1 Strategy Development

Developing a strategy for procurement is the starting point for a successful process. This section describes the initial prerequisite conditions for such work, considerations for such a strategy, and its eventual outcome - a documented detailed strategy and implementing procedures.

Starting assumptions

This toolkit assumes that the Member State (MS) has been following the IAEA Milestones process in developing its nuclear power programme. The MS should be approaching the conclusion of milestone 2 (ready to invite bids for the first NPP), with any outstanding issues from the Phase 2 milestone process having been identified with their consequences for being outstanding mitigated. The MS should have a thorough understanding of the consequences of moving into procurement with outstanding infrastructure issues. This is especially true when it comes to an underdeveloped nuclear regulatory framework. If the regulatory framework is not sufficiently defined then the risk of project delays or other issues is increased. Detailed information on the IAEA Milestones process and infrastructure support can be found at this web site.

It is also specifically assumed that the eventual plant owner/operator, and an appropriate site, have both been identified and confirmed. A high level complete project governance framework/structure should be in place, and the future owner/operator should be staffed and fully prepared to carry out nuclear procurement functions. A detailed site evaluation has been completed to support stakeholder decisions and the budgetary approvals needed to proceed with the detailed nuclear power programme.

Links to project approval process

Projects typically are formally initiated through the assignment of a senior executive project sponsor and the drafting of a project charter. The project sponsor’s responsibilities typically include:

  • Providing clear direction for the project to the project manager and how it links with the organization’s strategic direction;
  • Securing project resources;
  • Ensuring the project is on time, on budget and on scope;
  • Providing feedback on project status reports and making sure that they reach the necessary stakeholders;
  • Championing the project at the executive level to secure buy-in, support, and alignment.

Project charters are typically approved by the project sponsor. They include a description of the business need the project will meet, a description of the final product resulting from the project, and the key objectives and goals of the project. Key assumptions, constraints, and/or target performance metrics for the project are often also included. In particular, any assumption or constraint affecting the project’s schedule, budget, or quality are listed.

Once approved for listing, projects and their related procurement processes typically have natural break points or “gates” that can form the framework of a typical governance framework. The gates are the review points for sign off and approval by the appropriate authorities to proceed to the next stage of the project. Some of these gates are:

  • At project initiation (approval of the planning and budgets to complete a feasibility study based on the project charter);
  • Approval of the feasibility study including planning and budgets for the next phase (i.e. initial opportunity assessment);
  • For approval of the procurement strategy including budgets (i.e. detailed project infrastructure ready and planning completed);
  • For approval of issuance of the request for tenders (detailed procurement planning including budgets completed);
  • Final approval for contract award;
  • At major implementation stages (where contracts are awarded in a phased manner).

Throughout this toolkit journey you will see reference to these sign off points at the relevant sections.

Tools

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