Getting better value from public sector research ... - CentreForum

Getting better value from Public Sector Research Establishments
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AHVLA was recently created through a merger, and was
tasked with reducing overheads by 33%. Its constituent
organisations have met their financial objectives over
time, but have suffered declining turnover and some
significant operating deficits.
Cefas has met its financial targets, but £2.5m costs were
incurred when the new Waveney site plan was cancelled.
Cefas funding has risen recently (some of it attributable
to significant funds “flow through” to subcontractors),
and it has increased non-Defra income to 32% in 09/10
from 18% in 03/04.
Dstl turnover has fluctuated since privatisation, falling
significantly between 2002 and 2005, but has recently
risen to a level somewhat below 2002 turnover and has
made operating surpluses.
Fera made a small operating loss in 2009/10, and has
been streamlining unprofitable parts of its business.
FSS has struggled to complete a radical restructuring plan
whilst competing in a competitive market with shrinking
demand. In 2010 it made a loss of £53m.
HPA has seen a significant recent fall in revenue as funding
cuts bite, although external income has increased 114%
since the Agency’s establishment in 2003.
HSL’s revenue has also declined as government spending
is reduced.
Government Owned Contractor Operated (GOCO)
This group consists of two establishments with significant
core funding (AWE and NPL), and one with none (NNL).
NNL’s GOCO arrangement is different from AWE and NPL
in that contractor staff are seconded into the government
owned entity, rather than all management/operations being
undertaken by a contractor owned operating vehicle.
Performance by all three organisations has been good
against both financial and quality/requirement criteria.
However, government has not fully defined a remit for NNL
that includes providing technical support and advice to
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