Context - The Socioeconomic issues for Sellafield Ltd
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Sellafield Ltd spends c £1bn p.a. in the supply chain from a total of £1.8bn
and is required to maximise community benefit returns from both SL and
suppliers, based on proximity principle
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Other major public procurements build socio economics in from the start –
Sellafield is strengthening its processes to encourage suppliers to make
stronger socio economic commitments
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Through strategy development socio economic priorities/expectations can
be prioritised – focussed on both business needs and community impact
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Sellafield Ltd can impact social outcomes - collaboration with suppliers and
local community can significantly improve delivery v agreed business and
social outcomes
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Traditional concept of socio economics is changing – increased emphasis
on local skills, jobs, businesses and the creation of growth
09 April 2015
2
Alignment of Socio Economic Strategies
NMP Enrich
Strategy
Local Enterprise
Partnership
NDA Objectives
CoNE
Strategic Themes
Employment, Education & Training
SME & Local Business Growth
Community Well-Being
SOCIAL VALUE
Key To Britain’s
Energy Future
Community Plans
West Cumbria
Economic Blueprint
Socio Economic Objectives & Outcomes
Procurement & Contract Management (Suppliers)
Delivered Community Benefits (Managed)
09 April 2015
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Priority Business Areas – Socio Economics
• Closing the long term skills gap (Sellafield and
suppliers)
• Vibrant local supply chain supporting Sellafield and
suppliers
• Managing impact of Sellafield growth on supporting
infrastructure
Sellafield Socio Economic Objectives
1.
Support a Reduction in local youth and long-term unemployment
2.
Improve local pathways to employment through long-term development of
education, skills and training matched to SL long-term business needs
3.
Increase the proportion of SME work to stimulate growth in long-term skills
and services
4.
Encourage the local supply chain to support resolution of technological
challenges through innovation
5.
Support improvements to transport infrastructure and reduce reliance on road
transport
6.
Reduce the number of people working directly on the Sellafield Site through
the development of suitable alternatives
7.
Provide skilled resources and direct funding to support community investment
Embedding Strategy into Supply Chain (Responsible Procurement)
Statutory Obligations & Policy
M&O Obligations
SL Strategy & Priorities
Golden Thread
Acquisition Strategy
PCR Compliance
Market Engagement (Messaging)
Tender Evaluation Criteria
PQQ (Restricted)
ITT
Contract Terms & Conditions (Enforced Performance Deliverables)
09 April 2015
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Alignment of Procurement and Contract Management
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Acquisition Strategy (include socio economic approach/opportunities)
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Tender Notification (highlight socioeconomics as an important element)
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Industry Day/Communications (reinforce importance in presentations)
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Selection (evaluate credentials, policies and approach)
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Award (encourage specific socio economic commitments)
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Works Information (highlight metrics, measures and targets,
incorporate commitments as KPIs linked to fee)
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Contract Management (manage supplier performance, collect data and
communicate)
Key Principles
• Socio economics – relevant and proportionate to the contract (typically
5-12%)
• Consider local/regional/national opportunities (linked to SE objectives)
• Structure PQQ and ITT questions to meet business and socio
economic requirements of the contract – Golden Thread
• PQQ/ITT/Works Information aligned to Sellafield socio economic
strategy
• Specific bidder commitments encouraged and evaluated
• Socio Economic KPIs linked to Fee where appropriate
PQQ & ITT Questions To Incorporate
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Sustainable local employment
Skill shortages and deployment of local skills
Education intervention to promote employment awareness
SME and local business development (client and external)
Technology development and work with suppliers, academia etc
Optimisation of logistics routes, goods, people and stock
Carbon footprint reduction referencing staff location and travel
Socio economic planning and support to community initiatives
Questions adapted to the requirements of the specific contract
Draft Business Socio Economic Metrics
Objective
Business Metrics
1. Youth & long-term unemployment
• Recruitment rates (youth and unemployed)
• % recruits living locally
2. Education, Skills and Training
