Bolton Building Schools for the Future Outline Business Case Outline Business Case for Kearsley Academy Page 1 of 33 Page 1 of 3 Bolton Building Schools for the Future Outline Business Case Document Properties Document Author Lucy O’Melia Document Owner Des Grogan Organisation Bolton Council Version History Date Editor Version Status Reason for change 02-06-10 LOM 0.1 Draft First draft 09-06-10 KM 0.2 Draft Draft submission to DoE and PfS. TABLE OF CONTENTS 1 EXECUTIVE SUMMARY 4 1.1 Background 4 1.2 The Project 4 1.3 Value for Money 5 1.4 Affordability 5 1.5 Readiness to Deliver 6 1.6 Leading and Managing Change 7 2 BACKGROUND 8 2.1 The Corporate Vision 9 2.2 Strategic Overview 10 3 THE PROJECTS 13 3.1 Option Analysis and Feasibility 13 3.2 Land and Surveys 16 3.3 Delivery of Strategy for Change 18 3.4 ICT Service Provision 18 4 VALUE FOR MONEY 19 4.1 Summary of Procurement Route 19 4.2 The PFI Project 19 4.3 The Conventional D&B Control Option Project 19 Page 2 of 33 Page 2 of 3 Bolton Building Schools for the Future Outline Business Case 4.4 The ICT Project 20 5 AFFORDABILITY 21 5.1 The PFI Projects 21 5.2 The Conventionally Procured Projects 21 5.3 Lifecycle/Facilities Management Services 21 5.4 ICT Project 22 5.5 Investment in the LEP 22 5.6 Project Development Budget 22 5.7 Other Sources of Funding 23 5.8 Affordability – Concluding Summary 23 6 READINESS TO DELIVER 26 6.1 Project Management 26 6.2 Procurement process 28 6.3 Consultation and Statutory Approvals 28 6.4 Sponsor Commitment 31 7 LEADING AND MANAGING CHANGE 33 Page 3 of 33 Page 3 of 3 Bolton Building Schools for the Future Outline Business Case 01 - Executive Summary 1 EXECUTIVE SUMMARY 1.1 Background The purpose of this Outline Business Case (OBC) submission is to seek approval from PfS for the funding of a new Academy within Phase 1 of Bolton’s BSF programme. This OBC outlines the affordability and deliverability of Kearsley Academy in line with guidance and best practice provided by Partnerships for Schools (PfS). It outlines how the Sponsors’ vision for the Academy forms an integral part of the delivery the Council’s strategic plans for education and how it supports the Councils wider transformation agendas including regeneration. It differs from a standard OBC in that input from Northern Education, lead sponsors for the Academy, necessarily forms a key component of the proposals for the school. Bolton has signed a joint agreement with Blackburn with Darwen (BwD) to procure a joint Local Education Partnership (LEP). The joint procurement culminated in Financial Close on 12th January 2010 with private sector partner Balfour Beatty Education. Kearsley Academy is one of eight Phase 1 schools within the Bolton BSF OBC submitted to PfS on March 31st 2010. Reference is made to the Bolton BSF OBC throughout this document as the Academy is to be delivered through the LEP as a design and build (D&B) school as part of BSF Phase 1. Transforming schools in Bolton is not only central to delivering significantly higher education standards; it underpins the wider regeneration of the borough. The Sponsors, with Bolton Council as co-sponsor, are committed to creating “a place where everyone has an improved quality of life and the confidence to achieve their ambitions” (Bolton Vision 2007 – 2017). Kearsley Academy doesn’t just envisage the best facilities and first-class leadership – it aims to inspire young people, allowing them to learn at the cutting edge of key disciplines, equipping them with the knowledge, skills and personal qualities to meet 21st Century challenges. The Sponsors’ Expression of Interest (EoI) for the Academy was submitted in November 2009, and proposals for the school are a part of Bolton’s Strategy for Change (SfC), which was approved on March 18th, 2010. There have been no deviations from the EoI or SfC in the development of proposals for Kearsley Academy’s OBC. 1.2 The Project The Academy will be delivered via the standard design and build contract with the LEP, and will open as a 100% new build Academy in September 2013, it will however open as An academy in the existing school buildings in Sept 2010. Sample schemes have not been used in this OBC as they feature in the Bolton BSF OBC. The Options Appraisal for Kearsley Academy can be found at Appendix 1A. Kearsley Academy will increase its number on roll to 750 11-16 and will have a new post-16 provision on the site accommodating 200 students. Projections for pupil numbers show that the Academy will grow, by 2016, to hold 950 students in total, aged 11-19. The Design Brief for the Academy has been jointly developed by Bolton Council, its Technical Advisors, and Lead Sponsor, Northern