Enterprise and Supplier Development AECOM - ESI … · Enterprise and Supplier Development ESD ....
Transcript of Enterprise and Supplier Development AECOM - ESI … · Enterprise and Supplier Development ESD ....
Enterprise and Supplier Development
(ESD)
• Mario Venter
• Executive, Resources and Industry
• AECOM
• South Africa
……………. Gas to Power definitely has a place in in Africa’s power generation and energy sector and will clearly provide invaluable contribution to the economic growth of the continent.
But let us not forget….
Enterprise and Supplier Development ESD
For the seventh consecutive year, Engineering News-Record (ENR) has ranked AECOM as the top design firm in the United States. The annual rankings were announced in ENR’s 2016 Top 500 Design Firms listing last week. In addition to a number one ranking, our company excelled in several individual categories, including: # 1 in Transportation # 1 in General Building # 1 in Hazardous Waste # 2 in the Top 50 Designers in International Markets # 3 in Water # 3 in Sewer and Waste # 4 in Power In an interview with ENR, Fred Werner, President, Design and Consulting Services Americas, said, “We no longer just draw up a set of plans to hand over to the contractors to tweak and build. Now, we are at the forefront of assessing the client’s needs, deal-making to finance a program and planning its execution.”
The ESD universe
LEGISLATIVE
FRAMEWORK
1. Local suppliers
Gaps & needs analysis
2. Foreign suppliers
Value Chain Analysis
3. Client needs
Ministry, Parastatals,
Private clients
• Skills & Capability levels
• Implementation opportunities
• Industrialisation
• Direct contract opportunities
• Implementation requirements
• Skills/technology transfer
• Procurement strategies
• Value chain opportunities
• Resource needs - skills
development, training, research,
educational requirements
• System needs- technology transfer
• Process needs- Reporting, Auditing
• Policy
• Strategy
• Institutional Framework
• Report , Monitor and Evaluate
Local Participation
Local economic development and sustainability
Compliance monitoring
Quality control
Job creation and skills retention
Experienced team leadership
Demand and Supply Status Quo Analysis
Database Development
Develop ESD Procurement
Strategy Process
Identify Opportunities
and Gaps
ESD Components
ESD
Technology transfer using our best-in-industry-practice systems and processes
Skills transfer through oversight,
mentoring, on-the-job training
and quality control
Local spend to improve logistics and support local business sectors
Skilled and unskilled job
creation
ESD Focus Areas
FOCUS AREAS DESCRIPTION
1.Job Creation & Job
Preservation
- Increase or preserve number of jobs by the
contractor
- Award of business from the project
- Favouring a more labour intensive method of job
creation
- Emphasis on skilled, semi-skilled, unskilled, local
labourers/employees
2. Skills
Development
- Refers to skills transfer with emphasis on
accumulation of knowledge & experience
- Generally targeted at sector specific skills, with
focus on artisans & technical skills
ESD Focus Areas
3. Local/National
Spend
- Refers to suppliers/sub-contractors functioning
within the project community, region, district or
country.
