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th
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Stuart Wilson
Supply Chain Ombudsman
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Welcome and Purpose
Safety:
1.
There are no fire alarm tests planned during today
2.
If you hear the alarm please exit the building by the nearest exit and assemble in the rear car park.
Voting Handsets:
1.
You should each have a voting handset, please keep this with you as you’ll need it for several sessions today – including one at the end.
2.
The handsets are not remotes, nor are they any use, please return them at the end of the day
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Welcome and Purpose
Purpose of the Day:
1.
To proactively engage with, and involve all areas of the Supply
Chain.
2.
To listen to what the Supply Chain has to say, and give you a opportunity to contribute through interactive sessions.
3.
To give an opportunity to various stakeholder groups to gain a better understanding of the Agency Supplied Workers acquisition.
What does a successful day look like?
1.
Everyone has a chance to contribute during the day
2.
It feels different to a standard industry day
3.
We get to share information and thoughts
4.
We all enjoy the day
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Agenda
 0830-0900 Registration and Coffee
 0900-0935 Opening Welcome, Agenda and Key Note Speech
 0935-1010 Presentation of the Scope and Procurement Plan
 1010-1045 Socio Economic and SME Agenda
 1045-1100 Coffee and Biscuits
 1100-1145 Key Drivers for SLCs
 1145-1200 Critical Success Factors

 1200-1300 Supporting the Critical Success Factors – Break Out Groups
 1300-1330 Lunch
 1330-1430 Informal Networking
 1430-1500 Feedback and Closing Presentation
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Agenda
The day is dependent on your:
ENGAGEMENT AND INTERACTION!
Interactive Sessions throughout the day
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Dr Peter Walkden
Commercial Director Magnox Ltd
Sponsor Agency Supplied Worker
Collaborative Procurement
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Interactive Session – Who’s Who
10

