1. Head of Supply Chain
Division
YVL and EPC Contract Requirements for RAOS Supply Chain in Hanhikivi 1 Project
Jari Lyytikäinen

2. 1. Overview 1 2 3 4 5 Supply Chain Structure
Requirements for Suppliers 3
Sub-Supplier Approval Process 4
Requirements for Testing Organizations 5
Possible Areas of Cooperation

3. RAOS Project Supply Chain Structure in First Tier2.
RAOS Project Supply Chain Structure in First Tier
Plant General Designer
Reactor Pressure Designer
Construction, Installation, BoP Equipment
Long Lead Equipment Supplier
Turbine Generator Set Supplier

4. Main requirements in Hanhikivi-1 Project3.
Main requirements in Hanhikivi-1 Project
Finnish law
NUCLEAR SAFETY
SAFETY CULTURE

5. Supply Chain as from YVL Guides4.
Supply Chain as from YVL Guides
Supply chain shall refer to all resources, processes and functions that are required to create products. These may include the design of the product, and the manufacture, assembly and delivery of material and components.
YVL E The approval of the manufacturer is based on information supplied and approved by the licensee and manufacturer audits carried out by STUK and the licensee. The audits are primarily directed at suppliers of pressure vessels and piping in safety classes 1 and 2 and are carried out prior to the approval process, as well as monitoring audits during the validity of the approval of the manufacturer.
626. The requirements for the selection of suppliers and the selection procedures shall be defined. These shall include the requirements pertaining to the supplier’s management system and its quality management.
627. Appropriate procedures shall be in place for supplier assessment and selection. Records shall be kept of the assessments. Prior to ordering a product, the supplier’s ability to deliver the product and the related documentation in compliance with the requirements shall be evaluated. Where necessary, a follow-up audit shall be used to ensure the supplier’s capability to deliver a product compliant with the requirements prior to the commencement of manufacturing.
Responsible for supervising all the suppliers in the supply chain. RAOS Project is incorporating the oversight rights of authorities into the supervision procedures.
The Supplier must ensure the effective management and qualification of its entire supply chain, as well as the required level of safety of the work performed. Subcontractors are responsible to the Supplier for the quality management of their Sub-Suppliers of a lower level from the beginning of the work.
The main document in the Supply Chain Management, RAOS Supply Chain Management Plan, FH1.B.R000.&.&&&&&&.&&&&&& E, (Documents are in RAOS Project database , IBM Notes, IMS-Integrated Management System , 4.2.2), outlines the principles of work with all lower tier suppliers and measures to be taken by the supplier to ensure effective Supply Chain Management and fulfillment of all the legal and contractual requirements.
It also gives a guideline for RAOS Project Oy responsibilities to the Owner as stated in the EPC Contract between Fennovoima and RAOS Project Oy, e.g. safety-related supplier approval, including design and manufacturing approval, inspection and testing organization approval and STUK approval process for safety-related suppliers.

6. YVL Guide requirements for Supply Chain5.
YVL Guide requirements for Supply Chain
YVL A.5#3.4 Management of suppliers and the supply chain
YVL A.5#342. General requirements for the management and control of suppliers and supply chains as well as purchases are given in section of Guide YVL A.3.
YVL A.3#629. Suppliers of safety-significant products shall have in place a management system that is appropriately certified or independently evaluated by a third party. In addition, the suppliers of products in safety class 1 and 2 shall comply with the management system requirements set forth in this guide. As necessary, the licensee may apply the procedure described in 630 with regard to suppliers that supply products related to structures or components in the safety class 2. The application of the procedure shall be justified.
Meaning:(Self-evaluation), Assessment of company’s integrated management system for compliance against YVL A.3 # 629/630 requirements, (NQA-1/ GS-R-3 (part 2)
RAOS Project Oy will be supervising fulfilment of this requirement by its sub-suppliers and that sub-suppliers at all tiers in SC1/CL2 are conducting their self-evaluations against YVL A.3 #629/630, prior to commencement of the manufacturing or other activities. (Assessment is to be checked by RAOS QA before sending to STUK via Fennovoima)
YVL A.5 #352. The supply control plan shall be maintained based on experiences gained on suppliers. (Fennovoima and STUK will audit for compliance with this requirement that shall be done prior to commencement of manufacturing).
RAOS SCMP: , The Supplier Specific Control Plan shall be documented by the Supplier, based on the form, which shall be agreed with the Owner.
The frequency of the sub-supplier assessment shall be based on the performance of the sub-supplier and shall be specified in the Supplier Specific Control Plan.
YVL A.5#353. STUK shall be reserved the opportunity to examine the supply control plans at the site.

