The SME Challenge A brief summary of the NDA Estate s approach to promote discussion and look to the future

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1 The SME Challenge A brief summary of the NDA Estate s approach to promote discussion and look to the future Ron Gorham NDA Head of Supply Chain Optimisation and SME Champion

2 Agenda Short introduction to the NDA The background to the SME agenda Round table discussion and feedback Why might you care about SME s? Why the NDA cares about SME s Round table discussion and feedback: Assuming you care about SME s, What can or should you do to enable SME s to deliver? Summary of the NDA Estate actions What next? Final Q&A 2

3 The Nuclear Decommissioning Authority (NDA) Arm of Government established in April 2005 Strategic Authority tasked with dealing with the UK civil public sector Nuclear legacy sites Funded by HMG and the revenue from our commercial assets Annual funding of ~ 3.3Bn The NDA Estate comprises 17 Sites spread across 4 Site Licence Companies, with some 17,000 employees and 60 years of history Significant Supply Chain spend managed by our Site Licence Companies Leading one of the largest and most complex environmental clean-up programme in Europe 3

4 The legacy Dounreay Sellafield LLWR Magnox 4

5 Our mission is to decommission and return sites for other societal use We have one of the longest programmes in the Public sector Most sites now have a projected end date frequently with an interim end state prior to a period of Care and Maintenance and then eventual disposal Most sites rely upon having access to long term storage As we progress through decommissioning the tasks and priorities change and so does our requirement for staff/employees and our use of Contractors Our desire is to where possible re-deploy staff between sites and other Nuclear Owners and also for contractors to seek and secure work at multiple sites and diversify into other industries 5

6 Long term storage - Geological Disposal Facility circa

7 From 1947 and the first UK reactor Constructing GLEEP 1947 Graphite Low Energy Experimental Pile Harwell RAF site 1946 Aligning Graphite core blocks 1947 GLEEP Demolition

8 Today, tomorrow and 2333! End-state: de-licensing circa /09/2015

9 Supply Chain Spend Total supply chain spend 2014/15 : 1.79Bn 38% spend = 10 Tier 2s 54% spend = 20 Tier 2s Total supply chain spend 1.3Bn in 07/08

10 The need for reform in Public Sector contracting Procurements too complex and take too long Savings identified are rarely delivered Significant concentration of spend with a very small number of very large companies HMG spend does not reflect the demographics of the UK economy The solution Encourage Early Contractor Engagement Suitable lotting strategies to encourage competition Clear deliverables focused on better value Removal or unnecessary Blockers and Procurement processes more effective and efficient SME and Growth Agendas part of the solution 10

11 Why might you care about SME? 10 min round table discussion Feedback to the group 11

12 The NDA s mission is complex delivered with the support of the Supply Chain Steve Vick International SME Innovation Award 2014 Dounreay - engineering work Nuclear Archive planned for Wick 12

13 Why the NDA cares about SME s Supply Chain critical to the delivery of our mission SME s frequently; Innovate Offer Good/Exceptional Value Tend to be dynamic and responsive Help drive efficiencies and client improvements Engine for growth, skills and job creation Tend to be local to our sites support our Socio-Economic agenda We need a healthy vibrant dynamic and competitive Supply Chain, so the SME agenda supports our mission 13

14 Assuming you care What can or should you do to enable SME s to deliver? 10 min round table discussion Feedback to the group 14

15 SME Action Plan and Spend SME spend targets set and monitored Visibility of opportunities Regional Groups Prompt Payment for the entire Supply Chain Simplification of PQQ and T&C s National Supply Chain events SME mentor scheme 372m 2014/15 21% 2014/15 907m over 3 years 15

16 16 Note: data is a snap shot taken from information held in Dunn & Bradstreet at August 2014, to give an indication of the number, size and spend with SMEs working directly with SLCs

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18 What next? HMG has set itself the target of spending 33% of its procurement budget with SME s by 2020 All Depts. have been asked to set their own targets and plans to support this aspiration The current spending review could have a dramatic impact on this agenda positive and negative Most quick wins have been banked Real challenge is a behavioural shift Greater need/desire for common solutions and approaches across the 17 core Depts. For the NDA Estate the agenda needs even greater support by our Tier 2 community 18

19 When will we finish? Probably never! Questions, comments? 19