Diane Pomford
Contract Officer &
Project Lead for Agency Supplied Workers
Tender
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Scope
 The Participating Entities require Agency Supplied Workers
(ASWs) to augment resource for peak workload demands, specific skills areas not available internally and operational peaks against specific project requirement.
 Critical Success Factors:
 Breadth and Availability of Resources
 Continuous Improvement
 Management Information
 Payroll Administration
 Socio Economic and Small, Medium Enterprise
 Skills development
 Transition
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Scope of Service
 Identification, selection and ongoing management of a supply chain of recruitment suppliers to meet current and expected ASW resource requirements
 Management of the end to end sourcing process from the receipt of a requisition for ASW resource to managing the payment of fees and expenses to the individual ASWs engaged.
 Identification, implementation and delivery of innovative and realistic ways of working together with the Participating Entities to add value and ensure continuous improvement over the duration of the contract.
 Supporting the NDA Estate in delivering their socio-economic objectives and SME agenda
 Implementation of an e-recruitment platform to facilitate the
ASW requisition and on-boarding process
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Scope continued
 A number of initiatives have been introduced which have added value such as:
 enhanced management information, allowing us to make informed decisions on reducing costs;
 standardisation of process, leading to significant timesavings and ongoing continuous improvements,
 roles and rates matrices ensuring that the Participating
Entities are paying a fair market share which are subject to local approval process.
 The current standards and best practice received from the existing ASW arrangements will therefore form the basis of minimum requirements for the new contract.
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Participating Entities
 Direct Rail Services, (DRS)
 Dounreay Site Restoration Ltd, (DSRL)
 International Nuclear Services (INS)
 LLW Repository Ltd (LLWR)
 Magnox Ltd
 National Nuclear Laboratory (NNL)
 Nuclear Decommissioning Authority (NDA)
 Radioactive Waste Management Ltd (RWML)
 Research Sites Restoration Laboratory (RSRL)
 Sellafield Ltd
 Springfields Fuels Ltd
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DRS
DSRL
Magnox
Sellafield
NNL
LLWR
INS
Springfields
NDA
RSRL
RWML
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Discipline Examples
 Admin:
 Clerical
 Secretarial
 Support
 Industrial:
 Security
 Functional Specialist:
 Business Improvement
 Commercial/Finance/Human Resources/Information
Technology
 Integrated Work Management
 Programme Management
 Stakeholder Relations
 Training
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Disciplines of ASWs
 Operations:
 Emergency Response
 Maintenance
 Medical
 Operations
 Projects and Engineering
 Commissioning
 Construction
 Engineering Design
 Plant Engineering
 Project Management
 Technical and Safety
 Environment
 Quality
 Safety Cases/ Safety Support
 Science Environment and Technology
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Numbers of ASW by Category
Discipline
Admin
Functional Specialist
Industrial
DSRL INS LLWR Magnox NNL NDA RSRL Sellafield Springfields Grand Total
4 1
6 1
4
8
78
50
1
1
2
5
3
5
144
214
10
9
2 238
299
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Operations 9 3 136 2 4 7 78
Projects and Engineering 22 1 8 250 7 1 9 515
Technical and Safety 1 4 80 2 4 74
Grand Total 42 3 27 595 12 12 28 1035
16
12
45
6 245
829
177
1799
1 st April 2014
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Estimated Spend
Participating
Entities
DSRL
DRS
INS
LLWR
Magnox Ltd
NDA
NNL
RSRL
RWML
Sellafield Ltd
Springfield Fuels Ltd
Grand Total
Current No of ASWs
FY 14/15
Average
Annual
Spend
42
3
3
27
632
9
21
29
7
993
34
1800
£ 1,062,136
£ 112,830
£ 109,764
£ 1,178,826
£ 37,775,387
£ 600,982
£ 1,000,087
£ 1,109,691
£ 500,000
£ 45,351,139
£ 1,806,406
£ 90,607,248
Projected No of
ASWs FY16/17
Anticipated
Annual
Spend
42
3
3
27
632
9
21
29
7
1600
34
2407
£ 1,062,136
£ 112,830
£ 109,764
£ 1,178,826
£ 38,082,504
£ 600,982
£ 1,000,087
£ 1,109,691
£ 500,000
£ 82,269,640
£ 1,806,406
£127,832,867
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Volumes and Spend
 Detail is provided for information only, based upon the population of ASW engaged as of 1 st April 2014.
 Estimates represent current and projected expenditure and are inclusive of all fee charges and are based on a typical 37 hour week/48 weeks per annum.
 Volume of ASW is subject to regular change and fluctuation depending upon workloads, projects approved by the NDA and operational peaks.
 In order to support the SLCs SME agenda and the requirement for specialist or niche roles, 25% of the provision of ASWs will be supplied by the Contractor(s) via a number of SMEs.
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Service Levels
Service Level A
 To provide a payroll and administration service as the ASW is already known to the Participating Entities, role requirement and pay rates are known and security clearance has already been established. This service level rate shall will also apply to those ASWs who are reengaged by any of the Participating Entities within a twelve month period of leaving as well as Pre-selected
ASWs
Service Level B
 The contractor is required to carry out the entire search and selection process for the full range of disciplines
(including screening, testing for some categories, shortlisting for interview, establishing the pay rate, progressing security clearances in line with the participating entities requirements etc.) in response to an enquiry.
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Benchmarking and Rate Management
 During the term of the Contract, the Participating Entities and the Contractor will monitor the Rates payable to establish that they are paying a fair market price for the provision of the Services.
 It is the intention that a role and rate matrix for each of the Participating Entities will be provided by the
Contractor, which will align with the appropriate Life-Time
Plans or Resource Strategy,
 It is not anticipated that Annual inflation or real cost of living (RCLI) increases will form part of this agreement.
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Selection and Engagement
Will cover the following:
 Requisition
 Screening and Interview
 Security Clearance
 Medicals
 Substance Testing
 Confidentiality
 Engagement
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Business Processes
 Hours of Work – Recording / Time booking
 Overtime
 Travel and Subsistence
 Conduct and Employment Legislation
 Industry Standards (eg National Skills Academy
Nuclear)
 Permanent Recruitment
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Management of Agreement
 It is intended that there will be regular on-site presence at:
 Sellafield Ltd at both its Cumbria and
Warrington locations
