WORKING WITH BC HYDRO GENERATION 10 YEAR CAPITAL PLAN
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1 WORKING WITH BC HYDRO GENERATION 10 YEAR CAPITAL PLAN
2 The main purpose of this document is to provide our suppliers insight into the upcoming Capital Plan at BC Hydro s dams and generating facilities. There are two primary objectives of this document: 1. Provide increased transparency and visibility into our Capital Plan. 2. Gather input and feedback from the market to ensure we can successfully deliver on our 10 year Capital Plan. To successfully deliver its challenging Capital Plan, BC Hydro will continue to rely on the skills and know-how of all its suppliers of goods and services, which includes original equipment manufacturers (OEMs), engineering consultants, and constructors. BC Hydro anticipates that sharing this information will result in better supplier engagement and leveraging their expertise, more competitive proposals and tenders from suppliers and improved resource allocation. By engaging the suppliers routinely and sharing our short and long term Capital Plans BC Hydro believes efficiencies on delivering its challenging Capital Plan can be realized. BC Hydro has recently upgraded the Suppliers section of its website to better communicate with suppliers. Newly designed pages can be viewed at Suppliers. Information will be updated as required.
3 INTRODUCTION The Capital Plan at BC Hydro s dams and generation facilities include a large number of projects of varying size, value and complexity in many geographic locations in British Columbia. For purposes of completion this document also provides procurement information regarding the Site C Clean Energy Project. BC Hydro will take a long-term view of its required goods and services and ensure it is aligned to BC Hydro s vision of powering British Columbia with clean, reliable power for generations. BC Hydro strives to be a fair business partner that balances cost effectiveness with leading public sector procurement practices while meeting its obligations to rate payers. BC Hydro will evolve and continue to improve existing procurement and contract management practices with respect to how we interact with suppliers and service providers to be a best-in-class customer. To meet the challenges in the coming years, BC Hydro must count on the skills and know-how of all its suppliers of goods and services, which includes Original Equipment Manufacturers (OEMs), Engineering Consultants and the contractor/constructor community. Regular engagement with our major equipment suppliers is a key step in meeting this challenge. Individual Generation Capital projects are subject to BC Hydro management approval and sometimes regulatory approval for large projects exceeding $100M. The capital plan is also approved by the BC Hydro Board. Dependant on resource availability and new information the work identified in the document is subject to change at any given time and should not be solely relied upon for upcoming procurements requirements. BC Hydro is obligated to advertise its procurement requirements on BC Bid and will do so once approval and funding to proceed has been given. Working with BC Hydro 1
4 ENGAGEMENT PROCESS BC Hydro is interested in engaging with our major equipment suppliers with hopes of receiving input that will better help us deliver our 10 year program of work. Provision of feedback is not mandatory in order to participate in the future procurement process for one or many of the projects in our program of work or other procurement initiatives. Information received from this market sounding exercise will be used in developing future procurement strategies or shifting in-service date of the projects. Areas that BC Hydro is interested in receiving feedback are as follows: Innovative procurement approach used for delivering materials and services. Packaging of projects, components or services in a manner that will assist BC Hydro to deliver on its program of work economically and efficiently. New emerging technologies in the hydroelectric generation field that will assist BC Hydro to deliver on its program of work. Key delivery years that components and/or services will be difficult to deliver due to constraints facing the suppliers and market demands. Feedback from our suppliers will allow BC Hydro to: Realign specific projects of the BC Hydro s program of work according to the market capacity and capability. Early identification of potential issues related to planned capital projects to reduce risks, scope and cost. Develop and foster supplier/partner relationships. 2 Working with BC Hydro
