North West Rail Link. Achieving Social and Economic Development through Strategic Approaches to Major Project Procurement
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1 North West Rail Link Achieving Social and Economic Development through Strategic Approaches to Major Project Procurement Greater Western Sydney Social Procurement and Economic Development Forum Claire Parry and Kristy Tan
2 Project overview $8.3 billion budget Open by late 2019 First stage of rapid transit
3 The plan: Sydney s Rail Future
4 Australia s biggest public transport project A new generation of rail Artist s impression: Windsor Road rail bridge Eight new railway stations 4,000 car parking spaces A train at least every five minutes in the peak
5 Bringing the project to life Widespread community engagement since June 2011 Project aligned with key NSW Government plans, Transport Master Plan Major scope improvements made since June 2011 Fully funded from State budget $806m FY , $4 billion over next 4 Property acquisitions well advanced >85% of transactions completed EIS 1 approved September 2012 ; EIS 2 approved May 2013 Major construction underway; early construction works completed $1.15 billion tunnelling contract (TSC) awarded June 2013 $340 million skytrain contract (SVC) awarded December 2013 Operations contract - proposals currently being assessed On program for the first of the four TBMs in ground later this year
6 Phases of delivery
7 Picturing project success
8 Sustainable Procurement UK Approaches Triple bottom line principles environmental, social and economic Section 106 planning obligations to offset negative impacts caused through construction and development Corporate Social Responsibility UK businesses taking account of their economic, social and environmental impacts BS8903 British Standard for Sustainable Procurement Responsible / Sustainable Procurement Policies and Frameworks public and private sector Legislation Public Services (Social Value) Act 2012 An Act to require public authorities to have regard to economic, social and environmental well-being in connection with public services contracts; and for connected purposes Social Value Procurement Frameworks Social Value Commissioning
9 Social and Economic Benefits Government Boosting the UK economy supply chain distribution Value for money- increasing competition Urban regeneration Employment Industry SME opportunities Skills legacy Workplace Health and Safety Capacity building workforce Workforce retention Global competitiveness Project / Service Setting new benchmarks Productivity, quality and safety Addressing skills shortages and gaps Equality and diversity Ethical and social reputation of project Developing a skills bank in the public and private sector for major infrastructure projects and service delivery
10 Responsible Procurement - London Responsible Procurement means pioneering socially, environmentally and economically responsible procurement to deliver improved quality of life and better value for taxpayers, our people, our businesses and our City Key themes Delivery Strategic Labour Needs and Training (SLNT) London Living Wage (LLW) Freight and Cycle Safety SMEs and Diverse Suppliers Equality and Diversity Environment Ethical Sourcing London 2012 Olympics Greater London Authority Crossrail Transport for London Metropolitan Police London Fire Brigade
11 London 2012 Procurement Policy EU procurement regulations Balanced Scorecard: Balancing cost, time and quality with Olympic Delivery Authority (ODA) corporate values and objectives - Safe and secure - Equalities and inclusion - Environment - Quality and Functionality - Legacy Thin Client Supply Chain obligations CompeteFor opening up private sector procurement opportunities to SME s
12 ODA Balanced Scorecard
13 Crossrail Ltd Europe s largest infrastructure project - 15bn value. Stretching across London, the new railway will cover over 100km of track including 21km new twin-bore rail tunnels and nine new stations
14 Crossrail creating a significant legacy 42bn benefits to UK economy UK wide economic benefits via supply chains 75,000 business opportunities 55,000 full time equivalent jobs Embedding new approaches to public procurement triple bottom line Revitalising industry - skills shortages and gaps 25 year pipeline of major infrastructure projects Setting new benchmarks in health, safety and workforce development Supplier diversity Ethical trading Skills legacy Increase global competitiveness
15 Key Achievements Economic Progress Tier 1 contracts over 5.5bn UK companies hold 97% of Crossrail related contracts Benefit to cost ratio (BCR) = 2.2 to 1. Benchmark to 1 Supply chain following the Crossrail pound 62% businesses winning bids are outside London 3 out of 5 FTE jobs outside London 58% SME contracts Supply chain mapping tier 1 to tier supply chain expenditure 865m 53% spent outside London Equality, Opportunity and Social Inclusion new local jobs for unemployed people via job brokerage service 86% jobs filled by Londoners 62% new entrant jobs filled by previously un-employed people 350+ apprentices on formal apprenticeship schemes 44% apprentices previously not in work or education, a success rate that is almost double the UK wide average 33% of jobs filled by women, compared to 20% of job roles across the UK construction industry 24% Black and Minority Ethnic (BAME) UKCG average 5%
16 Key Achievements Workforce up-skilling individuals undertaken accredited training 500+ work experience and placements 200+ graduates on formal graduate schemes completed Tunnel Safety Card training and testing truck drivers trained Wider legacy achievements Tunneling and Underground Construction Academy Specialist facility and plant Industry and government sponsorship New industry qualifications and licences Skills and labour forecasting tool Innovative multi-agency approach Influencing government procurement policy and strategy
17 UK - lessons learnt Commissioning approach analyse, plan, do, review Objectives relevant and appropriate to project, location and future industry requirements Procurement policy and process Enforceable targets, measurable outcomes and KPIs Organisational framework with flexibility to meet project/ services scope Workforce profiles having a clear sight of the supply chain and where opportunities exist Leadership and ownership across the organisation Strategic stakeholder engagement and collaboration Geographical boundaries benefits and challenges Reporting, communication and messaging Retro-fitting contractual obligations has poor success Greater opportunities may exist through operations/ services contracts Exit strategy jobs, workforce development, community interventions
