Service Definition Document · Service Definition Document Crown Commercial Service G-Cloud 11...

Service Definition Document

May 2019 G-Cloud 11


Crown Commercial Service

G-Cloud 11 Framework May 2019

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Table of Contents Our Vision ............................................................................................................................. 2

Values ............................................................................................................................... 2

Motto ................................................................................................................................. 2

Our Company ....................................................................................................................... 3

Overview ........................................................................................................................... 3

Our Present ....................................................................................................................... 3

Our Future ......................................................................................................................... 4

Our G-Cloud Services ........................................................................................................... 5

Service Integration and Management ................................................................................ 5

Enterprise Architecture Services and Optimisation ............................................................ 5

Cost Modelling and Analysis .............................................................................................. 5

Supply Chain Optimisation ................................................................................................ 5

Learner Centric Education and Training ............................................................................ 5

Facilities (& Estate) Management and Integration ............................................................. 6

Digital Forensics ................................................................................................................ 6

Our Supporting Services ....................................................................................................... 7

Project Controls ................................................................................................................. 7

Mobilisation ..................................................................................................................... 18

Collaborative Working ..................................................................................................... 20

Risk Assessment and Management ................................................................................ 25

Quality Assurance ........................................................................................................... 27

Business Continuity ......................................................................................................... 29




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OUR VISION

A leading global provider of full life-cycle professional services, project delivery and technologies supporting the Government Services, Energy, Space and Technology markets, creating exceptional value for customers, employees and shareholders.

Values

Our values are our essential and enduring principles that define us as a company:

1. Uncompromising commitment to quality, health, safety and the environment

2. An open relationship with our employees based on mutual trust, respect and success

3. Transparency, accountability and discipline in our business

4. Best-in-class risk awareness

5. Integrity in all we do

6. Financial responsibility to our stakeholders

Motto

Our motto is both an expression of KBR’s culture and our personal guarantee to our customers.

“We Deliver.”

Behaviours

KBR’s behaviours are a set of principles that drive our day-to-day business activities. They are the backbone of our corporate culture and reinforce our mission, vision and values and ensure our motto.




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OUR COMPANY

Overview

From individual technologies and services to comprehensive project delivery and mission execution, no other company can match the breadth and depth of solutions from KBR. Our complete turnkey solutions provide significant value to our customers, allowing them to focus on their objectives and trust us with the details and delivery. Whatever the need, you can be sure that KBR has a solution to benefit your organisation.

KBR was created in 1998 when M.W. Kellogg merged with Brown & Root Engineering and Construction creating one of the world’s premiere engineering, procurement, construction (EPC) and services companies. In 2006, the company separated from Halliburton and completed a successful initial public offering on the New York Stock Exchange. And through acquisitions — including Ecoplanning, Energo, Granherne, GVA, HTSI, PLINKE, SGT, Weatherly, Wyle and more — we've grown to provide comprehensive consulting, technology, engineering and construction solutions for a wide range of markets, from aerospace and defense to energy and chemicals to intelligence and beyond.

KBR’s history is built on the pioneers that set the standard across a variety of industries. Today, we continue that legacy by developing groundbreaking solutions for government and industry clients.

Our Present

Today, we employ more than 36,000 people globally, with customers in more than 80 countries and operations in 40 countries.

The processes and systems KBR implement have been developed and enhanced across many of our projects, worldwide in many different environments. Below are a number of examples of where the system has helped to generate cost or schedule savings. Transforming Forensics. The goal of Transforming Forensics is to design and deliver enhanced forensic capabilities that offer better services to the criminal justice system and improved public protection. Under the terms of the contract, KBR works alongside forensics and policing experts across the UK to support in the delivery of modern and efficient forensic services ensuring consistent and high quality delivery, innovation, training and support. KBR provides project and program management, design, communications, change and technical expertise amongst other services.

The Metropolitan Police Service (MPS) Facilities Management "Integrator. The MET is the largest force in the UK with approximately 40,000 staff. The Mayor's Office for Policing and Crime (MOPAC) is responsible for maintaining the MPS and in March 2013 commissioned KBR to deliver a procurement programme implementing an integrated approach for the delivery of FM services. The service is also available to other members of the GLA requiring similar services. KBR has the role of Facilities Management "Integrator" providing procurement, contract management, supply chain management services and the establishment of an Intelligent Contact Centre or Help Desk. Contract duration is a one year mobilisation period followed by a seven year Service Delivery Phase. With extensive supply chain management and procurement expertise in supporting government contracts, KBR is




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well placed to manage effective tendering processes and drive through savings for our clients. Aspire Defence Capital Works is a large construction project in Southern England building new accommodation, work and leisure facilities for the MOD. During the early phases of the project a radical change in design from traditional steel frame and cladding to modular construction for a large number of the buildings has led to a significant saving on material and plant costs and on management costs associated with a reduction in construction time. Through close engagement with the supply chain and monitoring of the fabrication and construction activities the project has achieved delivery of a high quality product for the Client. Control of costs was achieved through firm price subcontracting with the suppliers of the modular buildings. The AMAC project provides a range of 19 services to the MOD on deployed operations. The main cost driver of this project is the provision of labour, the project utilises a large workforce of UK expats, third country nationals (TCN) and locally recruited workers (LRW) totalling over 1,400 people. A bespoke “manning database” was produced to monitor and control the labour provision which gave management visibility on manning levels per service area, qualification, leave rotation and performance management against KPIs. This allowed management decisions to be made on the up-skilling of the local labour force to allow more cost effective service delivery and hence value for money for the Client through the contract gain share mechanism. Over 50 locals were trained to deliver service above their initial abilities transferring to an annual saving of approximately $200k. Although a large upfront investment was required to ensure robust training and supervision, the long term strategy has led to significant cost savings across the workforce. Our Future

KBR is constantly growing and evolving. As global demands change and markets transform, we'll be at the forefront, leading the way with innovative solutions and services that will solve tomorrow's challenges and define progress for years to come.




