UU AMP6 Engineering Services Partner(s) Event. Best Western Hotel Leyland, Friday 19th July 2013
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1 UU AMP6 Engineering Services Partner(s) Event Best Western Hotel Leyland, Friday 19th July 2013
2 Engineering Services Partner(s) Event What s coming up? Andrew Stephenson AMP6 Programme Manager Housekeeping Steve Fraser Managing Director Who we are, what we do Neil Colman Engineering and Capital Delivery Director Engineering Services Partner(s) contract strategy Daressa Frodsham Head of Engineering Engineering adding value Janice Smethurst Supply Chain Management Director Engineering Services Partner(s) procurement process Q&A session
3 Take a moment to look around you and make sure your area is safe Have you signed in? Fire alarms and exits? Toilets No smoking Mobile phones
4
5 BUSINESS OVERVIEW Steve Fraser - Managing Director WHO WE ARE, WHAT WE DO
6 We bring three million households and 200,000 businesses an incredible 2,000 million litres of clean, clear water each day We own 57,000 hectares of catchment land 96 water treatment works UU has about 5,000 skilled employees 72,000km of sewers, equivalent to four flights from Manchester to Sydney 1,400km aqueducts 184 reservoirs We have 42,000km of water mains, enough to wrap around the world! 575 wastewater treatment works
7 Business overview Our vision, goals and values
8 Business overview Our vision, goals and values OUR VISION To be a leading North West service provider and one of the best UK water and wastewater companies OUR BUSINESS FOCUS Providing the best service at the lowest sustainable cost delivered in a responsible manner OUR GOALS Customers service Efficiency Responsibility
9 Business overview What role for competition?
10 Business overview PR14 Business Plan & customer promises
11 Business overview One Wholesale business Production line director Water Production line director Wastewater Production line director Energy
12 One Wholesale business How it all fits together
13 CONTRACT STRATEGY Neil Colman - Engineering and Capital Delivery Director ENGINEERING SERVICES PARTNER(S) CONTRACT STRATEGY
14 Contract strategy Programme context Capital Investment Programme AMP5 Thames Water United Utilities Severn Trent Water Anglian Water Yorkshire Water Southern Water Northumbrian Water Welsh Water Wessex Water South West Water Source Final determinations from 2009 Price Review, Ofwat
15 Contract strategy Capital Programme context Where we currently are in AMP5 A number of key engineering and delivery contracts end in AMP5 Specialist delivery alliances for work carried out both on our treatment works and on our network assets A one size fits all approach to the design work associated with our projects
16 Contract strategy Pervasive engineering 30% Wholesale strategic projects 10% Wholesale tactical support 60% Capital Delivery 40% Wholesale strategic projects 20% Wholesale tactical support 40% Capital Delivery AMP5 Engineering Focus AMP6 Engineering Focus
17 Contract strategy Strategy for Engineering Services Partner(s) in AMP6 2.4bn Indicative value of construction Refining needs and project requirements circa 90 million Defining solutions where appropriate 0.5m - 20m Typical project value Overall Engineering effort circa 100 million Supporting the studies and investigations and providing expertise to our Wholesale business Incentives to reward performance Co-location / mini tendering of work packages Deliver the works in a manner that enhances UU s reputation in the eyes of its customers
18 Contract strategy Early design handover AMP6 Business risk approach to the release point to Construction Delivery Partners AMP6 Project Indicative design handover point for majority of AMP6 Current handover point DESIGN MATURITY Minute one Regulatory date
19 Wholesale & Engineering and Capital Delivery Involvement Contract strategy Engineering involvement United Utilities Engineering will be the project authority throughout the lifecycle of the project Current level of effort Strategic activities Needs identified and requirements defined Assurance Proposed level of effort Plant start-up and optimisation Minute One Regulatory date
20 Contract strategy Our vision, goals and values CUSTOMER FOCUS INTEGRITY INNOVATION Everything we do will be about our customers not us We ll make promises knowingly and keep them We ll innovate to make our services better, safer, faster and cheaper for our customers
21 Contract strategy Expected Engineering Services Partner(s) attributes Engineering Services Partner(s) are expected to operate in line with the UU values CUSTOMER FOCUS INTEGRITY INNOVATION
22 Contract strategy Expected Engineering Services Partner(s) attributes Engineering Services Partner(s) are expected to operate in line with the UU values Everything we do will be about our customers not us Deliver the works in a manner that enhances UU s reputation in the eyes of its customers CUSTOMER FOCUS Taking a proactive approach to engineering input, ensuring the impact on UU s customers is managed Deliver an excellent customer focus when undertaking works with a considerate and polite approach
23 Contract strategy Expected Engineering Services Partner(s) attributes Engineering Services Partner(s) are expected to operate in line with the UU values We ll make promises knowingly and then keep them Delivery of engineering activities to meet our regulatory commitments INTEGRITY Delivery of engineering activities at an affordable price considering both CAPEX and OPEX = TOTEX, minimising any increase in operational costs and where possible reducing the operational costs Benefit Realisation supporting the delivery of long-term robust solutions that achieve the required performance Supporting our Wholesale business in its day to day operation of the assets