Education, and is accompanied by a Schedule of Accommodation (SoA) that has been developed in line with Building Bulletin 98 (see Appendix 1A). The Education Design Brief reflects the Education Vision developed by the Sponsors and their Overall Project Manager (OPM) and is consistent with the Academy’s EOI and the LASFC. Page 4 of 33 Page 4 of 3 Bolton Building Schools for the Future Outline Business Case 01 - Executive Summary Bolton’s technical work stream led by the Design Lead for BSF and Academies, assisted by Technical Advisors has developed Options Appraisals (Appendix 1A) for the Academy. The LEP is required to ensure that the FM and ICT Managed Services are integrated as fully as possible in relation to maximising the benefits of the built infrastructure. This will include the delivery of hard facilities with the option of offering soft FM services, if soft FM provides a Value for Money for the Sponsor. In addition to the capital investment available for construction, the Bolton BSF scheme also comprises proposals for significant investment in ICT and these are being delivered as part of the Managed Service that has been agreed by both Bolton and Blackburn with Darwen through competitive dialogue. Transition from current ICT arrangements to a new managed service is being delivered, governed, managed and supported through the LEP. 1.3 Value for Money The value for money appraisal detailed in Section 4 of the OBC and in Appendix 3 to this OBC, has been carried out in accordance with the conventions set out in the following guidance: Appraisal and Evaluation in Central Government (known as the HM Treasury’s Green Book) Value for Money Assessment Guidance, issued by HM Treasury Outline Business Case Guidance Note, issued by PfS. It has been agreed with the Sponsors that the Academy will be delivered through the conventional design and build route. PfS have agreed to this approach as part of the Strategy for Change Approval process. The positive outcomes of a value for money exercise relating to ICT investment is outlined in detail in section 4.4. The Authority has ensured, through the procurement process, that the cost of the ICT solutions offered by the LEP are 'on market' through a rigorous benchmarking process. 1.4 Affordability The table below sets out the estimated construction cost of the Design & Build schools compared to the allowance calculated by the FAM. Initial FAM allocations have been revised downwards to compensate for the increase made to the FAM position of the PFI School. Kearsley Academy £000 FAM Allocation 15,991 Estimated Construction Costs 16,277 (Excluding Site Development Costs) Shortfall 286 The Council aims to replicate Facilities Management (FM) service requirements delivered to PFI schools as the benchmark standard for delivery of the D&B schools. In the absence of standard documentation for D&B FM services, in conjunction with the LEP we the Council have developed a bespoke FM agreement using PFI as the baseline plus previous market examples. Standard BSF/PfS service specifications form the basis for the Council’s service Page 5 of 33 Page 5 of 3 Bolton Building Schools for the Future Outline Business Case 01 - Executive Summary and were further developed during dialogue to ensure applicability for the BwD/Bolton projects. It should be noted that an FM working group has been established in Bolton. In relation to the provision of Soft FM services, the Local Authority has advised schools that to purchase all Soft FM Services from the Local Education Partnership would reduce risks emanating from interfaces between service suppliers and it intends to work with schools to address affordability gaps as part of the New Project Approvals process on an individual basis, once costs become clearer. This is also true for the provision of soft FM to the Academy. 1.5 Readiness to Deliver The Kearsley Academy is part of Bolton’s Phase 1 BSF scheme and will be delivered by the LEP via the agreed New Projects Approval Process (NPAP). The Bolton BSF team has been in place since 2008 and comprises education, technical, financial, procurement, legal, communication, culture and PE & Sport officers. Each member of the team is responsible for each of their major areas of work and where relevant are supported by advisors who provide expert finance, legal, technical and ICT advice. This team is responsible for the delivery of the Kearsley Academy OBC in conjunction with the lead Sponsor and their representatives. Following approval of the Kearsley Academy OBC, the joint client team with Blackburn with Darwen will be responsible for the delivery of the Kearsley Academy through the NPAP process.