Clients and Buyers

LCS consultancy services to international and state-owned companies who procure goods and services include:

support to achieve competitive advantage in the negotiation of Concession Agreements through the design of procurement and contracting strategies that build the international competitiveness and long-term sustainability of local industry;
formulation of pre-qualification questionnaires, and schedules and contract exhibits within bid packages/invitations to tender (and corresponding evaluation criteria), to ensure that lead contractors are able to meet Local Content obligations, manage Local Content risks and drive supplier competitiveness within contract execution.
bring considerations of Local Content risks and opportunities into value engineering and risk management processes, especially at Project options and feasibility stages.
specialist input into Contracting Strategy workshops to ensure professional consideration of how Local Content risks and opportunities can destroy or add commercial value
advice on optimum payment methods across contract components to best manage Local Content risks and realise improvements in local supplier capabilities and competitiveness
economic impact optimisation modelling to enable sensitivity analysis of different Local Content strategies on commercial value and social/Government benefits
Formulation of country or project-specific Local Content strategies, comprising:
- demand-supply analysis of forward spend and domestic supplier capability and competitiveness, to identify opportunities and risks in local sourcing;
- marked-to-market international benchmarking (on cost, schedule, quality) to drive competitive tendering;
- strategies for parallel and sequential learning and technology transfer on repeatable project designs, eg international/local JVs, license arrangements for OEM, local manufacturers moving up the value chain
- contract performance management (CPM) strategies for 1st tier contractors to develop the capabilities of lower tier suppliers and sub-contractors, eg framework contracts, liquidity support, quality plans, project controls, inspections, performance payments
- post-contract supplier marketing strategies, to assist high performing local suppliers to access synergistic domestic markets, and global supply chains
- dual purpose infrastructure, eg power, transportation
- formulation and monitoring or company-owned social investment strategies that build access for affected local communities to supply chain opportunities, eg through training, supplier development and business incubation
In response to UK Bribery Act (2010), design and application of risk and procurement based controls to identify and mitigate unethical behaviour in local supply chains

CASE NOTE from Liberia:
Optimising Local Content in Procurement
In July 2011 LCS was invited by National Oil Company of Liberia to run sensitivity analysis for different oil field discovery scenarios and determine what might constitute optimal local content. At this time Liberia had yet to make a discovery, but with finds in Sierra Leone and Ghana expectations were running high. The analysis demonstrated a need for procurement to balance the opportunities for local employment and enterprise development with the additional project costs and risk involved. Too much local content in procurement might hinder project delivery in an industry at a very early stage of evolution. Too little, and the imperative of creating jobs in a post-war economy might not be met. A procurement strategy focused on local fabrication and on-shore construction services was considered. View presentation.

Fabricated accommodation module for off-shore FPSO