Sellafield Commercial Opportunities 2014

Presented by David Magrath and Rob Harries-Harris 12 June 2014

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Agenda Introduction Sellafield Strategy Procurement Plan Overview Key Procurements

– Decommissioning – Major Projects– Operations – Collaborative – SME Opportunities

Wrap and Summary Questions

Sellafield Strategy

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Overview of the Plan

Safety and Quality Excellent Relationships –

Collaboration/Partnering Early Market Engagement SME & Socioeconomics Category Management Logistics Development of Capability

and Capacity

Forecast Supply Chain Spend PP14

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Demand and Supply Constraints

Source: NIA Supply Chain Capability Report Dec 2012

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Decommissioning at the Sellafield Site

Legacy Ponds & Silos Remediation Portfolio

Magnox Swarf Storage Silo

Pile Fuel Storage Pond

First Generation Magnox Storage Pond

Pile Fuel Cladding Silo

Sellafield Site Decommissioning Strategy

• Decommissioning Strategy being developed to support these activities:– Aligned with Sellafield Limited strategy– Considers and drives integration more strongly – Develops a “decommissioning mindset”– Sustainable, balanced portfolio of work

• Decommissioning Mindset– “What would we do differently if we knew our hazardous

facilities were certain to fail tomorrow?”– transition in working culture to become empowered to deliver

bold, but simple solutions to specific issues and work in partnership to significantly accelerate high hazard reduction.

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Decommissioning Delivery Partnership (DDP)

• Update– Internal preparations of PQQ well advanced– Waiting on approval from ND– Estimated 30th June 2014. Webinar: 1st July 2014

• Lot structure:• Lot 1 – SR&DP, PFSP, PFCS & other sitewide demanders

– 3 - 5 awards– Collaborative Framework

• Lot 2 – FGMSP– 1 award– Delivery Partner

• Lot 3 – MSSS– 1 award– Delivery Partner

June-14

Mar-17

Sep-14

Nov-14

Jul-15 Jul-15

PQQ

ITT

PQQ Assessed

Contract Award Full Transition to DDP

Mar-17

Expiration of MDSW

IRPNDA

Approval

June-14

April-14

Transition Plan & Initial Mobilisation

We are here

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Decommissioning - Sellafield Box Procurement Project (SBBP)

• Early engagement work – manufacturer visits, industry days

• Pre Qualification Questionnaire (PQQ) high number of responses received – short listed in line with Contract Notice range

• ITT issued 31st Jan 14, responses received 22nd April 14

• Initial tender assessment complete, clarifications underway

• Practical assessment of tenderers capability commenced June 14 (Weld Test)

• Tender assessment to be concluded by the beginning of Aug 14

• Contract placement on programme for Dec 14.

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Major Projects

Box Encapsulation Plant (BEP)

Scope EPC (Engineering, Procurement, Construction of a Box Encapsulation plant

Duration and Value £200 – 250m

Key Dates Plan Award March 2015 – working to an accelerated programme

Current Position ITT due for return in July 2014

Major Projects

SIXEP Contingency Plant

• Site Ion Exchange Effluent Plan (SIXEP)– High volume, low-medium beta active effluent abatement service– Nearing end of design life– SIXEP Contingency Plant – mitigate risk of failure– Required to be operational by 2024

• Early stage of project life• ITT August 2016 (Current forecast)• Contract Award March 2017 – EPC scope (Current forecast) • Estimated £100M – £250M

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Operations

Fellside Combined Heat and Power Plant

Scope Fellside CHP Operations and Maintenance

Duration and Value £75 -100m

Key Dates Contract Award Nov 2015

Current Position Acquisition Strategy being finalised

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Operations

SSEP – Police Firing Range

Scope Design and Build of a replacement police firing range

Duration and Value £25-50m

Key Dates Contract Award November 2016

Current Position Acquisition Strategy being finalised

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Operations/Projects

Supply Agreement – Overhead Cranes

Scope Design, Supply Install and Commission Overhead Cranes

Duration and Value Five years +£100m +

Key Dates Contract Award September 2015 – trying to accelerate

Current Position Business Case approval in July 2014 - ITT

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Support/CollaborativeCommercial and Project Controls Strategic Partner

Scope Provision of Commercial/QS and Programme Controls Services

Duration and Value Ten years ~ £200-250m

Key Dates Contract Award June 2015

Current Position ITT in preparation

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Support/Collaborative

Agency Supplied Workers

Scope Provision of Agency Supplied Workers (ASWs) across the NDA - skill range Admin to Technical

Duration and Value Five Years Up to £700m

Key Dates Contract Award October 2015

Current Position Early Market Engagement 19 June 2014

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Support/Collaborative

Personal Protective Equipment

Scope Supply and delivery of Radiological and conventional PPE – NDA Estate Wide

Duration and Value Four Years ~ £10 -25m

Key Dates Contract Award August 2015

Current Position Strategy to supply through UKSBS Agreement

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SME Target Opportunities

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Summary & Questions?