Towards a Procurement Model for the SKA v2
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1 C. Perna, R. Colangelo, P. Crosby Towards a Procurement Model for the SKA v2 Document No: PRE-WP C. Perna, R. Colangelo, P. Crosby WP2 Annual Meeting Manchester, 20 Oct 2011 Class: Public Page n. 1 WP2 Meeting Manchester, 20 Oct 2011
2 C. Perna, R. Colangelo, P. Crosby Towards a Procurement Model for the SKA v2 Available on PrepSKA wiki WP5 pages Document No: PRE-WP C. Perna, R. Colangelo, P. Crosby WP2 Annual Meeting Manchester, 20 Oct 2011 Class: Public Page n. 2 WP2 Meeting Manchester, 20 Oct 2011
3 q Report outline q The procurement strategy q Options of procurement models q Conclusions Document No: PRE-WP C. Perna, R. Colangelo, P. Crosby WP2 Annual Meeting Manchester, 20 Oct 2011 Class: Public Page n. 3
4 Report Outline Towards a procurement model for the SKA merges into a unique document the following PrepSKA s annex I deliverables: 5.3 An analysis of procurement models adopted by other large scale science facilities 5.4 Options of procurement model Document No: PRE-WP C. Perna, R. Colangelo, P. Crosby WP2 Annual Meeting Manchester, 20 Oct 2011 Class: Public Page n. 4
5 Report Outline Towards a Procurement Model for SKA: 1. The nowadays procurement strategies adopted in large scale projects 2. A review of the procurement model adopted by the major large scale research facilities 3. A set of 3 options of procurement model for the SKA Then, the following deliverables will be issued: 1. A comparative risk analysis of the 3 options 2. A survey of the national standpoints about the list of risk-ranked procurement models White Paper (deliverable 5.7) Document No: PRE-WP C. Perna, R. Colangelo, P. Crosby WP2 Annual Meeting Manchester, 20 Oct 2011 Class: Public Page n. 5
6 The Procurement Strategy Procurement marketing and strategic sourcing is intended to: satisfy an organisation s needs from markets via the proactive and planned analysis of supply markets and the selection of suppliers, with the objective of delivering solutions to meet pre-determined and agreed organisational needs. From: The Chartered Institute of Purchasing & Supply ) Document No: PRE-WP C. Perna, R. Colangelo, P. Crosby WP2 Annual Meeting Manchester, 20 Oct 2011 Class: Public Page n. 6
7 The Procurement Strategy The approach Engineering Project costing Project requirements and System Work Breakdown Structure -(WBS SBS ) Procurement strategy The area of analysis in the document: Links and interactions, subjects, choices, risks, in order to allow decisions by the Board Procurement policies & Strategies (models) Strategic sourcing Fund raising and management policies Supply chain design Procurement models Procurement management Supply chain and project mgt Document No: PRE-WP C. Perna, R. Colangelo, P. Crosby WP2 Annual Meeting Manchester, 20 Oct 2011 Class: Public Page n. 7
8 The Procurement Strategy The steps to define the procurement strategy before of deploying any kind of procurement procedures ü ü ü ü ü Define the SBS/WBS System/Work Breakdown Structure Map the SBS with the supply chain Reviewthe risks Mitigate the risk Define the acquisitions methods Document No: PRE-WP C. Perna, R. Colangelo, P. Crosby WP2 Annual Meeting Manchester, 20 Oct 2011 Class: Public Page n. 8
9 time DESIDERATA FROM THE ASTRONOMICAL COMMUNITY TECHNOLOGICAL BACKGROUND SKADS, Pathfinders, etc supplier/partner SCIENCE CASE AND TECH REQUIREMENTS consultant SYSTEM DESIGN strategic partner EXECUTIVE PROJECT tier 1 supplier project phases CONSTRUCTION Document No: PRE-WP C. Perna, R. Colangelo, P. Crosby WP2 Annual Meeting Manchester, 20 Oct 2011 Class: Public Page n. 9 OPERATION supplier
10 The options of procurement model (Based on significant research PART A of document) The 3 options of procurement model Global Open Procurement Agreed-on deliverables In-kind contribution (IKC) Procurement Document No: PRE-WP C. Perna, R. Colangelo, P. Crosby WP2 Annual Meeting Manchester, 20 Oct 2011 Class: Public Page n. 10
11 The options of procurement model PART B Acquisition methods Funding methods PROCUREMENT MODELS Management methods Funding central, pre-assigned, direct, etc. Acquisition policies, tendering methods, etc. Management legal entity, jurisdiction, etc. Document No: PRE-WP C. Perna, R. Colangelo, P. Crosby WP2 Annual Meeting Manchester, 20 Oct 2011 Class: Public Page n. 11
12 The options of procurement model Std Global Procurement Document No: PRE-WP C. Perna, R. Colangelo, P. Crosby WP2 Annual Meeting Manchester, 20 Oct 2011 Class: Public Page n. 12
