ceca / southern water liaison meeting · 2016-10-21 · 9 • the amp6 programme has been...
TRANSCRIPT
CECA / Southern Water Liaison Meeting
5th October 2016
Health and Safety / Housekeeping
Fire & Evacuation Procedures
Facilities
Pre-Meeting 10:30
Meeting commences 11:00
Lunch 12:30
Meeting Close 14:00
Fire and Evacuation procedures
In the event of a fire, please evacuate the building through your
nearest safe exist and make your way to the designated fire
assembly point.
Visitors should use fire assembly point 2, which is located at the
rear of the car park.
IntroductionsCECA
– Kevin Frankling BAM Nuttall Ltd (Operations Manager)– Noel Hanley Barhale (Executive Director)– Alan Taylor CECA (Southern) (Executive Director)– Mike Sillence Clancy Docwra (Associate Director Strategy &
Dev)– Andy Firth Costain Ltd ( Operations Director)– Murray van der Poll Dyer & Butler (Head of Business Development)– David Brown GRAHAM (Business Development Manager)– Michael Turley HOCHTIEF (UK) (Business Development
Manager)– Neil McKenzie Lagan Water (Director)– Simon Johnson Livis Ltd ( Business Development Executive)– Steve Webber J Murphy & Sons Ltd Business Development – Luke Gardner Stemma Shipping UK Ltd (Sales Rep for Kent
& SE London)
Southern Water– Simon Tomlinson (Chair) Head of Project Delivery ( Engineering &
Construction)– Debbie Parin Head of Supplier Management– Stephen Coleman Head of Procurement– Mark Wintringham Head of Project Delivery ( Water Process )
Agenda
Health and Safety / HousekeepingIntroductionsOverview of CECA and Future ActivitiesSouthern Water Structure and ContactsRegulation Update / Market ReformAMP 6 Capital Investment Programme updateProcurement UpdateTechnology & Innovation discussionSRM & BW SurveyAny Other BusinessDate of Future Meeting
Southern Water Liaison Visit 5th October 2016
CECA Activities
Southern Water Structure and Contacts
Matthew Wright CEOWill Lambe CFOJoanne Statton Company Secretary Phil Barker Director of OperationsChris Maloney Director of People & TransformationSimon Oates Chief Customer OfficerRichard Price Director of Engineering & ConstructionStephen Coleman Head of ProcurementNigel Hague Head of HRRobin Churchill Head of LegalPaul Munday Head of IT
8
AMP6 Capital Investment Programme Update
9
• The AMP6 programme has been prioritised to ensure commitments to regulatory and external stakeholders are met, and key business/customer risks are addressed. In 15/16 price base, with some reclassification across Opex and Capex, the programme is £1.634 billion
• The emphasis in AMP6 on efficiency, and on needs being validated, prioritised and continuously challenged in line with our Customer Promises remains a key focus.
• As a business we are driving change:
– Development of in-house engineering capability for solution development– Procurement of Strategic Solutions Partners and Delivery Partners on incentivised
contractual arrangements– Evolution and development of processes, performance management control at
Programme and Project level (supported by appropriate governance and systems)– Ensuring that Totex decision making when defining interventions is at the heart of our
investment decisions
• We have successfully adopted a collaborative Portfolio approach to ensure all stakeholders and Subject Matter Experts in our business are engaged in the development and delivery of our plan
Programme Overview
10
Portfolio Area AMP6 InvestmentProfile reflects delivery of specified/regulatory schemes, mitigation of key customer/business risks, and ambition to reduce reactive maintenance levels further in the AMP6AMP6 Transition spend for prioritised
commitments
Programme biased towards earlier Wastewater interventions (process and network) reflecting ODI risk.
