Enabling Innovation Framework Tranche 2

Transcription

1 Enabling Innovation Framework Tranche 2 Market Engagement Day John Sidney Head of Supply Chain Strategy Date: 14 March 2014

2 Housekeeping Safety Arrangements No planned fire alarms for today In the event of a fire please evacuate by the nearest fire exit Please assemble at... Presentations will be made available on the CTM system Q&A session after completion kindly refrain from asking questions during the session 2

3 Agenda Welcome and Safety Share John Sidney Executive Sponsor s Comments Paul Foster & David Hughes Socioeconomic Considerations Keith Gibson Strategic Context Simon Wittridge EIF Pilot - Review and Learning Simon Wittridge Scope & Commercial Strategy Paul Tuohy Conclusion and Q&A (Open Forum) Coffee and Networking March 18,

4 Executive Sponsors Comments David Hughes Commercial Director Paul Foster Chief Operating Officer

5 Safety Share

6 Executive Sponsors Comments To invest in our people and make best use of supply chain partners; having the right people, with the right skills in place at the right time

7 Executive Sponsors Comments Mission To deliver safe, secure site stewardship whilst demonstrating value for money and urgency in the reduction of risks and hazards posed by Sellafield s historic facilities and wastes Excellence Plan The excellence plan articulates key enablers to achieving the strategic mission. The EIF plays an important part in addressing the gaps identified within some of these key enabling areas

8 Socioeconomic Considerations Keith Gibson Head of Socio Economics and Growth

9 Building on a foundation of Sellafield community engagement Significant Nuclear Partner financial investment to support Britain s Energy Coast Direct workforce of >10,000 people is made up of 80% who live locally (58% Copeland, 22% Allerdale) Sellafield Ltd supports Education Apprentices Trainees Graduates SMEs Significant contributions to local charities & supports community activities >34% of Total Contract Value retained in W. Cumbria Government and Community expectation that community benefit will be significantly enhanced. March 18,

10 The Socioeconomic issues for Sellafield Ltd Sellafield Ltd spends c 1bn p.a. in the supply chain from a total of 1.8bn and is looking to maximise community benefit returns Strengthening procurement/contract management processes to emphasise socioeconomic deliverables (based on ODA, EdF principles) Developing specific socio economic priorities/expectations and a Responsible Procurement Plan linked to Sellafield future business needs Collaboration with suppliers and local community to co-ordinate delivery v agreed outcomes Changing traditional concepts of socio economics Improving management of long-term key resource/skills/supplier service constraints March 18,

11 Strategic Theme Development Education, Skills, Training & Employment SME & Local Business Growth Community Well-Being Sellafield Socioeconomic Objectives Sellafield Outcomes & Targets Sellafield Commitments Supplier Commitments Tier 2 and below Community Benefits March 18,

12 Responsible Procurement Philosophy Focus on high value areas 1. Local business engagement strategy including SMEs & Innovation 2. Support local people into jobs 3. Provide training so that people are safe and competent 4. Contribution to community growth and development as per local plans 5. Create economic advantage, improved environment or way of life 6. Education investment to support Science, Technology, Engineering and Maths in schools and for young people Prioritise creation of business and community value

13 Embedding Strategy into Supply Chain Statutory Obligations & Policy M&O Obligations Golden Thread SL Strategy & Priorities Acquisition Strategy PCR Compliance Market Engagement (Messaging) Tender Evaluation Criteria PQQ (Restricted) ITT Contract Terms & Conditions (Enforced Performance Deliverables) March 18,

14 Strategic Context & EIF Pilot Simon Wittridge Head of Project Office

15 Strategic Context What is the EIF? Independent structure, creating the environment to facilitate innovation and creative thinking Support to Intelligent Client Role throughout project lifecycle Problem Definition Establish project purpose and real drivers Brings challenge to traditional and unnecessarily bespoke solutions Access to organisations and the wider supply chain / other industries

16 Strategic Context Why is the EIF important? Independent of primary delivery contracts Provides rigour and challenge Intelligent and innovative application of existing and new technologies Provides appropriate competitive tension Enhanced confidence in developing innovative approaches and supporting business cases

17 Strategic Context No independent challenge Closed problem statements Loss of learning from outside industry Constraints not understood Lack of innovation opportunity Supply chain capability not understood Ill defined performance criteria SME base not utilised Lack of responsiveness Application of EIF principles will allow the benefits to be captured and delivered to our customer, the NDA.