- What is manufactured locally and what is
considered an import
4. Small Business
Promotion
- Encourages the growth & expansion of SMME’s &
start-ups through procurement & support
mechanisms
- Emphasis on black owned & black woman owned
businesses
- Enterprise Development
ESD Focus Areas
5. Technology
Transfer
- Refers to the process, know-how and IP
associated with developing a comprehensive local
supply base
6. Regional
Development &
Rural Integration
- Refers to suppliers/sub-contractors functioning
within local communities and regional areas from
which goods & services will be procured
- Enterprise Development & Socio-Economic
Development
Pre-Bid Process
• Local content Strategy developed for Packages before the bid is released to the market
Tender Requirements • Tenderers must submit an ESD Plan with targeted figures equating
to no less than 25% of the total of the prices of the Contract (ex
VAT)
• The ESD Plan must indicate how the Tenderer plans to achieve the
set 25% of the total of the prices of the Contract by allocating spend
to the ESD Focus Areas
• Tenderers not submitting a signed the ESD related Returnable
Schedule and not committing to the minimum ESD target of 25%,
will be eliminated from further evaluation
• ESD is a pre-qualification criteria and Tenderers not conforming to
the ESD requirements, will be deemed non-responsive
• ESD is a contractual obligation which carries penalties for ESD
targets not achieved (related contractual and commercial clauses
are included)
Tender Evaluation Methodology A South African state owned parastatal utilises the following methodology and criteria in selecting a preferred Service Provider in certain Design tenders:
Post Bid : Tender example of Supplier
Development Strategy
Strategy
•Prioritise and engage qualifying small businesses
•Include mentoring and skills development in resourcing plan
•Employ an independent company to report, manage, monitor and ensure our compliance
•Pre-plan and supervise teams’ skills development programs & courses through independent yet relevant organisations like CESA/ SAICE
Implementation
•Pre-bid submission
•Identified and approached suitable partners for the technical scope
•Identified suitable work scope for qualifying Partners
•Identify resources needs that will meet job creation early in the manning plan
•Post-bid Submission- To mitigate risk against non-compliance with SED if successful
•Workshop with local partners to explain Client & project Team requirements
•Packaged out scope of works through an RFQ process to partners so that technical teams to assess and identify suitable partners
Post Bid : Tender example of
Supplier Development Strategy
Spend Calculation
ESD
Spend
Cost to
company of
new hires
(BM,WF,BF)-
man-months
Project
mentors +
Rates-
Preserved/retai
ned Jobs- man-
months
Project related
pre-requisite
training (
programmes +
hours)
Sub-consulting
scope –man-
hours , roles,
potential SED
partners
Project related
Expenses-
security,
cleaning,
travel, etc..
Man hour rates
( mentors, new
jobs, retained
jobs, trainers)
Typical ESD Risks • Additional costs as ESD is a project on its own
• Interfaces for ESD implementation at project level include: HR, Finance, Technical teams, Procurement, etc.
• Constant changes in Client’s goal posts for ESD - localisation, skilled /unskilled, women/youth, area specific consultants, etc.
• Lack of sound stakeholder relations
• Database of appropriate ESD companies
• Relatively low priority for the project (Delivery of project on time & budget)
• Stringent project deadlines
• Lack of project line functions’ support and contribution
• Multiple ESD audit companies with different reporting requirements from government side
• Portfolio of evidence unclear from Client’s side
• Anticipated/ Projected ESD targets versus actual ESD targets
Risk Management approach Components Risk Mitigation
Supplier development
management systems
Online system that is easy to link into and provide reporting
information.
Independent audit process
Build a portfolio of evidence.
Job creation, preservation,
retention
Pre-planning job designations in the resourcing plan for
supplier development for all project phases
Small Business Development
& Local spend
Compile a database that allows ESD complaint companies to
register and be audited.
Technical teams need to pre-plan based on companies
available
Skills transfer Identify train the trainer skilled individuals in the resourcing
plan
Reduce subjectivity of the training and make it structured.
Technology Transfer Identify technology and IP training and software transfer that
can be utilised.
Local Participation: We Have Done it
Before
Gautrain Project
PMR. Africa Diamond
Arrow
Award - stimulate economic growth and development in
Tshwane Municipal District
Developed Implemented
Monitored Reported
Proactive facilitation and support: • Transfer of skills & knowledge • Process based on experience of • Monitoring and compliance of Enterprise
Development and Supplier Development
─ Gautrain Rapid Rail Link ─ Renewable Energy Feed-in Programme ─ Gauteng Freeway Improvement Project (SANRAL) ─ Cape Town EPCM Programme (Transnet) ─ Ngqura Manganese Export terminal project (Transnet) ─ Gibela Rolling Stock Manufacturing Facility (ALSTOM GIBELA)
Local Participation: We Have Done it Before