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OUR G-CLOUD SERVICES

Service Integration and Management

KBR’s open and transparent delivery of SIAM exploits industry standards (e.g. ITIL), and innovative commercial models to provide cost-effective solutions with lower delivery risk that exploit cloud delivery model benefits. KBR offer services to suit client needs through SIAM lifecycle, Strategic planning, acquisition support, implementation and delivery management. Technology Enabled Business Transformation Service

KBR collaborates with clients and their stakeholders to analyse and plan organisational transformation, driven by strategic tenets and rational for change. Our staff, exploiting our considerable Industry experience in the technology, energy and space markets, will identify the transformational roadmap, plan and implement the organisational change with supporting technological innovation. Enterprise Architecture Services and Optimisation

KBR best practice uses structured techniques, eg TOGAF, to support Business understanding and optimsation. Focusing on identifying and defining core and supporting business services, loose coupling to and verification of implementing technical services and options for delivery within most appropriate cloud environments, e.g. Azure, AWS or private cloud. Cost Modelling and Analysis

Undertake analysis to understand costs and inform decisions with respect to cloud and other implementation options. Techniques applied dependent on available time, data quality; and business question posed. All modelling and analysis: compliant with HMT Green Book and Defence Investment Approvals guidelines; built to CAAS modelling and estimating standards. Supply Chain Optimisation

KBR specialises in identification and delivery of open, transparent supply-chains that deliver value whilst supporting government SME agenda. Extensive experience in creation and through-life optimisation through proactive management, KBR’s proven collaborative approach is exceptionally effective with complex supply chains and includes step-in to facilitate support in challenging scenarios. Learner Centric Education and Training

Design and implementation of transformation programmes for outcome-based learner-centric training and education. Exploitation of learner and outcome data collection and analytics coupled to near real-time design exploiting modular training delivery architectures. Use of devops to automate build and test of training services into cloud environments for access over multiple channels.




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Facilities (& Estate) Management and Integration

KBR has a comprehensive facilities and estates management design, build, finance and operate capability, exploiting industry standard solutions (IFS, Maximo, concept evolution) alongside experienced professionals. KBR utilises business analytics drawn from multiple service contracts to estimate tasks optimise workflows and transform delivery. Virtual, Augmented, Mixed and Reality (XR) Training Service

KBR has a global capability to deliver a proprietary Systems Approach to Training and Needs Analysis methodology that incorporates technology agnostic Augmented, Virtual and Mixed Reality solution outcomes exploiting DevOps methodologies in cloud environments to provide improved access and agility through life. Digital Forensics

Provision of Digital Forensic service for analysis of computers, mobile and other digital devices to Police and Security agencies. The service provided includes forensics analysis of: Cell-Site, Phone and Mobile Device, Chip-Off, Communication, Device and Data Attribution, Computers, Sat-Nav and GPS, CCTV, Digital Image, Facial Recognition, Audio, Game Console, etc.




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OUR SUPPORTING SERVICES

Project Controls

At KBR we believe that project control is an integral part of project management. It will provide our project management team with the information and tools to proactively manage the project towards achievement of the project objectives. The implementation of a robust project controls system will assist the project management team to deliver the project to budget within the agreed timescales.

In order to provide and maintain control across all aspects of the project, KBR will develop, implement and maintain an appropriate project controls system to integrate seamlessly with the overall programme and project management approach. The system will focus on the functions of:

1. Planning

2. Cost Control

3. Risk Management.

KBR will adopt KBR’s project controls system for G-Cloud due to KBR’s extensive experience in delivering large scale multi-disciplinary projects, including many delivered in the UK military context. These systems were originally developed in the Hydrocarbons industry but have now been enhanced and successfully implemented worldwide across such diverse industries as infrastructure, defence, logistics support, utilities and training. The benefit to G-Cloud is that these systems are ready to deploy, supported by the infrastructure, processes and procedures.

KBR will dedicate resources from the expertise available within KBR to ensure the project controls system is established, implemented and maintained to provide the project management team with appropriate information to ensure timely and robust project delivery.

Project Controls Overview and Strategy

The object of project controls is to provide the information necessary for the project team to successfully monitor the project, identify problem areas early, initiate corrective actions and capitalise on opportunities including schedule improvement and potential cost savings. While the project controls team has responsibility for the specific functions (Planning, Cost Control, Risk Management), the entire project team will play a key role in providing the necessary data input and working within the management controls set out in the project processes and procedures.