7. Supply Chain Management Plan6.
Supply Chain Management Plan
SUB-SUPPLIER
IAEA №GS-R-3 Safety Requirements. The Management System for Facilities and Activities.

8. 7.
Process overview
EPC Contract
A.3,A.5 (E Series) Management System standards
EPC Contract,
YVL E Series
Requirement specifications
Technical standards ….
Requirements for management systems
Requirements for Product
Owner
Supplier
Subsupplier
Management System = MS
Management
responsibility
Resource
management
Measurement,
analysis and
improvement
Product realization
Product
Project-specific
Management System = PMS
Requirements for verification of Product
Requirements for verification of management systems
EPC Contract
A.3,A.5 (E Series)
- Inspection and approval (STUK, Owner, Supplier, Subsuppliers, internal, third party) of QMS/QP documentation
- Auditing (STUK, Owner, Suppliers, Subsuppliers, internal, third party)
- Reporting
EPC Contract,
YVL E Series - Inspection and approval (STUK, Owner, Supplier, Subsuppliers, internal, third party) of CP and other design outputs
- QC activities
- Inspectio/testing/approval (STUK, Owner, Supplier, Subsuppliers, internal, third party) activities of Products in different phases (manufacturing, civil works, installation commissioning)
Graded approach related to management systems covers these areas

9. 8. General ЕРС requirements to sub-suppliers General requirements
EPC Contract general requirement for sub-suppliers
General ЕРС requirements to sub-suppliers
General ЕРС requirements to sub-suppliers
The Supplier shall only engage Sub-Suppliers who are able to demonstrate safety experience and competence in their respective discipline.
Approval of the Safety-related Suppliers is necessary prior to being engaged for the performance of any works.
Free flow information exchange and open cooperation
Evaluation of Supplier
Technical capability and experience of the Supplier, including recent references of design and manufacturing according to Finnish and EU standards requirements
Quality management system including results of Supplier audits, ISO and OHSAS certificates as well as compliance with IAEA GS-R-3 requirements
For Suppliers executing works at the Project Site, occupational safety management system shall be also considered for evaluation

10. 9.
RAOS Project minimum requirements for sub-suppliers with safety classes in Hanhikivi-1 Project No
Subject
Quality Documents
Legal Documents
Supplement Documents 1
Safety Class 1
Graded approach A
ISO certificates
Quality assurance program
Quality manual
Safety culture program
NQA-1
QMS verification of conformity against GS-R-3 ( now part 2)
YVL A
- Extraction from USRLE
- Certificate of registration
- Certificate of Tax payer registration
- Chain of owners
- General director appointment Order
- Supplier Approval Form
- Contract
- Terms of reference
- References
- Organizational structure for FH1
- Annual report of the organization
- Balance sheet and income statement
- Facilities and equipment statement
- Company statements 2
Safety Class 2
Graded approach B 3
Safety Class 3
Graded approach C 4
Not safety-related
Graded approach D
- ISO certificates
- Contract Agreement

11. RAOS Project actions in respect to YVL Guide requirements
10.
Responsible for supervising all the suppliers in the supply chain. RAOS Project is incorporating the oversight rights of authorities into the supervision procedures.
Systematic procedures are in place for the purchasing of the nuclear facility and its systems, structures, components, supplies, and services to ensure the conformity and validity of the purchased products.
Procedures corresponds to IAEA №GS-R-3 Safety Requirements. The Management System for Facilities and Activities.
The Supplier must ensure the effective management and qualification of its entire supply chain, as well as the required level of safety of the work performed. Subcontractors are responsible to the Supplier for the quality management of their Sub-Suppliers of a lower level from the beginning of the work.
(Self-evaluation), Assessment of company’s integrated management system for compliance against YVL A.3 # 629/630 requirements; for SC 1 and SC 2 suppliers, the self-analysis shall be performed before the works are started.
Nuclear Safety Culture program shall be in place before the works are started.

