Client:	Mendip District Council
Contract Type:	Revenues Collection, Housing Benefits Administration, Financial and Accounting Services, Payroll, Elections Management and Electoral Registration, Copy Shop and IT
Duration:	July 1993 for 12 years. New contract awarded July 2005 for 12 years

                          
 

The challenge

In June 1993, Mendip District Council in Somerset chose Capita as its partner for a contract that was the widest facilities management contract ever let in local government - the provision of all its revenues, financial and IT services.
 
When we first partnered with Mendip their main objectives were for us to help them improve the services that they were providing to their customers whilst removing the challenges of budgetary constraints that they were facing. Mendip were using old mainframe technology and realised they needed a step change to avoid putting their service provision at substantial risk.

Further, under the new contract, Mendip have tasked us with providing greater flexibility, increased capacity, innovation and modernistation of the Council’s approach to technology alongside the creation of new jobs for local people.
 

The solution

We first moved Mendip’s old mainframe to our own data centre in order to make the system more stable for the initial transition of the project. Over time, we invested in new technology aimed at streamlining the business processes behind the services and developed a programme to replace the mainframe with a Unix platform alongside a programme of core application replacement.

Business processes were re-engineered and a new management structure was put in place to help eradicate backlogs and significantly improve service levels. Better integration of financial and IT systems saw a broader range of client-side services delivered more cost-effectively.
 
The IT strategy that we jointly developed has enabled Mendip to advance its technology incorporating internet access and improvements across the authority. Implementing the next phase to further improve the IT infrastructure will include “Members On-line” (wireless communication technology) and replacement of the financial management system to the Agresso system. The planned introduction of a document image processing system will improve productivity and allow us to diversify and provide a more comprehensive service to Mendip's customers. We will also be working with Mendip to review and prioritise their e-government programmes in order to ensure maximum benefits and efficiency throughout the project.

Capita’s broad service capability has also allowed us to help Mendip with other requirements. For example, our property specialists are currently conducting a review on behalf of Mendip to provide options to improve the Council’s existing accommodation and asset management strategy.

The outcome

Since assuming responsibility in 1993, Capita has significantly improved the service provided to both Mendip and their customers through faster benefit turnaround times, quicker closing of accounts and improved cashflow, delivering savings to Mendip in the region of 15% to 20% per annum.
 
Revenue collection has significantly improved and benefit claim processing consistently exceeds national performance standards. NNDR collection stood at 92.2% at the start of the initial contract and we have improved this to 99.1% whilst Council Tax collection started at 93.9% and has been improved to 98.1%.
 
Further, by integrating Mendip’s financial and IT systems, the partnership is now delivering a broader range of services to citizens in a significantly more cost-effective manner - including increased levels of internet access and standards across the district.
 
"We have worked with Capita in the past and they are a well established supplier in this market. But we put them through a number of hoops against stiff competition to win this new contract. The outcome is that we have actually achieved a lower price and a higher specification than we had before. There is also a new emphasis on flexibility and innovation. This should ensure better value for money for our council tax payers in the future. This is an important part of our reform programme and I am confident that it is a good deal for local businesses and residents alike."
 
David Thomson, Chief Executive Mendip District Council