The goal of our project controls system will be to provide appropriate information to the project management team to allow clear, timely decision making, the result of which will be delivery of the project on time, to budget and to the required quality. More specifically, our project controls goals are:

1. Set up and maintain an effective project controls solution developing the project into a controllable state




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2. Ensure timely and accurate progress reporting thereby allowing control of the work

3. Capturing and analysing trends in cost and schedule forecasts

4. Provide meaningful reports, monitoring actual versus forecast schedules, progress and costs, to drive decision making

5. Provide a single source for all project cost and schedule information.

To achieve these goals, our strategy will be to:

1. Develop an effective work breakdown structure (WBS)

2. Ensure the early set-up of cost and schedule baselines

3. Adopt (or develop where necessary) clear and simple procedures and work methods

4. Provide experienced staff to all project controls roles.

The methods and systems proposed by KBR will meet all of the above goals and strategy.

Processes – Planning, Cost Control, Risk Management

The standard project controls procedures, on which all project procedures and work methods will be based are listed below:

1. Project controls input to project management plan

2. Develop work breakdown structure

3. Develop control budget

4. Prepare plans and schedules

5. Risk management

6. Manage contingency

7. Update schedules with actual progress

8. Manage the cost plan

9. Control project change

10. Prepare trends, analysis and forecasts.

Key to the project controls system meeting are the goals outlined in Section 1.2 above and will be the setting up of an effective WBS. The planning and cost specialists will work closely together to develop the WBS to ensure a common framework for the control and reporting of the project. They will work closely with all relevant project team members, including technical, procurement, commercial and project management, to ensure the WBS reflects the entire scope of work to a level which is suitable for the establishment of cost and




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schedule baselines and for the proper control of the project during execution. Our philosophy in preparing the WBS will be to create a structure that is functional, but at the same time flexible enough to accommodate adjustments that may be required.

The overarching reasons for creating a WBS and implementing it on G-Cloud projects are that:

1. It identifies the total scope of works

2. It facilitates the preparation of the ‘control budget’ from the estimate stage

3. It provides a core building block for network planning and scheduling

4. It allows a structured approach to reporting and provides cost and schedule related reports at selected levels of detail including the facility to ‘drill-down’.

The finalisation and agreement of the WBS will be one of the first activities undertaken by the project controls team. The WBS will be agreed with the project management team to ensure buy-in across the project.

Planning

During the bid phase of G-Cloud Projects we will prepare a detailed schedule for the project taking into account key Client milestones and all activities required to achieve them. The schedule has been developed taking into account information from key subject matter experts within the bid team, from the wider KBR Systems and key suppliers and subcontractors.

The schedule is fully integrated and logic-linked, essential for the on-going management of time driven activities throughout the life of the project. Great emphasis has been placed on the establishment of this schedule as it will provide the foundation for the success of the project. Different sections of the schedule are ‘owned’ by the relevant individual who is responsible for that section or phase of the work. The acceptance of ‘ownership’ is important for the future performance of the project. At contract award, this schedule will become the time baseline for the project.

The schedule has been prepared at various levels in accordance with the relevant procedure to ensure that reporting and control will be applied at the appropriate level to suit the differing needs throughout the organisation. The hierarchical manner of the schedule is shown in the following illustration (Figure 1).




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Figure 1 - Schedule Hierarchy

Project Milestone Schedule (effectively a Level 0 schedule) – a tabular list of key dates and high level summary bar-chart schedule that shows the total project on a single page.

Level 1 – a multi-page pictorial bar chart of activities and milestones that logically summarise the Level 2 Project Master Schedule.

Level 2 – the Project Master Schedule, which is a stand-alone Primavera P6 logic-linked network- based schedule, set up and maintained by our G-Cloud controls team that covers the overall activities of the scope of the project.

Level 3 – the schedules are detailed, integrated, resource-loaded, critical path schedules that encompass all aspects and phases of G-Cloud Projects. Interface points between the KBR schedules and those of our subcontractors will be controlled through the use of dedicated interface milestones.

Level 4 – detailed functional or subcontractor scope schedules dependent on the division / scope of work.

Level 5 – deliverables as defined for the progress systems and supporting databases.

The Project Master Schedule will be valid until such times as subcontracts or major procurement items are awarded for the relevant elements of the work. On award, detailed schedules from the subcontractors and suppliers will supersede the original schedule on approval by the project team. These will then be integrated into the revised master schedule while maintaining the baseline in order to report progress.




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Changes to the baseline will only occur if there is significant approved contractual change to ensure that progress can be accurately measured and reported.

In addition to progress measurement the schedule will be set up to allow schedule risk analysis to be regularly carried out. Three point estimates of remaining duration will be applied to discrete activities to allow the uncertainty to be modelled using Primavera Risk Analysis.

Cost Control

The principal focus of the cost control process will be to:

1. Ensure labour costs do not exceed budgets

2. Award the sub contracts within budgeted figures

3. Ensure best value for money from sub-contractors

4. Regularly predict the most accurate forecast of cost at completion

5. Control changes to the scope

6. Identify areas of uncertainty to feed into the risk management process.

The control of project costs is the responsibility of everyone, and we will ensure that costs are indeed ‘controlled’ and not merely ‘reported’. This philosophy will be driven down through all team members, suppliers and subcontractors.

This process will start by ensuring that budgets are identified and allocated to each work package or element. Labour budgets are controlled by manpower allocations and timesheet approvals. Subcontracts will be awarded within budgeted figures by negotiating with potential contractors and, where necessary, adjusting the specification.

