Production Plants Programme Partner (4P) Strategy Development Day 7 May 2013 NO MARKING REQUIRED

Welcome and Purpose Purpose of the Day: 1.To proactively engage with, and involve all areas of the Supply Chain to help shape the 4P strategy moving forward. 2.To listen to what the Supply Chain has to say, and give you a opportunity to contribute through interactive sessions. 3.To give an opportunity to various stakeholder groups to gain a better understanding of the 4P acquisition. What does a successful day look like? 1.Everyone has a chance to contribute during the day 2.It feels different to a standard industry day 3.We get information that is useful to the optioneering and selection of an appropriate commercial model 4.We all enjoy the day NO MARKING REQUIRED

Key Note Speech Simon Wittridge Head of Engineering and Project Delivery, Waste & Effluent Disposition (WED) NO MARKING REQUIRED

Simon Wittridge Vision: We jointly develop and implement innovative, cost effective and risk reducing solutions. Objectives: 1.Maintain excellent safety performance 2.Deliver more work for the same money through delivery efficiencies 3.Improve the level of risk reduction per £ spent on projects and tasks NO MARKING REQUIRED

Simon Wittridge 1.Maintain excellent safety performance Near Miss Catastrophe Fatality Serious Injury Minor Injury NO MARKING REQUIRED

Simon Wittridge 2.Deliver more work for the same money through delivery efficiencies £30m Stand Alone Contracts £20m Design £16m MDSW £4m SL £30m SL Projects & Asset Care - £100m/Year NO MARKING REQUIRED

Simon Wittridge 3.Improve the level of risk reduction per £ spent on projects and tasks Everyone delivering the portfolio as one team. NO MARKING REQUIRED

Simon Wittridge 1.Opportunity to improve but dont throw out what is good 2.A truly successful contract provides maximum profit with optimised customer outcomes – obvious – but not always the case 3.Attendance today is really appreciated to help us construct the right delivery model so that we might all be successful. NO MARKING REQUIRED

Scope NO MARKING REQUIRED

Scope Is 4P a contract or a concept? –Conceptually we want to deliver Asset Care work more efficiently than we currently do –…but you cant compete a concept At its simplest level The Production Plants Programme Partner will Work with SL and DSA to deliver Asset Care Tasks and Projects within Production Operations Areas NO MARKING REQUIRED

will Work Elements of work to be delivered comprise Schedule Integration and Master Planning. Task/Project Management and Project Controls Delivery Innovation Design for Manufacture capability Procurement of raw materials and P&E Blue collar delivery and management capability (See breakdown) NO MARKING REQUIRED

with SL and DSA to deliver LTPR Production Minor/ Straightforward Tasks Larger / more complex tasks Projects Front End/studies SL gated Process – IPG to DDG SL gated Process – DDG to Completion SLDSA4P NO MARKING REQUIRED

Asset Care Tasks and Projects Planned Maintenance Asset Care Tasks and Projects Major Projects Obsolescence/end of Life Replacement System Upgrades Minor Plant Enhancements and remedial work LTPR Implementation work Shutdown Planning Small number of Projects, large number of tasks Value range Few £k to £5m Large New Build Projects Via Major Projects Routine Maintenance by SL Resources Potential for overlap/use of SL craft resource when available NO MARKING REQUIRED

Asset Care Tasks and Projects £30m Stand Alone Contracts £20m Design £16m MDSW £4m SL £30m SL Projects & Asset Care - £100m/Year Engineering Services Max Scope of 4P NO MARKING REQUIRED

Asset Care Tasks and Projects Percentage Civil Engineering60 Electrical4 Instrument10 Mechanical Plant16 Pipe work5 Surveys1 Management6 Typical blue collar work breakdown. NO MARKING REQUIRED

Procurement Plan NO MARKING REQUIRED

Procurement Plan – Key Dates The project team is working to the key indicative dates below: Market Engagement ConductedApril / May 2013 Business Case ApprovedAugust 2013 Pre-Qualification Questionnaire ReleasedSeptember 2013 Invitation to Tender ReleasedDecember 2013 Preferred Bidder AnnouncementOctober 2014 Contract AwardDecember 2014 If you have any concerns with the dates for the competition please refer to these in your feedback form at the end of the day or speak to one of the project team. NO MARKING REQUIRED

Socio Economic and SME Agenda NO MARKING REQUIRED

John Sidney, Head of Supply Chain Strategy The Nuclear Family May 7, 2013 John Reynolds, Head of Strategic Communications NO MARKING REQUIRED

07 January Happy families … mutual dependency COMMERCIAL OPERATIONALSOCIAL e.g. Innovation via SMEs e.g. Infrastructure to deliver e.g. Environmental Stewardship NO MARKING REQUIRED

07 January NDAs SME National Action Plan …. Creating opportunities for us at a local level How do we ensure that SMEs can compete on a level playing field? Key drivers from Europe – Employability and SME development NO MARKING REQUIRED

Commercial Model Optioneering NO MARKING REQUIRED

Commercial Model Optioneering Some example pictures: SL T1 T2 T1 Partnership SL T2 T1 T1 Managing Agent SL T1 T2 Super Prime T2 SL T2 T3 Special Purpose Vehicle (SPV) Partnership SLSL T1T1 T1T1 T1T1 SL Integrated T1 = Direct subcontractor to Sellafield Ltd (SL), T2 = subcontractor to main T1 contracting entity or doer level of contractors in managing agent. NO MARKING REQUIRED

Commercial Model Optioneering What does your 4P look like?Key Attributes SL NO MARKING REQUIRED

Benefits, Cultural & Behavioural Change and Transition NO MARKING REQUIRED

Closing Speech Simon Wittridge Head of Engineering and Project Delivery, Waste & Effluent Disposition (WED) NO MARKING REQUIRED