Source · Select Committees · Public Accounts Committee
Recommendation 18
18
Accepted
The Ministry originally assumed that it would cost £4.9 million to convert the former Medway...
Recommendation
The Ministry originally assumed that it would cost £4.9 million to convert the former Medway STC site into a secure school, compared with £40 million to build a secure school from scratch.60 At the time the National Audit Office reported, the estimated costs had increased to £36.5 million (excluding £7.3 million for optimism bias), due to redesigns to meet SCH specifications required by Ofsted. The time taken to complete the redesigns was also a source of delays. The Ministry told us that it now expects the Medway secure school to cost £40 million (including optimism bias)—equivalent to its original cost estimate for building a brand new school.61 It informed us that this estimate—now signed off by 51 C&AG’s Report, paras 3.3, 3.4, 3.14 52 Q59–Q60 53 Q61 54 C&AG’s Report, para 3.12, 3.15 55 Q27; C&AG’s Report, para 3.12 56 Q86–87 57 Q24 58 C&AG’s Report, para 3.15 59 Boost for public safety as four justice bills receive Royal Assent – GOV.UK (www.gov.uk) 60 Q45; C&AG’s Report, para 3.17 61 Q45; C&AG’s Report, para 3.16–3.18 14 Secure training centres and secure schools the Ministry’s investment committee—takes into account recent inflationary pressures and supply chain disruption.62 Not withstanding these recent cost pressures, the Ministry accepts that its original estimate was significantly insufficient, especially with regard to expected construction costs. For example, it told us that it did not factor in fire safety upgrades that would be required, including upgrades to the electrical and mechanical infrastructure. It accepts that it should have done more due diligence to understand the requirements for SCH registration.63 Risks to delivering the secure schools model
Government Response Summary
The government has arrangements in place to exert firm control over the timetable and costs for opening the first secure school, committing to provide the Committee with an update on progress against the timetable in January 2023.
Government Response
Accepted
HM Government
Accepted
4.1 The government agrees with the Committee’s recommendation. Target implementation date: January 2023 4.2 Arrangements are in place to exert firm control over the timetable and costs for opening the first secure school. The full business case, which has received all necessary approvals, set out the revised funding profile (including risk contingency and optimism bias elements) and opening date range for the secure school. As with all major projects, the Ministry and HMPPS have in place formal governance structures to ensure the project remains on track to deliver within these parameters. Layers of assurance and guidance are also in place in relation to the operating model to ensure progress is maintained and is informed by best practice. 4.3 The project reports to Oasis Restore Project Board, the YCS Transformation Board (chaired by the Senior Responsible Owner for the Project – the Executive Director of the YCS), and the Ministry’s Investment Committee (chaired by the Chief Operating Officer), with a focus on ensuring delivery within time and cost tolerances. 4.4 The government commits to providing the Committee with an update on progress against the timetable in January 2023.