AGENDA ITEM: B3
MEETING:
RSSB Board Meeting
DATE:
03 July 2014
SUBJECT: Technical Strategy Leadership Group/Innovation
SPONSOR: Chris Fenton
AUTHORS: Anson Jack and David Clarke
1.
Purpose
1.1
The purpose of this paper is to summarise the RSSB accountabilities for the
management of innovation funding in Control Period 5 (CP5) including the role
of the RSSB board.
2.
RSSB and FutureRailway
Through TSLG and FutureRailway RSSB provide the focal point for the
management of innovation in support of the Rail Technical Strategy.
The strategic vision and direction for the industry is set by the Rail Delivery
Group. This informs, alongside inputs from the rest of the industry (e.g. Rail
Supply Group), the Rail Technical Strategy which is prepared by the crossindustry TSLG and then endorsed by RDG through its Tech & Ops workstream.
Innovation is undertaken by many parties across the industry and its supply
chain and by academia, non-industry suppliers and SME’s. FutureRailway
manages the calls for innovation and reporting of progress where these are not
otherwise addressed by the industry. In particular it aims to address the
“innovation gap” where technologies are not proven.
So, whilst others set the strategy and others provide the innovation, RSSB
through its governance of TSLG and the FutureRailway team provide an
essential role in managing the innovation process to address gaps that for too
long were unaddressed in rail. The funding through various sources creates the
opportunity for industry to fill this gap during CP5.
Cross-industry participation at RSSB board and on TSLG, the role of RSSB
Directors (CF/AJ) on TSLG (and its Core Group) and in RDG Tech and Ops
provide a coordinated approach. The involvement of the supply chain at RDG
Tech and Ops and on RSSB board and TSLG also ensure co-ordination with
the opportunity for RSG to review and endorse the approach. The
FutureRailway activity, consisting of the Research and innovation teams of both
RSSB and Network Rail working to deliver the technical strategy supports this
alignment.
This paper considers the role of RSSB board within this process and in
particular the governance of funding.
RSSB Board Meeting Final: 03 July 2014
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AGENDA ITEM: B3
3.
Funding
3.1
The TSLG research development and innovation programme is developed by
RSSB/ FutureRailway staff for annual approval by TSLG and endorsement by
RDG (T&O) Group. This programme sets the framework against which funds
are then spent.
3.2
There are currently four major sources of CP5 innovation funding in the Network
Rail/ RSSB collaboration – the FutureRailway Programme:
3.3
1.
The £50m Network Rail strategic R&D fund which is managed directly by
NR;
2.
The £52m specified in the High Level Output Specification (HLOS) – the
Enabling Innovation Fund (EIF) which will be managed through RSSB;
3.
RSSB Strategic Research Fund (SRF) consisting of a proportion of the
research grants from DfT as delegated from the Board to TSLG (likely to
be at least £30m during CP5 (£20.4m in 2014/15 and around £4m pa for
the following 4 years)
4.
The Innovation in Franchising Pilot. This is expected to be c£50m over
three years and three franchises. The RSSB role will be as administrator
of the process but not the funds. The costs of administration will be
recoverable from the fund holders.
There is opportunity to leverage much of this funding through collaboration with
other funders and with innovators (typically suppliers) through co-funded
projects. To date FutureRailway have supported £56m of activity from £33.5m
of funding.
RSSB Board Meeting Final: 03 July 2014
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AGENDA ITEM: B3
4.
Funding Governance
4.1
The funding governance arrangements can be summarised as follows:
Fund
1. £50m Network
Rail Strategic R&D
Fund
2. £52m
Innovation Fund
3. c£22.5m
Strategic
Research Fund
4. £50m
Innovation in
Franchising
Pilot
Source of
Funding
NR RAB
NR RAB
DfT Grant
Franchise
Revenue
Classification of
Funding
Government
Government
Government
[Private]
Fund Holder
NR
NR (fund
management
delegated to
TSLG via RSSB)
RSSB
Franchisee
Role of RSSB
Board
None
Delegates funds to TSLG and
approves/oversees governance
None
Role of RSSB
None
Acts as Contracting Body
Employs
administration
team
(FutureRailway)
Employs FutureRailwayTeam
(which takes the lead on most of
those items immediately below)
Enters commitments and holds IP
rights on behalf of industry
Reports and accounts to source of
funding (NR/ DfT) for the efficient
utilisation of the funds
Facilitates TSLG and associated
groups
Prepares an annual plan for
endorsement by TSLG and RDG
(T&O)
Coordinates all activity
Collaborates with Network Rail
Body that
approves specific
expenditure
NR Technology and
Innovation Board
TSLG
Development of
the plan
NR Technology and
Innovation Team
FutureRailway
team (RSSB) for
TSLG
FutureRailway
team (RSSB) for
TSLG
Franchisee
Endorses plan
TSLG and RDG
(T&O) Group
NR T&I Board
and RDG (T&O)
Group
NR T&I Board
and RDG (T&O)
Group
RDG (T&O)
Advises on plan
content
Delivery
Management
4.2
Generally delegated to TSLG Core
Group (RSSB director on Core
Group)
Portfolio Champions
NR Technology and
Innovation Team
FutureRailway
team (RSSB)
Innovation
Board
appointed by
RDG (T&O)
TSLG
FutureRailway
team (RSSB)
Franchisee
The principle RSSB accountabilities are therefore associated with funds 2 & 3
and are further detailed in the RACI in section 3.
RSSB Board Meeting Final: 03 July 2014
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AGENDA ITEM: B3
RSSB Board, TSLG, and Future Railway RACI for the management of
innovation funding
Activity
RACI
RSSB Board
TSLG
R = Responsible
RSSB incl
FutureRailway
team
5.
1. Annually delegate authority to TSLG to determine the utilisation of research and
innovation funds, setting conditions as deemed appropriate
A
C
I
2. Annually receive a report from TSLG to demonstrate the funds are being spent in
accordance with delegated authorities and are delivering value.
A
R
R
3. Act as contracting body to deliver projects and competitions approved by TSLG
I
C
A/R
4. Enter commitments and holds IP rights on behalf of industry
I
C
A/R
5. Enters into collaborative agreements on behalf of industry to facilitate innovation. For
example with other funders such as TSB
I
C
A/R
6. Reports and accounts to source of funding (NR/ DfT) for the efficient utilisation of the
funds through quarterly reports
I
C
A/R
7. Develops and implements effective innovation management processes
I
C
A/R
8. Employs RSSB portion of FutureRailway team using the allocated funds and takes
employment risk
I
C
A/R
9. Provides technical, research, stakeholder support, business services, facilities and
other resources to support the FutureRailway team and TSLG activity using the
allocated funds and takes employment risk
I
C
A/R
10. Facilitates TSLG and associated groups, coordinating cross industry activity
I
C
A/R
11. Collaborates with Network Rail to ‘deliver the future railway through research and
innovation’
I
C
A/R
12. Annually submit for RDG T&O Group endorsement a Future Railway multi-year
budget and plan comprising of the TSLG approved Strategic R&D and Innovation
Plans and the TSLG endorsed Network Rail R&D Plan
I
A
R
A = Accountable
C = Consulted
I = Informed
6.
Recommendations
The board are asked to:


NOTE the arrangements which have been established by RSSB for the
management of innovation funding and provide any further guidance.
NOTE that it is TSLG’s intention to work to simplify these arrangements for CP6
including making the case for funding which spans control periods recognising
the long term nature of the RTS.
RSSB Board Meeting Final: 03 July 2014
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