Submarines-MOD environmental assurance case study


MOD environmental assurance

Client
MOD

Business Need
Sustainable procurement advice to ensure that the client's environmental objectives are incorporated into the process governing the privatisation of the service provision.

 

THE CHALLENGE

The MOD's 'Provision of Maritime Services' contract is a £1bn procurement strategy for the provision of maritime support services including the acquisition of a fleet of marine vessels, spanning a 15 year period.

Because this substantial privatisation contract meant outsourcing key marine operations, our client needed independent verification that their environmental requirements would be adequately covered, throughout the supply chain. To ensure they maintained their statutory environmental obligations, Frazer-Nash was asked to support the MOD before, during and after the bidding and contracting process.

OUR APPROACH

We identified the many diverse and complex environmental risks associated with this contract and discussed these with our client so they could fully understand their implications. For instance, because the legal status of the waste producer would change, statutory obligations are introduced that required recognition and appropriate management controls.

We inspected the operational facilities of each of the bidders and audited the environmental impact of their ashore facilities and operations, including: vessels, materials handling and storage and waste management. We also examined their environmental management controls including their environmental management policy, manuals, procedures and statutory records. We detailed our findings in a written report to our customer so he could address them.

When the preferred bidder was announced, we then conducted a comprehensive review of their proposed Environmental Management Plan (EMP). To ensure that our client's environmental requirements were covered, and that the through-life environmental impacts and risks would be managed effectively, we recommended a number of amendments to the preferred bidder's EMP. These included amending the structure, responsibilities, development and the outline of the ISO14001 system, and personnel training requirements. 

When the contract was finally awarded, we then developed and implemented an audit plan to ensure the environmental risks were appropriately controlled and that the supply chain environmental obligations were also being implemented. We have since undertaken a series of audits of the contractor's activities at various sites, highlighting significant risks for both the contractor and our customer, enabling them to be managed.

THE BENEFITS

As well as acting as advisor to the Defence Marine Services on a range of key environmental issues, our support has enabled the development of an outsourcing service contract that supports the delivery of our client's environmental procurement objectives. It also minimises the risk of environmental incidents and the subsequent negative publicity for both the MOD and the government's wider PFI strategy.