Transcript Decommissioning Acquisition Strategy

Developing a Decommissioning
Acquisition Strategy for 2014-26
Paul Foster, Decommissioning Director
Rob Harries-Harris
Contract Officer, Commercial Directorate
Date: March 2013
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Agenda
• Background
• Principles Underpinning the Future Model
• Enablers
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Orientation - Where are we now?
• The Sellafield Plan
– an accurate and realistic picture of the state the site is in
– sets out what we are doing to reduce hazard, with
milestones and governance in place to enable the NDA to
monitor our progress and hold us to account
– risks to the plan remain but we are currently on target to
deliver decommissioning milestones
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Key Deliverables 2014/15 to 2025/26
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First generation magnox storage pond
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sludge retrievals begin in 2014/15, export of fuel and skips in 2015/16
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bulk desludging complete by 2018/19
Pile fuel storage pond
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bulk desludging and metal fuel export complete in 2014/15
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local sludge treatment plant export complete 2017/18
Pile fuel cladding silo
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retrievals begin in 2017/18
Magnox swarf storage silo
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retrievals targeted to start 2016/17*
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residuals removal to begin no later than 2023/24*
Site remediation and decommissioning
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Ongoing hazard reduction and decommissioning across SRDP portfolio throughout contract
term
Source: Sellafield Plan Aug 2011
* subject to confirmation
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Areas for Improvement
• Public Accounts Committee Concerns:
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Planning and schedule adherence
Programme and project management capabilities
Collaborative working to package resources
Robust performance management
• Other bodies, including NDA:
– Identify SL’s historical contracting model as a priority development
area
• some weakness in capacity and capability of supply chain
• SL does not always strategically think through and establish a
model for core and non core capability
• SL does not always adopt a strategy for best value and
performance (including schedule assurance) maximising available
supply chain capability and capacity
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Our Challenge: Clear focus on outcomes
From …
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Short term contracts
Price driven
Control vs quality
Mini-competitions
Short term plans
Itinerant workforce
Inefficient
Ineffective
Adversarial
... To
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Longer contracts
Focus on benefits
Built in quality
Benchmarked costs
Long term vision
Develop resources
Collaborative
OUTCOME
• Accelerated hazard
reduction
• Fit for purpose assets
• Access to resources
• Economic operations
Engagement to Develop and Implement the
Strategy
• 18-24 Month Engagement Process begins today
• Next 6 months will be vital
• SL commitment to engage constructively with Supply
Chain at all levels
• Your contributions are invited
• Early contractor involvement in programme and project
cycles
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Strategic Context
NDA
OJEU, etc.
UK & Local
Government
Commercial
SLCs 22 & 35
Over-Arching
Acquisition
Strategy
Supply Chain
Special
Arrangements
Technical R&D
and Strategy
Decommissioning Acquisition Strategy
FGMS
P
DFA
Major Projects
Innovation
ISA
PFSP
MSSS
Benefits
Production
Operations
PFSS
W’scal
e
SR&D
P
Learning From
Experience
MDSW
DSA
Infrastructure
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Simplified Engagement Structure
Decommissioning Programme Management
FGMSP
PFSP
MSSS
PFSS
W’scale
SR&DP
Make v Buy
Decomm Delivery
4P/Major Projects
Current Arrangements
DSA
ISA
MDSW/Other
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Effective Planning at All Stages
Reactive Work
Planned Work
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Collaboration/Sharing Enablers
• Share Information
• Share Risks not Responsibilities
• Share Benefits
– Keep savings on at risk elements
– Share savings on variable cost elements
– Innovations benefit client and innovators
• Align objectives through strong incentives
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Supply Chain Assurance
• SL is Tier 1 contractor and must manage the
performance of its supply chain
– This requires visibility, oversight and governance of Tiers
2/3/4 performance:
• Safety, Health and Environmental
• Time, Cost, Quality
• Wider government agenda, SME and Socio-Economic issues
– Desired Outcomes
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Accelerated hazard reduction
Fit for purpose assets
Access to resources
Economic operations
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The Opportunity
• Longevity
– A programme of work lasting up to 10 years
• Scale
– up to £700m of work between 2014/15 and 2025/26
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