Operational Services Procurement Vendor Engagement Event 28 th March 2018
Agenda Introductions from the Chair Alt HAN Company Technology Services Update Operational Services Procurement Process Scope and Requirements Next Steps in Process Question and Answer Session Close Alt HAN Co. 2
Introduction Housekeeping Introduction of Presenters Alt HAN Co Overview Colin Sausman (Alt HAN Forum Chair) Procurement Process Christian Harris (Alt HAN Co) Scope and requirements Esther Jardim (Alt HAN Co) Question and Answers Chris Cook (Alt HAN Co) Objectives for the day Alt HAN Co. 3
Key Objectives for Today Explain the commercial opportunity. Explain the proposed procurement approach, in particular: Key principles; Procurement process and planned timescales; and Scope of services. Encourage vendor participation in the forthcoming competition. Seek feedback from potential vendors on interest. Please complete and submit the feedback form at the end of the day. Alt HAN Co. 4
Alt HAN Company Overview & Context Vendor Engagement Event Alt HAN Co. 5
Policy Context Smart Metering Implementation Programme. Transformational: Energy market operation wholesale, networks, retail; and Consumers products and information. Design (and benefits case) assumes a HAN for: Near real-time information in the home, for all, as standard; and Communications link to gas meters. Standard equipment has HAN performance limitations. Government policy - Suppliers to work together to plug the gap. Alt HAN Co is the contractual vehicle for doing this, supported by the Alt HAN Forum. The HAN Coverage gap is required in ~5% of GB premises to extend the range of the HAN to connect all smart metering devices 1. 1 Conclusions on the consultation on the delivery plan for DCC Release 2.0 (Data Communications Company 16 October 2017) estimated that the Standard HAN technology is suitable to provide the communications links between smart metering equipment in approximately 95% of GB premises. Alt HAN Co. 6
Limitations of Standard HAN Architecture and the Alt HAN gap Alt HAN Co. 7
Alternative HAN Reminder of the Problem HAN range extension becomes a much more serious issue when Smart Meters are not located in or near the customer s premise. Alt HAN Co. 8
Alt HAN Contractual Relationships Alt HAN Co. 9
Alt HAN Operational Relationships Alt HAN Co. 10
Status of the Alt HAN Forum and Alt HAN Co Key Drivers: Government policy and implementation plans; Supplier obligations; and Funding model in-place. Regulatory arrangements to enable the Alt HAN Company, Forum & Board to operate were designated in July 2016, since then the Project has been implementing those arrangements, establishing the processes and procuring Business Support services for the company and increasing the projects capability. Alt HAN Co is funded by energy suppliers via the DCC charging mechanism. Alt HAN Co is now established and operating independently, with business capability services provided by Engage Consulting, PA, Gemserv and Baringa. Alt HAN Co has commenced the Technology Services procurement activity to develop, deliver and install Alt HAN Solution(s). Sources: 1. https://www.gov.uk/government/consultations/consultation-on-home-area-network-solutions Alt HAN Co. 11
Technology Services Update Vendor Engagement Event Alt HAN Co. 12
Technology Services Stage Gate Process Process Stages Stage 0: Vendor Engagement Stage 1: Selection including Initial Design 2A: Detailed Design Stage 2 2B: Design Assurance & Prototype Stage 3: Manufacture Stage 4: Installation & Support Alt HAN Full Roll Out Procurement Stages ITT and Contract for full scope of services issued Up to 4 vendors contracted for Stage 2A Selection of up to 2 vendors to progress to Stage 2B Selection of 1 vendor to progress to Stage 3 Installation proposal submitted, vendor progressed to Stage 4 Installation complete, maintenance services commence Alt HAN Co. 13
Indicative Technology Services Procurement Timescales Year 2017 2018 2019 2020 Quarter Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Stage 1 Tender Selection Process Stage 2A Detailed Design Technology Service Stage Activities Stage 2B Design Assurance & Prototype Stage 3 Manufacture Stage 4 Installation & Support Alt HAN Co. COMMERCIAL IN CONFIDENCE 14
Operational Services Procurement Process Vendor Engagement Event Alt HAN Co. 15
Procurement Principles Restricted Process will be utilised for transparency and good practice, but procurement is not subject to OJEU. Contract award based on Most Economic Advantageous Tender for each Lot. Ongoing Value for Money is a critical requirement. Selection Questionnaire will assess experience and capability. ITT to test competency and ability to delivery the scope of services. Requirement for when some services go-live will have dependencies on Technology Services. Alt HAN Co. 16