 Magnox Ltd at its Berkeley Centre and regional locations
 Dounreay, Thurso
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Management Information
 Enquiry status e.g. CVs submitted, to whom, dates etc
 CV to Offer ratios
 ASW Engagement Timescales (total time to hire information)
 Market rates per role / Benchmarking
 Financial reconciliation and service management
 ASW Service evaluation information
 Client and ASW Community feedback
 Talent pool information
 Tenure information
 Re-deployment details i.e. date available, rate, location, job role etc
 Value Added Services
 KPIs
 SME Engagement
 National nuclear standards
 Other reports, the requirements of which will be agreed locally between the Participating Entities and the Contractor.
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Contract Management
 Day to day control of Participating Entities’ operational and business needs will be managed individually by the Participating Entities.
 Overall management of the contract will be managed centrally by the formation of a Steering Group with representatives from each of the Participating Entities who will agree and oversee performance levels from a strategic position and provide overall account management, governance and strategic direction
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Technology
 Internal procurement processes and systems may vary across each of the Participating Entities’ locations.
However, as a guide SAP 4.7, SAP V4.6, Sage and Agresso are currently used on some of the sites to support demand management, procurement transaction processing and financial processes.
 Self Billing systems may vary across each of the
Participating Entities, thus the Contractor will need the capability to run Self Bills systems with options to use the
Participating Entities own timesheet/ timebooking systems
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E-Recruitment
 Electronic platform that will manage the full recruitment and approval process and is accessible to all parties giving a fully visible end to end recruitment process.
 The system should be capable of providing MI reporting to track recruitment activity and performance and provide real time data on all current ASW’s
 The proposed system should be able to demonstrate functionality to integrate or share information with the
Participating Entities’ enterprise HR systems e.g. SAP or
PeopleSoft or other, for Sellafield Ltd. Other Participating entities will still require this functionality, however this may be in a direct integration or in the form of a download using a common platform e.g. Excel dependent on the requirement of the Participating Entity
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Interactive Session – Working
Together
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Diane Pomford
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Procurement
 Open OJEU Procurement to be conducted through
CTM (Complete Tender Management)
 Source Evaluation Board (SEB) Process
 Invitation to Tenderer available on CTM
 Selection and Award Criteria
 Most Economically Advantageous Tender (MEAT)
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Selection and Award – Example Only
 General Information
 Professional and Business
Standing
 Financial/Insurance
 Commercial
 Capability
 Socio Economic and SME
 Environmental
 Ethics
 Health & Safety
 Quality Assurance
 Current Capability and
Resources
 Approach – Service
Provision
 Cost reduction/Service improvement opportunities
 Socio Economic and SME
 Transition
 Price
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Procurement Plan – Key Dates
The project team is working to the key indicative dates below:
Market Engagement Conducted
Business Case Approved
Invitation to Tender Released
Preferred Bidder Selected
Contract Award
Transition Completed
Contract Go Live
June 2014
August 2014
September 2014
March 2015
May 2015
October 2015
November 2015
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CTM Access http://suppliers.sellafieldsites.com/procurement-opportunities
/
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CTM Access
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Interactive Session – Contract Model
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Mark Evans
Commercial Policy Manager,
Sellafield Ltd
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The Socioeconomic Agenda
– in a nutshell
NDA Objectives
 To ensure the NDA estate has the skills and capability to carry out the mission efficiently and effectively
 To optimise the NDA supply chain to develop an affordable, cost effective innovative and dynamic market to deliver our mission
 To support the creation of dynamic, sustainable local economies for communities living near our sites
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The Socioeconomic Agenda
– in a nutshell
NDA Drivers
 Enhance opportunities for local people and business to be involved in decommissioning through education, skills and training
 Maintain a health supply chain and support the diversification of the local economy into broader areas of activity
 Increase the attractiveness of areas near to our sites as places to live, work and invest
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The Socioeconomic Agenda
– What does a ‘good’ offer look like?
 Proposals / commitments which support the NDA and Site
Licence Companies in delivering the socio-economic objectives
 Proposals / commitments as to how individuals and organisations local to our sites and in particular those areas identified in the NDA socio-economic plan will be able to access employment, education, training and subcontracting opportunities arising under this agreement
 Proposals / commitments for supporting the local infrastructure
Commitments made will be contractualised, where appropriate.
Performance / delivery against commitments made will be monitored
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The Socioeconomic Agenda
– What will ‘success’ look like?
 CSF 5 - Support will have been provided to the NDA Estate in delivering their socio-economic objectives
 Stakeholders in the local communities will acknowledge and be appreciative of the support provided
 Your organisation will be regarded by these stakeholders as a ‘good corporate citizen’
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Summarising the Socioeconomic
Agenda – it’s about....
 Education, skills and employment development
 Local Business Growth
 Community Well-Being
 It’s about.....
 People
 Businesses
 Communities
 Futures
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The SME Agenda – in a nutshell
 Supporting the NDA and Site Licence Companies in delivering HMG’s SME Growth Agenda to achieve 25% of
HMG overall annual spend reaching SME on a sustained basis
 Accessing...
 Innovation
 Agility / responsiveness
 Niche knowledge and skills
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The SME Growth Agenda
– What does a ‘good’ offer look like?
 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
 Consistent and value adding use of SME where, on merit, this is the right thing to do.
