economic Case workshops for the Connected Corridors project was the identification of a preferred option which consisted of investment in new fibreoptic network coverage in the region. The Digital Programme’s Full Fibre at Key Sites project, currently at SOC stage, was also targeting fibreoptic network coverage, with the current ‘key sites’ typically close to the transport ‘corridors’ sites in scope for the Connected Corridors project. This alignment of both locations and now service delivery presented an opportunity to bring the two projects together to deliver spending objectives under a single project. This principle was supported by HM Treasury best practice in its Guide to Developing the Programme Business Case (‘Better Business Cases for better outcomes’).

To reduce impact to the schedules for project business case development approved by the NWEAB, changes to the programme structure would need to be implemented at the earliest opportunity. Changes to scope of the next strategic outline cases would need to be made before further consultancy support was commissioned. 

Procurement of consultancy support to complete Outline Business Cases for the Connected Corridors, Full Fibre at Key Sites and Connected Campus projects would need to start next quarter and the scope of this work cannot be confirmed until a decision has been made on the programme structure. Regular reviews of the Programme Business Case were recommended by HM Treasury to account for changes in the strategic case and the recent outcomes of project workshops, and both market and Government activity suggest that sufficient changes had happened to require a review.

DISCUSSION

Details were provided about the background and relevant considerations and the consultations held.

The Chair noted that this appeared to be a logical step forward and, if there was any hope of reducing the governance structure, this would be very much welcomed, and that the benefits of procurement were also clear here.

The following matters were raised:-

·         The Portfolio Director, Digital Programme Manager and the team were thanked for their hard work.

·         A request was made for the matter to be brought back to the Board should the timescale slip.

·         It was noted that the request was sensible and proportionate, and the willingness to adapt, if needed as things evolved, was welcomed.

·         Concern was expressed that the significant increase in prices meant that there was a risk that companies may fail to keep to their prices, or withdraw from a contract entirely. It was noted that a part of the problem was movement in the market during the period between the end of the purchasing process and approving the business plans.  It was stressed that government, nationally and locally, must look at way of getting things moving more quickly, and that was a matter to be considered during the lifetime of the Growth Deal, or, otherwise, there would be a need to re-tender for work continually. In response, the Digital Programme Manager noted that there were interesting opportunities to simplify procurement, as far as possible, in the digital field. He referred specifically to the use of the Crown Commercial Services frameworks, explaining, in the case of the digital programme, that work that had been delivered for some time by the UK Government Department for Digital Culture Media and Sport in establishing a dynamic pricing system which provided an extremely multi-purpose and responsive approach to procurement, and which was now starting to be used by the first authorities in the UK, could be relied upon.  On a more general matter, the Operations Manager noted that it was agreed that the PMO would hold a workshop with the regional teams of UK and Welsh Government to discuss our risks, in order to look at how the governments could support us, including looking at how to simplify the decision-making process.