Tom Cummings – Head of Commercial Operations

Supply Chain Opportunities

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Commercial Function Commercial Mission

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.

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Commercial Organisation

Decommissioning – Ian Whitehouse Major Projects – Pete Caldow Infrastructure – Dave Magrath Functions & Operations – Dave Savage Collaborative Procurement – Dave Savage

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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

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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

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

£ K, Construction, £95,375, 10%£ K, Labour, £76,897, 8%

£ K, Materials, £71,158, 7%

£ K, Other, £125,856, 13%

£ K, Other Services, £131,717, 13%

£ K, Plant & Equipment, £50,925, 5%

£ K, Professional Services, £427,522, 44%

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

Supply Chain Opportunities

Infrastructure

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Supply Chain OpportunitiesSite Security Enhancement Programme

Scope Security Enhancements Programme (Portfolio of Projects from Fencing to Cyber Security)

Duration and Value Programme Value ~ £600MCompletion Date ~ 2019

Key Dates Projects Sanctioned by Sep 2013

Current Position Strategy and business case under development

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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

Supply Chain Opportunities

Operations

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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

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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

DurationLong term contract

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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

Supply Chain Opportunities

Decommissioning

Supply Chain Opportunities3 ㎥ 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 2013Award - 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 2014Contract award ~ April 2015

Current Position Acquisition strategy under development

Supply Chain OpportunitiesManufacture and supply of MSSS Retrieval MachinesScope Manipulators, Gamma Gates, Vent System,

Mobile Caves, Building Mods

Duration and Value Duration 2013 -2019Value ~ £200m

Key Dates Manipulator - ITT issue – Q2 2013 Award - July 2014Gamma gates – ITT issue Q2 2013 Award - July 2014

Current Position Strategy and business case under review by NDA

Supply Chain OpportunitiesNew Packages (Flasks)

Scope Manufacture of new packages

Duration and Value Duration - TBAValue ~ £28m

Key Dates PQQ – April 2013Award - May 2014

Current Position Strategy and business case prepared

Supply Chain Opportunities

Major Projects

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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

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Supply Chain Opportunities Box Transfer Facility

Scope Supply of Plant and Equipment, Installation and Commissioning

Duration and Value Circa 4 yearsTarget Cost Contract, £50 Million plus

Key Dates Contract Award October 2013

Current Position PQQ Process nearing completion

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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 Strategy under development - £100 million plus – circa 5 years duration