Sellafield Commercial Opportunities 2014 Presented by David Magrath and Rob Harries-Harris 12 June 2014

10 June Agenda  Introduction  Sellafield Strategy  Procurement Plan Overview  Key Procurements –Decommissioning –Major Projects –Operations –Collaborative –SME Opportunities  Wrap and Summary  Questions

Sellafield Strategy

10 June Overview of the Plan  Safety and Quality  Excellent Relationships – Collaboration/Partnering  Early Market Engagement  SME & Socioeconomics  Category Management  Logistics  Development of Capability and Capacity

Forecast Supply Chain Spend PP14 10 June 2015

Demand and Supply Constraints Source: NIA Supply Chain Capability Report Dec June 2015

Decommissioning at the Sellafield Site Legacy Ponds & Silos Remediation Portfolio Magnox Swarf Storage Silo Pile Fuel Storage Pond First Generation Magnox Storage Pond Pile Fuel Cladding Silo

Sellafield Site Decommissioning Strategy Decommissioning Strategy being developed to support these activities: –Aligned with Sellafield Limited strategy –Considers and drives integration more strongly –Develops a “decommissioning mindset” –Sustainable, balanced portfolio of work Decommissioning Mindset –“What would we do differently if we knew our hazardous facilities were certain to fail tomorrow?” –transition in working culture to become empowered to deliver bold, but simple solutions to specific issues and work in partnership to significantly accelerate high hazard reduction.

10 June Decommissioning Delivery Partnership (DDP) Update –Internal preparations of PQQ well advanced –Waiting on approval from ND –Estimated 30 th June 2014.Webinar: 1 st July 2014 Lot structure: Lot 1 – SR&DP, PFSP, PFCS & other sitewide demanders –3 - 5 awards –Collaborative Framework Lot 2 – FGMSP –1 award –Delivery Partner Lot 3 – MSSS –1 award –Delivery Partner June-14Mar-17Sep-14Nov-14Jul-15 PQQ ITT PQQ Assessed Contract Award Full Transition to DDP Mar-17 Expiration of MDSW IRP NDA Approval June-14April-14 Transition Plan & Initial Mobilisation We are here

10 Decommissioning - Sellafield Box Procurement Project (SBBP) Early engagement work – manufacturer visits, industry days Pre Qualification Questionnaire (PQQ) high number of responses received – short listed in line with Contract Notice range ITT issued 31 st Jan 14, responses received 22 nd April 14 Initial tender assessment complete, clarifications underway Practical assessment of tenderers capability commenced June 14 (Weld Test) Tender assessment to be concluded by the beginning of Aug 14 Contract placement on programme for Dec June 2015

Major Projects Box Encapsulation Plant (BEP) ScopeEPC (Engineering, Procurement, Construction of a Box Encapsulation plant Duration and Value£200 – 250m Key DatesPlan Award March 2015 – working to an accelerated programme Current PositionITT due for return in July 2014

Major Projects SIXEP Contingency Plant Site Ion Exchange Effluent Plan (SIXEP) –High volume, low-medium beta active effluent abatement service –Nearing end of design life –SIXEP Contingency Plant – mitigate risk of failure –Required to be operational by 2024 Early stage of project life ITT August 2016 (Current forecast) Contract Award March 2017 – EPC scope (Current forecast) Estimated £100M – £250M

10 June Operations Fellside Combined Heat and Power Plant ScopeFellside CHP Operations and Maintenance Duration and Value£ m Key DatesContract Award Nov 2015 Current PositionAcquisition Strategy being finalised

10 June Operations SSEP – Police Firing Range ScopeDesign and Build of a replacement police firing range Duration and Value£25-50m Key DatesContract Award November 2016 Current PositionAcquisition Strategy being finalised

10 June Operations/Projects Supply Agreement – Overhead Cranes ScopeDesign, Supply Install and Commission Overhead Cranes Duration and ValueFive years +£100m + Key DatesContract Award September 2015 – trying to accelerate Current PositionBusiness Case approval in July ITT

10 June Support/Collaborative Commercial and Project Controls Strategic Partner ScopeProvision of Commercial/QS and Programme Controls Services Duration and ValueTen years ~ £ m Key DatesContract Award June 2015 Current PositionITT in preparation

10 June Support/Collaborative Agency Supplied Workers ScopeProvision of Agency Supplied Workers (ASWs) across the NDA - skill range Admin to Technical Duration and ValueFive Years Up to £700m Key DatesContract Award October 2015 Current PositionEarly Market Engagement 19 June 2014

10 June Support/Collaborative Personal Protective Equipment ScopeSupply and delivery of Radiological and conventional PPE – NDA Estate Wide Duration and ValueFour Years ~ £10 -25m Key DatesContract Award August 2015 Current PositionStrategy to supply through UKSBS Agreement

10 June SME Target Opportunities

10 June Summary & Questions?