24 Contract strategy Expected Engineering Services Partner(s) attributes Engineering Services Partner(s) are expected to operate in line with the UU values INNOVATION We ll innovate to make our services better, safer, faster and cheaper for our customers Willingness to innovate, challenge current practice and seek improved ways of working Future Concept of Operation and Future Concept of Design and Assembly (Design for Manufacture) Energy reduction, production and neutrality Integrated Asset Management Adopt a proactive approach to getting the best out of the wider engineering supply chains Providing best practice / expertise from other parts of their business
25 Future Concept of Design and Assembly
26 ENGINEERING ADDING VALUE Daressa Frodsham - Head of Engineering ENGINEERING SERVICES PARTNER(S) ENGINEERING ADDING VALUE
27 Engineering adding value Pervasive engineering Engineering Delivering Capital programme Supporting one Wholesale business Wholesale business Capital programme Developing & delivering strategic activities React to and optimise asset performance ENGINEERING FOCUS Strategy
28 Engineering adding value Standard operating model Strategy Needs / Concept Design & build assurance Handover & optimisation support Water Wastewater Retail Energy
29 Engineering creating value Engineering involvement
30 Engineering creating value Strategic
31 Engineering adding value Strategic projects Wind Farms Advanced phosphorus removal at Windermere Energy Strategic projects and tasks Priority substances Integrated catchment modelling (ICM) Davyhulme screenings load studies
32 Engineering adding value Pervasive engineering Energy
33 Engineering creating value Needs identified
34 Engineering adding value Engineering in Capital Delivery IAP Integrated asset plan PR14 Price Review PRD Project requirements documents Launch pack
35 Engineering protecting value Assurance
36 Engineering adding value Asset optimisation
37 Engineering adding value Designing for safety We are designing workplaces Designs must be Safe to construct Provide adequate and safe access for undertaking operating & maintenance activities Take account of the workplace regs per cdm regs
38 PROCUREMENT PROCESS Janice Smethurst - Supply Chain Management Director ENGINEERING SERVICES PARTNER(S) PROCUREMENT PROCESS
39 Engineering Services Partner(s) AMP6 Procurement - Update process AMP6 Asset maintenance support Engineering services contracts Construction Delivery Partners Specialist categories Network maintenance Tendered projects Kit frameworks Early start
40 Engineering Services Partner(s) Procurement process Call for Competition will be released in the Official Journal of the European Union (OJEU) today Friday, 19 July days later available to supply chain Please visit for further details Please write to register your expression of interest directly to Amp6ecs@uuplc.co.uk (specific address) A PQQ will be available from today via an electronic data room Successful applicants will progress to the Invitation to Negotiate stage We will be adding a new suppliers section page on our corporate website where potential suppliers will be able to obtain further information regarding the procurement process
41 Engineering Services Partner(s) Procurement process and timeline JULY AUGUST 2013 SEPTEMBER 2013 FEBRUARY 2014 MARCH 2014 CUSTOMER FOCUS INTEGRITY INNOVATION Health & Safety Financial Status Quality Technical capability & experience Sustainability Good standing Behaviour Business Continuity Invitation to Negotiate PQQ period 16 Aug 13 Contracts awarded OJEU/PQQ issued 19 July 13 Pre-qualification assessment
42 Engineering Services Partner(s) Procurement process Contract length Up to a maximum of 12 years Contract form NEC3 suite (Professional Services) Consortium Joint ventures UU welcomes joint applications Consortium or JV s Alternative bids Alternative bids will be considered as part of the process
43 Engineering Services Partner(s) Procurement process and timeline PQQ Complete and return an electronic copy of the document on a USB drive and two PRINTED COPIES The document should be saved in WORD FORMAT with any attachments in a widely accessible format ie. PDF. Embedded files should not be used Full details and instructions will be provided with the PQQ document Invitation to Negotiate United Utilities will be utilising an E-SOURCING TOOL for the management of the Invitation to Negotiate section of this procurement Details of which will be provided to applicants who are invited to receive an Invitation to Negotiate (ITN)
44 Engineering Services Partner(s) Frequently asked question Conflict of Interest Suppliers already part of the AMP6 Construction Delivery Partner tender are permitted to bid for Engineering Services Partner(s)
45 Time for a short break If you have any questions please complete card, all will be collected and put into the question box Our panel will then host a Q&A session where questions will be answered UU AMP6 Engineering Services Partner(s) Event Best Western Hotel Leyland, Friday 19th July 2013
46 UU AMP6 Engineering Services Partner(s) Event Best Western Hotel Leyland, Friday 19th July 2013
47 UU AMP6 Engineering Services Partner(s) Event Best Western Hotel Leyland, Friday 19th July 2013
48 UU AMP6 Engineering Services Partner(s) Event Best Western Hotel Leyland, Friday 19 th July 2013
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