£m
11
SW Top Planned Schemes for Year 2Wastewater Process Water Process
• Nitrate Plants including Capital Maintenance
• Brede and Beauport Pesticides
• NEP Investigations
• WRMP Future AMP planning
• Reservoir Maintenance
• Domestic Meter exchanges
• Weirwood WSW improvements
• SEMD
• Woolston WTW (AMP6)
• Eastbourne WTW Planned Maintenance
• Private Pumping Station transfers
• Tangmere WTW
• Steel Tanks
• Scaynes Hill WTW (UWWTD 18)
• Inlet Screen Planned Maintenance
• Event and Duration Monitoring
Wastewater Networks Water Networks
• Water Mains Renewals
• Woolmans Woods
• Gatersmill
• Hardham Winter Transfer
• Bewl to Beauport
• Investigations Programme
• Sewer Rehabilitation/ Bosham Hoe/Infiltration Reduction
• Mountfield and Three Oaks S101a schemes
• Phased Year 2 Rising Mains
• Thanet surveys and design
• Potential opportunity to accelerate Flood Mitigation Programme
12
An Ambitious Plan – Focussing on Outcomes Achieving our vision means:
Providing services which meet, or exceed our customers’ expectationsPerforming as well as the best companies in the sectorLeading the water industry on a range of important issues
This requires:
Substantial efficiency improvements in deliveryAchievement of industry leading efficiency by end of AMP6
Level 2
Level 1
Regulation Update / Market Reform
Utilities Contracts Regulations 2016Key Changes from 18th April 2016:•Electronic availability of procurement documents from date of OJEU notice•More contracts will come into scope
– Removal of Part B Services– Lower threshold for Goods - £348k
•Tighter rules on audit trails•New “Competitive dialogue” and “Innovation partnership” processes•8 year maximum for framework agreements•Detailed rules on “Technical Specifications” and clarifications on time limits including mandatory extensions for updates in the last 6 daysSouthern Water is now using BravoSolution e-sourcing platform for our future tenders and sourcing activities•Improved communications and access•Better visibility of opportunities, criteria and evaluation
14
Procurement Update October 2016
16
Procurement Team Structure – Delivery
Change Programme Procurement Category Planned Award Date Planned Start Date Partners
Engineering & Construction Change Programme
Strategic Solution PartnerMay 2014 April 2015
MWH
Delivery PartnersJuly 2014 April 2015
CMDP, MGJV, GT
Tier 2 Suppliers (to include the Procurement Hub)
Q3 2014 March 2016
Operations Change Programme
React and Maintain Partner(s)September 2014 April 2015 BTU, Clancy Dowcra,
Cappagh Browne
Laboratory Services October 2014 July 2015 ALS, Alcontrol
Tier 2 procurement plans for all Operations supply chain
appointments (to include the Procurement Hub)
Q3 2014 March 2016
Supplier Day – Tier 2 Engineering &ConstructionNovember 2016
CMDP & Galliford Try
IT Enabling Programme ITMS and IT projects appointment - Strategic Partner
August 2016 Oct 2016
Fujitsu, Capita
Procurement Events 2014-15-16-17 – AMP6 Update
Summary of Framework Agreements currently in place - AMP6
Engineering & Construction
Operations
Delivery Route Partners Contract start date Contract end date Contract periodStrategic Sourcing Partner MWH UK Ltd 01/04/2015 31/03/2020 5 (+5) YearsDelivery Partner (East) Costain/MWH 01/04/2015 31/03/2020 5 (+5) YearsDelivery Partner (West) Galiford Try 01/04/2015 31/03/2020 5 (+5) YearsDelivery Partner (Networks) MUS/Galiford Try 01/04/2015 31/03/2020 5 (+5) Years
Delivery Route Partners Contract start date Contract end date Contract periodWaste Management & Recycling MTS 01/11/2011 31/10/2021 5 (+5) YearsReact & Maintain Water Ops Clancy Docwra 01/04/2015 31/03/2020 5 (+5) YearsReact & Maintain Sewerage Ops Cappagh Browne 01/04/2015 31/03/2020 5 (+5) YearsReact & Maintain MEICA Barhale Trant Utilities 01/04/2015 31/03/2020 5 (+5) YearsAMR Meters & Data Hosting ARAD 01/04/2010 31/03/2020 5 (+5) YearsPolyelectrolytes Kemira 01/04/2008 31/03/2017 4 (+5) YearsChemicals Supply & Management Ind Chemicals 01/07/2011 31/03/2021 5 (+5) YearsFerric Sulphate Ind Chemicals 01/04/2011 31/03/2021 5 (+5) YearsCombined Heat & Power (CHP) Veolia, Clarke Energy, Edina 01/11/2016 31/10/2021 5 (+5) YearsLaboratory Water Sampling & Analysis ALS Environmental 01/04/2015 31/03/2020 5 (+5) Years
Laboratory Wastewater Sampling & Analysis Alcontrol UK Ltd 01/04/2015 31/03/2020 5 (+5) Years
Odour Control Maintenance ERG 01/01/2012 31/03/2020 5 (+5) YearsReservoir Maintenance BTU 01/04/2013 31/03/2018 5 (+5) Years
Summary of more recent awards and current Projects close to award.
