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SAFESPUR – April 2008
AWE - SUPPLY CHAIN OPPORTUNITIES
Tony Morris - Head of Procurement
DD: 0118 9850130; m: 07810 191863
PRESENTATION OUTLINE
The Contract
Organisation
Expenditure Patterns
Project Examples
Future Developments
THE AWE SITES
AWE Aldermaston
AWE Burghfield
The CompanyMoD
AWE Management LimitedJoint Venture Company
Equal Shares BNFL Lockheed Martin and
Serco
AWE plc Executive Board
All AWE staff
Licence ofPremises,Plant andMachinery
Contract with MoD
100% Ownership
Other Stakeholdersincluding regulatorsand the LLC
AWEML Board delegates AWE plc to perform the contract.
AWEML does not employ any staff
Golden Share
10 YEARS; NOW 25 YEARS
“…. whilst giving the contractor scope to
manage the support areas in a way that
allows the full range of commercial decision
making to be applied.”
MOD - AWE ML CONTRACT
SUMMARY OF CONTRACT
Output Driven, M&O
Target Cost Incentivised Fee
Firm 5 years, Fixed 10 years
Restrictions: IPR, Parent Co, Liability
Legacy funding separate
Assets owned by MOD
SUMMARY OF CONTRACT
Incentivised on performance with annual review of measures (self assessment)
Regulatory requirements incorporated in contract
Basis of the contract is to “Run the Business”
MOD interface through the NW Integrated Project Team (IPT)
“Alongside the modernisation of our conventional
forces, as set out in last year’s White Paper, the
Government remain committed to maintaining the
effectiveness of the nuclear deterrent, including
making the necessary investment at the Atomic
Weapons Establishment, Aldermaston, and to
keep open the options for a successor to Trident
until a decision is required, probably in the next
Parliament.”
FUTURE INVESTMENT
Defence White Paper21 July 2004
AWE
Major ProjectsResearch &
Applied Science
StockpileManagement
SystemsEngineering
Infrastructure Assurance
BusinessManagement
&Finance
Procurement Organisation
Core Services/ Strategic Sourcing
Materials
Facilities
Engineering andConstruction
DISupport
DTES
DSM/DRAS/DSE
Delivery Teams
Performance Management Policy, Process Procedures, Performance Measurement, Analysis compliance, Audit
Contract Support Contract Engineering, Templates, Models,Dispute Resolution, Legal Support, Audit, Review
• Project Strategies within defined options
• Project Deliverables
• Contract Management
• Optimal Purchasing within architecture
• Order Management
• Expediting
• Receipting
• Variations
• Cross Business requirements
• Sourcing
• Purchasing Agreements
• Supplier Relationship
• Supplier Performance
• Corporate Strategy
• Supplier Relationship
• Supplier Resourcing
• Incentivisation Strategy
DMP
Roles
Ro
les
Organisation Chart
Procurement ManagerDerek Morrison
Tel: 50118
Procurement ManagerMark Allen/Peter Isaac
Tel: 54927
Head of ProcurementTony Morris
Procurement ManagerNigel LoweTel: 501120
Major Projects Support
Category ManagementEngineering & Construction
Category Management Materials & Services
Procurement Performance Management
Operational Directorate Delivery
Procurement Change Manager Mark AllenTel: 54915
Procurement ManagerFiona MacGowan
Tel: 54925
SUPPLIER SEGMENTATION
H
L
L H£250kFinancial Value
StrategicValue
AWE Suppliers
List
£8K £1k
LH
(151)
HH
(36)
LL
(847)
HL
(85)
Key Supplier Categories
80 strategic suppliers including the following categories:
- Engineering and Construction
- Design Houses
- Facilities
- IT/Telecoms
- Consumables
- Training /Universities
- Temporary Staff
Contract Modular Architecture
PRISM1
Instructions to Tenderers
PRISM2
The Project Specific
Requirements
PRISM3
AWE Standard
Requirements
PRISM5
Contract Terms
& Conditions
PRISM4
Information to be returned with Tender
Industry Forms
GC/Works1&2
Industry Forms
NEC
Industry Forms
IChemE
AWE Modular1.
Professional Services
AWE Modular2.
People
AWE Modular3.
Product
AWE Modular5.
Purchase Order T&Cs
AWE Modular4.
Product & Site Services
1Professional
Services
2Non AWE
Staff
3Products
4Products &
Site Services
Annex M
ProgrammeEarly WarningCompensation
Defects/ Inappropriate
Supply EVM
Annex M Annex M
ProgrammeEarly WarningCompensation
Defects/In-SupplyTests
Issued PropertyLong Term Support
S/W LicencesImports/Duty
Annex M
ProgrammeEarly WarningCompensation
Defects/In-Supply
Plus clauses for “Products”
Articles of Agreement & General Conditions 1 to 35
Annexes A to L
5PO Terms & Conditions
Default Conditions
DECOMMISSIONING LEGACIES
Programme to 2019
£20-25m pa
Planning / Characterisation design
Safety documentation
Modular containment / HVAC
Size reduction / Cutting operations
Waste / Environmental monitoring
Waste Disposal (RA / Haz / Non-Haz)
DECOMMISSIONING CURRENT PROGRAMME
D7 - Tritium
A1 - Pu Gloveboxes
A50 - Pu Gloveboxes
A37 - Demolition
A25 - Demolition / clearance
R61 - On hold, pending demolition
Questions?