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Cameco Corporation cameco.com April 5, 2017 Kari Krueckl Lamont Procurement Standard Director, Procurement & Contracts

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Page 1: PowerPoint Presentation (Blank)saskmining.ca/ckfinder/userfiles/files/Kari Krueckl...for Supply of Goods –Term is multi year –All or part of the outline agreement maybe competitively

Cameco Corporation

cameco.com

April 5, 2017

Kari Krueckl Lamont

Procurement Standard

Director, Procurement & Contracts

Page 2: PowerPoint Presentation (Blank)saskmining.ca/ckfinder/userfiles/files/Kari Krueckl...for Supply of Goods –Term is multi year –All or part of the outline agreement maybe competitively

General

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– This presentation is meant to describe general procurement practices.

– There are statements through out the presentation that represent Cameco’s preferred

course of action. However, each purchasing scenario is treated in accordance to the

context of the purchase.

– Any figures, quantities, or percentages are meant to provide insight and are not

representative of actual data.

Page 3: PowerPoint Presentation (Blank)saskmining.ca/ckfinder/userfiles/files/Kari Krueckl...for Supply of Goods –Term is multi year –All or part of the outline agreement maybe competitively

Outline

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● Materials

– Low to high risk

● Services

– Low value operational services

– Small project operational services

– Project services

● Bid Evaluation Process

● Summary

Source: Arial bold, size 10

Page 4: PowerPoint Presentation (Blank)saskmining.ca/ckfinder/userfiles/files/Kari Krueckl...for Supply of Goods –Term is multi year –All or part of the outline agreement maybe competitively

Materials

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● Simple Materials – low risk and low value

– 50% to 60% are purchased on an outline agreement

Some outline agreements are governed by a Master Agreement

for Supply of Goods

– Term is multi year

– All or part of the outline agreement maybe competitively bid

for the category or subcategory

Outline agreements are renewed once a year after they are

cleansed

Page 5: PowerPoint Presentation (Blank)saskmining.ca/ckfinder/userfiles/files/Kari Krueckl...for Supply of Goods –Term is multi year –All or part of the outline agreement maybe competitively

Materials

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● Simple Materials – low risk and low value

– Items not on an outline agreement

Ideal state – single sourced to vendors that have outline

agreements or master agreements for supply of goods within the

category

Competitively bid to at least two vendors and potentially added to

an outline agreement

Single sourced to end user or SCM specialist selected vendor

Page 6: PowerPoint Presentation (Blank)saskmining.ca/ckfinder/userfiles/files/Kari Krueckl...for Supply of Goods –Term is multi year –All or part of the outline agreement maybe competitively

Materials

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● Simple Materials – low risk and low value

– Contract Documents

Purchase order terms and conditions

– Distributed once a year in Q1 and to new vendors

Master Agreement for supply of goods

– Escalation clauses

– Expire dates

– Includes Outline Agreement pricing

– Key Performance Indicators

Page 7: PowerPoint Presentation (Blank)saskmining.ca/ckfinder/userfiles/files/Kari Krueckl...for Supply of Goods –Term is multi year –All or part of the outline agreement maybe competitively

Materials

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● Materials – increased risk and

increased value

– May be purchased on an outline

agreement

– Competitive bid (informal RFQ/P

through email)

Scope of supply

Drawings

Informal bid evaluation

– Single source

– Purchase Order

Terms and Conditions

Page 8: PowerPoint Presentation (Blank)saskmining.ca/ckfinder/userfiles/files/Kari Krueckl...for Supply of Goods –Term is multi year –All or part of the outline agreement maybe competitively

Materials

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● Complex Materials – high risk and/or

high value

– Competitive bid (formal RFP)

Scope of supply

Drawings

Formal bid evaluation

– Single source with required

justification

– Product Purchase Sales Agreement

More robust Terms and Conditions

Transportation

Commissioning spares

Installations – site services

Page 9: PowerPoint Presentation (Blank)saskmining.ca/ckfinder/userfiles/files/Kari Krueckl...for Supply of Goods –Term is multi year –All or part of the outline agreement maybe competitively

Services

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● Lower risk operational services

– Competitive bid – currently no established preferred vendors for

disciplines

One-time site services (informal RFQ/P)

Annual site services requirements (informal RFQ/P)

– Informal bid evaluations

– Scope of work and purchase order Terms and Conditions

– May be single sourced

Page 10: PowerPoint Presentation (Blank)saskmining.ca/ckfinder/userfiles/files/Kari Krueckl...for Supply of Goods –Term is multi year –All or part of the outline agreement maybe competitively

Services

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● Small operational projects

– Competitive bid

Formal RFP

– Formal bid evaluations

– Contract Documentation

• Scope of work and Purchase Order Terms and

Conditions

• Short Form Construction Contract

• Consulting Services Agreement

– Single source justification is required

– Direct source with specialized vendors or preferred northern

contractors

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Services

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● Project Services or High Risk Services

– Competitive bid –

Formal RFP

– Formal bid evaluations

– Contract Documentation

• Standard Construction Contract

– Single source justification is required

– Direct source with specialized vendors or preferred northern

contractors

Page 12: PowerPoint Presentation (Blank)saskmining.ca/ckfinder/userfiles/files/Kari Krueckl...for Supply of Goods –Term is multi year –All or part of the outline agreement maybe competitively

Bid Evaluation Process

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● Informal Evaluation

– Established by the end user and customized to the purchase

– No formal documentation is required but recommended

● Formal Evaluation

– Key Award Criteria is established before bids are circulated

– Award Criteria includes mandatory fields

– Flexible to include project specific fields

– Weighting is determined by the project team

Not shared with vendors

Page 13: PowerPoint Presentation (Blank)saskmining.ca/ckfinder/userfiles/files/Kari Krueckl...for Supply of Goods –Term is multi year –All or part of the outline agreement maybe competitively

Summary

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● Materials

– Outline agreements with PO T&C (not countersigned - annual)

– Outline agreements with Master Agreements for Supply of Goods

(countersigned – OA annual, MASG multi-year)

– Product Purchase Sales agreement for one time purchase

(countersigned)

● Services

– Site Services Work Scope with PO T&C (not countersigned)

– Short Form Construction Contract (countersigned)

– Standard Construction Contract (countersigned)

– Consulting Agreement (countersigned)

Page 14: PowerPoint Presentation (Blank)saskmining.ca/ckfinder/userfiles/files/Kari Krueckl...for Supply of Goods –Term is multi year –All or part of the outline agreement maybe competitively

Questions

cameco.com