RWE Mynydd y Gwair Supply Chain Event - Tim James / Kirsty Curry
1. RWE Innogy UK PAGE 1
Mynydd y Gwair Wind Farm
Business Breakfast
22nd July 2016
2. RWE Innogy UK PAGE 2
Mynydd y Gwair Wind Farm -
Construction
Tim James, RWE Innogy UK
3. RWE Innogy UK PAGE 3
An overview of the project
Location:
15 kilometres (9 miles)
north of Swansea.
Number of turbines:
16
Installed capacity:
Up to 33.6 MW
Potential investment:
Up to £52 million
Community fund:
Up to £240,000 per year
Map of Mynydd y Gwair
4. RWE Innogy UK PAGE 4
• Planning Consent – Received March 2014
• Commons Consent – Anticipated July 2016
• Pre-Start Surveys – August to September 2016
• Archaeological
• Ecological
• Ground Conditions
• Enabling Works – October 16 to April 17
• S278 Works – October 16 to April 17
• Civil Works (Main Site) – June 17 to October 18
• Electrical Works - October 17 to September 18
Mynydd y Gwair Wind Farm – Programme
5. RWE Innogy UK PAGE 5
• Six principle work packages:
• Enabling Works – Tender Evaluation in Progress
• NEC Option A
• Civil Balance of Plant – Tender Q3 2016
• NEC Option A
• Electrical Balance of Plant - Tender Q4 2016
• NEC Option A
• S278 Works – City & County of Swansea
• Grid Connection – Western Power Distribution
• Turbine Supply – Tender Evaluation in Progress
• Bespoke Contract
Mynydd y Gwair Wind Farm – Project (Construction)
6. RWE Innogy UK PAGE 6
Potential direct minor contracts
• Ecological Surveys
• Design
• Resident Engineer/Ecological Clerk of Works
• Legal Services
• Topographic Surveys
• Site Investigations
• Electrical Studies
• Highway Condition Surveys
• Land Agents
• Archaeological Services and Investigation works
• Service Diversion Works/Telecommunication works
• Site Clearance
Construction – Minor Contracts (Direct)
7. RWE Innogy UK PAGE 7
• Traffic Management
• Road Sweepers
• Materials supply
• Geotextiles/Geogrids
• Highways Materials
• Aggregates
• Concrete
• Steel
• Plant
• New Service Works
• Gates, Cattle Grids
• Fencing
• Drainage
• Fuel
• Security
• Waste Management
• Signing and Lighting
Construction – Civil Opportunities
8. RWE Innogy UK PAGE 8
Construction – Turbine Foundations
9. RWE Innogy UK PAGE 9
Material Supply
• Blockwork, Stone and Slates
• Timber Frames/Trusses
• Security Doors & Locks
• Furniture
• Palisade Fencing
Plant
• Generators
• Pumps
• Scaffolding
• Machinery
Specialist Services
• Domestic Wiring Services
• Plumbing/Heating
• Fire Alarms
• Security Alarms
• Telecommunications
Construction – Substation Control Building
10. RWE Innogy UK PAGE 10
Construction – Electrical Opportunities
Electrical Design
Switchgear (132kV/33kV/690V) Supply,
Installation and Commissioning
Transformer (132kV/33kV & 33kV/0.69kV)
Supply, Installation and Commissioning
Cables Supply and Installation
Cable Jointing
HV Testing
SAP Provision
Panel Fabrication
Generator Supply
12. RWE Innogy UK PAGE 12
Mynydd y Gwair Wind Farm
Procurement opportunities
Kirsty Curry
1. The 4 key stages in the life of a wind farm
2. Typical spend analysis
3. How we buy
4. What we look for in a Supplier
5. Registration
13. RWE Innogy UK PAGE 13
The 4 key stages in the life of a wind farm
The 4 key stages in the life of a wind farm
Development (1 to 5 years)
Implementation
Construction (up to 2 years)
Operation and Maintenance (approx 20 years)
14. RWE Innogy UK PAGE 14
Typical spend
Typical spend profile
Development – 2.5%
Implementation – 2.5%
Construction – 65%
Operation and
Maintenance – 30%
Actual spend - Novar 2 Wind Farm
Total £62M
Development – £1.5M (2.42%)
Implementation – £3.2M
(mostly Grid Works – all
regional) (5.16%)
Construction – £37.5M (of
which £29M on WTG and £6M
civil works) (60.5%)
Operation and Maintenance –
£20M over 20 years (£16M on
WTG) (33.3%)
15. RWE Innogy UK PAGE 15
Local spend
Where we would spend across a typical £6m civils contract :
Local within 60 miles 75% (about £4.5m)
Rest of region 15% (about £900,000)
Rest of UK 10% (about £600,000)
Europe 0.05% (a few thousand pounds!)
16. RWE Innogy UK PAGE 16
What are we doing to support Localism?
Attending Business events
Providing a potential list of sub contractors with our ITT’s
Contractually obliging Contractors to provide data on construction spend
and where it is placed
Contractually oblige Contractors to identify and evidence spend profile
throughout the lifetime of the contract
17. RWE Innogy UK PAGE 17
Registration
Why you should complete a registration form
We will use the information to help build up a picture of supply chain in
region
We will issue this to our bidders at bid stage
We will ask them for feedback on how much work they plan to place
“locally”
We will make a condition that ultimately they tell us what they actually
did
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How we buy
Detail of the types of things we buy
But how do we actually buy them – what is our process?
