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Major Projects Delivery Partners (MPDP) Presentation to Sellafield Supply Chain Focus Group – 25 January 2012 Venue: Solway Room, Sellafield Farm House Presenter – Graham Cheshire. Disclaimer. This presentation is intended to give an update of work in progress

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  1. Major Projects Delivery Partners (MPDP) Presentation to Sellafield Supply Chain Focus Group – 25 January 2012Venue: Solway Room, Sellafield Farm HousePresenter – Graham Cheshire.

  2. Disclaimer • This presentation is intended to give an update of work in progress • Some of the information is current thinking and may change as time progresses

  3. Contents • Purpose / Objectives of Presentation • Summary of MPDP Strategy • MPDP Position in SL Over Arching Acquisition Strategy (OAAS) • Benefits of MPDP Strategy • Discussion

  4. Purpose / Objectives of this presentation • To introduce the Sellafield Supply Chain Focus Group to the MPDP Strategy and its position in the SL OAAS. • Benefits of the Strategy. • To listen; seek inputs / thoughts / comments / ideas / concerns; to answer any initial questions; to prompt discussion.

  5. Summary of MPDP Strategy and Scope • Long term collaborative style strategy for engagement of up to three MPDPs - 15years on 5+5+5 basis. Framework arrangements. • Scope – For Major New Build and Major Asset Refurbishment Projects - early engagement in e.g. strategic planning; ‘consultancy & miscellaneous input’ up to completion of preliminary design; execution of detail design, construction and inactive commissioning; miscellaneous post inactive commissioning activity. • Number of Projects Probable – 26 (22 New Build / 4 Refurbishment); Possible 25 (15 New Build / 10 Refurbishment). • Potential value inclusive of an allowance for emergent: • Probable ~£3.9billion • Possible ~£2.3billion • Total ~£6.2billion • Giving a range of potential value of £3.9billion to £6.2billion • Figures are for fy 2013 to fy 2030. • Public Contracts Regulations Restricted Process - Pre Qualification Questionnaire Issue & Supplier Industry Day April 2012; Invitation to Tender Issue July 2012

  6. The OAAS

  7. Benefits of MPDP Strategy e.g. • Long term arrangements enabling continuous sustainable learning and improvements, investment in the relationships and better delivery systems and techniques. • Continual sustained improvements in performance e.g. EHS&Q. • Incentivised alignment with Sellafield Ltd overall Business goals. Performance based incentivisation. • MPDPs incentivised by the prospect of future business. • Programme / Projects - outcomes are predictable and are progressively delivered faster and at lower costs. • Standardised and Streamlined processes, procedures and systems. • Integrated and Collaborative Working arrangements and teams. • Ultimately being recognised as world class in Project Execution and Delivery. • Is consistent with OAAS and provision will be included to ‘integrate’ MPDPs as appropriate with contractors / suppliers appointed as part of the other OAAS work streams e.g. in ‘Alliances’. • Research undertaken as part of the OAAS indicates it is possible to achieve 15% cost savings and 20% schedule savings when the relationship is fully functioning. This is the target we should set ourselves. • Long term arrangements presenting opportunities for local socio economics, opportunities for investment in local supply chain.

  8. Questions, Comments and Thoughts? INPUTS? THOUGHTS? COMMENTS? IDEAS? CONCERNS? QUESTIONS?

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