SUPPLY CHAIN | PROJECT MANAGEMENT Above left: Duncan Elliot is
PPP Representative Above right:
Peter Hogg is head of supply chain at PPP V Last year (2021) was a big year for PPP, as many
projects began visible change. These major projects will ensure Sellafield can safely empty ponds and silos, treat the waste and store it safely. The model is now fully operational and working
collaboratively as ‘one team’, to unlock the broader ambitions of the model. PPP ensures the government knows what each project is, how it will be delivered, what it will cost and how delivery performance will be measured. This certainty about how much programmes will cost creates predictability and stability, and frees up resources and money for use elsewhere. The first major project baseline has been set and subsequently the full business case won approval, demonstrating increasing government and stakeholder confidence in the PPP model. The PPP is already being recognised as an exemplar: the
UK’s highly-regarded Infrastructure Projects Authority cited it as a prime example of how to deliver projects. Duncan Elliot, PPP Representative says: “It’s an exciting time and there’s a great deal of enthusiasm among the team about where the Partnership is heading. Our people and projects with purpose are demonstrating that the PPP Way can bring major benefits to project delivery, working together to solve complex nuclear challenges to leave a lasting legacy for sustainable and successful communities.”
Project highlights One project that has recently received approval of its final business case from the UK government is the SIXEP Continuity Plant (SCP) project. The approval was granted three months earlier than
expected. This is great news for the project because it is now funded for its full life cycle and work on it can continue at pace. When completed SCP will be a vital facility on the site. It will ensure the continued availability of the site’s ion exchange effluent plant. SIXEP removes activity in effluents from the first generation Magnox storage pond and the Magnox swarf storage facility, so the output can be safely discharged to sea. The Sellafield Retreatment Plant (SRP), another project being delivered through PPP, also received early approval for its full business case last year. Projects director Andy Sharples says “Not only is this great news for the SCP project…Through PPP we are able to share good practice across our projects. Successes like this show how this is happening.”
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The multi-project procurement model PPP is helping to transform procurement and supply chain development. It has launched a so-called ‘multi- project project procurement’ (MPP) approach that will provide increased value for the UK taxpayer and improved predictability. It will enable better planning, resilience and sustainability from suppliers working across multiple major projects. The group began by introducing an industry leading ‘early contractor involvement’ (ECI) strategy at the outset of key projects. The MPP model then selects key delivery partners, using framework agreements to deliver multiple projects. So far, 12 MPPs have been developed, four frameworks have been awarded and 86 suppliers have been appointed across the projects, 45% of which are small and medium sized enterprises and 40% of which are based locally. “The PPP approach is supporting faster, more effective
project delivery, stability in design and construction supply chains, greater workforce flexibility, and local economic benefit,” says Peter Hogg, head of supply chain at PPP. “Working alongside our supply chain to deliver our
20-year programme of major nuclear decommissioning projects we will create a lasting and sustainable legacy. With billions of pounds of projects identified to pass through the partners, a collaborative, joined-up approach to sustainability, inclusive of social impact, economic and environmental agendas are essential to enable our success. “We’ve recently announced six KDPs and one GSA
Framework which includes seven companies, three of which are based locally in Cumbria. We’ve even seen two local SMEs form a joint venture which will create more opportunities for people in the local community.”
New supplier spotlights HVAC framework PPP has appointed Balfour Beatty Kilpatrick and EJ Parker Technical Services to deliver the heating, ventilation, and air conditioning (HVAC), a framework agreement worth £150-250 million over the life of the programme. The HVAC package was procured under the MPP model. Further key delivery partners will deliver work packages
covering everything from building fit out, groundworks and general civils to steelwork and cladding. At this stage they will provide manufacturing capability and organisational resilience, but in future projects these organisations will be engaged in the design stage to help underpin project estimates.
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