• % or hours committed to education awareness
• Work experience placements
• No. apprentices, trainees, graduates
• Conversion to full-time employment
3. SME and local business growth
• % SME uptake by value
• % Cumbrian (SMEs and non SMEs)
4. Technology Development
• No. and £ opportunities generated at Sellafield
5. Transport
• % reduction in road deliveries to Sellafield
• % reduction in passenger traffic accessing
Sellafield
6. Employees on Site
• % employees re-located away from Sellafield
7. Community Investment
• £ and hours committed to community projects
(incl. 3rd party leverage)
Socio Economic Metrics - Descriptions
Socio Economic Performance Metrics – Measured Monthly
Description
Current workforce employed (YTD)
 Current total no. of FTEs equivalents deployed on contract
 % in 16-24 age group
 % Disadvantaged groups
 % recruited directly from unemployment register
 % workforce living permanently in Cumbria
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Annual education performance
 Aggregate YTD no. of voluntary hours supporting education
 Total no. of work experience placements delivered (7 days or more)
 Work in schools, FE and HE including careers fairs, presentations etc
 Work experience placements in relation to contract and business location
Current skills and training performance
 Current no. and % of Apprentices deployed on contract,
 Current no. and % of Trainees deployed on contract,
 Current no. and % of Graduates deployed on contract
 Average YTD conversion % of direct trainees to FTEs
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Approved apprenticeship schemes only
Formal company training schemes, leading to accredited qualifications
Post higher education with degree or higher on a specific company scheme
Inclusive measure covering apprentices, trainees and graduates
Annual sub contracted business
 Aggregate YTD £ value of Sellafield business
 % of subcontracted business (by value)
 % SME Uptake based on value of business
 % of total business by value sub contracted to Cumbrian businesses
 % SMEs by value based in Cumbria
 Aggregate YTD hrs spent coaching SMEs in Cumbria
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£ value of orders i.e committed work under the contract
All work not self performed under the contract (all tier accumulated value)
<250 employees and £41M turnover as % of total value of orders
Businesses with registered head office in CA and specified LA postcodes
As SME and Cumbrian business definition
Includes own supply chain development and as part of wider initiative
Road Utilisation
 Monthly number of vehicles accessing Sellafield (goods and people)
 Number of goods vehicle deliveries and estimate of passenger vehicles
Current Space Utilisation on Sellafield Site
 Total number and % of people routinely accessing Sellafield site
 Warehouse and laydown m2 capacity and % utilisation at Sellafield
 Average on site based workforce >50% time and as % of total direct FTEs
 Total compound plus warehouse space m2 and ave. utilisation over month
Community Investment
 Aggregate YTD £ funding committed to community projects
 Aggregate YTD Hours committed to community projects
 £ value projects based in the community, not directly related to SL contract
 Voluntary hours spent supporting community projects
Actual count at period end of direct FTE equivalents
Including those who turn 25 within the month of measure
Disadvantaged groups – officially registered disabled and/or ethnic groups
Includes temporary employees, but only after period of JSA claims
Permanently resident in CA and specified LA postcodes within Cumbria
Sellafield Ltd Socio Economic Update June 2014
• Sellafield Ltd Draft Socio Economic Strategy external engagement has
commenced
• Monthly Sellafield Ltd socio economic progress reports established (new
procurements and in flight contracts DSA, ISA, MDSW, OneFM)
• Responsible Procurement Plan (flow down of Socio economic expectations)
starting to yield positive results from suppliers – Major Projects
• NDA has updated Public Accounts Committee (PAC) on Sellafield progress
• Draft PQQ/ITT/Works Information guidance produced to support procurement
and contract management processes
• Plan to flow socio economic metrics into existing contracts – Baseline then set
challenging targets on SL and suppliers
Skills/Employment - Improving Pathways – SL and Suppliers
New
Opportunities
Skills
Employment
Education
Engagement
Programme
Apprenticeship
Graduates
NVQ
Short Courses
Outreach
Sustainable
Employment
Demand
Sellafield
Programmes
Re-Training
Job Ready
Work Ready
Education
Long-Term Recruitment Planning
Sellafield supported by supply chain
Supply
Summary
• Always think Socio Economics – good business = good socio
economics and vice versa
• Encouraging Tier 2 bidders to make socio economic commitments
• NOT selecting Tier 2 on geography but encouraging flow down of
socio economic agenda to other supply chain levels
• Most/all contracts will have a socio economic angle – questions are
NOT standard but will be aligned to the requirements of the contract
• Very important to flow supplier commitments through as contract
deliverables linked to KPIs and fee