5 SAFETY BC Hydro s Safety Taskforce developed a future state vision which includes the expectation that People understand and respect our BC Hydro rules and procedures and recognize that they have a voice in influencing these. The Life Saving Rules support that vision and are the result of a collaborative effort amongst BC Hydro, COPE and the IBEW. While it is our expectation that workers follow all safety rules, The Life Saving Rules focus on the high risk work activities that carry the greatest threat of serious injury or death. BC Hydro expects contractors to follow our Life Saving rules and to comply with WSBC regulations. There are additional information resources about the Life Saving Rules, the Just Culture principles, and frequently asked questions which are available upon request. SAFETY BY DESIGN BC Hydro seeks to promote inherent safety to achieve safer constructibility, operability and maintainability of its systems and facilities. The Safety by Design process takes advantage of opportunities during design of new or replacement equipment to design hazards out of the system. This is achieved by including early end-user input in the design process, systematic identification and elimination/reduction of hazards, and embedding principles of safety and reliability throughout all design decisions. BC Hydro expects and encourages all its partners to apply its Safety by Design principles and practices. Working with BC Hydro 3
6 FIRST NATIONS The Aboriginal Contract and Procurement Policy encourages greater access for Aboriginal businesses or service providers. BC Hydro is committed to the advancement of economic opportunities for Aboriginal businesses and wants to encourage our suppliers to identify and work with Aboriginal contractors and hire individual Aboriginal people. QUALITY AND STANDARDS The Supplier Interaction Guidelines were developed in response to the Supplier Engagement Review recommendations. These guidelines are neither contractual nor a comprehensive manual that describes every interaction between BC Hydro and our suppliers. Its purpose is to provide guidance, improve our relationships and support our processes at BC Hydro. These guidelines incorporate the spirit and intent of many of our existing codes and policies and are complementary to BC Hydro s Director and Employee Code of Conduct (the Code), which includes the Code of Conduct Applicable to BC Hydro Contracts (Code of Conduct Guidelines). Where there might be conflict between existing policies and these guidelines, the policies should be followed. Our Supplier Interaction Guidelines focus on six key areas: Partnering relationships Fairness, openness and transparency Due diligence Business integrity Business continuity Conflict of interest 4 Working with BC Hydro
7 PORTFOLIO PLAN The Portfolio Plan is an itemized list of specific projects and programs, as forecast by the 10 year Capital Plan. It is an outcome of the Portfolio Plan to review the 10 year Capital Plan to position the portfolio to successfully execute long term capital and O&M objectives. 10 YEAR PROJECT DELIVERY CAPITAL FORECAST EXPENDITURES 800 NEW PROJECTS ACTIVE PROJECTS $ MILLION F2014 F2015 F2016 F2017 F2018 F2019 F F2021 F F F2024 Working with BC Hydro 5
8 ANTICIPATED NUMBER OF PROJECT RELEASES, F15-F24 FORECAST PROJECT RELEASES F2015 F2016 F2017 F2018 F2019 F2020 F2021 F2022 F2023 F2024 Note: The above released projects are generally limited to large capital projects and exclude smaller plant managed projects Given current resource limitations and the forecast volume of work over the next 10 years, it is essential to focus BC Hydro s internal resources on those projects and activities that maintain our ability to act as a knowledgeable owner, and improve our ability to work with and integrate the results of external service providers and suppliers. In particular: Conducting a limited amount of full design internally to maintain capacity and industry knowledge; Generally conducting conceptual, feasibility and some preliminary designs internally, using staff augmentation where resource constrained; Using comprehensive engineering service provision contracts for some Preliminary and for Detailed design processes. Design-Bid-Build approaches will remain an essential method for delivering the overall Capital Plan, including variants such as Supply- Install and use of external engineering services in a staff augmentation or service provision role. BC Hydro is applying a Design-Build approach to the largest project in the Portfolio Plan, the John Hart Replacement Project. Smaller Design-Build packages will be suitable for projects such as road works, bridges and townsite projects. At this time, there are limited opportunities to apply Design-Build approaches to future plant 6 Working with BC Hydro