13 The options of procurement model Agreed-on Procurement Document No: PRE-WP C. Perna, R. Colangelo, P. Crosby WP2 Annual Meeting Manchester, 20 Oct 2011 Class: Public Page n. 13
14 The options for procurement model In Kind Contribution Procurement Document No: PRE-WP C. Perna, R. Colangelo, P. Crosby WP2 Annual Meeting Manchester, 20 Oct 2011 Class: Public Page n. 14
15 The options of procurement model Procurement model options vs funding model options Bidding line IKC Procurement X X Agreed-on Procurement X Global Procurement X Document No: PRE-WP C. Perna, R. Colangelo, P. Crosby WP2 Annual Meeting Manchester, 20 Oct 2011 Class: Public Page n. 15
16 SPO Procurement Department Participating Organisation (or consortium, or industry) Flow chart for the IKC model supporting the Work Package concept Negotiate SPO defines Work Package(s) value, detailed requirements, and bid judging criteria. WP announced. SPO evaluates bid, agrees value & terms Funding Agency Bid(s) prepared on Work Package(s). Submitted to SPO Contractors, partners, supply chains, etc! Regional Industry Cluster SPO Issues Work Approval PO executes the WP SPO Monitors progress and compliance PO completes the WP SPO Validates meeting of requirements, and approves accrual of project credit Project Integration Document No: PRE-WP C. Perna, R. Colangelo, P. Crosby WP2 Annual Meeting Manchester, 20 Oct 2011 Class: Public Page n. 16
17 Capability Scouting The strategy proposes an international capability assessment process that lifts procurement efficiency: to gain a global picture of engineering/construction capability (and any gaps) within the SKA Consortia, as well as trade conditions, and/or keysuppliers to facilitate acquisition planning to cover the gaps to assist government agencies with focusing support schemes to obtain a global view of strengths and maturity regarding regional, national, and business to provide useful input to procurement planning, and help with any balancing required to essentially answer the question who can reliably and competitively do what. Document No: PRE-WP C. Perna, R. Colangelo, P. Crosby WP2 Annual Meeting Manchester, 20 Oct 2011 Class: Public Page n. 17
18 Assessment Domains National Frameworks Software & Computing Signal Transport Receptors Signal Processing Power Engineering Stable Government Hardware Site data transmission Antennas Beamformers System Design International Trade Software LAN/WAN Phased Array Feeds Correlators Generation National Procurement Rules Financial Systems Data Processing Storage Monitoring & Control Low Noise Amplifiers Firmware Storage Reticulation Societal Capital IO Interfaces Optical fibre Networks Receivers Signal Conditioning Monitoring & Control Industry Capability Capability Compliance Sustainability Marketing Policy & Planning Management Systems Quality, Safety Environment Training Finance Risk Documents/media Supply Chain Partners Subcontractors Special Services Materials Inventory mgmt Procurement Supplier QM Resources Funding Infrastructure Labour Plant Operations Logistics Test & Inspect Quality Control Production Design Scheduling Customer Requirements Critical Factors For SKA Strategic Linkages New Technologies Competitiveness Competence Experience Research Capacity Document No: PRE-WP C. Perna, R. Colangelo, P. Crosby WP2 Annual Meeting Manchester, 20 Oct 2011 Class: Public Page n. 18
19 Capability Scouting Processes Nominate Regional Contact Points from each SKA Consortia Appoint Assessment Team Planned meetings with Government, Institutes, and industry organisations supported by documents Reports used to intelligently inform SPO project management & procurement functions Not set-in-stone information updated in the database Document No: PRE-WP C. Perna, R. Colangelo, P. Crosby WP2 Annual Meeting Manchester, 20 Oct 2011 Class: Public Page n. 19
20 The options of procurement model Next steps A comparative risk analysis of the models has been committed to an independent external reviewer. The reviewer will rank the risks of the proposed options. The work will start next week and should end within end of November On November 1 st, FP7/GO-SKA project will start. One aim is to define a framework for a global industrial consortium for the SKA. Trial of Capability scouting early 2012 in Italy Document No: PRE-WP C. Perna, R. Colangelo, P. Crosby WP2 Annual Meeting Manchester, 20 Oct 2011 Class: Public Page n. 20
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