ASW Market Engagement Day – Presentation - Suppliers

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Delivering

Value through

Collaboration

1

Agency Supplied Workers

Market Engagement Day

19

th

June 2014

2

Welcome and Purpose

Stuart Wilson

Supply Chain Ombudsman

3

Welcome and Purpose

Safety:

1.

2.

There are no fire alarm tests planned during today

If you hear the alarm please exit the building by the nearest exit and assemble in the rear car park.

Voting Handsets:

1.

2.

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.

The handsets are not remotes, nor are they any use, please return them at the end of the day

4

Welcome and Purpose

Purpose of the Day:

1.

To proactively engage with, and involve all areas of the Supply

Chain.

2.

3.

To listen to what the Supply Chain has to say, and give you a opportunity to contribute through interactive sessions.

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.

3.

4.

It feels different to a standard industry day

We get to share information and thoughts

We all enjoy the day

5

Agenda for the Day

6

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

7

Agenda

The day is dependent on your:

ENGAGEMENT AND INTERACTION!

Interactive Sessions throughout the day

8

Key Note Speech

Dr Peter Walkden

Commercial Director Magnox Ltd

Sponsor Agency Supplied Worker

Collaborative Procurement

9

Interactive Session – Who’s Who

10

Scope of Work

Diane Pomford

Contract Officer &

Project Lead for Agency Supplied Workers

Tender

11

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

12

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

13

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.

14

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

15

DRS

DSRL

Magnox

Sellafield

NNL

LLWR

INS

Springfields

NDA

RSRL

RWML

16

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

17

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

18

Numbers of ASW by Category

Discipline

Admin

Functional Specialist

Industrial

Operations

Projects and Engineering

Technical and Safety

Grand Total

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

2

9

238

299

11

9

22 1

1

42 3 27

8

3

4

136

250

80

2

2

7

4

1

595 12 12 28

9

7

4

78

515

74

1035

16

12

45

6 245

829

177

1799

1 st

April 2014

19

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

20

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.

21

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.

22

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.

23

Selection and Engagement

Will cover the following:

Requisition

Screening and Interview

Security Clearance

Medicals

Substance Testing

Confidentiality

Engagement

24

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

25

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

26

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.

27

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

28

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

29

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

30

Interactive Session – Working

Together

31

Procurement Plan

Diane Pomford

32

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)

33

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

34

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

35

CTM Access http://suppliers.sellafieldsites.com/procurement-opportunities

/

36

CTM Access

37

Interactive Session – Contract Model

38

Socio Economic (SE) and Small and Medium sized Enterprises

(SME) Agendas

Mark Evans

Commercial Policy Manager,

Sellafield Ltd

39

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

40

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

41

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

42

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’

43

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

44

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

45

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

46

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’

47

Interactive Session – Socio Economic and SME

48

Coffee

Please be back for 1100

49

Business Drivers

50

Collaborative Procurement

David Savage

Head of Commercial

51

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

52

Richard Watson

Head of Resourcing

53

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

54

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

55

Kevin Sheppard

Contract Officer

56

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

57

The sites

58

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

59

Carol Miller

HR Policy Manager

60

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

61

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

62

63

Critical Success Factors for

ASW Contract

Kevin Sheppard

Contract Officer

64

Critical Success Factor One

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.

65

Critical Success Factor Two

Provide opportunities and incentives for control of and reductions in base cost and improving service levels.

66

Critical Success Factor Three

Provision of Management Information and IT base management tools to allow

NDA Estate to analyse, understand and control demand and costs.

67

Critical Success Factor Four

Payroll, Administration and Billing capabilities with demonstrable back office efficiency and effectiveness.

68

Critical Success Factor Five

Socio Economic and SME support to the

NDA Estate in delivering their socioeconomic objectives and SME agenda

69

Critical Success Factor Six

Identification, reporting and proposals for skills development activities to support the NDA’s national skills development strategy

70

Critical Success Factor Seven

Smooth Transition with as little disruption as possible to the existing ASW population or key stakeholders.

71

Supporting the Critical Success

Factors

Break Out Groups

72

Supporting the Critical Success

Factors

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

73

Group Session

Questions

74

Breadth and Depth of Resources

If you were the project lead on this procurement how would you ensure the NDA Estate has access to the Breadth and Depth of Resources required for this framework?

75

Cost Saving and Service Improvement Opportunities

How can the supply chain provide ongoing opportunities and incentives for control of and reductions in base cost and improving service levels to the

NDA Estate?

76

Management Information and IT base management

In your opinion what types of

Management Information and IT base management tools could the supply chain bring to allow

NDA Estate to analyse, understand and control demand and costs.

77

Payroll, Administration and Billing capabilities

In your opinion what do think are the five key requirements to ensuring back office efficiency and effectiveness with regard to

Payroll, Administration and

Billing capabilities

78

Socio Economic and SME support

Given the challenges you’ve heard this morning, in your opinion how do you think the

NDA estate can address the

Socio Economic and SME

Agenda through this framework?

79

Skills Development Activities

In your opinion how can the supply chain support the NDA’s national skills development strategy?

80

Transition

We recognise the transition from old to new is a major part of any new collaborative procurement arrangement. In your opinion what do you believe the key elements of successful transition

81

Lunch

Please be back in the main room for 1300pm

82

Opportunity to

Network

83

Live Feedback

84

Live Feedback

RECAP: What does a successful day look like?

1.

2.

3.

4.

Everyone has a chance to contribute during the day

It feels different to a standard industry day

We get information that is useful to the optioneering and selection of an appropriate commercial model

We all enjoy the day

Using your remotes for the last; answer the following:

Interactive Session - Feedback

85

Closing Speech

86

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