9 redevelopments due to the incremental nature of many of the identified capital projects, i.e. most facilities involve multiple projects spread over longer time periods, and the ability to bring forward certain elements is constrained by the risk prioritization process. It is essential that BC Hydro work with engineering service providers to develop external expertise and understanding of BC Hydro s expectations and processes in advance of the F15-17 period when engineering resource demand significantly exceeds supply. Working with BC Hydro 7
10 PROGRAM OPPORTUNITIES Program opportunities may involve the establishment of a long-term partnership with an engineering service provider and construction contractor to leverage lessons learned from early projects to achieve overall program efficiencies. Potential programs identified include: Recoat Program (gates and penstocks) Fire Protection Program Protection, Control and Station Service Program Spillway Gates (ongoing) Dam Safety Program 8 Working with BC Hydro
11 PROJECT BUNDLING OPPORTUNITIES (ON-GOING AND FORECAST) Opportunities to combine multiple projects from the Portfolio Plan to achieve project team efficiencies and ensure coordination of site work were assessed at the same time as program opportunities. Most project bundling opportunities relate to combining multiple projects at a specific site into a larger project. SITE C CLEAN ENERGY PROJECT The procurement approach for Site C includes a variety of work packages and procurement models that will provide opportunities for businesses of all sizes. The procurement approach consists of a number of large contracts for the major project components, and multiple smaller contracts for supporting activities and other works. BC Hydro will ensure accessibility for procurement opportunities through the use of BC Bid. This allows BC Hydro to advertise bid opportunities widely, and for potential bidders to receive notifications of these opportunities. Interested parties are encouraged to register on BC Bid. You can find more information about Site C procurement opportunities at F14-F17 GENERATION CAPITAL CAPITAL PLAN DETAIL This document has been prepared to provide BC Hydro s supplier community with information regarding our proposed Capital Plan for hydro dams and generating facilities. As mentioned prior individual Generation Capital projects are subject to BC Hydro management approval and sometimes regulatory approval for large projects exceeding $100M. The capital plan is also approved by the BC Hydro Board. Dependant on resource availability and new information the work identified in the document is subject to change at any given time and should not be solely relied upon for upcoming procurements Working with BC Hydro 9
12 requirements. BC Hydro is obligated to advertise it procurement requirements on BC Bid and will do so once approval and funding to proceed has been given. In efforts to better assist suppliers with their business planning and to optimally respond to BC Hydro s requests for bids/proposals the dams and generating facilities Capital Plan has been presented in three different ways. Appendix 1 outlines the major equipment categories, required quantities and their in-service dates. The equipment has been categorized into three categories; small (<10 MW), medium (>10-99 MW) and large (>100MW) for your convenience. These projects have not all been financially approved but should provide insight into the long term Capital Plan of dams and generating facilities of BC Hydro. Appendix 2 Provides a high level outline of the Site C Clean Energy Project as well as a summary of the procurement approach. CONTACT INFORMATION We kindly request that all our suppliers will address any questions and concerns to the resource provided which will assist us in providing you with accurate information in a timely manner. Brad Samis RMP, M.A., B.Sc. Commercial and Portfolio Management Generation Project Delivery Office: Mobile: brad.samis@bchydro.com Linda Beardsell Director Procurement, Infrastructure Projects Office: Mobile: linda.beardsell@bchydro.com 10 Working with BC Hydro
