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

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

4

The legacy

Sellafield

Magnox

Dounreay

LLWR

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 2040

From 1947 and the first UK reactor ……

7

Harwell RAF site 1946

Constructing GLEEP 1947

GLEEP Demolition 2004 Aligning Graphite core blocks

1947

Graphite Low Energy

Experimental Pile 1947 - 1980

Today, tomorrow and 2333!

25/09/2015 8

End-state:

de-licensing circa 2333

Supply Chain Spend

Total supply chain spend £1.3Bn in 07/08

Total supply chain spend 2014/15 :

£1.79Bn

38% spend = 10 Tier 2s

54% spend = 20 Tier 2s

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

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

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

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

SME Action Plan and Spend

15

£907m over 3 years

£372m 2014/15

21% 2014/15

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

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

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

When will we finish ?

• Probably never!

• Questions, comments?

19