JLAB / SLAC – 4.5K Cold Box Schedule Review Directors Review Newport News, VA- November 16, 2016

Agenda Project Scope & Design Process PDR & Lessons Learned Post PDR & FDR Schedule Impacts Schedule update: Improvements & Alternatives Schedule Review Status update on procurement activities completed Current Schedule review Manufacturing Phase: Fabrication sequence Project Management: Looking Forward 7 November 2017 aB&T U.S.

Design – Scope & Process Scope of Supply: Vertical Cold Box Lower Cold Box Multiline cryo-duct Structures, Platforms 8 Brazed Aluminum Heat Exchanger Cores (BAHX) 43 Cryogenic control valves 3 Adsorber vessels 4 Air Liquide Turbo-Expanders Vacuum Enclosures Vacuum Pumping skids 2 sets: All equipment is custom designed for this project Design Process: JLAB Inputs Performance Req. Design & Mechanical Req. Ref P&IDs + 3D Arrangement AL Design Activities PHPK Design Activities JLAB PFD  Adapted to AL Process 8 Process Modes Developed BAHX: Design / Selection 3D Model - Preliminary P&IDs 3D Model - Detailed Seismic Input Report Equipment Specification Adsorbers Cryovalves, PSV, Filters… Mechanical Calculations Turbine Specifications FMEA and HAZOP Functional Analysis Electrical Diagrams Cryovalves selection Components selection 7 November 2017 aB&T U.S.

History PDR & Lessons Learned

Schedule : Contract Milestones History Milestones as per the Contract signature Contract Execution: ARO  Sep 02, 2015 PDR: ARO + 90 days  Dec 01, 2015 FDR: PDR + 4 Months  Apr 01 , 2016 CB1 @ SLAC: FDR + 13 months  May 01, 2017 Milestone Schedule revised: Agreement reached with JLab Jan 21, 2016 Milestone dates revised: Impact on PDR, FDR & Delivery date The revision due to: BAHX  Dual vs. single core, Additional process modes, Carnot efficiency calculation Amendment to Contract Milestone Schedule PDR:  Mar 10, 2016 FDR: PDR + 4 Months  Jul 11, 2016 CB1 @ SLAC: FDR + 14 Months  Sep 11, 2017 (4+ months slip) 7 November 2017 aB&T U.S.

Lessons Learned from PDR (Mar 10, 2016) PDR: a key deliverable: Preliminary 3D model review in order to validate the basic design required to order long lead items Contract Milestone: Long lead items to be ordered  PDR + 1 month Challenges meeting PDR requirements: PHPK requires 95% P&IDs and the completed BAHX design in order to start 3D Model The individual tasks, required flow of inputs and the validation process needed to complete the detailed design was not mapped out in the schedule The impact of the seismic analysis could not be accurately forecasted in the schedule until the design was matured All parties (JLab/AL/PHPK) are heavily involved throughout entire design process The re-iteration between stake-holders are done in series Focus on ongoing activities and meeting milestone deliverables, distracted AL from understanding true schedule impacts AL was not aware during the PDR time-frame the impact of the seismic validations on ordering the shell/head material 7 November 2017 aB&T U.S.

Time line @ PDR The prioritization of all task were milestone driven as seen at PDR At PDR the intention still was to finalize the detail design by FDR FDR : PDR + 4 months  Jul 11, 2016 7 November 2017 aB&T U.S.

Course corrections after PDR (1/2) Project Management improvements: Resources added: AL: 2nd PM, Full time scheduler, Full time document controller and Quality Manager PHPK: additional Engineering resources The time required for design re-iterations documented Action Item Tracker Spreadsheet Schedule updated MS Project schedule converted to Primavera P6 Scheduling logic was reviewed and improved (for manufacturing tasks) Detailed design tasks allow progress tracking After PDR focused on: Finalizing the P&IDs and developing the 3D model Preparing for the FDR (Contract deliverables) Ordering the long lead items (BAHX, Turbines, Cryo-valves, and CB Shell) 7 November 2017 aB&T U.S.