12. Requirements for Supply Chain Management
11.
Requirements for Supply Chain Management
The aforementioned key requirements to the Supply Chain and its management are described in the YVL Guides, including, but not limited to:
A.3 (“Management system for a nuclear facility”)
A.4 (“Organization and personnel of a nuclear facility”)
A.5 (“Construction and commissioning of a nuclear facility”)
A.12 (“Information security management of a nuclear facility”)
All in Group B: “Plant and system design” (especially B.1 “Safety design of a nuclear power plant”)
All in Group E: “Structures and equipment of a nuclear facility”
According to Section 29(4) of Government Decree (717/2013) that is further emphasized in YVL-E , all the Parties throughout the Supply Chain participating in functions affecting safety shall adhere to the systematic management of safety and quality.
In the Hanhikivi 1 NPP Project, the main requirements are coming from STUK’s YVL guides.
Russian translations of the YVL Guides can be found in the official Rosatom procurement portal ( since this information shall be used by all Project participants at the engineering and procurement stages.
Law of Finland and Russia
EPC Contract requirements
Other authorization requirements in Russia and Finland.
RAOS SCMP requirements as shown in the table:

13. Main stages for a company to be selected as a supplier
12.
Main stages for a company to be selected as a supplier 1
To apply for a potential supplier during official procurement procedure 2
To be approved as a potential supplier 3
To advice the best proposal to the customer
Major goal of Rosatom procurement strategy is quality and transparency

14. The approval process overview
13.
Supplier
RAOS Project Oy
Fennovoima Oy
Procurement Plan
Assessment, submittal to the Owner
Tendering documentation
Assessment
Potential suppliers
Assessment
List of Potential suppliers
Assessment, submittal to the Owner
Tendering procedure
Assessment, additional info requests, approval, Submittal to the Owner
Assessment, additional information requests, approval
Supplier Approval form
Procedure according to Supply Chain Management Plan and EPC Contract, Chapter 17

15. RAOS Project Oy Sub-supplier approval
14.
According to Chapter 17 of the EPC Contract, all Major and Safety-related Sub-Suppliers (of any tier) should be approved by the Owner, and for Sub-Suppliers of certain equipment and services of the highest safety significance, as described in the YVL Guides (YVL-A ; YVL-E ) – by STUK, prior to being engaged for the performance of any Works.
These sub-suppliers shall be selected in accordance with the tendering and evaluation and selection procedures for the Hanhikivi-1 Project (see previous section). A contract with the winner shall be signed on condition of receiving the relevant approval. Same principle shall apply to sub-suppliers of any tier in case such an approval is required. The procurement and approval procedures for these sub-suppliers shall be formally approved by the Supplier and the Owner.
RAOS’s potential sub-suppliers list sent to Fennovoima under the EPC Contract shall be considered as a short list of potential sub-suppliers, but it is not an approval of any of potential sub-suppliers before the tendering process shows the winner.
In cases requiring STUK approval, the Owner shall bear the responsibility for submitting the necessary approval documents to STUK.
Every supplier has to be graded and approved prior to contracting

