Transcript of "Mexico gap contract executive report rev3 rs pmo dist 15 june 2010 (2)"
Mexico GAP Contract Executive Report – 15 June 2010Executive Summary o Accomplishments o GAP Customer relationship building o First Submission of Design Packages completed on 23 Mar 10 for all 12 airports. Design changes and comments being addressed airport by airport. o Signed Supplier Agreements (VI, DEICSA) o 35 % of all RS MVXR System Equipment delivered to RS North America o RS HBS equipment on-site at BJX 14 Jun 2010 o GAP Approvals for BJX, MXL, LAP, SJD, MLM, HMO received o Next Month Milestones Invoice payments for Approved designs been submitted Construction Progress payment invoices to be submitted GAP Design Approval for TIJ, PVR, GDL, ZLO Construction underway in BJX, MXL, LAP, SJD HBS installation underway in BJX o Schedule (MPS Ver 5.6) (check with RS PMO for latest MPS version) o Contract Change Orders o Customer requested design changes for PVR New BHS + Civil works design PVR Contract Change Order Quote submitted last week o Customer design change for GDL New BHS + Civil works design GDL Contract Change Order Quote submitted week of 27 April 10 o Budget o GAP budget on track o Contract Change Orders CO – pending approval by GAP o Final GAP Revenue Recognition Forecast approved by RS CFO o First design payment deposit into RS account on 14 Jun 2010 o Invoice for payment on design for MXL and LAP approved by GAP o Invoice for payment on equipment delivery for BJX pending GAP approval o Risks - Contract o Design Approval from GAP on schedule - Med Page 1 of 7
Mexico GAP Contract Executive Report – 15 June 2010 o Contract Change Order acceptance and impact by GAP - Med o Civil Works completion schedule - High o BHS Equipment delivery schedule - MedOverall Project Status (Green, Yellow, Red) Customer Satisfaction Budget Schedule RiskDetailed Information1. Summary of GAP Contract o 32.4MUSD (436.9 MPesos) contract value o Design Build o 21 MVXRs o 21 Baggage Handling Systems BHS o Civil Construction at 10 Airports o Phase 1 - 60 day design delivery o Phase 2 - 240 day delivery/installation/handover o 24-34 month Service Commitment (by airport)2. Schedule / Budget o See attached Master Project Schedule (MPS Ver 5.6) o See Eric’s GAP Finance Master Budget o Invoicing and Payments o Advance Payment already received from GAP o Advance Payments to our Suppliers (VI and DEICSA) completed last month o BJX design Payment already received from GAP o MXL, LAP design invoice submitted to GAP o GAP Contract Changes, Change Orders CO – Formal Quotes to be submitted to Customer next week o PVR – customer requested upgrade/change pricing – PVR CO with Cost/Time impact to be submitted this week for GAP approval o GDL – customer requested change – GDL CO with Cost/Time impact to be submitted this week for GAP approval o TIJ – design completion stage, expect to complete within 2-3 weeks, more discussions with Customer needed – cost impact to be determined o Service Plan and Budget – in approval review stage with Eric Luiz this week o GAP Project Management Office PMO Budget – ready for review next week Page 2 of 7
Mexico GAP Contract Executive Report – 15 June 20103. Engineering/Production/DeliveryEngineering o Civil Works and BHS Design o Preliminary Design Binders submitted last week to GAP, comments and edits being worked on right now, schedule for final submissions and design acceptance 2 Airports a week for the next 5 weeks. BHS Design and Operations documentation MVXR5000 Design and Operations Documentation Construction drawings Detailed construction schedules Phase Implementation Plans to minimize Airport Operations Impact during construction Commissioning and Handover Plans o GOAL - Need to achieve Design Acceptance from GAP for each Airport o BHS Interface Testing o VDL building to our BHS interface specification, same basic interface for each airport o GOAL - Validation of BHS Interface - ACCOMPLISHED Page 3 of 7
