The Sellafield Ltd SME Action
Plan
Performance, progress, and opportunity
Robert Astall, Head of Customer Contract and
Functional Management – Commercial Directorate
Date: 12th June 2014
Purpose of this briefing
• To provide and update on Sellafield Ltd’s SME Action
Plan for 2013/14, its elements and their implementation.
• To provide a look ahead on the next phase of the plan
for 2014/15 and beyond.
• To share opportunities for SME engagement.
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2013/14 SME Action Plan objectives and elements
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Objectives
– to achieve 17% of annual spend with the supply chain
reaching SME by end of 2013/14 and 20% by end of
2014/15
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Elements
– Identification and removal of constraints and barriers
– Facilitating connections and collaboration
– Establishing robust and coherent reporting arrangements
2013/14 SME Action Plan achievements
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Delivery of SME awareness training to over 154 front line
commercial staff, now being cascaded into internal client
/ project teams.
Improved visibility / accuracy of Procurement Plan
opportunities.
Wider deployment of SME friendly lotting strategies.
Improved consistency in adoption of early market
engagement practices.
Payment terms mandated into subcontracts let in support
of contracts awarded to our tier 2 suppliers which are no
worse than ‘nett monthly account’.
2013/14 SME Action Plan achievements
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Exclusion of PQQ (other than those required for ‘due
diligence’) on simple procurements below £100K.
‘Standard’ PQQ reduced from 175 (Dec. 2012) to 129
(Mar. 2014).
Simplification of contract terms, conditions & flowdown.
Publication of contact details for top 50 tier 2 suppliers.
Launch of Sellafield Limited’s Supplier Awards
programme with focus on use of SME.
Support to NDA SME Mentoring initiative.
Quarter on quarter growth throughout 2013/14 in
percentage and value terms in direct spend with SME
The SME Action Plan – future developments
• 2013/14 plan elements were largely mechanistic –
creating some of the conditions under which SL / T2 and
SME can work together to flourish and create success
for all – not a zero sum game.
• 2014/15 plan elements will look to encourage
behaviours, cultures and practices which consider how
the ‘best athlete’ to deliver work can be identified and
deployed through robust, transparent processes.
• A ‘best athlete’ approach will deliver optimum outcomes
in terms of technical performance and value for money
for the taxpayer – the funder of our work.
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The SME Action Plan – future developments
• What will we encourage / look for in our T2?
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Evidence of Make V Buy process
Visible forward plan of work (contracts finder)
Open, transparent procurement processes
Accessible, SME friendly attitude & culture
Commitment to achieve optimum value through best athlete
approach to delivery of work
• These criteria will be used in our candidate selection and
award processes, as appropriate and will favour those
who are prepared to make consistent and value adding
use of SME where, on merit, this is the right thing to do.
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The SME Action Plan – future developments
• We will also look where appropriate to develop
complimentary commercial arrangements, sitting
alongside our established key delivery vehicles.
• These work scopes will be developed with the qualities of
the SME community in mind.
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The SME Action Plan – a few thoughts
• We are being successful in achieving plan objectives
but...
– The paradox – ‘success’ means some existing SME will
cease to be SME
– We need more SME to come on stream
– Our problem is not about not having enough work to do, it’s
about not having enough resources to deliver it
– SME naturally have many of the qualities to help bridge that
gap and provide long term support
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The SME Action Plan – useful information
• We have identified upcoming direct opportunities over
the next 18 months which we believe will be of particular
interest to SME - a ‘cut’ from the Procurement Plan of
one off procurements up to ~ £4M and frameworks of
annual value ~ £4M. This information will be refreshed
quarterly and published on our website
• We’ve also prepared a slide pack describing our
strategic alliances and enabling frameworks which is
intended to facilitate connections with these members of
the supply chain and identify further opportunities.
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The SME Action Plan – to clarify
• The ‘cut’ from the Procurement Plan is a subset of the,
"Not yet awarded" tab of the "Procurement Plan
Schedule" that is published on the Sellafield website
each month.
• The "Procurement Plan Schedule" also gives details of
awarded projects (contracts) and frameworks so SMEs
can investigate sub-contract opportunities.
• There is NO ‘glass ceiling’ on opportunities available to
SME.
www.sellafieldsites.com
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THANK YOU