16. Sub-Supplier Pre-Selection
15.
Sub-Supplier Pre-Selection
PRE-SELECTION OF SUB-SUPPLIERS
In accordance with the EPC Contract requirements, bidders must pass a preliminary screening and qualification (including market research to compile Questionnaires evaluation to narrow it down to the proposed list) in order to be considered for a Purchase.
Before sending out any Request for Quotation (RFQ) to potential Safety Related and Major Sub-Suppliers, the Supplier shall provide the Owner with a list of the potential Sub-Suppliers, to which RFQs are planned to be sent (Potential suppliers list).
Additionally, the Owner has the right to review the RFQs and contract drafts to ensure their completeness against the YVL Guide and EPC Contract requirements.
Potential Sub-Suppliers for certain scopes of supply (of any tier) shall necessarily be included in the Potential suppliers list prior to tendering in accordance with the “List of Selected Sub-Suppliers” (EPC Appendix 8, Part 3).
The approved list shall be confirmed by the Owner to the Supplier via official document exchange system, specifying the scope of Works and names of potential Sub-Suppliers.
After the List agreed by the Owner, the Supplier may proceed with its Tendering procedure (ref. [32]) for the Lot (see next Section). Lower-tier Sub-Suppliers shall proceed with their procurement process after they receive a similar approval from the Supplier.

17. Sub-Supplier Approval Process
16.
Sub-Supplier Approval Process
PRE-SELECTION OF SUB-SUPPLIERS, process from RAOS SCMP:
In accordance with the EPC Contract requirements, Bidders must pass a preliminary screening and qualification (including market research to compile Questionnaires evaluation to narrow it down to the proposed list) in order to be considered for a Purchase Before sending out any Request for Quotation (RFQ) to potential Safety-Related and Major Sub-Suppliers, the Supplier shall provide the Owner with a list of the potential Sub-Suppliers, to which RFQs are planned to be sent (Potential suppliers list) Additionally, the Owner has the right to review the RFQs and contract drafts to ensure their completeness against the YVL Guide and EPC Contract requirements Potential Sub-Suppliers for certain scopes of supply (of any tier) shall necessarily be included in the Potential suppliers list prior to tendering in accordance with the “List of Selected Sub-Suppliers” (EPC Appendix 8, Part 3).

18. YVL Guide Requirements for Testing Organizations
17.
YVL Guides A.1, YVL E.1, YVL E.3, YVL E.5, YVL E.6, YVL E.8, YVL E.9, YVL E.10, YVL E.11 and YVL E.12 provide instructions and set requirements for the use of testing organizations and testers performing non-destructive testing and testing organizations performing destructive testing at nuclear facilities.
The requirements of Guide YVL A.3 “Management system for a nuclear facility” apply to testing organizations where applicable.
The testing organization shall have valid accreditation from the Finnish Accreditation Service (FINAS) or an equivalent foreign organization pursuant to standard SFS-EN ISO/IEC [ 7] or SFS-EN ISO/IEC [ 8]. An accreditation decision by an organization equivalent to FINAS may be approved if the accreditation in question is covered by the Multilateral Agreements (MLA) or Mutual Recognition Arrangements (MRA) signed by FINAS.
In safety classes 1 and 2, an accredited testing organization shall be a third party independent of the parties involved in the activities.
The testing organization shall have an advanced quality management system, competent and experienced personnel, as well as appropriately qualified methods, facilities and equipment for testing and operation.
STUK approves the testing organization per licensee and for a fixed period, which is five (5) years maximum. Valid accreditation and delivery of annual evaluation reports to STUK in a timely manner are prerequisites for the approval.

19. Scope of possible cooperation with third party organization
18.
Non-destructive testing (NDT) and destructive testing (DT) at nuclear facilities in order to verify the integrity of the components and structures of nuclear facilities in accordance with the requirements of safety classes 1, 2, and 3.
Non-destructive testing methods include
acoustic emission testing (AT),
eddy current testing (ET),
leak testing (LT),
magnetic particle testing (MT),
liquid penetrant testing (PT),
radiographic testing (RT),
ultrasonic testing (UT),
direct and indirect visual testing (VT), with the exception of a visual testing carried out during the application of another NDT method.
Inspections at all manufacturing facilities for SC1, SC2 and SC3 and PED for the piping.
Permanent third party representative at facilities; inspections and expediting service for the Long Lead Items (LLI).
Design review by third party, verification of the design solutions.
In-service organization with in-service inspections.