13 APPENDIX 1 10 YEAR CAPITAL PLAN OUTLOOK - MAJOR PIECES OF EQUIPMENT BY FACILITY Row Labels Small Medium Large Grand Total ASH 3 3 Cranes & Hoists 1 1 Generator 1 1 Governor 1 1 BR Exciter 4 4 Generator 4 4 Governor 4 4 BR Exciter 4 4 Generator 4 4 Governor 4 4 COM 5 5 Cranes & Hoists 1 1 Exciter 1 1 Generator 1 1 Governor 1 1 Turbine 1 1 ELK Circuit Breaker 3 3 Exciter 2 2 Generator 2 2 Governor 2 2 Transformer 1 1 Turbine 2 2 FLS Circuit Breaker 2 2 Exciter 2 2 Individual Generation Capital projects are subject to BC Hydro management approval and sometimes regulatory approval for large projects exceeding $100M. The capital plan is also approved by the BC Hydro Board. Dependant on resource availability and new information the work identified in the document is subject to change at any given time and should not be solely relied upon for upcoming procurements requirements. BC Hydro is obligated to advertise it procurement requirements on BC Bid and will do so once approval and funding to proceed has been given. Working with BC Hydro 11
14 Row Labels Small Medium Large Grand Total Generator 2 2 Governor 2 2 Turbine 2 2 GMS Circuit Breaker 2 2 Exciter 5 5 Generator 7 7 Transformer 4 4 Turbine 2 2 JOR 1 1 Governor 1 1 KCL 5 5 Exciter 4 4 Generator 1 1 LAJ 4 4 Exciter 1 1 Generator 1 1 Governor 1 1 Turbine 1 1 LB1 2 2 Cranes & Hoists 1 1 Generator 1 1 LDR 9 9 Cranes & Hoists 1 1 Generator 2 2 Governor 2 2 Transformer 2 2 Turbine 2 2 MCA Circuit Breaker 5 5 Individual Generation Capital projects are subject to BC Hydro management approval and sometimes regulatory approval for large projects exceeding $100M. The capital plan is also approved by the BC Hydro Board. Dependant on resource availability and new information the work identified in the document is subject to change at any given time and should not be solely relied upon for upcoming procurements requirements. BC Hydro is obligated to advertise it procurement requirements on BC Bid and will do so once approval and funding to proceed has been given. 12 Working with BC Hydro
15 Row Labels Small Medium Large Grand Total Cranes & Hoists 1 1 Generator 4 4 Turbine 1 1 PUN 2 2 Generator 1 1 Turbine 1 1 REV 6 6 Circuit Breaker 2 2 Cranes & Hoists 2 2 Generator 2 2 SCA 1 1 Cranes & Hoists 1 1 SEV Cranes & Hoists 1 1 Exciter 4 4 Generator 2 2 Transformer 3 3 Turbine 3 3 SFN 2 2 Turbine 2 2 SHU 1 1 Transformer 1 1 SON 2 2 Generator 1 1 Governor 1 1 SPN 9 9 Circuit Breaker 3 3 Exciter 2 2 Generator 3 3 Turbine 1 1 Individual Generation Capital projects are subject to BC Hydro management approval and sometimes regulatory approval for large projects exceeding $100M. The capital plan is also approved by the BC Hydro Board. Dependant on resource availability and new information the work identified in the document is subject to change at any given time and should not be solely relied upon for upcoming procurements requirements. BC Hydro is obligated to advertise it procurement requirements on BC Bid and will do so once approval and funding to proceed has been given. Working with BC Hydro 13
16 Row Labels Small Medium Large Grand Total WAH 1 1 Generator 1 1 WGS 1 1 Exciter 1 1 WHN 7 7 Exciter 2 2 Generator 2 2 Governor 2 2 Turbine 1 1 Grand Total YEAR CAPITAL PLAN OUTLOOK MAJOR PIECES OF EQUIPMENT IN-SERVICE DATE Row Labels F15 F17 F18 F19 F20 F21 F22 F23 F24 F25 F26 Grand Total Circuit Breaker Cranes & Hoists Exciter Generator Governor Transformer Turbine Grand Total Similar to all BC Hydro capital projects,the Generation long term capital plan is subject to BC Hydro Board approval and resource availability, the work identified in this document is subject to change at any given time and should not be solely relied upon for upcoming procurement requirements. BC Hydro is obligated to advertise its procurement requirements on BC Bid and will do so once approval and funding to proceed has been given. 14 Working with BC Hydro