And what are we looking for in a supplier?
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How we buy – Construction Phase
Direct from supplier
– subcontracted through Tier 1
Purchase orders, framework
contracts and individual contracts
– Always same process but as
risk/value rises so does
complexity
Identify and prequalify (see later
slide), choose bidders and issue
bid document
Use NEC3 for construction
contracts
Assess, negotiate, award and
manage the delivery
RWE
Tier 1
Turbine
Tier 1 Turbine
O&M
Tier 1
Civils
SubContract
Plant
SubContract
Labour
SubContract
Aggregate
Tier 1
Electrical
SubContract
Cable Laying
20. RWE Innogy UK PAGE 20
How we buy
• Identification of suppliers:
Meet the Buyer events
Direct approach by suppliers
Use of RWE web portal:
www.rwe.com/web/cms/en/908
12/suppliers/
• Define project strategy (how we divide up the project)
• Develop contract strategy includes market analysis and this is the stage
bidders are decided
• We try to make sure regional suppliers are represented
• We use Tier 1 Contractors for civil & electrical packages to maintain a
one stop shop and limit interfaces (resource issue)
• Our Tier 1 Contractors must have design capability
21. RWE Innogy UK PAGE 21
How we buy
Issue Pre-Qualification documents (where necessary)
Compile bid documents and issue
• Instructions, Commercial and Technical sections
Site visits and will engage in dialogue in bid period
Receive bids assess and negotiate
Award contract
Manage through build programme to completion
22. RWE Innogy UK PAGE 22
Prequalification
How do we prequalify suppliers?
Company Information – 4 years audited accounts, workforce profile
Health and Safety – OHSAS 18001, CDM capability, stats (LTIF, prosecutions
etc)
Quality – ISO 9000, details of Quality Management System
Environment – ISO 14001, details of Environmental Management System,
Policy
Organisation, Management and Staff – Structure Chart of Senior Management
and responsibilities
Technical Capability and Experience – detailed information and reference sites
Region of Supply – Information regarding preferred areas of operation
Commercial and Contract – FIDIC and NEC3 experience
23. RWE Innogy UK PAGE 23
Bid assessment (example)
> Safety Record
> Tender price
> Programme
> Ability to commence the works on the starting date
> Proposed activity schedule and payment profile
> Technical capability and resource availability
> Compliance with the Contract Data and extent of qualification to
Works Information
> Proposed conditions or exceptions
> Project organisation, line of communication and delegation within
the Contractor’s organisation
> Contract management and execution of the works at site
> Quality assurance systems
> Environmental management, issues/record
24. RWE Innogy UK PAGE 24
Suppliers Capability
In summary what are we looking for?
The highest health and safety standards
Appropriate quality levels – ISO 9000 series as appropriate
Best value / life cycle basis
Creditworthiness
Reliability
25. RWE Innogy UK PAGE 25
Supplier Life Cycle – How to deal direct with RWE
RWE Process for Supplier Information Management - Supplier Life
Cycle Introduction
The Supplier Life Cycle (SLC) module has been introduced as an
additional part of our SAP system.
This tool will allow suppliers to self-register and upload documents and
data onto our system, via our internet portal.
If considered suitable, the supplier can also be invited to conduct self-
assessment questionnaires and record the results on our SLC system.
It will also allow for specific timely reminders to be sent to companies,
so that they can update the information we hold on our system.
Use of the SLC system will improve the quality and quantity of supplier
information that we hold in RWE.
26. RWE Innogy UK PAGE 26
Supplier Life Cycle System
Current Uses for Supplier Life Cycle
Typical information held for a supplier :
Basic contact information – key contacts
Copies of certificates
Copies of recent accounts
Questionnaire results
Supplier Classifications
Recent meeting minutes and briefings
Filters for categories of qualified suppliers
Information is held in a central system, so that all areas in RWE
Procurement can access the same information.
27. RWE Innogy UK PAGE 27
Supplier Life Cycle System
Unique RWE Innogy categories
Main Innogy Category : Renewable Energy
WN01 Onshore Wind WN01-1 Onshore Wind Turbines
WN01-2 Onshore Wind Electrical
WN01-3 Onshore Wind Civil works
WN01-4 Onshore Wind Ground investigation
WN01-5 Onshore Wind Met mast installation
WN01-6 Onshore Development Services
WN02 Offshore Wind WN02-1 Offshore Turbines
WN02-2 Offshore Foundations
WN02-3 Offshore Cables
WN02-4 Offshore Electrical & Substations
WN02-5 Offshore Vessels and Logistics
WN02-6 Offshore Services
WN99 O&M WN99-1 Offshore O&M Services
WN99-2 Offshore O&M Parts
WN99-3 Onshore Wind O&M Services
WN99-4 Onshore Wind O&M Parts
WN04 Hydro WN04-1 Hydro services
WN04-2 Hydro electrical
WN04-3 Hydro mechanical
WN04-4 Hydro civil works
28. RWE Innogy UK PAGE 28
On the Supplier Portal page
(https://supplier.rwe.com/irj/portal)click on
Registration
Registration