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Commercial Update – October 2012 PowerPoint Presentation
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Commercial Update – October 2012

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Commercial Update – October 2012

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  1. Commercial Update – October 2012 Presented By: Jonathan Evans, Head of Commercial

  2. Introduction • Commercial Overview: • Supply Chain Spend Analysis • Commercial Team • Acquisition Strategy / Procurement Routes • Waste Management Services Supply Chain • Procurement Pipeline: • Site Optimisation and Closure Programme • Waste Treatment Services • Supply Chain Initiatives and Issues: • Socio Economic Plans • Small to Medium Enterprises • Procurement Rules

  3. Supply Chain Spend Analysis 2012/13 Supplier Spend Forecast: £35m

  4. Commercial & Contract Management Team M&O Contract Management NDA Correspondence Efficiency and Fee Operating Plan Oversight Sanction and Validation Business Cases Post Investment Appraisal Revenue Income Oversight Portfolio Management Commercial Reporting HoPs Representative Competition Advocate Procurement Strategy / Plan Collaborative Procurement Supply Chain Relations Supplier Assurance Property Management Business Services Contracts: • Property / Estate Services • Legal Services • Professional Services • Manpower Services • Quality Services • Energy / Utilities • Travel / Fleet • Information Technology • Office Supplies Customer Sales Contracts: • Waste / Logistics Services • Customer Relations • Sales Invoices Waste Services Contracts: • Waste Characterisation • Packaging • Transport • Metallic Waste • Combustible Waste • Supercompactable Waste • Very Low Level Waste • Low Level Waste Site Services Contracts: • Facilities Management • Inter Site Trading (Sellafield) • Engineering / Design Services • Maintenance Services • Environmental Services • Safety Services • Health Physics Services • Cement / Ash • Plant Spares / Consumables Project Contracts: • Asset Care • PCM Decommissioning • Environmental Safety Case • Vault Construction • Capping / Site Closure

  5. Acquisition Strategy / Procurement Routes • Public Contracts Regulations / OJEU • Routes to Market: • NDA Shared Services Alliance • Government Procurement Service • NDA Inter-Site Trading • LLWR Frameworks / Contracts • Systems: • Procurement Pipeline • Contracts Finder • CTM eTendering Portal • Terms and Conditions: • NEC 3 Contract Suite • Bespoke Contracts • NDA Flowdowns

  6. Supply Chain

  7. Procurement Pipeline • Recent Contract Awards: • Health Physics Monitoring Services (Nuvia) • Environmental Monitoring Services (Amec) • IT Services (Atos) • Programme Controls Services (Rider Levett Bucknell) • Drum Supply Services (AW Stokes) • Current Procurements: • PCM Decommissioning and Demolition Services • LLWR Office Accommodation • Environmental Safety Case Support Services • Future Procurements: • Engineering Design • Maintenance Services • Construction Services • Waste Treatment Services

  8. Site Optimisation and Closure Programme • Major Construction Works at Low Level Waste Repository • Subject to Planning Permission / Environmental Permit • Significant Programme from 2013 to 2078: • Engineering Design Support • Environmental and Ecological Support • Construction Material Logistics • Installing Cut Off Walls • Installing Monitoring Boreholes • Future Vault Construction • Capping Vaults and Trenches

  9. Waste Treatment Services • Collaborative Procurement for Shared Services Alliance • Replacing current Framework Agreements: • Metallic Waste Treatment • Combustible Waste Treatment • Procurement activities to take place in 2013 • Applying Learning from Experience and Innovation • Engaging with Customers and Supply Chain • Lean Sourcing Approach

  10. Supply Chain Initiatives • Cabinet Office: • Lean Sourcing – 120 days from Notice to Award • Small to Medium Enterprises – 25% Spend Target • Government Procurement Service – Mandatory use • Modernisation of EU Procurement Rules – 2015 (PPN 08/12) • NDA Estate: • National and Regional SME Steering Groups • Standardised Pre-Qualification Questionnaire • Use of Contracts Finder • Simpler NDA Flowdowns

  11. Procurement Rules • Legislation: • Public Contracts Regulations 2006 • Public Services (Social Value) Act 2012 • Public Contracts Regulations: • Allows social and environmental performance considerations to be stipulated in the conditions of the contract • Public Services (Social Value) Act: • When Contract Authorities are purchasing services they must, before starting the procurement process, consider: • how what is proposed to be procured might improve the economic, social and environmental well-being of the relevant area, and • how, in conducting the process of procurement, it might act with a view to securing that improvement.

  12. Procurement Rules • Typical interpretation: • Can’t discriminate geographically (unless this is a relevant requirement of the specification e.g. breakdown response times) • Any social or environmental considerations have to be relevant and proportionate to the contract • Difficult to use as Selection / Award Criteria and therefore shouldn’t form part of the Tender Evaluation Process • Procurement Strategy impacts / conflicts: • Increasing use of GPS Frameworks • Shorter contract durations • Drive for short term cost reduction • Lack of committed services / quantities / volumes • Focussing on benefits on a contract by contract basis can limit the combined effect that co-ordinated investment could have

  13. Socio-Economic Plans • Our Approach: • Suppliers submit a contract Socio-Economic Plan as a Tender deliverable • Plans to be agreed with LLWR’s Stakeholder Relations Manager • Monitor and manage delivery through the contract / KPIs • Need Community input into priorities to inform Supplier’s plans • Want to ensure co-ordinated investment to maximise benefits • Trying to encourage: • Use of and partnering with the local supply chain • Use of local labour • Youth development and training • Mitigating actions to limit impacts on local community • Support to Community Projects (financial and other) • Support to and sponsorship of local organisations • Good neighbour behaviours with local community

  14. Questions?