Network Rail Stuart Pountney Commercial Director Northern Progammes 14- 1 Jun / -18
Presentation topics ▪ Industry Backdrop & IP ▪ Procuring for CP6 ▪ Northern Programmes 14-Jun-18 2 /
Industry Backdrop passenger growth 90 National Rail Passenger km 80 Passenger km (billions) 70 60 18% to 25% growth anticipated to end CP6 50 40 CP5 CP4 CP6 Forecast 30 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 14-Jun-18 3 /
The UK Infrastructure Market 14-Jun-18 4 /
Recognising that we must change Simplify the Next stage in More aligned to interface devolution between IP & our customers routes Network Rail CP5 capital Capital delivery capital delivery delivery competitiveness reputation difficulties Routes devolved Greater CP6 – timing is regulatory efficiencies & financial availability of right settlements funding /
IP Operating Model IP Operating Model 14-Jun-18 6 /
Procuring for CP6 14-Jun-18 7 /
CP6 Procurement Strategy Objectives 1. Ensure that the needs of the Route Businesses and passengers are met by improving safety performance, demonstrating value for money, efficiency and allowing innovation to thrive. 2. Improve/reward safety and contract performance with a fair return whilst addressing poor performance. 3. Incorporate lessons learnt from CP5 to promote a stronger performance culture. 4. Foster industry leading collaboration and support an effective & sustainable supply chain. 5. Aligned and integrated with Route Services C&P Transformation plan. 6. Ensure that Network Rail remains a client of choice for key suppliers in a growing market. 14-Jun-18 8 /
Supplier Engagement & Development Key supplier working groups implemented ▪ Strategic Supplier Interface Group ▪ Tier 2 Interface Group ▪ National SME forums ▪ Greater use of RICA, RSG, CECA and RIA Next stage: Route/Regional Supplier Groups SAM process refocused and national supplier strategies implemented (Costain, Carillion, ABC etc.) Introduction of BRAVO and National Performance Metrics Upskilling Network Rail Commercial Management Staff through One Vision One Way / 9
One Vision One Way /
CP6 Sustainable Procurement • Community engagement • Waste • A suite of targets • Diversity, Inclusion & Accessibility • 30% female by 2020 • Biodiversity Social Environmental • Employment, Skills & Training 1 • Pollution prevention Performance Management Apprentice/£3m • Responsible sourcing • Local procurement and SMEs • 65% spend by 2021 Weather • Capital carbon Energy and Resilience and Carbon Climate Management • Rail heritage Change • Energy efficiency • Employee engagement • Climate change adaptation • D and I Charter 11 14-Jun-18 /
CP6 Driving Commercial Performance NCDF outputs incorporated into T&Cs ▪ Defining Allowable Costs & Fee ▪ Dispute Avoidance Panels (DAP) ▪ Rail Method of Measurement (RMM) ▪ National Performance Metrics (NPM) Other improvements include: ▪ Project Bank Accounts ▪ Defined Tier 2 Payment & Retention Terms (Fair Payment) ▪ ‘Step - in’ Rights ▪ Time-bar clauses National Performance Metrics: 7 KRAs ▪ Standard Alliance T&Cs and guidance ▪ Quarterly Benchmarking Updates ▪ Efficiency targets / scrutiny @ award ▪ Update & publish ICC & NEC Rail T&Cs ▪ Tier 2 Supply Chain Maps ▪ NR ability to issue substantial completion certificate ▪ NR ability to issue of final account certificate ▪ Removal of 5% accrual limit on interim payments ▪ New Standard Preliminaries ▪ New Schedule of Rail Daywork Rates ▪ One Vision One Way – People, Process & Systems /
Driving Industry Change Key Changes to NR Terms & Conditions 1. Fixed payment terms of 28 days from T1 to T2 2. Abolition of retentions between T1 & T2 • Builds on principles established in 2011 in FPC • Demonstrates Industry Leadership /
