Office of Public Works Annual Report 2011 1 Foreword by Minister I am pleased to present the 2011 Annual Report of the Office of Public Works (OPW). It was great privilege to have been asked by the Taoiseach to become Minister of State with responsibility for the OPW. I want to recognise the work of my predecessor, Dr. Martin Mansergh, who was OPW Minister from May 2008 to March 2011. 2011 was a particularly eventful year which saw the historic visits of Her Majesty, Queen Elizabeth II and HRH, The Duke of Edinburgh to Ireland and the official visit from US President, President Barack Obama. OPW managed properties were to the fore during these visits with the Royal party staying in Farmleigh in the course of their visit and the same location provided the backdrop for President Obama’s meeting with the Taoiseach and the Government. The Queen visited Áras an Uachtaráin, the Garden of Remembrance, the Irish War Memorial Gardens, the Rock of Cashel and spoke eloquently at the State banquet hosted by the President Mary McAleese in Dublin Castle. OPW Heritage Services and Event Management staff performed with distinction in contributing to what was a memorable series of visits and were commended by the Government for the important role that they played. Visitor numbers to OPW guided sites grew by in excess of 5% to almost 3.5 million over the course of the year. The “Free-First-Wednesday” initiative is proving to be a considerable success and we will continue to introduce new initiatives to present our built heritage portfolio at its best. Significant savings in our Estate Management Portfolio continued to be made in 2011 with the surrender of 30 leasehold properties and the effective negotiation of 31 downward rent reviews leading to a reduction in rental expenditure of in excess of €10m per annum. We will continue to target this area aggressively in the context of the current crisis in the public finances. In light of Ireland’s changing climate, Flood Risk Management has become an ever more important component of the OPW’s responsibility. In 2011 four major flood relief schemes were completed; Fermoy North, Carlow Phase 1, Mallow North and Waterford Phase 1. Schemes in Mallow and Clonmel are underway and further schemes in Ennis, Bray and Fermoy are expected to commence soon. Just under €40m was expended on Flood Risk management in 2011 and an annual budget of €45m per annum has been secured for flood relief works from 2012 to 2016 under the Infrastructure and Capital Investment Medium Term Exchequer Framework 2012-2016. The Minor Flood Mitigation Works and Coastal Protection Scheme also funds works costing up to €500,000 and OPW continues to carry out its arterial drainage maintenance programme around the country. The National Procurement Service throughout 2011 continued to identify and establish procurement solutions that can yield real efficiencies for the public service and ultimately the taxpayer. These initiatives included the establishment and maintenance of approx. 50 contracts/framework agreements; the introduction of a standard suite of competition documents for 2 the supply of goods and services to the public service, the piloting of a new e- invoicing project and the launch of a new procurement website www.procurement.ie in April of this year. Also critical to NPS operations has been the ongoing education programme it conducts for both suppliers and buyers to ensure that there is a common understanding as to how to transact business with the public service. The NPS is driving real savings across multiple markets and is fast securing its aim of becoming a Centre of Excellence in the sector. Since I was appointed Minister of State with responsibility for the Office of Public Works in March of this year, I have seen real and tangible savings made. OPW has a significant contribution to make in giving effect to the Public Service Reform Plan in the areas of property and procurement. We are under no illusion that further savings will be required over the coming years but I am confident that the dedicated staff in the Office of Public Works will continue to deliver on this mandate. Brian Hayes T.D. Minister of State at the Department of Public Expenditure and Reform, with special responsibility for Public Service Reform and the Office of Public Works. 3 Foreword by Chairman It gives me great pleasure to present this 2011 Annual Report to the Minister of State at the Department of Finance, with special responsibility for the Office of Public Works, Brian Hayes T.D. 2011 was a very eventful year for the Office of Public Works, both from an operational and a transformational perspective. We produced a new Strategy Statement in 2011 and in so doing we redefined our Mission statement as follows: The mission of the Office of Public Works is to use our experience and expertise in our mandated areas of operation to provide innovative, effective and sustainable shared services to the public and our clients. This mission statement puts our customers at the centre of all our activities and we are committed to deliver effective services to them, using all of the expertise available to us. OPW’s expertise in event and facility management was again showcased during 2011. The successful management of OPW locations during the State visits of Her Majesty, Queen Elizabeth II and President Obama and the contribution of this Office to the success of those visits, was acknowledged by Government; all involved can be very proud of this achievement. As further testament to the quality of our visitor sites, visitor numbers increased by 5.3% in 2011, with a record 3.44 million people enjoying OPW managed sites. 