The review of the cost control systems of potential subcontractors will be made as part of the bid evaluations to ensure that they are adequate and meet the needs of the project. Successful subcontractors will be required to monitor, control and report costs in accordance with formats pre-determined by our project management team. These reports will be required to be prepared and issued on a monthly basis. The project controls team will also be involved in certifying subcontractor’s invoices, confirming earned progress, making recommendations regarding progress payments and administering such payments.

Keeping control of, and minimising change is regarded as an important factor in the control of costs and strict adherence with the Change Control process will be essential. The control of change is one of the key factors to a successful project and we will ensure that all members of the project team are fully committed to following these processes.

The Change Control process covers two major functions:

1. The contractual registration and issue of documents approving payment for changes to contract scope




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2. To provide an “early warning” for the development of trends and other additional (or reduction in) costs caused by design development.

The second section is where the real ‘control’ lies. Each project team member has the opportunity to raise a PVN (potential variance notice), which is evaluated by the project controls group for cost and schedule impact. This initial evaluation is done at an order of magnitude level.

On a regular basis G-Cloud and KBR will review and agree which potential changes should be incorporated into the scope. Agreed changes will be broken down by WBS and incorporated into the cost control system.

One of the key tools for control of costs is in the Risk Management process and the proper control of Contingency sums.

The most important function of the cost specialist will be to prepare an accurate prediction of the final cost at completion. This process starts on day on’ of the project and is based on analyses and trending of all project costs and other factors which will have an impact on cost. During the CapCo phase of the project, the key will be to focus on the procurement activities to ensure that purchase orders are issued within budgets and controlled throughout the process. During the OpCo phase of the project, the major cost drivers of personnel, and spares and equipment will be the focus ensuring that costs are controlled within budgets.

Risk Management

KBR will implement a simple but robust risk management process illustrated in the figure below.

Figure 2 - Risk Management Process illustrating its continuous iterative nature




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The five key elements of the process are:

1. Strategise – development of the risk management strategy for the project is carried out at the bid stage and developed into a project risk management plan for the execution phase

2. Identify – identification of potential project risks will be carried out at bid stage to allow pre-contract mitigation and develop an appropriate contingency and the process will be revisited throughout the life of the project. KBR will involve key suppliers and subcontractors in the identification process and ownership of the risks will be determined and agreed

3. Assess – qualitative assessment of the identified risks will allow focus on those which could have a major impact of the success of the project. All risks will be assessed in terms of their likelihood and potential cost, schedule and performance impacts

4. Respond – responses to identified risks will be developed and included within the project execution plan. The qualitative assessments are likely to dictate the degree of response planned but responses will be considered for all risks

5. Monitor – monitoring of the risks will be carried out on a monthly basis focusing on risks which could impact current or near future activities.

In summary, we will adopt a proactive approach to risk identification and mitigation, with processes for managing risk at all levels through the supply chains using the following principles:

1. Risks are clearly identified as early as possible

2. Risks are actively discussed and managed

3. Risks are mitigated by all parties

4. Risks are borne by the contractual party best able to manage them.

Each risk will be reviewed monthly to:

Monitor implementation of mitigation actions

Review risks for continued relevance and accuracy

Highlight to management if the risk status increases.

Systems and Tools – Planning, Cost Control, Risk Management

The project controls systems will be implemented by KBR to assist our project team in making timely, fully informed decisions about the management of the project. The system will form a key part of sound project and programme management and will help the senior and project management teams by providing up to date information about budgets, activity durations, forecasts and uncertainties. Without the most up to date and accurate information, there is a risk that the project will go off track.




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Planning

The planning system will be centred around Primavera P6 Version 7, an up to date widely used planning tool for developing and managing project networks and bar chart schedules. Primavera Enterprise P6 is a single global client server based system accessible through the intranet from multiple office locations as well as through the internet allowing full flexibility.

Primavera P6 handles scheduling, resources and has the capability to manage ‘what if’ scenarios. Use of P6 as the primary planning and scheduling tool enables an integrated plan to be established using a single database without the need for interfaces between different types of planning software. Independent project plans can be established from multiple offices with each office centre linked into a single database with common code dictionaries allowing more accurate analysis and optimisation of the plan, thus ensuring confidence in achieving project targets.

Cost Control

The cost control system will be Cobra Web Pack. The Cobra Web Pack is an important feature of the cost control system which allows authorised users to access project information via a web browser. This is of particular use for multiple sites on GCLOUD projects as progress and cost information can be input directly through the web. This will allow speedy and accurate updates of project progress and cost information from subcontractors or members of the management and operations teams without necessarily having the specialised software installed.

Use of Cobra will allow the cost specialist to carry out earned value analysis for the benefit of the project management team. This will provide the project management team with continual progress updates on the state of the project allowing informed decisions regarding potential problems or opportunities.

Risk Management

The risk management system will be based around the risk register where details of the risks, the planned management control measures and assessments in terms of likelihood and impact will be recorded. The focus will be on recording and demonstrating progress on the management control measures, details of which will be recorded in the risk register.