PQQ Stage 40% Health & Safety Technical & Quality • • Successful Delivery Learning from Safety Incidents 10% • • Safety Communications Building Information Management and Culture (BIM) • Design & Construction 5% • Experience Assurance • Quality - Validation and Verification Capability Innovation 5% Resource • Contribution to the Rail Culture Industry Diversity & Inclusivity Ethics 10% • Inclusive Design • Diversity and Inclusivity Sustainability • Environmental Performance / 5% Collaborative Behaviors Embodied Carbon 25% • Communities • Benefits & Challenges • Multi-Tier Collaboration Resource & Planning • Design Partner • Fluctuating Work Bank • Scarce Resource • Capacity • Human Resource /
ITT Evaluation Criteria Technical & Quality Health & Safety • Building Information Management (BIM) • • Mission Statement Engineering - Quality Assurance • 20% Safe by Design 20% • Safety Throughout the Supply Diversity & Inclusivity Chain 15% • • 15% Working with Electricity Everyone • Gender Diversity 5% 5% • Inclusive Design • Innovation Apprenticeships • Network Rail Standards Collaborative 20% • Innovation Framework MEAT 5% 5% Behaviors 20% • Team Assessment Sustainability • Leadership Team Interviews 10% 10% • Management Team Interviews • Opportunities - Commitments 20% • Agreeing a Target Cost Resource & Planning Commercial 5% 5% • Mobilisation • Fee 20% 20% • Post Mobilisation • Model Projects • CV’s • Schedule of Rates • Supply Chain Strategy • Supply Chain Management Plan /
CP6 Regional Procurement Plans Scotland • Multi functional frameworks NATIONAL • Scotland & LNE Signalling • Small medium large Central frameworks • Extension of panels and programmes Track • Alliance contracts S+C & PL Wales and Western • Tender Large projects • Small projects Framework Design & Commercial Anglia / South East / Wessex services • Multi functional framework Multi functional and specific supplier in each of the sub- regions /
CP6 Renewals Spend by Route/Region Plus network wide: £4.8bn 14-Jun-18 / 17
CP6 Renewals Supply Chain Spend by Category 14-Jun-18 18 /
CP6 Procurement Programme Status Current status RAG ▪ Nationally co-ordinated with local leadership Wales PQQ forecast 30/07 Green Western PQQ forecast 30/07 Green ▪ Integrated CP6 procurement schedule in place PQQ issued 09/02 – ITT to be issued Anglia Green 28/05 ▪ Weekly progress review and reporting by relevant PQQ issued 09/02 – ITT to be issued South East Green Commercial Directors 28/05 PQQ issued 09/02 – ITT to be issued Wessex Green ▪ 28/05 ITTs staggered to manage resources and enable PQQ issued 05/02 – ITT issued 24/04 LNE Green continuous improvement Various – on schedule Scotland Green ▪ Contract coverage in place to enable transition LNW Options enacted Green ▪ Linked to NR website to provide workbank / pipeline Track PQQ to be issued 14/06 Amber/Green visibility to supply market Signalling Minor works PQQ to be issued 04/06; Amber ITT to be issued 13/07 ▪ Major outstanding Excom Approval Efficiency delivery gateway process being developed (IP/Route/RS) Design Outstanding Excom Approval - PQQ to Amber Frameworks be issued 3/07 Note: Procurement schedule at early stage, RAG ratings will change over next 6 months 14-Jun-18 19 /
Northern Programmes 14-Jun-18 20 /
Northern Programmes strategy 14-Jun-18 / 21
Northern Powerhouse Rail /
TRU Requirements ; • Improve journey time – • Manchester – Leeds 49 to 40mins • Manchester – York 75 to 62mins Current status ; • More trains per hour • December 17 Grip 3 submission OBC • From 5 to 6 fast & 1 to 2 slow • Created 4 scenario’s (31 sub options) • More seats per hour from 845 to 3,120 • Currently reviewing Tranche strategy • First FBC submission May 19 14-Jun-18 / 23
Indicative Tranche Breakdown – Scenario 1 Tranche 0 Tranche 1 Tranche 2 Tranche 3 On Site 2018 - 2021 2019 - 2022 2021 - 2025 2025 - 2026 24 14-Jun-18 /
TRU Plan 14-Jun-18 / 25
Summary Continued growth in the Rail Sector • NR changing the way its does business • Greater focus on Apprentice Targets • Greater focus on sustainable procurement • CP6 tender is underway • Northern Programmes developing significant schemes in the • north 14-Jun-18 26 /
Civil Engineering Contractors Association Conference June 2018 Shane Fitzpatrick – Senior Head of Service Merseytravel. Speaker
Recommend
More recommend