18 The Future Greater London Authority (GLA) & Transport for London (TfL) Responsible procurement policy refresh Focus economic growth, jobs and skills Supply chain performance management Greater opportunity exists within operations/ services contracts than capital works projects Embedding CompeteFor across all procurement Applying RP across categories and product lines rather than by project or operational contracts Employment Services providers embedded within TfL Established apprenticeship program Job Brokerage Better alignment with Infrastructure UK to identify future pipelines of work Sharing good practice across the UK Future Projects Thames Tideway UK Nuclear Program High Speed 2 (HS2)
19 North West Rail Link Context NWRL Projective Objective Contribute to environmental, social and economic sustainability by improving liveability, minimising our impact on the environment and the community and delivering value for money NWRL Sustainability Strategy A clear vision to achieve new benchmarks in sustainable infrastructure delivery demonstrating NWRL is at the forefront of best practice, delivering environmental, social and economic improvements throughout the project. Supply chain objective: Influence contractors, subcontractors and materials suppliers to adopt sustainable practices in support of the NWRL Environment and Sustainability Policy
20 Opportunity 1: use of local businesses on the project NWRL established a relationship with ICN to promote ANZ SMEs. NWRL is listed on the ICN gateway website and SMEs will be able to register through the gateway. NWRL has also hosted a forum with the NSW Department of Trade and Investment exposing over 400 suppliers to the Operations, Trains and Systems proponents. Our goal is to identify opportunities for SMEs to participate in the project. This may leave to increased local spend and local economic development in the Greater Western Sydney area. The Industry Capability Network (ICN) is a business network that introduces Australian and New Zealand companies to projects large and small.
21 Opportunity 2: NWRL Workforce Legacy NWRL will create 10,000 jobs throughout the delivery phase and up to 16,000 jobs throughout the project lifetime. A large and varied workforce will be required during delivery phases. Ṫhe delivery of the project offers the potential to: raise industry sector competitiveness for new and traditional skills provide employment opportunities leverage global knowledge and develop and capture skills locally
22 NWRL Workforce Development Strategy Key objectives support local labour force participation resolve skills shortages locally and nationally through targeted skills development maintain competitiveness of the construction sector by attracting skills locally and nationally ensure procurement decisions in the transaction management phase support state and federal efforts to increase workforce participation encourage the next generation to pursue careers in engineering and construction NWRL has an endorsed implementation plan to support the strategy
23 Social and economic benefits Workforce Re-skilling, up-skilling and transferable skills Safeguarded jobs Career progression Industry SME opportunities Skills legacy Workplace Health and Safety Capacity building workforce Workforce retention Global competitiveness Communities and individuals Jobs, career and skills development Support for minority and disadvantaged individuals and communities Increased social and economic capital Improvements in social well-being Young people Inspiring future talent into industry Career development and progression Vocational, professional and services roles Benefits align with NSW 2021 and NSW Training Management Guidelines
24 NWRL workforce profile and targets Example workforce development targets in contracts Mandated requirements are embedded in contracts to support the achievement of targets % of total workforce that are apprentices / trainees from Greater Sydney area % of total workforce sourced from Greater Western Sydney area % of workforce participating in national recognised accredited training Workforce diversity and disadvantage groups Work experience, education placements and graduate opportunities
25 NWRL Workforce Development Implementation Plan NWRL Workforce Development Objective 1. Facilitate delivery of a shared NWRL workforce legacy 2. Support local labour force participation 3. Resolve skills shortages locally and nationally through targeted skills development 4. Maintain competitiveness of construction sector by attracting skills locally and nationally 5. Ensure procurement decisions in the Transaction Management phase support state and federal efforts to increase workforce participation 6. Encourage the next generation to pursue careers in engineering and construction Goal 1.1 Engage key stakeholders to support delivery of the Workforce Development (WFD) Strategy 1.2 Review, manage and report supply chain performance 1.3 Communicate benefits and success 1.4 Lead new government approach through delivery and sharing of good practice 2.1 Develop, deliver and fund skills and employability training/ support 2.2 Provide recruitment support to candidates and supply chain 3.1 Undertake project-wide/ TPD skills and labour forecasting 3.2 Deliver transferrable skills programs and qualifications 4.1 Review, develop and deliver leading edge industry qualifications and training, supporting national and global competitiveness 5.1 Research and develop WFD targets that support government priorities and meet project objectives 5.2 Mandate relevant and proportional workforce obligations within all project tenders that contribute to identified current and future skills requirements 6.1 Provide a NWRL/ TfNSW Apprenticeship program as model of excellence for vocational career development 6.2 Provide cadetship, scholarship and graduate programs within project team and supply chain 6.3 Provide education placements and in-school activity within project team and supply chain
26 Shared ownership of a workforce legacy Key initiative: NWRL Skills and Employment Advisory Group (multi-stakeholder group)
27 Our vision and next steps NWRL to lead by example Approach adopted on Sydney Light Rail, Canberra Metro TfNSW policy development Infrastructure Sustainability Council of Australia workforce theme development Demonstrate collaboration Achieve success
28 Any questions?
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