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RE Case Study
Introduction
RE Case Study
History
RE Case Study
History
RE Case Study
History
RE Case Study
Plan Features
Reliant Energy bidder selection and negotiation process differed from the
classical process in several ways:
RE Case Study
Bidder Qualification
Bidder Qualification
RE Case Study
Result:
RE Case Study
Bidder Selection
RE Case Study
Bidder Selection
Results:
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RE Case Study
Commercial Negotiations
The result was the contract covered only that part of the project where
the EMS vendor offered unique strengths.
Reliant Energy elected to furnish certain services and third-party
hardware and licenses in order to leverage RE strengths, reduce costs,
and increase project flexibility:
Oracle licensing through RE Corporate.
Direct IBM HW and SW acquisition through RE Corporate.
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Technical Negotiations
RE Case Study
Results:
Commercial
Project savings.
Improved project control.
RE Case Study
What Worked
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RE Case Study
What Worked
RE Case Study
Cost Savings
The Contract represents about 2/3s the total cost of the EMS. Reliant
Energy leveraged its strengths and expertise on the other 1/3 of the
project scope to participate in actual and potential savings of almost $1M.
13%
1.7
52%
1.5
23%
2.9
8.2
64%
3%
0.1
17%
0.5
28%
0.8
Siemens
Vendor
CS
RELabor
Labor
IBM HW&Lic.
Oracle Lic.
Travel & Train.
Taxes & Misc.
2. Enterprise licensing was used to save $400,000 in license fees for EMS clients.
3. Training will be conducted to the maximum extent in Houston to save travel and
other employee expenses.
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RE Case Study
Personnel
Total Project /
Systems Exp.
55
127 m/yrs.
38
58 m/yrs.
171
313 m/yrs.
_____
264
_______
498 m/yrs.
RE Case Study
Conclusions
Create a plan for bidder selection and negotiation process and stick
with it.
Take advantage of internal expertise.
Leverage corporate resources and services.
Establish a project contact point for communications.
Manage expectations.
The negotiating team must be on par with bidders team.
Must have reliable sources of bidder intelligence.
Have technical, project management, commercial, and legal
experts on the project team.
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RE Case Study
Conclusions
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RE Case Study
Lessons Learned
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