Framework Agreement and Lot Approach Procurement will follow the Restricted Process and utilise a Framework Agreement to procure two Lots. Vendors may submit a proposal for one or both of the Lots. Lot 1 Lot 2 Alt HAN Co. 17
Restricted Process Phases of the Procurement Process Planning Procurement Selection Contract Award Service Commencement Preparation for Market Engagement and of ITT Documentation. Issue ITT for Service Management (Lot 1) Issue ITT for Building Surveyor (Lot 2) Tender Evaluation for Service Management Tender Evaluation for Building Surveyor Contract Signature for Service Management Contract Signature for Building Surveyor Mobilisation of Vendor(s) for Service Delivery Vendors have the opportunity to bid for both Lots or a single Lot. The utilisation of a Selection Questionnaire will create a short-list of capable Vendors for full-tender evaluation. There will be a single Recommendation document for contract award to one or two Vendors to provide one or both Service Lots. Service commencement, whether by one or more Vendors, will occur according to the service requirement. Alt HAN Co. 18
Commercial Opportunity A significant opportunity to deliver services interfacing with GB Energy Suppliers to deliver their smart meter obligations. Alt HAN Solutions and services will be required in ~5% (~1.5 million) of GB premises. Contract will be for at least 5 years with options to extend; there will be an enduring need for Operational Services. Alt HAN Co seeking the Most Economically Advantageous Tender (MEAT) from vendors to deliver one or both Lots. Service delivery will be a collaborative journey with the Alt HAN Co whilst the Alt HAN Solutions are brought to maturity. Alt HAN Co. 19
Planned Timescales Communication updates to be provided in early May 2018. Vendors will be requested to provide an Expression of Interest and sign an NDA to gain access to the ITT documentation. The procurement plan of Operational Services is based upon the following timelines: Vendor Engagement Event: Wednesday 28 March 2018 Issue of ITT: May/June 2018 Time for Vendors to provide a Tender Response: 4 Weeks Contract Signature: October/November 2018 Alt HAN Co. 20
Operational Services Scope & Requirements Vendor Engagement Event Alt HAN Co. 21
Target Operating Model for Alt HAN Operational Services Central point of coordination and accountability for Alt HAN Services, provides oversight of all other capability areas. Escalation point. Manages the Alt HAN premises and equipment information. Interfaces with Suppliers to share Alt HAN candidate premises info and service status. Provides centralised Forecasting & Ordering capability. Coordination of of Forward & Reverse Logistics where required Coordination of Alt HAN-led rollout and maintenance activity in MDUs: obtains Landlord Permissions, liaises with Tech Services Provider to coordinate installation and maintenance OPERATIONAL SERVICES Service Management Alt HAN Inventory Management Supply Chain & Logistics Building Liaison & Coordination of MDU Activity Data Analytics Service Coordination Service Desk and Incident Management Billing Reporting IT & Data Hosting Systems Provides a single point of contact for Service User support. Incident / Problem Management, including those related to Alt HAN Equipment faults and returns. Tracking and reporting necessary charging data to enable the recovery of Alt HAN Explicit Charges. Provides relevant reports to Suppliers and Business Support, including but not limited to Service level reporting. Provision of IT Systems and Data Storage Identification of Alt HAN candidate premises, informs manufacturing volumes and Alt HAN Inventory Building Surveyor TECHNOLOGY SERVICES Collects building survey data to inform the Alt HAN Classification Model and to help inform the Technology Service Provider s pre-installation activities Alt HAN Co. 22
Service Mobilisation Requirements Go-live for Lot 1 and Lot 2 will vary. Lot 1 will have a staggered implementation and go-live: Inventory Management, Data Analytics and Data Hosting will be required upon contract signature. Other services will be mobilised, based on the requirements, over the next 12 months from contract signature. Lot 2, Building Surveyor, will be required upon contract signature. Flexibility for service commencement will be required and will be based upon when the Alt HAN Co require the service capability with dependency on the delivery of Alt HAN Solutions. Alt HAN Co. 23
Questions & Answers Vendor Engagement Event Alt HAN Co. 24
Next Steps Please complete and hand-in feedback questionnaire. Alt HAN Co plan to issue Operational Services ITT Procurement in May/June 2018. Regular communications updates will be provided. Procurement Contact: AltHANProcurement@Gemserv.com Alt HAN Co. 25
Close Vendor Engagement Event Alt HAN Co. 26