To assist with the management of the project, we will carry out quantitative analysis on both cost and schedule. The analysis will be carried out using:

1. Primavera Risk Analysis – schedule risk analysis

2. Crystal Ball – cost risk analysis.

Primavera Risk Analysis is a network based risk analysis tool that aids problem anticipation, development of contingency plans and management of project risks based on schedule uncertainty rather than on single point estimates. It provides full integration with Primavera P6, including the capability to import Primavera P6 plans and to report the results of the risk analysis.




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Crystal Ball is a spreadsheet based risk analysis add-in to Microsoft Excel. A cost model is developed that incorporates the optimistic and pessimistic spreads as well as any discreet risk items that have been generated from the benchmarking and risk mapping activities.

Results from the schedule risk analysis are included in the Crystal Ball cost risk analysis model to ensure that schedule impacts are accounted for in the project control estimate and forecasts.

Once all the inputs to the cost model are defined, the models are executed to run for a number of iterations to ensure that a representative sampling of probable combinations. The results of this exercise are presented as ‘S’ curves depicting the sensitivity of the total cost estimate and or major scope element. The analysis generates results which indicate a confidence level in the current schedule, cost estimate and forecast.

In addition, 'Tornado' diagrams will be produced that show those areas of cost or schedule uncertainty to which the project is most sensitive. These reports will allow management to see the quantitative results in an easily understood graphical format. The ‘S’ curve enables management to match the project’s risks and opportunities with appropriate contingency allocations.

Reporting

The project controls system, through the work of the project controls professionals, will report to the project management team about the current and forecast state of the project. Information regarding cost and schedule will be compiled into concise, meaningful reports with a view to aiding management decision making. Cost information including actuals, commitments and forecasts will be used to compile the reports. Schedule information including progress, dependencies and logic will also be used to ensure the information is as up to date as possible.

The data will be consolidated and analysed, and formal written status reports will be prepared and issued to the project management team. In addition, it is important that discussions and formal meetings be held regarding overall project status.

Monthly Progress Report

A comprehensive monthly progress report will be prepared and submitted to the project management team. It is anticipated that the report will contain:

1. A summary statement on the project, highlighting problem areas and remedial actions required; achievements made during the month will be itemised and compared to plan

2. A statement on the status of procurement and sub contract awards, together with the planned award dates and any deviations to these dates

3. A statement on progress, citing achievements in the period, with an explanation of any deviations from the schedule, problems encountered and remedial actions

4. Graphical and tabular section containing:

5. Updated Project Master Schedule




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6. Progress ‘S’ curves depicting actual progress versus planned

7. Analysis of relevant key indicators

8. Summary cost report.

Detailed Monthly Cost Report

A comprehensive cost report, prepared in accordance with the project WBS, will be issued to the project management team covering the following:

1. Initial control estimate

2. Current control estimate

3. Commitments this period

4. Commitments to date

5. Expenditure to date compared to planned

6. Forecast at Completion and variance from Current Budget.

Roles and Responsibilities – Personnel

Project Planner - The project planner will report to the programme director and will be responsible for carrying out all planning and scheduling effort on the project. The responsibilities include:

1. Develop and maintain the schedule coding structure in line with the project WBS

2. Assure integrity of the schedule

3. Analysis of integrated schedule and critical path analysis

4. Coordination of monthly update cycle for schedule and progress

5. Review schedule and progress reporting and consolidation of project schedule reports

6. Support schedule risk analysis

7. Communication of project controls requirements including reporting, meetings, events, plans, procedures and systems.

Cost Specialist - The project cost specialist will report to the programme director and will be responsible for carrying out all cost control and forecasting effort on the project. The responsibilities include:

1. Develop and maintain the cost control coding structure in line with the project WBS

2. Assure integrity of cost data and forecasts




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3. Coordination of monthly update cycle for cost data and progress

4. Review cost forecast and progress reporting and consolidation of project cost reports

5. Support cost risk and uncertainty analysis

6. Manage interface with financial reporting


Risk Manager - -The risk manager will report to the programme director and will be responsible for carrying out all risk management effort on the project. Key responsibilities include:

1. Develop and maintain risk management policy and procedures

2. Develop and maintain a proactive risk culture across the project

3. Develop and maintain the risk register coordinating the efforts of risk champions and individual risk owners

4. Carry out probabilistic risk analysis (cost and schedule)


Parent Company Project Controls Support - Additional parent company project controls support will be available to the KBR team. KBR’s own project controls department is structured to provide such support and currently provides reach back to a number of similar projects. Support includes:

1. Day to day advice for project controls team

2. Project controls organisational capability through the selection of personnel and development of the team

3. Additional resourcing to cover planned and reactive tasks

4. Review of project controls data and reports

5. Ensure that project controls systems are deployed and maintained through the functional owners and their corporate system support teams.

Key Benefits

Implementation of a robust project controls system and tools across G-Cloud projects will allow GCLOUD Client team and KBR to understand and process cost and schedule information fundamental to the successful execution of the project or programme. The benefits of this approach will be:




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Implementation of an effective project controls solution develops the project or programme into a controllable state: By developing, implementing and maintaining an effective project controls solution we will ensure that the project management team has the information available to control the work.

Ensuring timely and accurate progress reporting thereby controlling the work: By ensuring that the project controls information we are providing to the project team is up to date and accurate and provided in a timely manner we will be ensuring that project decisions will be based on the best possible information. This will add control to the project allowing the management team to focus on real and current issues.

