A Collaborative Procurement

1
A Collaborative Procurement
2
Agency Supplied Workers
Industry Day

• A Collaborative Procurement -The Way Forward

Date 9th July 2008
A Collaborative Procurement
3
Purpose of the Industry Day

• Inform
• Engage
• Feedback

A Collaborative Procurement
4
Agenda

• Business Drivers
• Scope of Work
• Participating Entities
• Current Position
• Acquisition Management
• Demand Management
• Contract Management
• Critical Success Factors
• Questions and feedback

A Collaborative Procurement
5
Industry Business Drivers

• Encourage the highest standards in health,
  safety, security and environmental performance.
• Deliver hazard and risk reduction
• Progress decommissioning and clean up
• Maximise commercial value from existing assets
  and operations
• Ensure management of radioactive waste and
  materials

A Collaborative Procurement
6
Requirement Business Drivers

• Key Category Business requirements
• Support the delivery of our industry goals
  through the provision of suitably qualified and
  experienced temporary personnel

A Collaborative Procurement
7
Scope of work Key Services

• Engagement Retention
• Payroll Remuneration
• Resource Management the provision of Management
  Information
• Permanent recruitment as an option

A Collaborative Procurement
8
Scope of Work Role Types

• Role/ Job Types
• Administrative Functions, Clerical, Secretarial
  Support Services
• Engineering Support (for all functions)
• Project Management
• Programme Management (Cost control, Estimating
  Planning, Risk Management)
• Scientific and Craft / Lab Technician Services
• Blue Collar workers

A Collaborative Procurement
9
Participating Entities across the NDA estate

• Sellafield Ltd (Calder Hall, Capenhurst,
  Windscale and Warrington Office)
• Springfields Fuels (Preston)
• Dounreay Research Sites Ltd (DRSL)
• Nexia Solutions Ltd (Sellafield, Windscale,
  Springfields, Risley, Workington, Stonehouse and
  Harwell
• LLWR (Low Level Waste Repository - Drigg)
• Magnox North (Chapelcross, Hunterston,
  Trawsfynydd, Wylfa Oldbury)
• Magnox South ( Berkeley Centre, Bradwell,
  Dungeness A, Hinkley Point A, Sizewell A, BNLS
  Bridgewater Offices)
• Nuclear Decommissioning Authority
• Direct Rail Services Ltd (DRS)
• International Nuclear Services (INS)
• Harwell Winfrith (RSRL)

A Collaborative Procurement
10
Participating Entities
11
Detailed Requirements

• Current Contracting Position
• 9 Tier 2 suppliers providing similar ASW services
  to NDA estate.
• Some suppliers multi site, others satisfying a
  specific geography or location
• 1955 ASWs engaged (April 08)
• Current cost to NDA 96.4 million per annum

A Collaborative Procurement
12
Detailed Requirements Numbers by Site (SLC)

• Requirement
• Sellafield 1272
• Magnox North 212
• Magnox South 147
• Springfields Fuels Preston 83
• LLWR 25
• Windscale 120
• DSRL 23
• Nexia Solutions 73

The trend in overall numbers is downwards due to
funding constraints and revised contracting
strategies. However requirements flex dependent
on business priorities from site to site.
A Collaborative Procurement
13
Proposed Acquisition Objectives

• To engage a trusted and innovative resourcing
  supplier (s) with a demonstrated track record to
• Manage an End to End recruitment process for
  Agency Supplied Workers across multi
  geographies/sites and a wide range of disciplines
• attract good candidates at market competitive
  rates
• Provide management Information and KPI monitoring
  to demonstrate performance and give added value.
• Have the capability to help to manage legacy
  issues
• Work within a competitive Management fee with a
  proportion of fee based upon performance
• Have the capability and track record to manage a
  transition of a large number of ASWs across multi
  sites without any additional risk or detriment to
  the SLCs or the NDA

A Collaborative Procurement
14
Proposed Acquisition Management

• Competition using OJEU Open procedure
• Use of Complete Tender Management (CTM) System
• Source Evaluation Board (SEB) Key Personnel
  from SLC
• Most Economically Advantageous Tender (MEAT)
  Evaluation
• Proposals sought on wider recruitment services
  opportunities
• Use of reverse electronic auction

A Collaborative Procurement
15
OJEU Open Procedure

• Transparent
• Non discriminatory
• No pre qualification of suppliers
• Save time
• Effective competition

A Collaborative Procurement
16
Complete Tender Management

• Web based management tool
• Manage all stages of tender process
• Manage all supplier communications
• Provide updates and relevant information
• Free registration and access

A Collaborative Procurement
17
Source Evaluation Process

• Formal Source Evaluation Board appointed
• Director level involvement and sign off
• Rigorous and confidential process
• Panel of experts and advisors across the SLC
• Evaluation of bids against evaluation criteria
• MEAT assessment of winning proposal

A Collaborative Procurement
18
On Line Auction

• CTM driven online tool
• Conducted in real time
• Internally supported by specialist team
• Practice Training sessions provided - 1hour
• Auction lasts for 1hour or more
• Suppliers make initial bids against a scope of
  work

A Collaborative Procurement
19
Planned Acquisition Timeline
Acquisition Strategy Agreed
ITT Issued
Evaluation Completed
Governance Approvals
Contract Finalisation
Contract Go Live
Q1 2008/09
Q1 2009/10
Q3 2008/09
Q2 2008/09
Q4 2008/09
A Collaborative Procurement
20
Draft Evaluation Criteria

• Track Record Experience
• Proposals to Manage the account
• Innovation Value added
• Transition Management
• EHSQ
• Socioeconomic Proposals

A Collaborative Procurement
21
Proposed Terms and Conditions

• Framework contract Single source Managing
  Contractor or multi framework supplier (s)
• Bespoke terms based upon historic TCs developed
  to meet the needs of ASW engagement
• NEC not considered fit for purpose for this
  specific requirement
• Contract term To be agreed following feedback
  from the Industry Day and further review
• Incentivised fee based upon performance and value
  added

A Collaborative Procurement
22
Demand Management

• Demand Management
• Standard IT Platform Providing Intelligence to
  SLC
• Proposed sanctioning of requirement by use of
• OU Sourcing Plan in line with overall SLC
  resource strategy
• Approval of ASW engagement by relevant SLC
  authority( HR, OU Head, SLC Director)
• Independent review panel sign off

A Collaborative Procurement
23
Contract Management

• Contract Management Process
• Establishment of specialist resource team to link
  internal clients with supply chain.
• Development of management tools and platforms
• Standard IT
• Relevant KPI ( Process dwell time, reporting,
  reconciliations, payroll management, etc.)
• Contract performance reviews and reports
• Establishment of SLC wide Steering Group

A Collaborative Procurement
24
Critical Success Factors

• Engagement of the right organisation to manage
  the end to end process and influence/reduce total
  costs
• Engage a supplier who has the capability/supply
  chain to attract the right candidates at market
  competitive rates
• Have the right contracting model to incentivise
  the right behaviours based upon performance
• Engage an organisation who has the track record
  and capability and understanding to manage a
  potential major transition

A Collaborative Procurement
25
Summary

• Business and acquisition specific drivers
• What we are trying to achieve
• Proposals on how we will evaluate bids
• Timeline for the project
• Key aspects of the demand and contract
  management requirements
• Issues on transition

A Collaborative Procurement
26
Agency Supplied Workers

• ltQUESTIONS and FEEDBACKgt
• A flexible solution to short term resource
  requirements in support of overall business
  delivery.

A Collaborative Procurement