Engineering & Construction Status
Pumps – Repair and Replace New Contracts Awarded across 6 Lots
CHP and Power Systems New Frameworks Awarded
Solar Energy New Frameworks Awarded
Real Time Systems (RTS) New Frameworks Awarded
Fuel Cards & Fuel Purchase New Agreement
Water Resources Management Plan New Agreement
Blower Maintenance New Agreement
20
Efficiency Lever – Procurement– Deliver the best solutions and best price from collaborative sourcing initiatives with our Supply
Chain Partners– Strategic sourcing initiatives aligned with category strategies and long term vision– Procurement Hub established to facilitate engagement with our supply chain partners (SSP /
DP• Progress:– Processed 4 out of 14 SP frameworks– Sourcing opportunities pipeline established– Priorities identified and locked down– Working groups established– Procurement Hub revived, partner engagement improved with
initiatives and leads identifiedNext steps / Focus:
– Team resource (interim structure in place) – recruitment underway– Deliver identified priorities– In bed early engagement process with ETS, Cost estimating team, Standard Assets and
Project Delivery– Review SAL process– Supply Chain Day – Debbie Parin (Head of SRM) leading– Strengthen procurement links within asset life cycle and business as a whole
Effective Procurement– AMP6 deliverable £40M CAPEX
21
Interim Procurement Team Structure for Operations and Engineering & Construction
22
Confirmed & Initiated Business PrioritisationPriority Project / Initiative Name Status Sourcing Type AMP6 Spend
1 Ferric and Alkalinity dosing rigs - single and combined (chemical dosing) Tender documents being compiled Hub - CMDP £2,500,000
1 Generators (Supply, Hire & Maintenance) Requirement identified SWS £4,840,000
1 PLC's & HMI's Sourcing strategy being developed SWS £2,000,000
1 UV (clean) Orders placed with ATG UV Ltd SWS £400,000
1 Kiosks alone - prefab / modular construction Requirement identified Hub £500,000
1 Draw pits Sourcing strategy being developed Hub - CMDP £5,135,668
1 Manholes/Chambers MGJV have been asked to support delivery Hub £9,350,000
1 Package Pumping Station Requirement identified Hub £270,000
1 GAC filter - carbon revamp on contract weirwood - Chemviron Requirement identified SWS £7,660,324
1 Sand filters (static bed) Best and Final Offer (BAFO) SWS £630,000
1 Membrane-cloth filters and sand filters. Requirement identified Hub £3,850,000
2 Aeration domes Not started Hub £3,600,000
2 Blower Supply Not started SWS £498,000
2 Centrifuges and thickeners (belt/drum) Not started Hub £2,500,000
2 Filter media (Blast furnace slag) Not started SWS £3,600,000
2 Glass coated steel tanks Not started SWS £4,000,000
2 Large tanks (concrete & GCS) Not started SWS £11,775,731
2 GRP settlement tanks i.e.Humus - conical tanks Not started SWS £1,950,000
2 Disc Filters Not started SWS TBC
2 Scraper bridge Not started Hub £1,200,000
2 Booster Sets Not started SWS £1,032,000
3 PPE & Janitorial - Contract Renewal Not started SWS £1,500,000
3 UV (waste) Not started Hub £240,000
3 Flange Adaptors, Couplings and Repair Clamps Not started Hub £300,000
3 Sluice Valves & Hydrants/ air values / knife valves / penstocks Not started SWS £1,350,000
3 Methanol Dosing Not started SWS TBC
3 Filter feed pump set Not started SWS £855,000
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The Hub …. The Strategy
A collaborative sourcing forum with our Partners
24
A collaborative sourcing forum with our Partners
The hub working groups
25
InnovationStrategyResearch & Development Programme
26
British Water Innovation DayCompanies identified by Engineering & Construction
Company Company Contact Technology / Concept Votes Status
ACWA Services Ltd Peter Brewer Nutrient recovery Amber No progress, no applications identified as yet.
APG Neuros Graham Biggs Aerofoil bearing turbo blower Amber SW aware and blower on-trial. Supplier to be considered for next Framework.