Forecasting trends in cost and schedule projections: Accurate and timely forecasting of both the schedule and the cost will provide the project management team with information regarding the performance of the project. Providing forecasted trends and analysis will ensure that they understand the drivers behind the forecasts allowing informed decision making with regard to problem areas or potential opportunities.

Provide meaningful reports monitoring actual versus forecast schedules, progress and costs to drive decision making: By providing meaningful reports with the correct level of information for different audiences we will ensure that we avoid the situations of either insufficient information or an overload of information. Providing the wrong level of information to the project management team could be as destructive as providing no information at all.

Provide a single source for all project cost and schedule information: The project controls system will be the single source of cost and schedule data on the project. The benefit of this is a higher degree of control for the project management team and increased accuracy of reporting.

Mobilisation

Introduction

We have extensive experience in mobilising new projects and programmes and we understand that this period lays the foundation for the delivery of a successful contract. The mobilisation period not only provides the essential opportunity to establish the full extent and nature of the ongoing commitment and responsibilities, but also enables us to impose our concepts regarding the management structure, resource levels, contract strategy and methods of operation.

KBR will ensure that appropriate and sufficient manpower, IT systems, infrastructure and equipment are introduced in a timely manner to ensure a successful mobilisation. We have considerable experience in responding to urgent needs and both in the commercial and military operational environments and, through sound management and fervent commitment, delivering proficient capability well ahead of schedule.

KBR’s approach to mobilisation is staged to ensure maximum certainty of meeting the timescales agreed with the customer. As well as resourcing, timing and milestone management, we have delivered services around country taxes, importation duty, logistics, laws and country registration as part of the project start up process.




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We will agree the key milestones for each of the above activities to be completed with the customer. Our experience in delivering similar contracts will ensure that milestones established and the associated resources assigned to meet them are both realistic and achievable.

Dedicated and Experienced Mobilisation Team

Over several mobilisation operations, KBR has developed a successful method of operating that includes setting up a mobilisation team dedicated to new contracts. A dedicated mobilisation team will be established for this contract to ensure that the transfer from one contract to the other is a seamless process with no impact on the service delivery. The team will work collaboratively with the customer to ensure that service delivery commences successfully on day one. This team will contain members of the bidding team to provide the continuity on knowledge and contain subject matter experts where necessary.

The team will be led by the project manager and consist of specialist staff from the operations department assigned to his team, including:

• Quality assurance manager

• Health & safety manager

• Commercial manager

• Procurement

• HR

• Logistics

In addition they will be able to call upon support from various support functions as and when required including planning and cost control.

Staff Mobilisation

KBR has experience of mobilising large volumes of staff

As a result, KBR has a well-honed process for recruiting personnel, completing security vetting, briefing, kitting and deploying them. Being a List X company, KBR is able to carry out its own Basic Checks and Counter-terrorist Checks for citizens of the UK, EU and the Commonwealth. It takes us an average of two weeks to complete recruitment and internal processing. Recent experience shows the overall process of engaging personnel into an overseas theatre of operations (interviews, reference checks, basic check documentation, acquisition of an MOD pass, medical examination, pre-deployment briefings and actual deployment) takes approximately 6-8 weeks.

Summary

KBR prides itself on mobilising complex projects on time. By commencing service delivery with a fully resourced team from day one creates a good impression with service users. Our




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experience shows that it is always easier to maintain a good reputation for service throughout a contract than to recover a bad reputation lost through a poor mobilisation.

KBR is confident that, with our structured mobilisation plan, a seamless and safe transfer of responsibilities will be achieved in the timeframes set. We have had unmatched experience in mobilising large scale management programmes to varied locations from UK based projects to austere environments such as Afghanistan. KBR has been in the MOD’s top 5 supplier list for the last three years. This is an accolade to our commitment to all our clients, our focus on delivery, and our ability to develop a collaborative culture that establishes long term efficiencies; key elements of our ethos which are necessary for a successful mobilisation.

Collaborative Working

Introduction

Proper and effective collaborative working can lead to significant benefit in outcome on any contract for all parties concerned. KBR has executed over £220billion (TIC) of complex projects and programmes in various forms of collaborative working relationships within the defence, technology, infrastructure and hydrocarbon industries. This experience allows us to bring to our customers all the best practice and lessons learnt to ensure that this contract gains from this knowledge, which should lead to benefit for the customer, the end users, KBR and our supply chain. We understands how to set up programmes and projects to deliver the benefits of collaborative working.

Our approach to collaborative working will make a difference to this contract by:

1. Focussing all parties on finding solutions to problems and issues rather than defending positions

2. Providing more effective management of risk

3. Creating a positive project environment, where all behaviours are aligned on a common vision, rather than opposed and defensive

4. Eliminating conflict and duplication of effort

5. Through transparency and accountability, the true performance of the contract can be visible to all

6. Engaging the supply chain with similar values.

KBR commitment

to collaborative

working is

demonstrated by

our culture and our

record of success

in executing similar

projects




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KBR History of Collaborative Working

KBR was one of the first companies in the UK to recognise, promote and undertake projects through formal partnering or alliancing contracts and less formal collaborative working, well before the recommendations of the Latham and Egan reports. Since our first involvement in a partnering approach with BP in 1988, partnering and alliancing has impacted our business more than any other initiative.

