1. 4th Quarter Contractor Business Meeting November 4, 2011 Mike Kehoe Plant Engineering Facilities Session

2. Agenda –Contract Documents –Contract Terms and Conditions –Contractor On-Site Staffing –EM 1000, Environmental Controls Manual – Mark Sink –Working Within Equipment Swing Radius – Ed Binder –Contractor Crane Operations – Phil Gross –Contractor Quality Control 2

3. Contract Documents 3 Be familiar with all of the documents that make up the contract. Be familiar with the terms and conditions of the contract. Perform in accordance with the contract documents. Provide appropriate contract documents to site personnel.

4. Contract Terms and Conditions –Purchase Order –Outline Agreement –Appendix A – Construction terms and conditions –or Appendix A - Commercial terms and conditions –Special Conditions of the Contract for Construction Projects (Modifications to the General Conditions) –Handbook for new employees, contractors & visitors –DOD contract terms and conditions –Contractor’s EH&S Resource Manual –Specifications –Drawings –Code compliance 4

5. Contractor On – Site Staffing Appendix A – Construction Paragraph 24 states: –The Contractor shall provide superintendence of the Work and have a Superintendent satisfactory to the Owner on the work site at all times during progress of the Work. –The Superintendent shall efficiently supervise the Work until its completion. – The Superintendent shall have full authority to act on behalf of the Contractor, and all instruction given by the Owner to the Superintendent shall be considered as given to the Contractor. – Its shall be the responsibility of this Contractor’s Superintendent to coordinate the Work of its Subcontractors. 5

6. EM 1000, Environmental Controls Manual 6 HOW TO MANAGE RECYCLABLE MATERIALS AND OTHER WASTES AT NNS All recyclable materials shall be separated into the proper containers. General trash, such as cigarette butts, lunch wrappers, and food waste shall be disposed of in regular trashcans or in dumpsters marked for such. SOME TYPES OF RECYCLABLE MATERIALS GENERATED AT NNS SCRAP METAL Scrap metal shall be sent to the Scrap Yard (Stop 440) for recycling. Types of scrap metal include steel plate, blocks, chips, grindings, and shavings. When packaging scrap metal chips, grindings, and shavings, 55 gallon steel drums or smaller containers shall be used. For all other scrap metals, skiffs or roll-off containers, as appropriate, shall be used. Scrap metal generally cannot be in lengths longer than 6 feet. Contact O53 at the Scrap Yard for questions regarding larger sizes.

7. EM 1000, Environmental Controls Manual 7 CARDBOARD In office areas where janitorial services are provided, cardboard shall be broken down and stored next to the paper recycling barrels. Cardboard recycled in areas not served by Department O46 shall be broken down, secured and shipped to Stop 550 for recycling. This includes all shops and ships. For variances to these locations call 0-7849. NON-HAZARDOUS SPENT ABRASIVES This material is re-used by the local landfill. Place materials in 55-gallon drums and label properly. (Larger containers are available for bulk quantities.) Aluminum abrasives are picked up by vendors at locations identified by Surplus Sales. ASPHALT Contractors are required to recycle or reuse the clean asphalt they remove during construction projects at NNS.

8. Working Within Equipment Swing Radius 8 MRR (Maximum Reach Radius) WR (Work Radius) Excavation Excavator (“Heavy Equipment”) Bucket Illustration of MRR and WR at the excavation site.

9. Bucket No-Go Markers MRR (Maximum Reach Radius) SAFE ZONE DANGER ZONE Do Not Enter Without Authorization Illustration of Danger and Safe Zones Working Within Equipment Swing Radius

10. Conduit or Pipe Orange Safety Fence Orange Barrels Excavation Trench Illustration of “No Go” Markers Working Within Equipment Swing Radius

11. 11 In addition to surveillance, contractor crane operations may be audited at any time while on Newport News property to ensure: –The Certificate of Compliance is properly completed and displayed on the crane. –The ODCL was properly completed and retained. –All installed safety devices are operational. –The operator understands how to report a crane accident. –Equipment OSHA inspections and tests are up-to-date. –A completed lift plan is on site and being used. Contractor Crane Operations - Surveillance

12. 12 Typical Crane Related Discrepancy Report (CRDR) Observations Operator Error Removed Anti Two-Blocking Device Tipped Crane Up Side loaded crane boom Not setting outriggers properly Operating with damaged running rope Talking on cell phone while operating crane Did not check out crane prior to making lifts Working Under/On Load Passing loads over people’s head Allowing personnel to work on or under a suspended load Travel Path Parking vehicles in yellow travel path Leaving material in yellow travel path Improper Rigging Using damaged slings Using handling equipment improperly Lifting unbalanced loads Point loading hooks No or Inadequate Lift Plans Failure to have a lift plan on the job site. Failure to provide complete details and/or process to make a successful lift on a lift plan.

13. Contractor Crane Operations - Lift Plans! Lift plans are required for each and every lift made while working for HII-NNS on or offsite. They must be briefed by the foreman prior to the lift. L&H consultants/management will monitor their use and shut down any lift that is not in compliance with this requirement!

14. Contractor Quality Control Control of material cleanliness has caused schedule issues, down time, rework and additional costs. Contract documents provide level of expectation regarding material handling. Contractors must develop their own quality control standards and procedures to provide quality products in accordance with the contract documents. 14

15. QUESTIONS???? If you have questions regarding this presentation, please contact your Contract Coordinator or: Mike Kehoe O41 – Plant Engineering 757-534-3241 Michael.T.Kehoe@hii-nns.com 15