ARM Ltd Patrick Hawes Reedbed Wastewater Treatment Amber No applications identified due to TOTEX implications.
Bluewater Bio Jeremy Biddle HYBACS / FILTERCLEAR AmberLunch & learn mid August. Filtaclear quotations requested for TOTEX comparison vs existing technologies.
Danfoss Ltd Ian Anderson VLT Aquadrive AmberMeeting held 7 Sept and more info to be supplied. VSD suppliers to be assessed to update SAL.
Environmental Compliance &
Services LtdPhilip Soden Sewer FOG reduction Amber No opportunities identified for product at SW.
Evoqua Simon Radford Membrane Bio Reactor Amber Quotes obtained for Hailsham South. TOTEX comparison underway with existing technology.
Hach Lange Ltd Martin Butterfield Mobile Sensor Management Amber Initial contact established. No opportunities identified for product at SW.
Ham Baker Adams Mike Tattershall Solar powered Penstock Amber Supplier contacted. No opportunities identified for product at SW.
MEPS Paul Bresnan Off‐site build AmberSupplier for this technology on Uckfield.
Consultation underway for Scaynes Hill, Range
Road Hythe, Sittingbourne, Thornbridge, Chilham.
Siltbuster Process Solutions Phil BatesSolids and P removal for process
plants. AmberLunch and learn, considering their MBBRs for temporary treatment at Shipton Bellinger for total N consent.
SUEZ Advanced Solutions UK Lynne Bouchy Densadeg Amber No progress, no applications identified as yet.
Veolia Water Technologies Paul Cooper Actiflo Amber R&D project at Hailsham. Potential efficiency £6M per 6 years. Due on site in Oct 2016.
27
2016 Innovation Day
CompanyCompany
Contact
Technology /
Concept
Votes Status
Modern Water Mrs Anna Whittaker Heavy Metal Monitors GreenEngagement already existed and is
continuing.
My Private Ark Miss Alexis Smith and Mr
Andy EbsworthGeospatial Modelling Green
Phil Druce and Elin Williamson met with
the company. SW NDA is signed.
Engagement continuing to establish
potential next steps.
Water Systems & Services
Innovation CentreMs Jane O Flynn Amber
Potential for future research and
collaboration. Barry Cleasby is in contact.
WPL Mr Timothy Holloway Amber At early stage of engagement.
OXEMSMr Kevin Gooding and Dr.
Jalil OraeeRed No action taken.
Companies Identified under R&D
28
2016 Innovation Day
Company Company ContactTechnology /
Concept
Status
Environmental Treatment
ConceptsMr John Thompson
PARADOX Wastewater
Systems
Installed on Budds Farm WTW and is
being investigated under an R&D
project for better performance.
Intellitect Water Mr John Howell
Multi parameter on‐line
water quality monitor
with central live
updates.
Original project was put on hold due
to immaturity of technology.
Currently working to help develop
next generation of sensors.
Aqualogy Environment
Limited (SUEZ / SISL Tech)Ms Lynne Bouchy
Advanced aeration
control platformMeetings / presentations had with
ETS.
Naylor Environmental Mr Barry MarshalSmart Sponge Heavy
Metal
Successful undergoing laboratory
trials.
Pilot scale trial at Eden Vale WTW is
being scoped.
Activities and update
29
Energy and Carbon update
Southern Water
CECA presentationOct 2016
Energy and Carbon update
Southern Water
CECA presentationOct 2016
Net operational emissions reduced by 2% reduced by 2% from previous year
Yearly emission
comparisons
normalised to
2015 emission
factors to
measure real
change in our
activities
FY 2011-12 2012-13 2013-14 2014-15 2015-16ktCO2e 267 283 284 273 267 -2.1%I58 5.8 kt
Comprises all emissions minus exported renewable energy. 2% reduction due to less grid power imported because of increased site renewable generation and less fossil fuel used onsite.