18 Strategic Context

19 EIF Pilot - Recap A client support service that adds value throughout the project lifecycle. Focussed on front end problem definition 9 suppliers won a competitive sub OJEU competition to sit on the Framework Pilot with limited value Designed and used to test concept and principals

20 EIF Pilot: What have we learned? It works! Principals of EIF are sound Increasing SL engagement with Framework Current EIF members supporting the intent working collaboratively and sharing knowledge and experience Knowledge from other industries / academia brought in as required Programme acceleration and/or other benefits possible Governance processes need to be enhanced

21 EIF Pilot: Case Studies Waste Handling facility (SSS) In SLs plan for a major new build EIF task to fully define the problem Review of existing capabilities vs problem to solved Outcome 6 new work streams, Changing CFA, minor processing changes, minor capital, optimise existing Benefit Potentially saving half of capital and O&M costs ( 150m) Much quicker to implement

22 EIF Pilot: Case Studies Self Lifting Drain Cover In flight project to refurbish 2.5km of active drains (multi m, multi years) On schedule, on budget But opportunity to smarten delivery

23 EIF Pilot: Case Studies Lifts in own operating envelope No cranes, no road closures, safer, quicker Ahead of schedule, under budget

24 EIF Pilot: Case Studies How SL s approach to new and alternative technology could provide a step change to the SL s performance Capture bright and novel ideas for future exploration or R&D Look outside Nuclear Industry Align technology to actual problems Quick route to access technology providers, academia to understand potential

25 Scope & Commercial Strategy Paul Tuohy Engineering and Technical Contract Officer

26 Enabling Innovation Framework Scope Scope builds heavily on the pilot front end support to problem and solution definition focussed IC support throughout project lifecycle Conflict of interest between EIF and delivery partners needs to be clearly addressed support to studies stage the what as appropriate acquisition strategy to determine mix of DSA and EIF support Lotting approach to ensure broad capability spectrum

27 Enabling Innovation Framework Project Execution Designed to work with and support the major delivery vehicles Need to build relationships to ensure right skill sets are used at the right time May also provide independent challenge all the way through project lifecycle

28 Commercial Strategy Potential to be lotted to help ensure broad capability support - Ability to access skill areas are included - Creates a flexible field which considers specialist requirements Ranged Framework Value 3 to 6 million, subdivided by lot (if used) Multiple framework holders Flexibility - inherent variability of demand Fit for purpose procurement Low risk, low value Encourage wide participation ITT Assessment process will cover both generic and skill area specific issues anticipated

29 Commercial Strategy Developed SL process and governance within bounds of contract regulations Self governing with limits Agility is key Low value (99%) - enquiry to contract commencement in 5 days High value (1%) mini competition Ongoing VfM of EIF will be periodically assessed

30 EIF: Key Procurement Dates Market Engagement March / April 2014 Preparation - April / May 2014 Issue ITT June / July 2014 Closing date for bids July / August 2014 Evaluation September / October 2014 Announce Preferred Bidder November Finalisation and award December 2014 / January 2015

31 Lotting Strategy Why are SL thinking of using lotting To help procure a diverse range of capabilities To maximise the opportunity to the supply chain SL wants to understand the supply chain s perspective Do you believe Sellafield should Not Lot the Enabling Innovation Framework (Option 1) OR Lot Enabling Innovation Framework (Option 2) If lotted, which lots would your company align to.

32 Lotting Strategy Three ways to give SL your views on the lotting strategy Today via the opinion boards towards the front of the room Retrieve dots and let us know if you prefer the lotted or non lotted approach Place dots on each lot you would wish to bid for Today, during the Q&A Offline to via the feedback sheets. All views are appreciated and will be considered, but specifically we are interested in hearing your views on: Lotting strategy Number of places Distribution of places to lots

33 Option 1 - Framework with no Lotting

34 Option 1 Strengths and Weaknesses Strengths Simple structure Simpler procurement Simpler contract management No constrictions on spend or capabilities Weaknesses May not get a balanced mix of capabilities May exclude areas of innovation Opportunities Opportunity for EIF members to fill capability gaps with supply chain Threats May discourage niche suppliers

35 Option 2 - Framework with Lotting EIF with capability lot structure Waste Management Business Case Definition and Strategy Decommissioning Specialists Asset Management

36 Option 2 Framework With Lotting Strengths Opportunities Ensures broad capability coverage Encourages wider supply chain to bid Weaknesses Unequal lot values may constrain delivery Difficult to predict lot values, potential to reach lot threshold before overall framework Self determination constrained by lot structure Potential for companies to bid for one or multiple lots Threats Potential for uneven lot usage supplier disgruntlement Potential for multi lot winners

37 Questions & Answers Please note any key points or clarifications shall be published on CTM Previous Slide Deck from EIF Pilot also available on CTM

38 Summary and Closeout Thank you for attending Networking Opportunity