Course corrections after PDR (2/2) Challenges after PDR: Long Lead items : Cold box shell & heads couldn’t be ordered one month after PDR as required per contract due to: P&ID and BAHX finalization continued after PDR BAHX: Reiterations with BAHX manufacturer, PHPK & JLab took longer than anticipated HAZOP (JLab required) had to be completed prior to finalizing the P&IDs Design impact of seismic requirements underestimated due to: Not understanding the seismic design process and validations required to proceed to order long lead items Impacted the ordering of shell/head material (critical path items) Difficulty meeting seismic option 2 not anticipated 7 November 2017 aB&T U.S.

Post PDR & FDR Schedule Impacts History Post PDR & FDR Schedule Impacts

Schedule: June update Additional technical adjustments and status update showed the CB1 system  + 6 weeks delay from Sep 11, 2017 VCB Delivery  Sep 08, 2017 HCB Delivery  Nov 02, 2017 Main drivers for the delivery delays The design delays (BAHX and P&ID finalization) caused the delay in 3D model design and review The delay in 3D model review caused the delay starting the seismic analysis Seismic validation soon became critical path The seismic validation was still forecasted to take 6 weeks Validation process between JLab, AL & PHPK was happening in series vs. in parallel Amplifying delays by slowing collaboration process In June design teams focused on FDR deliverables FDR delayed from Jul 11, 2016  Sep 07, 2016 (attempt to deliver 92 documents) Prioritization of FDR deliverable to meet Milestones rather than critical path activities Eg: Preparing non critical documents such as Vacuum system design, Lifting plans, etc.. Diverted resources from 3d model design and seismic activities 7 November 2017 aB&T U.S.

Schedule update @ FDR (Sep 07, 2016) By FDR the Schedule had slipped an additional 6 weeks Schedule was update (in Aug) to reflect current activities The seismic analysis continues to be a critical path The results of the mechanical calculations were not meeting Seismic Option 2 requirements Design reiterations continue between PHPK and Hopper Eng. (PHPK California PE) The ordering of Shell/Head materials delayed (critical path item) The mechanical calculations were not mature enough for AL to approve the shell POs 7 November 2017 aB&T U.S.

Lessons Learned after FDR Expediting the seismic approval process Joint engineering discussion with all parties as required (AL/JLab/SLAC/PHPK) to expedite approvals & validations Seismic calculations released by PHPK reviewed in parallel by all parties Releasing the Final Seismic Analysis package in phases This process helps order the long lead items and not dependent on the entire final seismic analysis package Eg. The mechanical calculation inputs for the shell material validated by AL & JLab and risk evaluated. The process allowed AL to approve the POs for shell material based on a known risk profile Weekly AL/PHPK meeting to now include JLab key contributors To minimize time required for reiterations between all parties Weekly schedule status updates on all activities using a “4-Week Look Ahead” schedule The “4-week look ahead” to focus on the on-going task including critical task items A real time status update and ability to make “real time” course corrections PHPK currently is focused on finalizing the design in order to progress to the manufacturing phase 7 November 2017 aB&T U.S.

Improvements & Alternatives Schedule Update Improvements & Alternatives

Schedule improvements (1/2) Delivery Improvements: VCB Delivery @ FDR Oct 18, 2017  Today Forecast  Aug 21, 2017 HCB Delivery @ FDR Dec 12, 2017  Today Forecast  Nov 01, 2017 Revising the sequence of issuing manufacturing drawings to align with manufacturing priorities The Manufacturing activities that are not dependent on the final seismic package can start end of Nov 2016 Vertical cold box manufacturing start end of Nov due to VCB top-head material already ordered in Sep 2016 Resource loaded the manufacturing activities Shortened some activity durations based on adding more resources to the activity as necessary Piping manufacturing & installation: 12 weeks to 6 weeks Installation of vessels, adsorbers and internal frame: 12 weeks to 7 weeks Installation of BAHX: 12 weeks to 6 weeks 7 November 2017 aB&T U.S.

Schedule improvements (2/2) Re-sequenced the manufacturing activities based on the most recent design information Modified the logic to reflect the latest manufacturing priorities Eg: Shell and VCB top-head material ordered separately Added AL/JLab critical approval activities to complete final design Previous schedule didn’t have critical approval dates & durations 7 November 2017 aB&T U.S.