Culture

It is our belief and experience that collaborative working provides the best structure to achieve many contract based business objectives. Its motivating principle is to establish a sense of ownership by all the contracting parties and individuals involved in the programmes development and completion. By its nature collaborative working promotes a non-confrontational style of contract management.

Features of Collaborative Working

From our experience, collaborative working is a success when both parties have the right features to their approach. This is shown in Figure 1 below.

Figure 1 – Elements that make up successful Collaborative Working

The Four Worlds Model

KBR uses the principles of the ‘Four Worlds’ or Extraordinary Performance’ model to build successful collaborative relationships with our clients and suppliers. This model brings together ‘hard’ objective items along with ‘soft’ subjective items combined with the skills of the individual and the group (each organisation). The model is shown in Figure 2 below.

Figure 3 - Elements that make up Successful Collaborative Working

The key to all CW

whether

contractual,

formally or

informally, is in

setting and

maintaining the

right culture

between all parties




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Figure 2 – Four Worlds’ Model, used by KBR as the key to ensuring effective collaborative working

Collaborative working only achieves success when all four worlds are addressed. On award, the customer and KBR should work jointly on the ‘four worlds’ approach.

Selection of the team

The selection of the right team will have an impact on the outcome of ensuring that both the customer and KBR make the contract a success through collaborative working. KBR has a robust employment selection process that provides an employee workforce which is committed to delivery of service and meets our very high ethical values and standards. Our staff are employed against our set competencies and skills (Figure 3).

Scottish Water Solutions was a very successful

collaborative relationship between Scottish Water

and seven industry partners (including KBR)

which successfully delivered £3bn of projects for

£1.8bn

Figure 5 - KBR competencies are structured around collaborative behaviours




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Figure 3 – KBR competencies are structures built around collaborative behaviours

We recognise that not all staff are capable of working in collaborative relationships, we will therefore select our management team based on the following skills and attributes as well as the right technical and commercial skills and experience for the position (Figure 4).

Sharing Knowledge and Practices

KBR promotes the maximum distribution of shared knowledge that is a key feature in collaborative working. In order to engender team behaviours, KBR proposes:

1. Co-location of the customer, KBR and key supplier personnel to encourage discussion and facilitates positive interface. Ideally, we seek to operate in an open plan environment

2. An ‘open approach’ to information management through common systems, shared databases and common reporting systems based on universal access to appropriate information management tools

3. Lots of ‘Information on the Wall’ so there is common understanding of issues and visibility of progress / achievements

4. Project newsletters.

There can be no better groundwork for the rapid and equitable resolution of problems than a common understanding of issues and information. Clear and effective channels of communication are paramount in achieving this understanding.

Supply Chain - Selection

KBR employs competitive tendering to select its suppliers, pre-qualifying them against

technical and ethical criteria and all major suppliers are subject to exhaustive commercial

checks. This provides assurance of supplier competence. Project teams work with potential

Figure 6 - Management Team Skills and Attributes to ensure Successful Collaborative Working

Figure 4 – Management team skills and attributes to successful collaborative working




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suppliers to ascertain technical competence and softer issues. We always seek a

collaborative working relationship with our suppliers and sub-contractors irrespective of our

own contractual relationship with our client; selection is made through the criteria shown in

Figure 5 below.

Figure 5 – KBR Supplier Selection Assessment Standards

We also assess the following softer, more collaborative factors:

1. Factor X - Do we trust the supplier? Could the supplier become a long term partner to achieve success in a programme? Can we work together in an open and honest relationship with shared values and goals

2. Cultural Fit - Does the contractor fit into KBR’s culture or, where appropriate, can we fit into theirs? Without imposing the KBR culture we look for cultural and ethical fit and alignment

3. Ethics Policy - Does the supplier have an ethics policy? KBR has a strong ethics and anti fraud policy. KBR would look for a supplier to have an ethics policy whist being aware of their culture

4. Delivering Excellence - Does the supplier have the same vision of delivering excellence and are its values aligned with ours?

Supply Chain - Management

The KBR philosophy for managing our suppliers is to adopt a collaborative approach which is founded upon the precept that co-operation with our suppliers brings best results. The philosophy is based on a 'firm but fair' ethic but does not preclude appropriate robust conversations and negotiations where needed. In order to maximise supplier contribution, we:

1. Carry out procurement in an ethical fashion in accordance with established procedures

2. Foster non-adversarial relationships

3. Support suppliers in their efforts to deliver to our requirements




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4. Be prepared to give and to receive constructive feedback

Suppliers may where appropriate be directly assisted in their efforts to secure deliveries from their sub-contractors and suppliers in order to support the achievement of project objectives.

Summary of Benefits

In KBR’s experience Collaborative Working is by far the best way to achieve successful contractual outcome as it achieves the following:

1. Opportunity for outstanding project outcomes for both parties

2. Improved relationships

3. More effective management of risk

4. Commercial arrangement drives the right behaviours

5. Innovation is incentivised

6. Resources used more effectively

7. Increased job satisfaction - people are empowered

8. Learning can be applied to future projects

9. Focussing all parties on finding solutions to problems and issues rather than defending positions

10. Creating a positive project environment, where all behaviours are aligned on a common vision, rather than opposed and defensive

11. Eliminating conflict and duplication of effort

12. Through transparency and accountability the true performance of the contract can be visible to all

13. Engagement with the supply chain.

Risk Assessment and Management

Introduction

KBR has a first class risk management process which considers risk from the start through to the final completion.

