News

New case study shows Government may save £203 million on homes for asylum seekers

Released on 21/09/2006

A new case study, by the OGC and the Home Office's Immigration and Nationality Divison, reveals how the Accommodation 2005 Project looks set to cut unit costs by 11 per cent, in procuring housing from the private sector for asylum seekers

This new generation procurement project, a novel approach developed by a team at the National Asylum Support Service, is likely to save £203 million for the Home Office, over a five-year accommodation contract.

During its life, the Accommodation 2005 Project underwent a series of OGC Gateway™ that helped to support the project team, in successfully delivering against a set of strategic aims.

The OGC Gateway zero review, in January 2005, highlighted a need to restructure the team and its governance. This was fundamental to the project's success, so appropriately skilled specialists were recruited to move the project forward.

As a result, change was driven and costs reduced through increased competition in procurement, improved commercial terms and greater flexibility. The competition is saving £15 million per year over the life of the contracts, while improved flexibility, lower volume and better contract review terms may gain more volume savings, especially as the number of asylum seekers appears to be falling. The case study, the National Asylum Support Service (NASS) Accommodation 2005 Project, describes in detail how the team has developed and secured the new target contracts.

Contact details:
OGC Service Desk
Tel: 0845 000 4999
E-mail: ServiceDesk@ogc.gsi.gov.uk