Transcript Supply Chain Opportunities

Supply Chain Opportunities
Tom Cummings – Head of Commercial Operations
Commercial Function
 Commercial Mission
 To enable our Customers & Clients to achieve their objectives
through excellent commercial solutions that maximise value
 Objective
 Support accelerated hazard reduction by ensuring procurements
are delivered to plan.
 Delivery value for money to the UK taxpayer.
 Have a Safe, Secure and Robust Supply Chain.
 Improve communication and engagement with our Supply Chain.
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Commercial Organisation
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Decommissioning
– Ian Whitehouse
Major Projects
– Pete Caldow
Infrastructure
– Dave Magrath
Functions & Operations – Dave Savage
Collaborative Procurement – Dave Savage
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Supply Chain Successes
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Contractors LTA frequency rate 0.09
Supply Chain savings of over £64m delivered in 2012/13
Collaborative Procurement Savings
Radiometric maintenance (Babcock/SL) recognised by
WANO for high levels of performance
• Business Excellence Awards achieved by Mite, Guard
force and MDSW suppliers for collaborative working
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Top 10 Suppliers in 2012 / 2013 in Alphabetical Order
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ACTiv Nuclear
Axiom
Balfour Beatty
Capita Resourcing
Carillion Construction
CNC
Costain Oil Gas & Process
Doosan Power Systems
NNL
Nuvia
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Analysis of Supply Chain Spend By Category £979M 2011 /12
£ K, Construction, £95,375, 10%
£ K, Labour, £76,897, 8%
£ K, Professional Services,
£427,522, 44%
£ K, Materials, £71,158, 7%
£ K, Other, £125,856, 13%
£ K, Plant & Equipment, £50,925,
5%
£ K, Other Services, £131,717,
13%
Collaborative Procurement – Performance Headlines
Current forecast – deliver £70M
savings against HMG Target to be
delivered by end of March 13
 Portfolio size now 74 Procurements
totalling £2.47bn (estate wide and
lifetime value)
 17 new CP contracts placed (e.g.
MRO, Caustic Soda, Independent
Certification Services, IT Sourcing,
Health Physics, Lease Cars, and 6
LLWR services contracts)
 Increasing use of GPS is reducing
contract placing timescales
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Infrastructure
Supply Chain Opportunities
Supply Chain Opportunities
Site Security Enhancement Programme
Scope
Security Enhancements Programme (Portfolio
of Projects from Fencing to Cyber Security)
Duration and Value
Programme Value ~ £600M
Completion Date ~ 2019
Key Dates
Projects Sanctioned by Sep 2013
Current Position
Strategy and business case under development
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Supply Chain Opportunities
Logistics Control Tower
Scope
To co-ordinate and integrate logistics (both
supply chain and Sellafield)
Duration and Value
4 year framework agreement
Value - TBC
Key Dates
ITT issue – May 2013
Current Position
Strategy and business case under development
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Operations
Supply Chain Opportunities
Production Plants Programme Partner – 4P - Scope
• To provide an enhanced delivery capability to Asset
Care Tasks and Projects within the Production Plants
area of Sellafield.
• 4P will work in partnership with SL and the DSA to
achieve this
• Key elements of scope include:
– Provision of Design (certain aspects), Procurement ,
Construction and Installation Capability
– Early engagement and input to work scope definition and
solution development
– Improved integrated work planning and resource
management
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Production Plants Programme Partner – 4P
Objectives
• Improve the level of Plant Risk Reduction per £ spent on
projects and tasks
• Deliver more work for the same money through delivery
efficiencies. (Subject to Site priorities)
• Maintain the Excellent Safety Performance
Value
~ £50m per annum
Duration
Long term contract
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Production Plants Programme Partner – 4P – Key Dates
Activity
Indicative
Date
Market Engagement
April/May 2013
Business Case Approved
August 2013
PQQ Released
September 2013
ITT Released
December 2013
Preferred Bidder Announced
October 2014
Contract Award
December 2014
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Decommissioning
Supply Chain Opportunities
Supply Chain Opportunities
3㎥ Stainless Steel Boxes
Scope
Stainless steel boxes for ILW retrievals manufacture and volume production
Duration and Value
~ 5 year duration
~ £100m over term
Key Dates
ITT - May 2013
Award - May 2014
Current Position
PQQ ready for issue pending approval
Supply Chain Opportunities
Decommissioning Partnership
Scope
Decommissioning programme management,
construction and site works
Duration and Value Up to 10 year duration
~ £700m over term
Key Dates
ITT Issue Date ~ Sept 2014
Contract award ~ April 2015
Current Position
Acquisition strategy under development
Supply Chain Opportunities
Manufacture and supply of MSSS Retrieval Machines
Scope
Manipulators, Gamma Gates, Vent System,
Mobile Caves, Building Mods
Duration and Value
Duration 2013 -2019
Value ~ £200m
Key Dates
Manipulator - ITT issue – Q2 2013 Award - July 2014
Gamma gates – ITT issue Q2 2013 Award - July 2014
Current Position
Strategy and business case under review by
NDA
Supply Chain Opportunities
New Packages (Flasks)
Scope
Manufacture of new packages
Duration and Value
Duration - TBA
Value ~ £28m
Key Dates
PQQ – April 2013
Award - May 2014
Current Position
Strategy and business case prepared
Major Projects
Supply Chain Opportunities
Supply Chain Opportunities
Sellafield Drypac Plant
Scope
Design Supply, Installation and Inactive
Commissioning
Duration and Value Circa 8 years
~ £1 Billion plus
Key Dates
Contract Award January 2014
Current Position
Competitive Dialogue April 2013
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Supply Chain Opportunities
Box Transfer Facility
Scope
Supply of Plant and Equipment, Installation and
Commissioning
Duration and Value
Circa 4 years
Target Cost Contract, £50 Million plus
Key Dates
Contract Award October 2013
Current Position
PQQ Process nearing completion
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Supply Chain Opportunities
Other opportunities
MPDP
Major Project delivery Partner – Strategy under
development – £3.5 billion to £5.5 billion – over
15 years
Box Encapsulation
Plant
Strategy under development - £100 million plus
– circa 5 years duration
BEPPS/DIF
Strategy under development - £100 million plus
– circa 5 years duration
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