Schedule Alternatives Current schedule based On: 5 day work weeks (Holidays:1 week during Thanksgiving & 2 weeks during Christmas) VCB Delivery  Aug 21, 2017 HCB Delivery  Nov 01, 2017 Alternate Scenario 1: Increase work week from 5 days to 6 days (working Saturdays)  for the HCB activities only VCB Delivery  No Change HCB Delivery  Sep 28, 2017 Alternative Scenario 2: Increase work week from 5 days to 7 days (working weekends) during peak work periods for the HCB activities only HCB Delivery  Sep 05, 2017 Alternatives will be further considered as fabrication drawings are issued Will optimize resources required for each manufacturing task 7 November 2017 aB&T U.S.

Key Challenges & Risk No float in the current schedule Design delays are responsible for current negative float For each day added to our remaining critical design/review/approval activities, there’s a corresponding effect in our ability to maintain the final delivery date The AL cold box scope being impacted by outside influences Eg: Latest impact to schedule  the relocation of the stairs for the VCB Impact on seismic final package  +1 week (forecasted) Design needs to be completed and frozen Completing the seismic is the critical path to begin manufacturing Seismic final package delayed  Nov 28, 2016 + 1 Week (delay due to relocation of stairs) 7 November 2017 aB&T U.S.

Procurement Detailed Schedule review

Procurement Activities: Completed Long Lead items procurement BAHX PO issued  Apr 25, 2016 First batch arrived @ port  Nov 12, 2016 Turbine Status On-time delivery for assembly Cryo-valves PO issued  Jul 21, 2016 Status Manufacturing phase complete Jan 19, 2017 VCB top Head PO issued  Sep 22, 2016 Status  Delivery expected Nov 18, 2016 Shell material PO issued  Nov 01, 2016 Review the Schedule – (past completed activities) 7 November 2017 aB&T U.S.

Procurement Activities: Long Lead items

Schedule overview: Discussion on Schedule - Review the current schedule - 7 November 2017 aB&T U.S.

Manufacturing sequence overview Schedule Review Manufacturing sequence overview

VCB Vacuum Shell Upper Head Assembly 2103: Top Section Weldment: Adds -2104 and lifting lugs 7 November 2017 aB&T U.S.

VCB Assemble Vacuum Shell Upper Head Assy 2102: Top Section Weldment: Adds bayonets and valves 5220 thru -5246 internal spools Relief valves and external piping 7 November 2017

(ASME Coded Pressure Vessel) VCB Fab 80K Purifier 2400: 80K Purifier Final Assy brings in the following assemblies: 2401 Top Head Weldment • 2402 Top Head Hole Cutting • 2403 Top Head Detail • 2404 Bottom Head Weldment • 2405 Bottom Head Hole Cutting • 2406 Bottom Head Detail • 2407 Cylinder Weldment 2408 Cylinder Hole Cutting • 2409 Cylinder Detail • 2410 and -2411 Inlet Headers 7 November 2017 aB&T U.S.

VCB Fab Vacuum Shell Lower Shell 2201: Vacuum Shell Assy brings in the following assemblies: • 2202: Bot Cylinder W2 • 2205: Bot Shell Head W1 • 2208: Bot Shell Skirt • 2212: Skirt Base Ring • 2215: Manway Cover Assy • 2218: Davit Assy 7 November 2017 aB&T U.S.

(ASME Coded Pressure Vessel) VCB Fab LN2 HX 2500: Final Assy brings in the following assemblies: • 2501: Top Head Weldment • 2502: Top Head Hole Cutting • 2503: Top Head Detail • 2504: Bottom Head Weldment • 2505: Bottom Head Hole Cutting 2506: Bottom Head Detail • 2507: Cylinder Weldment • 2508: Cylinder Hole Cutting • 2509: Cylinder Detail • 2510: Saddle Assy Note: Wrap vessel OD with MLI per dwg instructions. 7 November 2017 aB&T U.S.

2301: Heat Exchanger Installation • 2302: HX-1A Assy VCB Install Heat Exchangers, Press. Vessels & Adsorbers, and Internal Frame 2300: Bottom Section Internal Piping Assy Brings in the following assemblies 2301: Heat Exchanger Installation • 2302: HX-1A Assy • 2303: HX-1B Assy • 2304: HX-2 Assy • 2307: Internal Frame Assy Note: The frame will be constructed from the bottom up as it is laying on its side for a horizontal build. More frame structure will be added as the heat exchangers and associated piping are added. 7 November 2017 aB&T U.S.

