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“DDP” – Requirements

“DDP” – Requirements. Steve Slater. 13 th Feb 2014. DFA2 Moving to DDP. Characteristics observed in DFA 2 Positives Strong safety culture Developing relationships. Good understanding of SL’s requirements. Negatives

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“DDP” – Requirements

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  1. “DDP” – Requirements Steve Slater 13th Feb 2014

  2. DFA2 Moving to DDP Characteristics observed in DFA 2 Positives • Strong safety culture • Developing relationships. • Good understanding of SL’s requirements. Negatives • Project controls and delivery of simple data to correct quality and on time • Schedules, EAC and monthly reports • Robust predictable delivery. • Understanding of SL management systems and permissioning arrangements. • Quality control – ‘right first time’, design and fabrication. 2

  3. Structure Operating Units Main Contractors / Consortia (DFA2 model) 1 2 3 4 5 Lower Tier Suppliers Broad base capability support

  4. Structure Main Contractors / Consortia (DFA2 model) 1 2 3 4 5 5 SL and DFA integrated teams Fully integrated delivery Operating Units 4

  5. Characteristics Main Contractors / Consortia (DFA2 model) 1 2 3 4 5 Operating Units Main Contractors / Consortia • Utilising the same approach as the DFA2 model, larger Tier 2 companies or consortia capable of providing a full cradle-to-grave service with suitable sub-contractors • 4-6 companies to provide wider competition and capability • Larger contracts will be placed via this route – this is the backbone/workhorse for DDP • Based on a 5+5 to create long-term behaviours and to allow for re-competing/continuity at contract end • Genuinely integrated teams with SL & DDP contractors – reduce the ‘man marking’. 5

  6. Structure Temporary Works Technical Demolition Optioneering Design Remote handling Characterisation Operating Units Small Enterprise Suppliers Broad base capability support 6

  7. Characteristics Small Enterprise Suppliers Temporary Works Technical Demolition Optioneering Design Remote handling Characterisation Operating Units Small Enterprise Suppliers • Aimed at smaller suppliers • Main purpose is to provide a highly responsive set of capabilities that enable SL to have direct access to lower tiers of supply chain • Contribute to early small value responsive requests • Lower value contracts to be placed directly based on best athlete (competition demonstrated at DDP tender level) • Likely to have a limit on individual contract awards (£100k) and a cumulative ceiling on this lot (£2,000k per annum) 7

  8. Structure Small Enterprise Suppliers Temporary Works Technical Demolition Optioneering Design Remote handling Characterisation Operating Units Main Contractors / Consortia (DFA2 model) 1 2 3 4 5 We will encourage collaborative working No reason why SME’s cannot be part of main consortia 8

  9. Future • First part of a longer term relationship • Develop strength in depth: • Opportunities to ‘up-skill’ the supply chain via integrated working, a shared risk approach. • Develop breadth of supply chain: • SME and new entrants to SL. • Studies and active demonstrators to commence in support of broad • front decommissioning: • TEXT REMOVED FOR UPLOAD ON TO WEBSITE • SL is approaching broad front decommissioning • THORP and Magnox post operational clean out and decommissioning will start second term of contract. 9

  10. DFA2 Moving to DDP – Characteristics required • More open access to SL Lifetime Plans through integration of teams • Open trusting relationship • Say what you are going to do • Say what you are not going to do • Delivery what you said you would • Don’t delivery what you do not need to do • Quality product delivered to schedule and cost. • Commercially neutral • Not compensation event aggressive nor passive - open 10

  11. Disclaimer Important Information • This communication and its contents have been provided to you for informational purposes only. This communication is not advice on or a recommendation of any kind with respect to the matters described herein, including without limitation, contracting structures, contracting instruments, contracting strategies, related legal and commercial issues or any combination of such matters. This communication does not offer advice. • No information contained herein constitutes an offer or solicitation by or on behalf of Sellafield Ltd to enter into any contractual arrangement. Sellafield Ltd. makes no representations or warranties, express or implied, regarding the accuracy, adequacy, reasonableness or completeness of the information, assumptions or analysis contained herein or in any supplemental materials, and Sellafield Ltd. accepts no responsibility or liability in connection therewith. Opinions expressed in this presentation are subject to change without notice.

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