Production Plants Programme Partner (4P)

Strategy Development Day

7 May 2013

NO MARKING REQUIRED

Welcome and PurposePurpose of the Day:

1. To proactively engage with, and involve all areas of the Supply Chain to help shape the 4P strategy moving forward.

2. To listen to what the Supply Chain has to say, and give you a opportunity to contribute through interactive sessions.

3. To give an opportunity to various stakeholder groups to gain a better understanding of the 4P acquisition.

What does a successful day look like?

1. Everyone has a chance to contribute during the day

2. It feels different to a standard industry day

3. We get information that is useful to the optioneering and selection of an appropriate commercial model

4. We all enjoy the day

NO MARKING REQUIRED

Key Note Speech

Simon WittridgeHead of Engineering and Project Delivery,

Waste & Effluent Disposition (WED)

NO MARKING REQUIRED

Simon Wittridge

Vision:

We jointly develop and implement innovative, cost effective and risk reducing solutions.

Objectives:

1. Maintain excellent safety performance

2. Deliver more work for the same money through delivery efficiencies

3. Improve the level of risk reduction per £ spent on projects and tasks

NO MARKING REQUIRED

Simon Wittridge

1. Maintain excellent safety performance

Near Miss

Catastrophe

Fatality

Serious Injury

Minor Injury

1

10

100

1000

10000

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Simon Wittridge

2. Deliver more work for the same money through delivery efficiencies

£30mStand AloneContracts

£20mDesign

£16mMDSW

£4mSL

£30mSL

Projects & Asset Care - £100m/Year

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Simon Wittridge

3. Improve the level of risk reduction per £ spent on projects and tasks

Everyone delivering the portfolio as

one team.

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Simon Wittridge

1. Opportunity to improve but don’t throw out what is good

2. A truly successful contract provides maximum profit with optimised customer outcomes – obvious – but not always the case

3. Attendance today is really appreciated to help us construct the right delivery model so that we might all be successful.

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Scope

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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 Work

with SL and DSA to deliver Asset Care Tasks and Projects within Production Operations Areas

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“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)

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“with SL and DSA to deliver”

LTPR Production

Minor/ Straightforward Tasks

Larger / more complex tasks

Projects

Front End/studies SL gated Process – IPG to

DDG

SL gated Process – DDG to Completion

SL DSA 4P

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“Asset Care Tasks and Projects”

Planned Maintenance

Asset CareTasks 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

Large ‘New Build’ ProjectsVia Major Projects

Routine Maintenance bySL Resources

Potential for overlap/use of SL craft resource when available

NO MARKING REQUIRED

Asset Care Tasks and Projects

£30mStand AloneContracts

£20mDesign

£16mMDSW

£4mSL

£30mSL

Projects & Asset Care - £100m/Year

Engineering Services

Max Scope of 4P

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Asset Care Tasks and Projects

  Percentage

Civil Engineering 60

Electrical 4

Instrument 10

Mechanical Plant 16

Pipe work 5

Surveys 1

Management 6

Typical blue collar work breakdown.

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Procurement Plan

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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.

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Socio Economic and SME Agenda

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John Sidney, Head of Supply Chain Strategy

The Nuclear Family

May 7, 2013

John Reynolds, Head of Strategic Communications

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10 April 2023 20

Happy families … mutual dependency

COMMERCIAL

OPERATIONALSOCIAL

e.g. Innovation via SMEs

e.g. Infrastructure to deliver

e.g. Environmental Stewardship

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10 April 2023 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

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Commercial Model Optioneering

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Commercial Model Optioneering

Some example pictures:

SL

T1

T2 T2 T2

T1 Partnership

SL

T2 T2 T2

T1

T1 Managing AgentSL

T1

T2T2

Super Prime

T2

SL

T2 T2 T2

T3 T3 T3

Special Purpose Vehicle (SPV)

Partnership

SL

T1

T1

T1

SL Integrated

T1 = Direct subcontractor to Sellafield Ltd (SL),

T2 = subcontractor to main T1 contracting entity or ‘doer’ level of contractors in managing agent.

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Commercial Model Optioneering

What does your 4P look like? Key Attributes

SL

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Benefits, Cultural & Behavioural Change and

Transition

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Closing Speech

Simon WittridgeHead of Engineering and Project

Delivery, Waste & Effluent Disposition (WED)

NO MARKING REQUIRED