vendor engagement event 30th august 2017...permits vfm to be maintained through life of contract /...
TRANSCRIPT
Technology Services Procurement
Vendor Engagement Event
30th August 2017
Agenda
▪ Introductions from the Chair
▪ Alt HAN Company
▪ Scale of the Alt HAN ‘gap’
▪ Commercial Strategy
▪ Technology Services Procurement Process
▪ Break (30 min)
▪ Scope and Requirements
▪ Next Steps in Process
▪ Question and Answer Session
▪ Close
2Alt HAN Co.
Introduction
▪ Housekeeping
▪ Introduction of Presenters
▪ Alt HAN Co Overview – Colin Sausman (Alt Han Forum Chair)
▪ Scale of the Alt HAN ‘gap’ – Peter Morgan (BEIS)
▪ Commercial Strategy – Rod Glover (Alt HAN Co)
▪ Procurement Process – Christian Harris (Alt HAN Co)
▪ Scope and requirements – Ysanne Hills (Alt HAN Co)
▪ Objectives for the day
3Alt HAN Co.
Key Objectives for Today
▪ Explain the commercial opportunity.
▪ Explain the proposed commercial approach, in particularly:
▪ Key principles;
▪ Procurement Process and timescales; and
▪ Scope of services.
▪ Encourage vendor participation in the forthcoming competition.
▪ Seek feedback on the approach from potential vendors.
▪ Please complete and submit the feedback form at the end of the day.
▪ Option to request a 1-2-1 for focussed discussion.
4Alt HAN Co.
Vendor Engagement Event
Alt HAN Company Overview & Context
5Alt HAN Co.
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.
Alt HAN Co. 6
7
Limitations of Standard HAN Architecture and the Alt HAN ‘gap’
Alt HAN Co.
Alternative HAN – Reminder of the Problem
EM-CH
IHD
?
GM?
IHD
EM-CH
?
GM?
IHD
EM-CH
?
GM?
• HAN range extension becomes a much more serious issue when Smart Meters are not located in or near the customer’s premise.
8Alt HAN Co.
Alt HAN Contractual Relationships
Alt HAN Co. 9
Alt HAN Co
Business Support Function
Service Management
Function
Technology Services
Data Management Building Evaluation
Alt HAN Board
Contract ManagementEnergy
Suppliers
Operational Services
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 now established and operating independently, with Management provided by
Engage Consulting, Business Support provided by Gemserv, Project Support provided by
Baringa and Strategic Commercial Oversight by PA Consulting.
▪ Alt HAN Co is funded by energy suppliers via the DCC charging mechanism.
Alt HAN Co. 11
Sources:
1. https://www.gov.uk/government/consultations/consultation-on-home-area-network-solutions
Vendor Engagement Event
Scale of the Alt HAN ‘gap’
12Alt HAN Co.
Alt HAN ‘gap’ – DBCH Performance Dependency
▪ Overall Alt HAN challenge is to fill the gap left by Standard HAN (i.e. 2.4GHz and Sub GHz).
▪ Standard HAN coverage from Ofcom Study = 96.5% of GB premises.
▪ Recent information from a DCC trial to determine Sub GHz HAN performance of the current prototype designs of dual band communications hubs (DBCH) indicates around 90% coverage of GB premises.
▪ Vendors should not draw any conclusions from this on the basis that:
▪ The DBCH units tested are at the prototype stage;
▪ The process of determining final DBCH propagation performance is not yet complete;
▪ There is a commitment to optimise DBCH propagation performance to nearer the 96.5% estimate within the R2 plan timescales; and
▪ BEIS understands that further work to gain certainty on the dependent Alt HAN market size will move forward in parallel to the procurement process thus supporting commercial certainty.
▪ It should be acknowledged by vendors that on basis of the information noted above that the overall Alt HAN market may increase.
Alt HAN Co. 13
Vendor Engagement Event
Commercial Strategy
Alt HAN Co. 14
Background: Drivers Of Commercial Strategy
▪ Smart metering obligations that energy suppliers need to meet
▪ Relevant technology market as revealed by previous market engagement
▪ Addressing the uncertainties currently inherent in meeting the requirements
▪ Achieving an appropriate balance of risk and reward
These considerations translate into criteria representing Critical Success
Factors for Alt HAN Co…
15Alt HAN Co.
Critical Success Factors for Commercial Strategy
1. Maximises coverage
2. Generates an outcome consistent with regulatory framework
3. Delivers in a timely manner
4. Generates consistent and quality consumer experience
5. Is economically efficient
6. Generates acceptable whole-life costs
7. Generates effective competitive pressure in procurement
8. Generates solutions that meet the requirements
9. Permits VFM to be maintained through life of contract / contract operation
10.Delivers a solution that is manageable in operation
16Alt HAN Co.
