Transcript Update - Sellafield Ltd

Update on Previous Event and Recap
on Socio-Economic/SME Agenda
Rob Harries-Harris
Keith Gibson
Date: February 2014
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Agenda
• Update on Oct 23rd Event (Rob)
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Questionnaire
Feedback from RFI responses
Guiding Principles for DDP
Scope of DDP
Operating Model
• Recap on Socio-Economic and SME Agenda (Keith)
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Questionnaire - Your Messages to Sellafield
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Success factors
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Clarity - communications, vision, deliverables, visibility of work
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Collaboration - early contractor involvement, integrated team
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Effective planning and programme management
Designing DDP
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Match delivery responsibility to scope and capabilities (of partners and supply chain)
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Number of partners - fewer instead of more: 1-6 suppliers/supplier groupings
Duration
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a 5-10 year agreement is preferred
Incentives
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Annual, tiered scheme with pain and gain
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Balanced scorecard
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Element of reward through work
Transition
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Don’t rush, aim for about 6 months
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Integrated team must create and own the transition plan
RFI Feedback
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54 Downloads, 7 Responses (5 from SMEs)
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Broad support for our strategy with qualifications:
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SME Agenda
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“Hard for SMEs to break into market”
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T2 tend to dominate and “grab work for themselves”
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Is there a need for a “Champion” for SMEs within the Client Management Team?
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Tendering (even mini-competitions) is a heavy burden for SMEs
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Need “best athlete” allocation process to maximise flexibility
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SL and T2s “should commit a minimum of 25% of work to SMEs”
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“Assess suppliers on how they intend to behave” (but “base your assessment on real
customer feedback, not written submissions”)
Other Issues
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Consider the use of a separate Lot for specialist suppliers (e.g. Demolition)
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Transparent and shared working practices, and clear and open communications are
essential
Guiding Principles for DDP
• Safety is non-negotiable
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Time, quality are SL’s next highest priorities, but not at any cost
– In general Sellafield needs earliest delivery of project schedule
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Maximise number of work-fronts, parallel working
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Minimise critical path density
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Variable value transition point
– Sellafield environment introduces unforeseen delays and project
changes
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Active management of bottlenecks
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Minimise impact of change, maximise agility
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Resilient organisations
Guiding Principles for DDP
• Ways of working based on:
– Best athlete commercial arrangements
– Resource mobility
– Common goals
– Trusting, but not cosy, relationships
– Best practice without a nuclear premium
• Partner Capabilities
– Programme management at the heart of delivery
– Supply chain innovation, often through SME involvement
– Construction expertise during client design
– Delivery integration
DDP Scope
• Project Execution*
– Decommissioning
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front-end characterisation
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decontamination
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manufacturing and installation of plant and equipment
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dismantlements and removals
– Demolition
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building and structural surveying
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demolition of structures
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waste segregation
– Asset care
– Operational and maintenance support activities
– Waste streaming
* examples for illustrative purposes only
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DDP Scope
• Three main areas of capability in addition to project
execution:
– Consultancy Support
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strategic optioneering for hazard reduction
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technical advice on fuel recovery and sludge management
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technical and working practice innovation scanning
– Resource Augmentation
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construction, commissioning, project management, organisational transitioning,
commercial management
– Other Services
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front-end design support, depending on value transition point
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strategic planning, implementation planning and co-ordination
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some procurement activities
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Delivery Requirements
Scope/Programme
Decom.
Central
PMO
PFSP
FGMSP
MSSS
PFCS
SR&DP
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Project Execution
Decommissioning, Demolition, Asset
care, operational and maintenance
support activities
Consultancy Support
hazard reduction optioneering, fuel
recovery, sludge management,
technical/working practice innovation
Resource Augmentation
construction, commissioning, project
management, organisational
transitioning, commercial management
Other Services
front-end design, strategic planning,
implementation planning and coordination, procurement
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Operating Model
DDP Umbrella Agreement
NDA / ONR / DECC / HMT
Decommissioning Division
Client / Contract
Management
Safety / Commercial
Financial / Intelligent Customer
DDP Board
Decommissioning
Programme Partner
Sellafield
DDP
Lead Partners
Independent Cost
Scrutiny
DDP Management Group
Work Allocation
Other
Sellafield
Alliances /
Contracts
DDP
Delivery
SL
SelfPerform
Socio-Economic and SME Agenda
Keith Gibson
Building on a foundation of Sellafield community engagement
• TEXT REMOVED FOR UPLOAD ON TO WEBSITE
13 April 2015
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The Socioeconomic issues for Sellafield Ltd
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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
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Strengthening procurement/contract management processes to emphasise
socioeconomic deliverables (based on ODA, EdF principles)
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Developing specific socio economic priorities/expectations and a Responsible
Procurement Plan linked to Sellafield future business needs
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Collaboration with suppliers and local community to co-ordinate delivery v agreed
outcomes
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Changing traditional concepts of socio economics
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Improving management of long-term key resource/skills/supplier service constraints
13 April 2015
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Strategic Theme Development
Education, Skills, Training & Employment
SME & Local Business Growth
Community Well-Being
Sellafield Socioeconomic Objectives
Sellafield Outcomes & Targets
Sellafield Commitments
Supplier Commitments
Community Benefits
13 April 2015
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Responsible Procurement Philosophy
Focus on high value areas
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Local business engagement strategy
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Support local people into jobs
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Provide training so that people are safe and competent
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Contribution to community growth and development as per local plans
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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
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Prioritise creation of business and community value
Embedding Strategy into Supply Chain
Statutory Obligations & Policy
M&O Obligations
SL Strategy & Priorities
Golden Thread
Acquisition Strategy
PCR Compliance
Market Engagement (Messaging)
Tender Evaluation Criteria
PQQ (Restricted)
ITT
Contract Terms & Conditions (Enforced Performance Deliverables)
13 April 2015
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Disclaimer
Important Information
• This communication and its contents have been provided to you for informational
purposes only. This communication is not advice on or a recommendation of any kind
with respect to the matters described herein, including without limitation, contracting
structures, contracting instruments, contracting strategies, related legal and
commercial issues or any combination of such matters. This communication does not
offer advice.
• No information contained herein constitutes an offer or solicitation by or on behalf of
Sellafield Ltd to enter into any contractual arrangement. Sellafield Ltd. makes no
representations or warranties, express or implied, regarding the accuracy, adequacy,
reasonableness or completeness of the information, assumptions or analysis
contained herein or in any supplemental materials, and Sellafield Ltd. accepts no
responsibility or liability in connection therewith. Opinions expressed in this
presentation are subject to change without notice.
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