VCB Install piping Internal piping may be installed as space allows during the installation of other major components 7 November 2017 aB&T U.S.

VCB Final Assembly 2200: Bottom Vacuum Shell Installation Brings in the following assemblies: • 2300: Bottom Section Internal Piping • 2201: Bottom Vacuum Shell Assy 7 November 2017 aB&T U.S.

HCB Fab Vacuum Shell Upper Shell 3203: Top Vacuum Shell Hole Cutting Assy brings in the following assemblies: • 3204: Top Vacuum Cylinder Detail 7 November 2017 aB&T U.S.

HCB Fab Vacuum Shell Upper Shell Assy 3200: Top Vacuum Shell Weldment brings in the following assemblies: • 3201: Top Vacuum Shell Weldment • 3202: Top Vacuum Shell Weldment • 3203: Top Vacuum Shell Hole Cutting Assy Note: 1) This assembly includes the internal frame assembly 2) Install all valves and bayonets onto Top Vacuum Shell referencing 5032-SP-9017 Equipment List and any specific instructions as noted in the - 3200 dwg. 7 November 2017 aB&T U.S.

(ASME Coded Pressure Vessel) HCB Fab LHe Subcooler 3500: LHe Subcooler Final Assy brings in the following assemblies: • 3210: HX-SC Assy (Customer Supplied) • 3501: and -3504 LHe Subcooler Left and Right Head Weldment • 3507: LHe Subcooler Cylinder Weldment • 3520: LHe Subcooler Heater Assy Note: 1) Wrap vessel OD with MLI in accordance per the JLAB instruction JSC-7175-027. 2) Heater Assembly Installation must be witnessed by Engineering during installation. 7 November 2017 aB&T U.S.

(ASME Coded Pressure Vessel) HCB Fab 20K Purifier 3400: 20K Purifier Final Assy brings in the following assemblies: • 3401 and -3404: 20K Purifier Left and Right Head Weldments • 3401: 20K Purifier Cylinder Weldment • 3420 and -3421: 20K Purifier Lower and Upper Bed Supports • 3422: 20K Purifier Upper and Lower Filters • 3424: 20K Purifier Heater Installation Note: 1) Wrap vessel OD with MLI in accordance per the JLAB instruction JSC-7175-027. 2) Heater, Screen, and filter assemblies must be witnessed by Engineering during installation. 7 November 2017 aB&T U.S.

HCB Install Vessels & Adsorbers 3200: Top Vacuum Shell Weldment brings in the following assemblies: • 3201: Top Vacuum Shell Weldment • 3202: Top Vacuum Shell Weldment 7 November 2017 aB&T U.S.

HCB Install piping 3102: Top Section Internal Piping brings in the following assemblies: • 3200: Valve and Bayonet Install • 5300 thru -5377: Lower Cold Box Internal Pipe Spools 7 November 2017 aB&T U.S.

Fab Vacuum System 7000: Vacuum System Final Assy brings in the following assemblies: • 15-5032-7000 7 November 2017 aB&T U.S.

Moving Forward Project Management

Schedule Management Progress is tracked by our Earned Value Management System (EVMS) as physical progress is made and compared to early and late dates Site visits and reports containing photos are also part of our progress reporting verification Updates are completed weekly during joint AL/PHPK/JLAB calls using the “4 - week look ahead” This allows for making real-time course corrections rather than looking back and realizing too late there is a problem Key stakeholders are now a part of the schedule optimization process Forward looking optimization Evaluating local companies to hire a local inspector to follow up on manufacturing progress & quality on weekly basis “Real time” course corrections to preventing any manufacturing delays 7 November 2017 aB&T U.S.

Summary AL assumes full responsibility for the timely delivery of the cold box system and all contractual obligations AL & PHPK are committed & dedicated to continue finding schedule improvements to mitigate the schedule delay Expect more opportunities to be identified during manufacturing phase AL / PHPK / JLab will continue effective and transparent communication Address key issues upfront in a timely manner Highest priority for AL & PHPK is the completion of the Seismic calculations and finalizing the design Timely support to freeze the design & feedback from JLab/SLAC is critical 7 November 2017 aB&T U.S.

Thank You 7 November 2017 aB&T U.S.