ONSA Procurement Strategy

Summary

Deecon were engaged by BT Procurement to advise Openreach in developing and delivering the sourcing strategy and procurement for the Openreach Network Services Agreement (ONSA), a new framework contract for engineering field services. ONSA is the largest ever tender for engineering works in the UK telecommunications sector with a value of circa £3.5 billion from 2019 - 2024. This project achieved its savings target and secured a sustainable, highly skilled supply chain.

Situation & Approach

Deecon were engaged by BT Procurement to advise Openreach in developing and delivering the sourcing strategy and procurement for the Openreach Network Services Agreement (ONSA), a new framework contract for engineering field services. ONSA is the largest ever tender for engineering works in the UK telecommunications sector with a value of circa £3.5 billion from 2019 - 2024.

This contract implemented new work management processes, increased IT integration and streamlined commercial operations. It also introduced more stringent service level agreements for both Quality and Health & Safety. Deecon led the procurement process from initial strategy through to contract award. This successfully delivered an increase in delivery standards and Health & Safety requirements, and achieved targeted savings over the term of the framework agreement.

Deecon aim to deliver sustainable efficiencies for our clients. Throughout this tender process we identified unnecessary cost drivers, reviewed internal contracts and processes, and conducted independent collaborative dialogue sessions with tenderers. Each cost driver identified was assessed via a cost benefit analysis to quantify its value, allowing informed decisions by internal stakeholders.

Deecon built a bespoke pricing model that required tenderers to provide pricing for over 500 work activities and their associated overhead costs. We used Deecon Core, our proprietary data analysis software, to consolidate and compare all tenderers’ pricing and to produce unique negotiation strategies that were utilised in individual clarification sessions. During the project, Deecon Core analysed approximately 12 million data points to ensure that both unsustainably low and abnormally high prices were addressed with tenderers.

Results

Through collaboration and innovation this project ensured its savings target was achieved
Delivered a diversified supply chain securing highly skilled labour resources across the UK