Commitments made will be contractualised, where appropriate.
Performance / delivery against commitments made will be monitored
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The SME Growth Agenda
– What will ‘success’ look like?
 CSF 5 - Support will have been provided to the NDA Estate in delivering their SME growth objectives
 You will be delivering exceptional outcomes through effective and efficient use of the innovation, agility, skills and knowledge of SME
 SME will acknowledge and be appreciative of the ways you engage with them
 Your organisation will be regarded by these stakeholders as a ‘good corporate citizen’
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Interactive Session – Socio Economic and SME
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David Savage
Head of Commercial
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Delivering
Value through collaboration
Collaborative Procurement Spend
Collaborative Procurement Spend
450.0
400.0
350.0
300.0
250.0
200.0
150.0
100.0
50.0
0.0
2008 - 09 2009 - 10 2010 - 11 2011 - 12 2012 - 13 2013 - 14
FM
Waste Management
Transport of Materials
Utilities
Support Services
Remediation & Environmental Services
Manpower
IT
Health & Safety
Hazardous Materials Removal
Decommissioning
Consumables
Principles of Collaborative
Procurement
• To promote collaborative working across the NDA Estate
• To receive the value added capability of the supply chain
• To encourage competition in the supply chain
• To identify and implement procurement opportunities
• To obtain economies of scale
• To obtain cost reductions
• To achieve value for money
• To gain efficiencies
• To establish standardisation
• To ensure qualitative improvements
• To promote safety and environmental benefits
Supply Chain Spend
Collaborative Procurement Spend v
Total Supply Chain Spend
9%
23%
2013/14
77%
2008/09
91%
Collaborative Procurement Spend Total Spend in the Supply Chain
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Richard Watson
Head of Resourcing
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Sellafield Ltd
 Budget c£1.8bn
 Two Sites – West Cumbria and Risley
 11000 personnel – 1000
Agency Supplied Workers
 Key focus on
Decommissioning, but
Reprocessing and Waste
Management are ongoing
 Several significant unique construction projects in process.
 ASW – key stand to our
Resourcing programme
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Key Drivers:
 Priority is Resources to support Project Delivery –
Project Management, Project Controls, Risk,
Commissioning and Construction.
 Access to new talent – geography and sector
 Retention and supply chain relations
 Integration with SL organisation to ensure efficient on-boarding process
 Insight and advice re Market rates to allow attraction
 Identification of cost saving opportunities
 Ability to react quickly to business change
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Kevin Sheppard
Contract Officer
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Who are we?
Magnox Limited
 One generating nuclear site
 Three defuelling nuclear sites
 Six decommissioning nuclear sites
 One hydro-electric plant
 Support offices at Berkeley, Oldbury
Technical Centre and Daresbury
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The sites
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Magnox Key Drivers
 Management Information
 Coverage of Diverse Skill sets to meet our
Locations
 Management of Pre-Select Candidates
 Complete management of ASW Workforce
 Onboarding
 On site presence - Resource managers
 IT systems that are compatible with ours i.e. Self
Billing
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Carol Miller
HR Policy Manager
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Dounreay
 A wholly-owned subsidiary of the
Cavendish Dounreay
Partnership Ltd, a consortium of
Cavendish Nuclear,
CH2MHILL and URS, in the far north of
Scotland
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DSRL Key Drivers
 Geographical location - being able to provide key skills to
Dounreay within specified timescales
 Flexibility – meeting variable Programme and Project requirements
 ‘Preselects’ – Ability to submit preselected individuals
 On Site / local support:
 Support to ASWs
 Knowledge of local workforce and skills base
 Effectiveness of ‘on boarding’ process and administration
 One Stop Shop – All requirements to be sourced by Company and their Second Tier Agencies but with a ‘non-exclusivity’ clause to be included due to known geographic location difficulties
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Kevin Sheppard
Contract Officer
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Breadth and Availability of Resources
 The supplier(s) must have the capability and experience to provide the level and quality of resources nationwide within specified timescales, to fill gaps in inhouse capability and to meet variable programme and project requirements.
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 Provide opportunities and incentives for control of and reductions in base cost and improving service levels.
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 Provision of Management Information and IT base management tools to allow
NDA Estate to analyse, understand and control demand and costs.
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 Payroll, Administration and Billing capabilities with demonstrable back office efficiency and effectiveness.
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 Socio Economic and SME support to the
NDA Estate in delivering their socioeconomic objectives and SME agenda
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 Identification, reporting and proposals for skills development activities to support the NDA’s national skills development strategy
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 Smooth Transition with as little disruption as possible to the existing ASW population or key stakeholders.
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Group Sessions - Break Out Groups
 Main Room 1 - Park Suite
 Syndicate Room 2 - Leverhulme 1
 Syndicate Room 3 - Leverhulme 2
 Syndicate Room 4 - Leverhulme 3
 Syndicate Room 5 – Davies Room
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Breadth and Depth of Resources
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Cost Saving and Service Improvement Opportunities
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Management Information and IT base management

77

Payroll, Administration and Billing capabilities

78

Socio Economic and SME support

79

Skills Development Activities

80

Transition

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Live Feedback
RECAP: What does a successful day look like?
1.
Everyone has a chance to contribute during the day
2.
It feels different to a standard industry day
3.
We get information that is useful to the optioneering and selection of an appropriate commercial model
4.
We all enjoy the day
Using your remotes for the last; answer the following:
Interactive Session - Feedback
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