evaluation of supplier offer responses EA1 will often reduce the supplier field to a short list to allow for a best and final offer request for further negotiation ahead of determining the winning supplier. [C5] {ii, iii}
2.6.7 Supplier selection criteria – EA1’s supplier selection process entails the assessment of the supplier’s offer against criteria which includes an evaluation of health and safety, commercial and technical compliance. The same criteria are used for every supplier involved in the tender. [C1,C5]{ii}
2.7 Increasing UK Content
2.7.1 UK Content target – As noted in paragraph 2.1.1, EA1 has set a target of 50% UK content for the EA1 Project, with this target increasing to 55% & 60% for the future projects in the EA Zone. EA1 will collaborate closely with its chosen suppliers as described in 2.11 to 2.19 below to achieve these targets.
2.7.2 Continuous Assessment of UK Content - An indication of the UK content related to each package over the life of the windfarmis set out in Annex 2D. Based on EA1’s projection of supply chain choices today this shows a lower and upper UK content range of 40% to 52% of UK content over the life of the EA1 Project and supports delivery of EA1’s 50% lifetime target. These projections aremade using themethodology that is likely to be approved by the OWIC. [C1,C2,C3,C4,C5,I3] {ii, iii}
2.7.3 Contractual enforcement of UK ContentMethodology – Built in to all EA1’s tendering will be the requirement for suppliers to estimate their UK content in line with 2.7.2, and to cascade this requirement down their supply chain as appropriate. Thismeans that at Final Investment Decision (FID) EA1 will have a full picture of UK content for the EA1 Project and progress against the 50% target. EA1’s contracts will also require that suppliers report UK content upon request. This will further drive a broadening of the UK supply chain andmaterially affect barriers to entry. [C1,C2] {ii, iii}
2.8 Reinforcing Key Principles of Competitive Criterion in the Supply Chain
2.8.1 Provision of Supply Chain Plans fromkey suppliers – Once a shortlist of potential suppliers is established, EA1 requests supply chain plans fromeach supplier demonstrating how they will deliver competition, innovation, skills and UK economic benefit. Tier 1 suppliers are then requested to do the same to anymajor tier 2 suppliers where opportunities exist in turn to drive changes in behaviour that would be in line with UK Government intent. EA1 has started to see how these requests drive communication and focus right through the supply chain. [C1,C2,C3,C4,C5,I1,I2,I3,I4,I5,I6,S1,S2,S3,S4,S5] {ii}
2.8.2 Contractual recording of Supply Chain Plans inMOUs – EA1 has already received Supply Chain Plans from potential tier 1 suppliers and has entered intoMOUs (see Annex 8 [redacted]) with these parties tomake clear its commitment to delivery of these plans. All tier 1 suppliers will need to present such a plan in their final tender submission and EA1’s final selection of bidder will be influenced by their response. [C1,C5] {ii, iii}
2.8.3 Continued followup on Supply Chain Plans – After selection, EA1 will continue to provide resource and challenge to help its tier 1 suppliersmaximise the benefit of their supply chain plans presented. EA1 will do this by dedicating resource and establishing evaluationmilestones to helpmonitor and review the delivery of these plans with the chosen suppliers. [C1,C2,C3,C4,C5,I1,I2,I3,I4,I5,I6,S1,S2,S3,S4,S5] {ii, iii}
2.9 Impact
2.9.1 The actions described above address all of the criteria relating to competition, as outlined in Annex 1. EA1 is using opportunities provided by such a large project at between 500MW- 600MWutilising themost innovative supply chain choices (such as HVDC, higher voltage array cables and next generationWTGs) to implement actions that either would not be possible or would have a lessor impact on a smaller project.
2.9.2 The key impacts of the EA1 Project are:
New investment in UKmanufacturing facilities for turbine components and component volumes to help foundation and cable suppliersmove closer to realise their investment plans, with the extent of this dependent on suppliers chosen and decisions taken on other projects. {ii, iii}]
Provision of a further offshore test site, dependent on any further external approvals required. This can be used to test a range of windfarmcomponents, including turbines and foundations. {iii}
Very significant supply opportunities due to the scale of the project and the technology choicesmade, with increased accessibility to new suppliers throughmore open procurement practices. {ii, iii}
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