▪ The commercial approach recognises and seeks to balance:
▪ The potential advantages and benefits of having vendor continuity across this scope
▪ The commercial risks of locking in to a particular vendor at this point, with the current uncertainties over technology maturity levels and development effort required, volumes of use cases/units that need to be manufactured, and the details of operational arrangements for service management
Scope of Services Covered by the Commercial Strategy
17Alt HAN Co.
Stage 0: Vendor Engagement
Stage 1: Selection including Initial Design 2A: Detailed Design
Alt HAN Solutions & Services – Full Roll Out Stage 4: Installation
Alt HAN Full Roll
Out
Stage 3: Manufacture
Stage 4: Installation & Support 2B: Design Assurance &
Prototype
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
Pro
cu
rem
en
t
Sta
ge
s
Pro
ce
ss
Sta
ge
s
Stage 2
Illustrative Overview of the Commercial Strategy
18Alt HAN Co.
Funded
prototype
& trials
(paid
deliverables)
Funded design
development
(paid
deliverable)
Increasing certainty
Mix of simpler
'plug & play' and
more
complex shared
HANs
NB: The anticipated number of vendors within the competitive process may vary.
Commercial Principles Underpinning the Commercial
Strategy
Key theme: partnership working and funding for development
Combined with 'typical' aspects:
▪ Appropriate pricing and payment mechanisms at each stage.
▪ Incentives for delivery and for co-operation with Alt HAN Co.
▪ Retaining competitive pressure to ensure ongoing VfM.
▪ Providing for robustness in delivery.
▪ Appropriate treatment of assets and Intellectual Property.
19Alt HAN Co.
Summary of Commercial Opportunity
Alt HAN technology services development partnership:
▪ A significant opportunity with scope for funded development.
▪ A collaborative journey as technology brought to maturity.
▪ A step-by-step progression as information becomes more certain.
▪ An element of competitive pressure is retained to test for VfM.
▪ Desired outcome is vendor success in providing full scope.
20Alt HAN Co.
Vendor Engagement Event
Procurement Process
21Alt HAN Co.
Procurement Principles
▪ Transparency and Good Practice, but procurement is not
subject to OJEU.
▪ Contract award based on Most Economic Advantageous
Tender.
▪ Ongoing Value for Money is a critical requirement.
▪ ITT to test competency against the full scope of services.
▪ Selection Questionnaire to assess corporate capability.
22Alt HAN Co.
Procurement Process & Stage Gate Process
23Alt HAN Co.
Stage 0: Vendor Engagement
Stage 1: Selection including Initial Design 2A: Detailed Design
Alt HAN Solutions & Services – Full Roll Out Stage 4: Installation
Alt HAN Full Roll
Out
Stage 3: Manufacture
Stage 4: Installation & Support 2B: Design Assurance &
Prototype
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
Pro
cu
rem
en
t
Sta
ge
s
Pro
ce
ss
Sta
ge
s
Stage 2
NB: The anticipated number of vendors within the competitive process may vary.
Procurement Process:
Selection and Initial Design
24Alt HAN Co.
End-to-End Indicative Timescales
Alt HAN Co. 25
Procurement Timescales
▪ Issue of ITT
▪ Submission of Proposals
▪ Presentations/Site Visits
▪ Contract Award
25 October 2017
12 December 2017
Est. January 2018
Est. April 2018
26Alt HAN Co.
Vendor Engagement Event
Break 15:00 – 15:30
27Alt HAN Co.
Vendor Engagement Event
Scope and Requirements
28Alt HAN Co.
Solution Principles
Alt HAN Co. 29
1. Minimise customer inconvenience, protecting and maintaining the reputation of SMIP
e.g. First time install
2. Provide an equivalent service for Alt HAN customers when compared to a standard
Comms Hub
We contracted externally for a research piece earlier this year to further assess the technology scope and
more detailed information on this will be made available in the ITT.
