Production Plants Programme Partner (4P) Strategy Development Day 7 May 2013

1. Production Plants Programme Partner (4P)Strategy Development Day7 May 2013 NO MARKING REQUIRED

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

3. Key Note SpeechSimon WittridgeHead of Engineering and Project Delivery, Waste & Effluent Disposition (WED) NO MARKING REQUIRED

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

5. Simon Wittridge Maintain excellent safety performance Catastrophe 1 10 Fatality 100 Serious Injury 1000 Minor Injury 10000 Near Miss NO MARKING REQUIRED

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

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

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

9. Scope NO MARKING REQUIRED

10. Scope Is 4P a contract or a concept? Conceptually we want to deliver Asset Care work more efficiently than we currently do …but you can’t compete a concept At its simplest level The Production Plants Programme Partner will Workwith SL and DSA to deliver Asset Care Tasks and Projects within Production Operations Areas NO MARKING REQUIRED

11. “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

12. “with SL and DSA to deliver” Front End/studies SL gated Process – DDG to Completion SL gated Process – IPG to DDG LTPR Production Minor/ Straightforward Tasks Larger / more complex tasks Projects SL DSA 4P NO MARKING REQUIRED

13. “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 Routine Maintenance by SL Resources Potential for overlap/use of SL craft resource when available Large ‘New Build’ Projects Via Major Projects NO MARKING REQUIRED

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

15. Asset Care Tasks and Projects Typical blue collar work breakdown. NO MARKING REQUIRED

16. Procurement Plan NO MARKING REQUIRED

17. Procurement Plan – Key Dates The project team is working to the key indicative dates below: Market Engagement Conducted April / May 2013 Business Case Approved August 2013 Pre-Qualification Questionnaire Released September 2013 Invitation to Tender Released December 2013 Preferred Bidder Announcement October 2014 Contract Award December 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

18. Socio Economic and SME Agenda NO MARKING REQUIRED

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

20. Happy families … mutual dependency e.g. Innovation via SMEs e.g. Infrastructure to deliver e.g. Environmental Stewardship NO MARKING REQUIRED 11 September 2014 20

21. NDA’s 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 11 September 2014 21

22. Commercial Model Optioneering NO MARKING REQUIRED

23. Commercial Model Optioneering T1 Partnership Special Purpose Vehicle (SPV) Partnership T1 Managing Agent SL Super Prime SL SL SL T1 T1 T2 T2 T2 T2 T2 T2 T1 T2 T2 T2 T3 T3 T3 T2 T2 T2 SL Integrated SL T1 T1 T1 Some example pictures: 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

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

25. Benefits, Cultural & Behavioural Change and Transition NO MARKING REQUIRED

26. Closing SpeechSimon WittridgeHead of Engineering and Project Delivery, Waste & Effluent Disposition (WED) NO MARKING REQUIRED