18. Industrial involvement and 19. Procurement · Industrial involvement and 19. Procurement ......

IAEAInternational Atomic Energy Agency

18. Industrial involvement and

19. Procurement

Herkko Plit

IAEA Consultant

IAEA ٢

Conditions Basis for Evaluation

National policy with respect to

national and local industrial

involvement considered

a. A recommended policy for national

industrial involvement based on a

survey and meeting with local or

potential suppliers

b. A summary of industries capable

of participating in non-nuclear

safety related construction or

support activities

Need for strict application of

quality programmes for

nuclear equipment and

services recognized

A policy and plan for development of an

appropriate management system along

with evidence of the availability of the

appropriate investment requirements

18.Industrial Involvement (Phase 1) Evaluation

IAEA ٣

18.1. National policy on national /local industrial involvement considered

a) A recommended policy for national industrial involvement based on the

following:

� a survey of industries with the potential to participate in the nuclear

power programme for construction or support services for nuclear

safety related activities and analyses their ability to satisfy the

requirements of a nuclear power programme;

� a survey of local suppliers with the potential to supply equipment or

services supporting nuclear power plant construction, maintenance

and/or operation including: equipment for workshops and labs/local and

national origin consumables/ spare parts;

� meetings held with potential suppliers to explain standards and

qualifications required and review feasibility of involvement.

b) A summary of industries capable of participating in non-nuclear safety related

construction or support services activities with any required actions and

funding requirements.


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� Broad range of engineering, construction, commissioning, operation and

maintenance activities including the following:

� Manufacturing of equipment that meets required quality standards

� Supporting services in the execution, delivery, erection, operation and

maintenance/upgrade, ISI, waste management, environment

monitoring, throughout the life of a facility

� Engineering (mechanical, electrical, control and instrumentation, IT,

civil etc)

� Specific feature of nuclear power needs to be understood by participating

industry;

• Working environment (radiation)

• Safeguards, Nuclear safety, Nuclear Security

• Liability

• Quality

• International implication

Industrial Involvement

IAEA ٥

• Meeting Quality standards (example: STUK report) and quality culture

• Working environment (radiation, after NPP started operation)

• Contracting approach taken by the project, Supply chain, linkage with

foreign manufacturers participating in the nuclear project (partnership/

joint-venture/licensee)

• IPR (Intellectual Property Right) and License to manufacture

• Human resources, qualification and training

• National policy on localization and long-term commitment to NP

• Code and Standards

• Spin-off effect

• Safeguards, Nuclear safety, Nuclear Security

• International treaties, export/import control

• Liability

• International implication

• regional sharing of nuclear infrastructure (IAEA-TECDOC-1522)

Things to be considered

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� Check what kind of industry resources are required for nuclear power

plant

• Database Appendix of the new NE Series Document on local industry

involvement) and what kind of companies exist

• Nuclear Energy Handbook

(http://www.iaea.org/inisnkm/nkm/ws/subjects/index.html)

• Nuclear Industry Handbook, updated every year by NEI (Nuclear

Engineering

International)(http://www.neimagazine.com/BuyersGuideAtoZ.asp?directory

=nuclear&product=T)

�Analyse risk & benefit of localization and review of case studies (see

Appendix of the new NE Series Document on local industry involvement)

Things to be considered

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• Long term strategy and Master Plan state policy of

participation in construction of domestic industry

• Survey done: 60% of materials for building construction

(concrete and rebar etc) could be procured locally.

• Survey of the companies and analysis of their capability to

meet nuclear grade capability was done jointly by National

Institute & foreign utility/supplier company

• Three key issues identified; HRD, Investment by the

Industry, Budget to study.

• Yet to be done: Regulation, Qualification of suppliers,

National nuclear standards


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18.2. Need for strict application of quality programmes for nuclear equipment

and services recognized

If the national policy for industrial involvement supports the involvement of

industrial involvement in construction or support services, a policy and plan

for development of an appropriate management system (including quality

control and assurance) along with evidence of the availability of the

appropriate investment requirements.

• Regulatory body had established requirement for management system to

which every nuclear organization must comply


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Realistic assessment of

the national and local

capabilities carried out

a) Realistic assessment of national/local supplier

capability based on NEPIO policy

b) Extent of national industrial participation agreed and

established, and desired target of national industrial

involvement in the BIS

Ability to meet schedule

and quality requirements

analyzed

Requirements for industries to be added to the

vendor/service list together with procedures of audits

of MS

Plans and programs to

transition to national and

local suppliers in place

Clear plan identifying;

• Industrial involvement in specifics(construction/

maintenance /operational support)

• Audits to industry

• Short/long programme to develop ability to produce items

initially supplied by the foreign suppliers

• Consideration of mechanism to be agreed with Suppliers in

case Supply problem has schedule problem


IAEA ١٠

18.1. Realistic assessment of the national and local capabilities carried out

a) A realistic assessment of the national and local supplier capabilities for

either nuclear or non-nuclear safety related activities based on the national

policy recommended by the NEPIO.

b) Extent of national industrial participation agreed and established and

desired targets for local and national industrial involvement included in the

BIS.