Net Emissions
240
300
2011-12 2012-13 2013-14 2014-15 2015-16
267
283 284
273
267
KtC
O2e
Year
Net Operational Emissions (Normalised)
Emission source t CO2eDirect emissions from fuels 3,035 Process 62,854 Transport: Company owned or leased vehicles 3,742 Grid electricity 190,660 Business travel on public transport and private vehicles 461 Outsourced activities 12,577 Gross Emissions 273,329 Exported Renewables ‐6034Net emissions 267,295
Renewable Generation
We currently generate renewable energy from biogas CHPs at sludge treatment centres (76MW installed capacity)Represents 17% of total power usedBy January 2017 we will have installed solar PV at 4 operational sitesTotal additional capacity of 6 MWPower will be used on site
33
Promote improved carbon management with our delivery partners and throughout the supply chain by working as one team to deliver an efficient and effective approach to carbon management
• Energy optimisation at design stage• Whole life carbon impact assessment at design stage• Demonstrated energy optimisation at commissioning• Considering capital carbon (embodied) reduction where economic• Determine carbon hotspots in supply chain
This area of work is progressing following the recent recruitment of a specialist
engineer in our Engineering Team.
Delivery and Supply
Chain
SRM and BW Survey
CECA – Oct 2016
CONTRACT MANAGEMEN T
Cement good relationships (senior levels), deliver world class performance, seek efficiency gains, optimise costs and savings, grow the business, maximise return on investment
Gearing up, deploying resource , engaging the client, establish relationships
Awareness of future competition & potential opportunity, manage contract exit, maintain
relationships
Text
1 - 6 Months depending on complexity Depending on type of contract vehicle e.g. framework, PFI and strategic importance Commence 6 - 22 months prior to expiry
SRM – its place in the contract life cycle
Contract
award to
Contract
award to TransitionTransition Contract life –
business as usual Contract life –
business as usual Exit and renewalExit and renewal
Both parties to
implement transition
plans –
Confirm invoicing process
Establish stakeholder
teams
Verify KPIs
Risk assessment
Establish meeting schedule
Confirm exit plans
Development contract
manual
Both parties to
implement transition
plans –Confirm invoicing process
Establish stakeholder
teams
Verify KPIs
Risk assessment
Establish meeting schedule
Confirm exit plans
Development contract
manual
Where Supplier is part
of SRM programme –
Create/update supplier
profile
Set up Strategic
Development meetings
Develop shared objectives
Implement shared training
Build communications plan
Consider 360°
reviews
Where Supplier is part
of SRM programme –Create/update supplier
profile
Set up Strategic
Development meetings
Develop shared objectives
Implement shared training
Build communications plan
Consider 360°
reviews
Both parties to ensure
orderly exit activities
from the contract –
Monitor contract end dates
Confirm notice periods
Re‐tender plans
Options analysis
Stakeholder engagement
Early market research
Both parties to ensure
orderly exit activities
from the contract –Monitor contract end dates
Confirm notice periods
Re‐tender plans
Options analysis
Stakeholder engagement
Early market research
Where Supplier is part
of SRM programme –
Preserve relationships
Maintain service stability
Capture lessons learnt
Consider impact on other
existing contacts
Where Supplier is part
of SRM programme –Preserve relationships
Maintain service stability
Capture lessons learnt
Consider impact on other
existing contacts
Non
Strategic
supplier
Strategic
supplier
Supplier
Journey
© 2015 State of Flux Ltd
A value propositionlinked to business strategy
Contract value secured and new value created
Value across the strategic agenda being delivered
Strong and active engagement from senior executives
Suppliers engaged and supportive
Business and operational support locked in
Segmentation and differentiated treatment strategies
Fit for purpose governance in place
Robust contract, Performance and risk management
SRM role defined and competency framework developed
Capabilities assessed
Appropriate investment in targeted training
Enabling technology is in place for relationship, performance, risk, contract, innovation and information management
Relationships are developing trust and collaborative behaviours.Strategic alignment is captured in a
joint account plan
VALUE
Customer of choice attributes are developed
SIX PILLARS OF SRM
Any Other Business
Date of Future Meeting
Southern Water Contacts
Strategic PlanningGordon Percy (Head of Investment Programme) [email protected]
OperationsMark Thompson (Head of Integrated Planning) [email protected]
Engineering & ConstructionRichard Price (Director of Engineering & Construction) [email protected] Wintringham (Head of Project Delivery – Water Process) [email protected] Tomlinson (Head of Project Delivery – Wastewater Process) [email protected] Aldred (Head of Project Delivery – Networks) [email protected] Kelly (Chief Engineer) [email protected]
ProcurementStephen Coleman (Head of Procurement) [email protected] Parin ( Head of Supplier Management ) [email protected]