Supply Chain Opportunities Tom Cummings – Head of Commercial Operations

Commercial Function Commercial Mission Objective To enable our Customers & Clients to achieve their objectives through excellent commercial solutions that maximise value Objective Support accelerated hazard reduction by ensuring procurements are delivered to plan. Delivery value for money to the UK taxpayer. Have a Safe, Secure and Robust Supply Chain. Improve communication and engagement with our Supply Chain. 16 April 2017 2 2

Commercial Organisation Decommissioning – Ian Whitehouse Major Projects – Pete Caldow Infrastructure – Dave Magrath Functions & Operations – Dave Savage Collaborative Procurement – Dave Savage 16 April 2017 3 3

Supply Chain Successes Contractors LTA frequency rate 0.09 Supply Chain savings of over £64m delivered in 2012/13 Collaborative Procurement Savings Radiometric maintenance (Babcock/SL) recognised by WANO for high levels of performance Business Excellence Awards achieved by Mite, Guard force and MDSW suppliers for collaborative working 16 April 2017 4 4

Top 10 Suppliers in 2012 / 2013 in Alphabetical Order ACTiv Nuclear Axiom Balfour Beatty Capita Resourcing Carillion Construction CNC Costain Oil Gas & Process Doosan Power Systems NNL Nuvia 16 April 2017 5 5

Analysis of Supply Chain Spend By Category £979M 2011 /12

Collaborative Procurement – Performance Headlines Current forecast – deliver £70M savings against HMG Target to be delivered by end of March 13 Portfolio size now 74 Procurements totalling £2.47bn (estate wide and lifetime value) 17 new CP contracts placed (e.g. MRO, Caustic Soda, Independent Certification Services, IT Sourcing, Health Physics, Lease Cars, and 6 LLWR services contracts) Increasing use of GPS is reducing contract placing timescales £30m

Infrastructure Supply Chain Opportunities

Supply Chain Opportunities Site Security Enhancement Programme Scope Security Enhancements Programme (Portfolio of Projects from Fencing to Cyber Security) Duration and Value Programme Value ~ £600M Completion Date ~ 2019 Key Dates Projects Sanctioned by Sep 2013 Current Position Strategy and business case under development 16 April 2017 9 9

Supply Chain Opportunities Logistics Control Tower Scope To co-ordinate and integrate logistics (both supply chain and Sellafield) Duration and Value 4 year framework agreement Value - TBC Key Dates ITT issue – May 2013 Current Position Strategy and business case under development 16 April 2017 10 10

Operations Supply Chain Opportunities

Production Plants Programme Partner – 4P - Scope To provide an enhanced delivery capability to Asset Care Tasks and Projects within the Production Plants area of Sellafield. 4P will work in partnership with SL and the DSA to achieve this Key elements of scope include: Provision of Design (certain aspects), Procurement , Construction and Installation Capability Early engagement and input to work scope definition and solution development Improved integrated work planning and resource management Work range: Small tasks £100k or less Large tasks £100k - £3m Projects > £3m Most of the spend is in the large task area 16 April 2017 12 12

Production Plants Programme Partner – 4P Objectives Improve the level of Plant Risk Reduction per £ spent on projects and tasks Deliver more work for the same money through delivery efficiencies. (Subject to Site priorities) Maintain the Excellent Safety Performance Value ~ £50m per annum Duration Long term contract Currently developing underpinning information in support of our Business Case 16 April 2017 13 13

Production Plants Programme Partner – 4P – Key Dates Activity Indicative Date Market Engagement April/May 2013 Business Case Approved August 2013 PQQ Released September 2013 ITT Released December 2013 Preferred Bidder Announced October 2014 Contract Award December 2014 Currently undertaking Market Engagement with Client side organisations In the process of planning next phase of Market Engagement with Supply Chain to include SME’s Note: Dates are indicative 16 April 2017 14 14

Decommissioning Supply Chain Opportunities

Supply Chain Opportunities 3㎥ Stainless Steel Boxes Scope Stainless steel boxes for ILW retrievals - manufacture and volume production Duration and Value ~ 5 year duration ~ £100m over term Key Dates ITT - May 2013 Award - May 2014 Current Position PQQ ready for issue pending approval

Supply Chain Opportunities Decommissioning Partnership Scope Decommissioning programme management, construction and site works Duration and Value Up to 10 year duration ~ £700m over term Key Dates ITT Issue Date ~ Sept 2014 Contract award ~ April 2015 Current Position Acquisition strategy under development

Supply Chain Opportunities Manufacture and supply of MSSS Retrieval Machines Scope Manipulators, Gamma Gates, Vent System, Mobile Caves, Building Mods Duration and Value Duration 2013 -2019 Value ~ £200m Key Dates Manipulator - ITT issue – Q2 2013 Award - July 2014 Gamma gates – ITT issue Q2 2013 Award - July 2014 Current Position Strategy and business case under review by NDA

Supply Chain Opportunities New Packages (Flasks) Scope Manufacture of new packages Duration and Value Duration - TBA Value ~ £28m Key Dates PQQ – April 2013 Award - May 2014 Current Position Strategy and business case prepared

Major Projects Supply Chain Opportunities

Supply Chain Opportunities Sellafield Drypac Plant Scope Design Supply, Installation and Inactive Commissioning Duration and Value Circa 8 years ~ £1 Billion plus Key Dates Contract Award January 2014 Current Position Competitive Dialogue April 2013 16 April 2017 21 21

Supply Chain Opportunities Box Transfer Facility Scope Supply of Plant and Equipment, Installation and Commissioning Duration and Value Circa 4 years Target Cost Contract, £50 Million plus Key Dates Contract Award October 2013 Current Position PQQ Process nearing completion 16 April 2017 22 22

Supply Chain Opportunities Other opportunities MPDP Major Project delivery Partner – Strategy under development – £3.5 billion to £5.5 billion – over 15 years Box Encapsulation Plant Strategy under development - £100 million plus – circa 5 years duration BEPPS/DIF 16 April 2017 23 23