18.2. Ability to meet schedule and quality requirements analyzed

Requirements for industries to be added to the approved NPP

vendor/service suppler list together with procedures for audits of the

management systems (incl. QC/QA) of the approved NPP vendor/supplier.


IAEA ١١

18.3. Plans/programmes to transition to national and local suppliers in

place

If the national policy for industrial involvement supports the

involvement of industrial involvement in construction or support

services, clear plans and programmes identifying:

a) specific industrial involvement in future construction,

maintenance or operational support services;

b) audits of the progress of industrial preparation and ability to

meet the requirements for addition to the approved supplier;

c) short term and long term programme (including future projects)

to develop the ability to produce items initially being supplied

by foreign suppliers;

d) consideration of mechanisms to be agreed with the awarded

main supplier to convert national items into foreign supplied

items and vice versa, in case of supply problems having major

impact on the construction schedule.


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Industrial Involvement

� Typically the first NPP is constructed with very limited localindustrial involvement. This can be introduced gradually asnational experience increases and the programmedevelops.

� Industrial involvement (national participation andtechnology transfer) related to nuclear projects is apolitically driven process.

� Careful studies have to be performed by the NPP Ownerand national industry associations to analyse the localcapabilities and local and international market potentials indetail.

� Possible utilization of National Industry Forum

� The local manufacturing industry and service companies isrequested to confirm possibilities for national participationin the first NPP.

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� Only a sizeable nuclear program in a country or long termarrangements with the technology suppliers for theirinternational markets can justify the efforts and costsassociated with national participation and technologytransfer.

� Lists and general descriptions of major technical supportorganizations, engineering firms, construction and erectioncompanies, and mechanical, electrical and electronicsindustries existing in the country should be prepared fromthe initial stage of Phase 2.

� Specific plan for development of an appropriatemanagement system (including quality control andassurance) along with evidence of the availability of theappropriate investment requirements in the potential localcompanies should be prepared in Phase 2.

Industrial Involvement (...continue)

IAEAInternational Atomic Energy Agency

19 Procurement

IAEA ١٥

19. Procurement (Phase 1) Evaluation


19.1 Unique requirements

associated with purchasing

nuclear equipment and

services recognized

a) Recognition/identification of the issues

related to procurement covering local,

national and foreign supplies and a

plan to develop the important aspects

during Phase 2.

b) A recruitment and training programme

to build-up the procurement team.

19.2 Consistent policies for

nuclear procurement in

place

A policy and plan for the development of an

appropriate management system along

with evidence of the availability of the

appropriate investment requirements.

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19.1. Unique requirements associated with purchasing nuclear

equipment and services recognized

a. Clear recognition of the issues related to procurement covering local,

national and foreign supplies, and a plan to develop the following

aspects during phase 2:

� Specialized procurement team;

� Filing of: design descriptions, technical specifications, drawings

of items to be procured;

� Quality levels to be assigned, depending on the relevance of the

item;

� Standards and codes ruling the item;

� Environmental qualification of the item (including storage

condition on the shelf, expiry dates, etc.);

� Stock policy to be adopted. ( max./min. levels);

� Urgent procurement procedures.


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19.1. Unique requirements associated with purchasing nuclear

equipment and services recognized (..continued)

b) A recruitment and training programme to build-up the procurement

team. The programme should cover the following activities:

� Bid requesting and bid evaluation;

� Awarding, issuing of purchase orders;

� Letter of Credit;

� Quality management programmes.

� Inspection, hold points and stopping work during manufacturing;

� Manufacturing schedule and delivery time;

� Testing and reception;

� Transportation and insurance;

� Taxes;

� Customs clearing.


IAEA EM WS 2010 August ١٨

• Country has procurement law the state-owned utility company must abide

for efficiency and transparency

• Country has (1) Presidential Decree xxx on procurement in government

institutions (2) BIS Volume xxx to define the scope of local procurement, (3)

Ministry of Industry Decree xxx on Local Participation Content

• The procurement training was conducted by Ministry of Finance and

certified by National Planning Agency.

• A group of people knowledgeable about procurement exist for thermal

power and others, which will be extended to cover nuclear power.

IAEA ١٩

19.2. Consistent policies for nuclear procurement in place

If the national policy for industrial involvement supports the

involvement of industrial involvement in NPP construction or

support services, a policy and plan for development of an

appropriate management system (including quality control and

assurance) along with the evidence of the availability of appropriate

investment requirements.

