Sellafield Ltd Market Enhanced Model

Transcription

1 Sellafield Ltd Market Enhanced Model Robert Astall Commercial Director Date: 6 th January 2016

2 Topics Market Enhanced Model Why The background Market enhancement definition Key features of the model Benefits of the model Engagement & substantiation Identification of the correct model for the delivery of Sellafield Ltd business Scope of included services Current status 08 January

3 Background Secretary of State for Energy and Climate Change announced a change of management model for Sellafield Ltd (SL) in January Ownership would rest with the Nuclear Decommissioning Authority and SL would acquire market enhanced capability, to support delivery of the programme. It was recognised that engagement with the SL Executive and Board would be critical to ensuring any market enhancement best reflected the needs of the SLC. There was recognition that SL must have: a clear understanding of the gap/needs in respect of capability and capacity that such a partner needs to address and a thorough appreciation by all of the relationship it expects to create through effective partnerships

4 Market Enhanced Model - Definition Difficulty at first in identifying definition of Strategic Partner or Market Enhanced Capability in relation to SL s need. Decision taken to approach the question from a different perspective and identify the capabilities and capacity that SL needed, either: because NMP were exiting in March 2016 because we had already identified the need, eg commercial and project controls because the change of model for SL or the 2020 blue print were driving it. 08/01/2016 4

5 Market Enhanced Model Key Features Clear vision for the organisation and role of all partners Clarity on what good looks like Intelligent client with capability to direct and manage other members of the enterprise Capability for all parties to discharge contractual roles and responsibilities Enhanced capacity and capabilities to support SL with the delivery of its mission and achievement of its vision Outcome based principles of engagement An environment which supports a common vision and allows for partnering and collaboration to occur Client and partner(s) working in harmony A contractual framework based on a set of incentives which supports collaboration and the required culture and behaviours needed to embed positive change. 08/01/2016 5

6 Market Enhanced Model - Benefits Delivery of more predictable operational and project performance in all areas Provide the basis for securing more effective and agile delivery of scope (as set out in the site baseline) in terms of cost and schedule performance Address the capacity and capability gaps created following departure of NMP Alignment with the agreed governance arrangements which overarch the revised operating model for SL and NDA Develop a strong understanding of risk ownership and transfer/placement. 08/01/2016 6

7 Benefits continued.. Promote supplier development to enhance delivery and effective competition within the Tier 2 supply chain including existing vehicles Establish more commercially astute supply chain contracts that deliver enhanced performance through better incentivisation and provide for appropriate risk transfer Deliver business change within the site such that SL and supply chain resources can be leveraged to greater effect than is the case currently Integrate with the continued role of the SL executive as the agent of the licensee and controlling mind for the site Promote a sense of positive change and energy among the site workforce both SL and supply chain Provide a framework to manage enterprise and portfolio level change as well as project level change 08/01/2016 7

8 The Collective Focus Collaborative Approach SL would secure strategic partners from the private sector to help it achieve improved performance. The partners would work collaboratively with SL to identify areas where improvements could be made; enhancing short term capability and helping to build expertise within SL in the longer term. Agile use of Strategic Partner(s) This approach to bringing in private sector expertise would be more flexible and more easily evolve as the strategic needs of the site develop over the next 5 10 years. 08/01/2016 8

9 Engagement and Substantiation of the Market Enhanced Model Steering Group Scene Setter with suppliers/experts Technical Dialogue with suppliers/experts 08/01/2016 9

10 Output of Workshops The final output of the three workshops identified that rather than one Strategic Partner a Market Enhanced Model is required in order to meet SL s capability and capacity gaps. The proposed scope and bundle arrangements identified for a Market Enhanced SLC are: Strategy Business Partner People and Transformation Partner Programme and Project Delivery Partners It is important to note that these may evolve as our thinking continues 08/01/

11 Market Enhanced Model Proposed Bundles Bundle 1 Strategy Business Partner Strategy Supply Chain Management ( Strategic ) Strategic Communications (External) Portfolio Management Bundle 2 People & Transformation Partner Organisational & People Management Leadership Advice Business Transformation Stakeholder Engagement (Internal) Bundle 3 Programme & Project Delivery Partners Programme & Project Management Project & Programme Controls Supply Chain Management Delivery Financial Management OFFICIAL 11

12 Definition of Scope of Services Further work has been completed by the Steering Group to identify: Scope of services per bundle Enterprise at what level the capabilities are required in the business Anticipated Duration (5-10yrs) The potential service delivery vehicles which Sellafield could use to procure those capabilities identified as Buy or Buy to Make, recognising that progression through different vehicles could be appropriate as the scope and nature of a required service develops: Advisory Resource Augmentation Co-source Outsource 08/01/

13 Ownership of the Model In order to the develop the model further, ownership of the three bundles has been agreed with members of the SL Executive team: Bundle 1 Strategic Business Partner Olivier Demarthe Bundle 2 People and Transformation Partner Colin Reid Bundle 3 Programme and Project Delivery Partner Scott Reeder The bundle owners have established teams to develop the specifications of the individual bundles. Consideration will also be required of the touch points between the bundles, in terms of potential interfaces, overlaps and gaps. 08/01/

14 Current Status Following the Scene Setter, a selection of twenty-five organisations were invited to the Technical Dialogue to seek the views of organisations from a number of different sectors with a range of experience and perspectives. The selection covered a range of organisations capable of delivering the three bundles. It also included two SMEs who have expressed an interest in working at Tier 3 within the MEM. Technical Dialogue sessions held in London over the period of 17 th to 27 th November 2015, testing: - how the concepts might operate in practice whether the proposed Market Enhancement Model and approach is optimal the attractiveness of the procurement opportunity to the supply chain. 08/01/

15 Next Steps The outcome of this dialogue will then support further development and refinement of the proposed procurement arrangements and the competition principles that: Must attract and retain organisations who have values and behaviours that are consistent and complementary to those of SL; Must retain flexibility in the resultant contracts, whilst remaining compliant with Public Contracts Regulations (PCRs) to adapt to a changing environment as the site moves from an operational, reprocessing focus to one of decommissioning and clean-up / site remediation; Must provide a contractual framework based on a set of incentives which supports collaboration and the required culture and behaviours needed to embed positive change. 08/01/

16 Next Steps - Approvals Following Technical Dialogue, an Initial Business Case, Acquisition Strategy and Sub Contracting Strategies will be developed with the aim of gaining the following endorsements: IRP endorsement (February 2016), SL Board Endorsement (advice/guidance required) NDA endorsement (May 2016) DECC approval (July 2016) based on current known sanction dates. An Industry Day will be held in September 2016 (subject to sanction approval of the business case) prior to the procurement competition(s) commencing which will be open to supply chain and stakeholders. 08/01/