The process ensures that we fully understand the entire programme and its associated risks at the outset. This creates a risk management mechanism which flows through from the start, becoming the responsibility of the project manager. Supply Chain Management

The processes and tools that KBR uses have been continually developed and enhanced through successful implementation on projects and programmes spanning diverse industries




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such as utilities, oil and gas, infrastructure and defence across the world. For example, as the Risk Manager for the Future Carrier Programme for the MOD, KBR achieved a risk maturity assessment level four rating. This was a considerable achievement considering the complexity of the project and the number of alliance partners involved and is an example of KBR’s commitment to driving a mature risk culture on its projects. KBR will apply its risk management process throughout this contract to minimise the risk exposure and assist with major decision making. As the service is delivered other risks will become apparent and some risks envisaged at the beginning will not materialise; as a result, we believe that a risk register is a life object that is an integral part of the entire contract delivery.

KBR Risk Management Process

The principal objective of the risk management process is to reduce the level of overall risk over time during the project. By applying robust risk management processes and tools across the entire service, including the client and subcontractors and suppliers, KBR will better enable risks to be identified, understood and managed. The benefits of this all-inclusive approach will be:

1. Better informed and more believable plans, schedules and budgets

2. Increased likelihood of the service adhering to its schedules and budgets

3. More meaningful assessment and management of contingency

4. Focused project management on the real and most important issues

Risk assessment and management will perform a pivotal role in the project management suite of processes and can be summarised by Figure 1 below and following key elements:

Figure 1 – Risk Process illustrating its continuous iterative nature

1. Identification - risks and opportunities will be identified and recorded through a single shared risk register (integrated with risk registers of client organisations, partners and the supply chain)

2. Assessment - risks will be assessed both in qualitative and quantitative terms to establish likelihood of occurrence and the impact should the risk occur. Assessment scoring criteria will be agreed within the SOCA project team and will include cost, schedule and performance




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3. Prioritisation – risks will be prioritised in terms of potential impact on the overall project, such that the most significant risks receive the appropriate level of management attention

4. Mitigation - prioritised risks will be reviewed to determine appropriate measures to mitigate or eliminate the risks:

a. Avoid – Cannot be accepted by the project

b. Accept – Contingency fund set aside

c. Reduce – Develop a plan to reduce probability and/or impact

d. Transfer – Transfer to another party better able to manage the risk

e. Share – Combination of reduce, transfer and share

5. Realisation – realise the benefit of any opportunity

6. Allocation – risks and their mitigation measures will be allocated to the parties best equipped to manage them effectively for the benefit of the project as a whole

7. Incorporation – mitigation and elimination measures will be costed and incorporated within the overall schedule of project activities

8. Fall Back Plans – fallback plans will be developed for significant residual risks.

Quality Assurance

Introduction

KBR is totally committed to the management of all aspects of its business to deliver solutions that are fit for purpose and provide customer satisfaction. We operate an integrated QHSE Management System, registered to ISO 9001:2008, 14001:2004, 44001;2017 and OHSAS 18001:2007 on all of our projects and will do so on this contract.

The benefit of the practical application of our management system is to provide clients with confidence that their requirements are understood and can be consistently achieved, or bettered, whatever the circumstances.

Registered to ISO 9001 since 1991 the management system demonstrates KBR’s continuing commitment to quality and continuous improvement. KBR’s management system includes procedures and controls evolved from many years of project management experience, and through implementing its integrated QHSE Management System on projects both in the UK and overseas.




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Our Quality Management System

Our system addresses quality management under four areas: project start up, the quality plan, project execution and continuous improvement. We have a suite of procedures to control the selection, appointment and management of sub-contractors and consultants to ensure the client’s requirements flow down to the appropriate level and that all organisations are aware of and can deliver their responsibilities. We have used these procedures to manage supply chains and subcontractors from the UK and overseas.

Project Start Up

KBR successfully delivers diverse and complex projects in many different and often demanding locations supporting various clients. We therefore appreciate the need to tailor our management system to the specific requirements of each contract, whilst maintaining best practice. The collaboration with our customers and KBR will allow the quality management system to meet their specific needs and also incorporate our particular areas of expertise.

Our project integration process and project start up procedure are part of the management system and ensure that we understand the requirements and that we build a management system to meet those requirements.

Continuous Improvement

KBR’s quality management system supports and encourages an approach for continual improvement by establishing the key goal of delivering and improving customer satisfaction and providing a framework of best practice procedures to deliver customer requirements. Our approach is shown in figure 1 below.




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The system forms the basis from which to audit, monitor and measure performance, analyse information and feedback from the client, lessons learnt and suggestions for improvements to implement actions that improves both the management system and project performance to the mutual benefit of our customer and KBR.

Figure 1 – Continuous Improvement Process

Business Continuity

KBR has developed detailed crisis management and business continuity plans to cover its global operations. This approach has also been adapted on specific projects for Clients where project specific operations have been established, and which represents a risk based approach to maintaining business critical operations.

KBR has the capability and the plans in place to maintain business continuity in the event of disaster or major disruption to goods or services at any premises where work is being carried out.

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