Mexico GAP Contract Executive Report – 15 June 2010 o MVXR Engineering o Warranty Improvements- Systems Engineering Improvement efforts to minimize Warranty Expenditures by improving identified high-failure rate components (Hiring Systems Engineer under GAP contract funding) o Generator – as new Improved Generators are delivered, upgrade in the field o Software – 6.1.2 Major Release will be the baseline software installed for GAP o GOAL – eliminate all Design issues with GAP SystemsRapiscan Delivery and Project Management o GAP PMO Project Management Plan – published project management plan to all contract stakeholders (Customer, Suppliers, RS Department Heads) on how this contract will be managed: o Communication Chain of Command GAP RS Suppliers RS GAP See updated RS GAP Project Management Office PMO Org Chart o Contract Change Control Processes CO Change Order Forms o Project Management Controls Weekly meetings and Minutes with Key Stakeholders (internal + external) 1. RS Operations Mtg 2. RS Suppliers Mtg 3. RS Construction Mtg 4. RS GAP Customer Mtg RFI and RFQ/CO process o Master Project Schedule MPS ownership and publishing schedule Sub-contract detailed schedules • VI Schedule • DEICSA Schedule o Weekly RS GAP Operations Telecon – every Wednesday between US / RSM o “GAP Equipment Manifest” is the key Cross-departmental document for RSM/Torrance/Apex operations management o Captures all line item deliverables and administrative processes related to GAP contract for all Rapiscan supplied deliverables o RSM – X-ray Systems, Service Spares o Apex – Matrix Networks, Workstations o “Shipping and Importation Plan” – key document that captures the detailed plan for shipping and importation to meet the contract schedule and minimize the shipping and duty/importation fees for Rapiscan Mexico o “Service Plan” – service plan that describes the build up of Service Infrastructure in Mexico, addresses: o Overall service budget under GAP o Staffing/Training/Sparing/Call Handling Management plans o Mechanical and Electrical Installation Management The RS Service Team will be responsible for leading each on-site installation team for the basic mechanical and electrical installation for the BHS and MVXR systems. • Service Engineers – BHS/MVXR basic installation, includes uncrating, placement, mechanical assembly and basic electrical wiring for all conveyors and X-rays components • Project Engineers – BHS and MVXR specialists will arrive to perform start up and commissioning works Page 4 of 7
Mexico GAP Contract Executive Report – 15 June 2010 Supplier Delivery Schedule Risk Analysis (as of 7 April 10) o VDL – medium risks of delays on LARGE airports o DEICSA – high risk of delays on first airports o Moro – on schedule o RS Production – on schedule o RS Service – low risk of delays 4. Contract Delivery Risks and Mitigation PlansRisk Risk Description Type/Severity MitigationNo. 1 Customer Design Approvals Schedule - Med Submission of draft Design Package to GAP Customer for official feedback. On-site Customer meetings and reviews. Airport Consultant lobbying. Daily telecons with Customer on design reviews (airport by airport). 2 BHS Delivery Schedule – Med o Aggressive management with supplier – Supplier Agreement Terms adherence o Minimize GAP penalties o Increase on-site install team size to accelerate installation and commissioning phases. 3 Civil Works Schedule - High o Aggressive management with supplier – Supplier Agreement Terms adherence o Minimize GAP penalties o Design modifications to speed up construction 4 GAP Operations Readiness to Operational - Med Although out of scope for Contract and not RS accept and Operate new responsibility, this issue will be key to final BHS/HBS systems customer satisfaction: o Push GAP for Lot 3 award to S2 Global (Airport Operations labor) o GAP Customer training on HBS/BHS infrastructure – operational impacts o BHS/HBS Reference site visit for GAP customer – first hand look at what GAP will be receiving under this contract 5 Contract Change Budget- Med Contract scope change management will be key to successfully budget/schedule control. Schedule – Med While in Design Delivery, all contract changes are tracked to ensure costs/schedule impacts are managed. Final reconciliation with GAP customer on required cost recovery in negotiations. Page 5 of 7
Mexico GAP Contract Executive Report – 15 June 20106 RS Service Schedule - Low Service needs to hire staff ASAP or bring over resources from abroad.7 RSM + Apex MVXR Equipment Schedule – Low RSM and Apex are on schedule for their Delivery respective MVXR Equipment Deliveries with the exception of some late Service Spares. This is considered to be low risk. Risk Types - Schedule, Budget, Technical Risk Severity – Low, Medium, High 5. Customer Satisfaction o Customer is satisfied with progress thus far o Recent comments from GAP CEO/CFO and Tech Director are being addressed by RS PMO o Design Submission quality o Capturing of design change requests o RS PMO is focusing on Customer Relationship trust building o Expect some customer pushback when the design change impact quotes are submitted to GAP for PVR and TIJ Page 6 of 7
Mexico GAP Contract Executive Report – 15 June 2010Rapiscan Systems Project Management Office PMO -Organization Chart Page 7 of 7