2011 also saw OPW assigned significant roles under the Public Service Reform Plan launched on 17 November 2011. This ambitious plan includes two aspects of reform which are core business for OPW, namely Procurement Reform and Property Asset Management. In terms of procurement, the National Procurement Service is already making a significant contribution to savings by delivering greater value for money through increased use of common procurement frameworks, increased professionalism and more innovative use of technology in procurement. Through our continued property rationalisation programme, OPW is delivering greater value through efficient management of the government estate through a smaller physical footprint, meeting the needs of a reformed Public Service. The Flood Risk Policy & Management Work Programme for 2011 was delivered efficiently and in line with targets. Crucially, four major flood relief schemes were completed and seven more progressed in 2011, in addition to the production of many other Assessment and Reports in co-operation with local authorities. 2011 saw a further reduction in our staff numbers as a result of the urgent requirement to reduce the public service pay bill in the context of the current pressure on the public finances. However, I am proud to say that the staff of the OPW continued to deliver excellent services to the public despite this constraint. A significant number of OPW staff have taken on additional work 4 in order to maintain service delivery. This is happening throughout OPW and I greatly appreciate the efforts that staff are making in meeting our commitments to our customers. 2012 will be another challenging year for OPW, but I am confident that with the continued commitment of staff, we can continue to provide a first class professional service. Clare McGrath Chairman 5 KEY ACHIEVEMENTS OF 2011 2011 was an extremely busy year for OPW with many notable projects and events taking place. Among the many achievements of the Office and its staff, the following merit special mention: • The State Visits of Her Majesty, Queen Elizabeth II and President Obama; • In 2011, OPW surrendered office accommodation in excess of 7,212 square metres (77,631 sq ft) and rental reductions were also negotiated, resulting in a saving of €10.3 million on rent in 2011; • The Flood Relief Unit managed several major schemes: Fermoy North, Carlow Phase 1, Mallow North and Waterford Phase 1. In addition they funded many minor and coastal erosion schemes and continued work on the Catchment Flood Risk and Management (CFRAM) Studies; • OPW participated in the Schools Building programme in 2011 – specifically the Rapids Programme; • The Free First Wednesday Scheme was unveiled and was very successful; • The National Procurement Service launched the new Standard Suite of Documents along with implementing several Framework Contracts for supplies/services; • OPW Mechanical & Electrical Services’ Energy Conservation Campaign which resulted in savings of €4.3m in energy costs in 2011; • The opening of the OPW designed Ballincollig Garda Station; • The opening of the new Conference Centre in the East Wing of Castletown House; • The publication of the Boyle Abbey Conservation Report; • The staging of art and various other exhibitions in Farmleigh, Rathfarnham Castle and St. Enda’s; and • New initiatives were introduced by Personnel & Development Services such as the Jobbridge Scheme and the use of redeployment panels, in conjunction with OPW Business Units. 6 Strategic Review 2011 Key Objective Performance Indicator Progress in 2011 Comment 1. Estate Portfolio Management To adopt a sustainable • Achievement of The Management Advisory Committee was broadly approach to the budgetary/value for money satisfied that the agreed Estate Portfolio Management management 88and targets identified in Annual Work Programme for 2011 was delivered efficiently and conservation of the State's Output Statements. effectively in line with budgetary/value for money targets. heritage sites with an emphasis on quality and standards. • Achieve expenditure targets. The successful management of OPW locations during the State visits of Her Majesty, Queen Elizabeth II and To present our heritage • Customer satisfaction audit President Obama in 2011 and the contribution of OPW to sites to the best advantage (surveys/feed-back).