Examples of high level Alt HAN requirements include:
✓ Must interface with existing GB smart metering devices, without needing to change hardware or
software
✓ Must operate robustly when exposed to interference from other equipment
✓ Should support the average data rates
Use Case Example 1 – Remote IHD in a Large Single
Premise
Alt HAN Co. 30
▪ The IHD may be located in the main living area of the house whereas the electricity and gas meters may be further away in theGarage
▪ This scenario is also applicable for other Consumer Access Devices (CADs) which may be remotely located
A single premise where the IHD only is remote from the electricity meter
Example topology:
IHD
Outbuilding e.g. Garage
The Comms Hub, Electricity meter and Gas
meter are located together in the Garage
Comms hub
Electricity
meter2.4GHz
ZigBee
HAN
WAN
Gas meter
House
The In-Home Display (IHD) is in the house,
far away from the Comms Hub and needs to
be connected
The Alt HAN solution is required to bridge
the comms gap between the IHD with the
comms hub
2
3
1
Key ZigBee End Device ZigBee Network CoordinatorBridge required
Detailed Use Case Mapping
Alt HAN Co. 31
Premise
There are 28 potential use cases
in total – 8 high level ones
High level use case
Detailed use case1
Key
IHD – In-Home Display
MDU – Multi Dwelling Unit
Use Case Example 2 – Remote Gas & IHD in an MDU
Alt HAN Co. 32
▪ Electricity meters are all located in a meter room on the ground floor
▪ As such the 5 gas meters are all varying distances from the Comms Hubs and may require different solution types
A multi dwelling unit (MDU) premise where the gas meter and the IHD are remote from the electricity meter
For simplicity, assume each floor represents one apartment/
premise. Gas meters are located within each premise
Apartment
Building
The apartments on the ground floor and 1st floor are in close range
of the Comms Hubs and so are likely to be able to function on the
Standard HAN
As the distance from the comms hubs increases, as does the
likelihood of requiring the 868MHz then Alt HAN solutions. As we do
not know the confirmed range of the 868Mhz solution, premises on
the 3 & 4th floors are considered Alt HAN candidate premises
Electricity
Meter roomCH 2
Elec M 2
Standard HAN
candidate premises
868MHz solution
candidate
premises
Alt HAN solution
candidate
premises
Gas meter
+
+IHD
WAN
Key ZigBee End Device ZigBee Network CoordinatorBridge required
} Candidates for both the 868
and Alt HAN solutions
Increasing
distance
from the
Comms
Hubs e.g.
2m per floor
Premise
Horizontal dimension
e.g. 8m
Example topology:
1
2
3
CH 1
Elec M 1
CH 3
Elec M 3
CH 4
Elec M 4
CH 5
Elec M 5
Technical ITT Requirements
Alt HAN Co. 33
Summary of the requirements categories used for the ITT (within two high level categories):
Health & Safety
Environment
Durability*
Performance
Requirements
Design
Requirements
Technical & Quality
Assurance
Security
Legislation &
Standards
Product Requirements
* New categories added in since the 2016 RFI
Tech &
installation
support
Maintenance &
Solution support
Packaging &
logistics
Operational Requirements
General use
solution
support*
Stage 2A
Stage 3
Stage 2B
Design Process Requirements*
Stage 4
Solution Design Process
Alt HAN Co. 34
▪ The following steps outline the high level four-stage design process, also including the requirements from the vendor in order to ensure that the selected solution is able to provide an enduring capability and meets the required performance specifications
Initial Design Detailed DesignDesign Assurance &
Prototyping
Clarify solution design, undergo due diligence and enter contract for detailed design stage
Confirm detailed design information of the full solution lifecycle to proceed to trialling
Development of the solution prototype and testing to
validate that the requirements are satisfied before securing the manufacturing contract
Manufacture &
Implementation
Large scale manufacturing and rollout of the solution to design, installation and support
1 2 3 4
▪ Planning: including design development stages, activities, responsibilities for design, review and validation techniques
▪ Design and development process inputs: Functional, regulatory etc.
▪ Design Outputs: Solution description, design assumptions, requirements
▪ Design outputs: clear technology description with detailed design information e.g. commissioning and operation
▪ Design review: evidence of the review process, to confirm conformance with the requirements
▪ Design Verification: Evidence of QA, manufacturing capability & resourcing
▪ Design validation: testing and trialling to validate meeting the requirements
▪ Change process: demonstration of the design and development change process
▪ Solution manufacture: Build equipment as specified, QA testing of the technology
▪ Installation: Completed, scaled production of the solution
▪ We have created an End to End Design Blueprint, this version of the Level Zero Process has been amended to highlight the stages where we expect the vendor solution will impact the design, in green
Integration into the wider Alt HAN Co Design
Alt HAN Co. 35
1. A high level solution design specification that meets our requirements
4. A detailed understanding of the technical costs for detailed design and a high level understanding of
the likely costs beyond this
5. An early view of the likely interfaces between the chosen Technology vendor and Operational
Services
6. An understanding of how you propose to work with us and the make up of your team
7. Your view of the key risks and dependencies and how to manage these
2. A clear and thorough view of your plan for delivering a suitable detailed design
3. An overview level approach for how you will deliver prototyping, support trials and conduct
manufacturing/implementation
Design Perspective – what are we looking for
36Alt HAN Co.
Vendor Engagement Event
Next Steps
37Alt HAN Co.
▪ Please complete and hand-in feedback questionnaire.
▪ Vendor 1:1s are available on 5 and 6 September 2017.
▪ Requests for a 1:1 to be made via feedback questionnaire.
▪ Alt HAN Co expect to issue Technology ITT Procurement on or
about the 25th of October 2017.
▪ Regular updates will be provided.
▪ Procurement Contact: [email protected]
Next Steps
38Alt HAN Co.
Vendor Engagement Event
Questions & Answers
39Alt HAN Co.
Vendor Engagement Event
Close
40Alt HAN Co.