(same as 18.2 but is addressed to owner of the NPP)

• National Utility is considering establishing appropriate management

system (including quality control and assurance).

• Regulatory body had established requirement for management

system to which every nuclear organization must comply.


IAEA ٢٠


19.1 Owner/operator

competence to carry out

nuclear procurement

evident

a) Evidence of a suitably qualified and experienced

procurement team with competence

b) Evidence of an informed decision about need for

procurement office close to main supplier.

c) Plans to participate in appropriate “NPP Owners group”

19.2 Procurement

program consistent with

national policy for

industrial participation

established

a) A procurement programme in the BIS that delineates

the scope of supply for specific equipment and services.

b) If the national policy for industrial involvement supports

local involvement in construction or support services,

evidence of a procurement team competent

c) Formal equipment and services specifications have been

developed by the NPP owner/operator.

d) Approved vendor list has been developed and a routine

auditing program is in place.

e) A schedule identifying Purchase Orders placement dates

and NPP site arrival dates.


IAEA ٢١

19.1. Owner/operator competence to carry out nuclear procurement

evident

a) Evidence of a suitably qualified and experienced procurement team with

competence in:� bid requesting and bid evaluation;

� awarding, issue of purchase orders;

� letter of credit;

� quality management programmes;

� surveillance and follow up of items under manufacturing including inspection, hold

points and stopping work during manufacturing;

� corrective actions to be taken when quality or schedule requirements are under risk;

� manufacturing schedule and delivery time, including testing and reception;

� non conformance report and acceptance procedure established (accepted as is,

refurbishment necessary, rejected);

� transportation and insurance;

� Taxes & Customs clearing.

b) Evidence of an informed decision about need for procurement office close

to main supplier.

c) Plans to participate in appropriate “NPP Owners group”


IAEA ٢٢

19.2. Procurement programme consistent with national policy for

industrial participation established

a) A procurement programme clearly described in the BIS that delineates the

scope of supply for specific equipment and services.

b) If the national policy for industrial involvement supports local involvement in

construction or support services, evidence of a procurement team

competent in:� filing of design descriptions, technical specifications, drawings of items to

be procured;

� quality levels to be assigned, depending the relevance of the item

� standards and codes ruling the item;

� environmental qualification of the item (including storage conditions on

the shelf, expiry dates, etc.);

� stock policy to be adopted (max/min levels);

� urgent procurement procedures.


IAEA ٢٣

19.2. Procurement programme consistent with national policy for

industrial participation established (..continued)

c) Formal equipment and services specifications have been developed by the

NPP owner/operator.

d) Approved vendor list has been developed and a routine auditing program is

in place.

e) A schedule identifying Purchase Orders placement dates and NPP site

arrival dates.


IAEA ٢٤

Reference documents

� INTERNATIONAL ATOMIC ENERGY AGENCY, Management of

procurement activities in a nuclear installation, IAEA-TECDOC-919,

IAEA, Vienna, 1996.

� INTERNATIONAL ATOMIC ENERGY AGENCY, Bid Invitation

Specifications forNuclear Power Plants: A Guidebook, Technical

Reports Series No. 275, IAEA, Vienna(1987).

� INTERNATIONAL ATOMIC ENERGY AGENCY, Manpower

Development for Nuclear Power, Technical Reports Series No. 200,

IAEA, Vienna (1980).

� INTERNATIONAL ATOMIC ENERGY AGENCY, Managing the First

NPP Project, IAEA-TECDOC-1555, IAEA, Vienna (2007).

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Responsibility of the Owner

NPP Owner:

� is directly responsible for preparing the BIS, evaluating bids,negotiating contracts and signing the contracts.

� will assume the overall responsibility for conducting the biddingprocess.

� should be designated in good time before entering to the biddingprocess.

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Human Resources need

� When starting the bidding process, the NPP Owner should haveadequate human resources with a basic knowledge to prepare the BISand to evaluate the bids from a nuclear safety, technical, management,business and economic perspective.

� Specific human resource needs may include:� Technical expertise to develop specifications for NPP, licensing, radiation

protection, safeguards, physical protection, emergency planning, wastemanagement and decommissioning;

� Project Management expertise for managing the bidding process;

� Technical, legal and business expertise for BIS preparation, bid evaluationand contract negotiations;

� Technical, legal and business expertise for fuel cycle management andprocurement;

� Financing expertise to negotiate with financing organizations and todevelop financing plan;

� Political and social expertise for stakeholder contacts and publiccommunication.

IAEA ٢٧

Thank you for your attention!

18. Industrial involvement and 19. Procurement · Industrial involvement and 19. Procurement ......

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