Transcript SAFESPUR
SAFESPUR – April 2008 AWE - SUPPLY CHAIN OPPORTUNITIES Tony Morris - Head of Procurement DD: 0118 9850130; m: 07810 191863 PRESENTATION OUTLINE The Contract Organisation Expenditure Patterns Project Examples Future Developments THE AWE SITES AWE Aldermaston AWE Burghfield The Company MoD Licence of Premises, Plant and Machinery Golden Share Contract with MoD AWE Management Limited Joint Venture Company Equal Shares BNFL Lockheed Martin and Serco AWEML Board delegates AWE plc to perform the contract. AWEML does not employ any staff 100% Ownership AWE plc Executive Board All AWE staff Other Stakeholders including regulators and the LLC MOD - AWE ML CONTRACT 10 YEARS; NOW 25 YEARS “…. whilst giving the contractor scope to manage the support areas in a way that allows the full range of commercial decision making to be applied.” SUMMARY OF CONTRACT Output Driven, M&O Target Cost Incentivised Fee Firm 5 years, Fixed 10 years Restrictions: IPR, Parent Co, Liability Legacy funding separate Assets owned by MOD SUMMARY OF CONTRACT Incentivised on performance with annual review of measures (self assessment) Regulatory requirements incorporated in contract Basis of the contract is to “Run the Business” MOD interface through the NW Integrated Project Team (IPT) FUTURE INVESTMENT “Alongside the modernisation of our conventional forces, as set out in last year’s White Paper, the Government remain committed to maintaining the effectiveness of the nuclear deterrent, including making the necessary investment at the Atomic Weapons Establishment, Aldermaston, and to keep open the options for a successor to Trident until a decision is required, probably in the next Parliament.” Defence White Paper 21 July 2004 AWE Business Management & Finance Major Projects Infrastructure Stockpile Manage ment Research & Applied Science Assurance Systems Engineering Procurement Organisation Core Services/ Strategic Sourcing Delivery Teams • Project Strategies within defined options Roles • Cross Business requirements • Project Deliverables • Sourcing • Contract Management • Purchasing Agreements Facilities • Supplier Relationship • Supplier Performance • Corporate Strategy Engineering and Construction DSM/ DRAS/ DSE Support DTES DI DMP • Supplier Relationship • Optimal Purchasing within architecture • Supplier Resourcing • Order Management • Incentivisation Strategy • Expediting • Receipting • Variations Performance Management Policy, Process Procedures, Performance Measurement, Analysis compliance, Audit Contract Support Contract Engineering, Templates, Models, Dispute Resolution, Legal Support, Audit, Review Roles Materials Organisation Chart Head of Procurement Tony Morris Major Projects Support Procurement Manager Derek Morrison Tel: 50118 Category Management Engineering & Construction Procurement Manager Nigel Lowe Tel: 501120 Category Management Materials & Services Procurement Manager Mark Allen/Peter Isaac Tel: 54927 Procurement Performance Management Procurement Change Manager Mark Allen Tel: 54915 Operational Directorate Delivery Procurement Manager Fiona MacGowan Tel: 54925 SUPPLIER SEGMENTATION H AWE Suppliers List £8K £1k LH HH (151) (36) LL HL (847) (85) Strategic Value L L £250k Financial Value H Key Supplier Categories 80 strategic suppliers including the following categories: - Engineering and Construction - Design Houses - Facilities - IT/Telecoms - Consumables - Training /Universities - Temporary Staff Contract Modular Architecture PRISM PRISM PRISM PRISM PRISM 1 Instructions to Tenderers 2 The Project Specific Requirements 3 AWE Standard Requirement s 4 Information to be returned with Tender 5 Contract Terms & Conditions Industry Forms Industry Forms Industry Forms GC/Works 1&2 NEC IChemE AWE Modular AWE Modular 1. Professional Services 2. People AWE Modular 3. Product AWE Modular AWE Modular 4. 5. Product & Site Purchase Order Services T&Cs 1 Professional Services 2 Non AWE Staff 3 Products 4 Products & Site Services Articles of Agreement & General Conditions 1 to 35 Annexes A to L Annex M Programme Early Warning Compensation Defects/ Inappropriate Supply EVM Annex M Annex M Annex M Programme Early Warning Compensation Defects/In-Supply Tests Issued Property Long Term Support S/W Licences Imports/Duty Programme Early Warning Compensation Defects/InSupply Plus clauses for “Products” 5 PO Terms & Conditions Default Conditions DECOMMISSIONING LEGACIES Programme to 2019 £20-25m pa Planning / Characterisation design Safety documentation Modular containment / HVAC Size reduction / Cutting operations Waste / Environmental monitoring Waste Disposal (RA / Haz / Non-Haz) DECOMMISSIONING CURRENT PROGRAMME D7 - Tritium A1 - Pu Gloveboxes A50 - Pu Gloveboxes A37 - Demolition A25 - Demolition / clearance R61 - On hold, pending demolition Questions?