17 APPENDIX 2 SITE C PROCUREMENT PLAN GENERATING FACILITIES Component Scope of Work Procurement Model Anticipated Timing (subject to change) Main Civil Works Excavation and bank stabilization more than 32 million m3 of excavation associated with diversion, foundations and stabilizations. Design-Bid- Build Qualification process: 2014 Diversion works two ~11m diameter concrete-lined tunnels between 700m and 800m in length, plus associated cofferdams, and intake and outlet structures. Earthfill dam zoned earth embankment approximately 1,050m long and 60m above the present river bed. RCC buttress Roller Compacted Concrete (RCC) gravity structure approximately 800m in length and at a maximum height of 70m (total RCC volume of approximately 2.4 million m3). Turbines and Generators Supply and installation of six 183 MW vertical axis Francis turbines. Supply and installation of generators, governors and exciters Design-Build Selection of Supplier: 2015 Anticipated Construction (subject to change) 2015 to 2022 Design: 2016 Fabrication: 2017 Installation: 2018 to 2022 Working with BC Hydro 15
18 Supporting Activities There will be a large number of activities required to support the construction of the dam site components. Some examples of supporting activities include: Archaeological site preparation Decommissioning of temporary access roads Environmental monitoring Safety, first aid and security Transportation and shuttle services SUPPORTING WORKS Component Scope of Work Procurement Model Worker Accommodation Fabrication, installation and servicing of two construction caps, including housing, cafeterias and recreational facilities to house approximately 1,700 person (total) during peak construction periods. Direct or subcontract Design-Build- Finance- Operate- Maintain Clearing Clearing and removal of timber and vegetation, and salvage of merchantable timber, over the area that will be inundated by the reservoir. Multiple Design-Bid- Build contracts Total clearing including dam-site and the reservoir expected to be 1.4 million m3 of merchantable and 1.2 million m3 of nonmerchantable, including early works. Varies TBD Anticipated Timing (subject to change) Anticipated Construction (subject to change) RFQ issued March 4, to 2022 Qualification process: Working with BC Hydro
19 Public Road Infrastructure Transmission Line Site C Substation Realignment of multiple sections of Highway 29 over a total distance of approximately 30km, and any additional modifications to public road infrastructure. Activities include: paving, excavation, embankment construction, bridge removal and construction, and shoreline protection measures. Two 77 km 500kV transmission lines from Site C substation to Peace Canyon substation. Decommissioning of existing 138kV transmission lines and integrating 138kV circuits to Site C substation Three 500 kv overhead lines form the generating station to the Site C substation. Substation connecting the power feed from the Site C generating station to the two 500kV lines from Peace Canyon and the 138kV local power supply. To be determined by the Ministry of Transportation and Infrastructure Qualification process: 2014 to 2019 TBD Qualification process: 2016 TBD Qualification process: 2016 Local infrastructure: 2015 to 2017 Early highway sections: 2017 to 2019 Final highway sections: 2019 to to to 2019 Working with BC Hydro 17
20 Supporting Activities There will be a large number of activities required to support the construction of the off-site components. Some examples of supporting activities include: Accommodation support Boat launches Day use recreation sites Monitoring programs Operation of satellite worker accommodation camps (if required) Wildlife or fish mitigation projects EARLY WORKS Component Scope of Work Procurement Model Early Clearing Clearing of lower reservoir (expected to be approximately 300,000 m3 merchantable timber, plus additional non-merchantable) Early Civil Works The early civil works include preparatory works, primarily at the dam site, such as: Direct or subcontract Multiple Design-Bid- Build contracts Design-Bid- Build Site preparation Construction of access roads Site preparation may include clearing, grubbing and stripping, as well as removal or disposal of wood debris. Infrastructure Contracts Infrastructure contracts includes site power and communications Design-Bid- Build Varies TBD Anticipated Timing (subject to change) Anticipated Construction (subject to change) Qualification process: Qualification process: to 2016 Qualification process: to Working with BC Hydro
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22 CONTACT US For additional information please contact us at bchydro.com or A13-192
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