Thursday 2 November 2017 EventCity, Manchester

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1 Thursday 2 November 2017 EventCity, Manchester

2 Agenda - PM Afternoon presentations SSA, Jonathan Evans, Head of the Shared Service Alliance Dounreay, Stephen Adamson, Commercial Director Magnox, Sho Dutta, Head of Procurement LLWR, Alex McCarthy, Commercial Director MOD - Dreadnought, Carolyn Bellars MOD - Submarine Rescue, CDR Ian Duncan MOD - Submarine Dismantling, Jim Cochrane RWM/BEIS, Simon Napper, Stakeholder Engagement Adviser Sellafield, Alan Hartley, Head of Procurement Event close

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4 Shared Services Alliance Collaborative Procurement Overview Jonathan Evans Head of the Shared Services Alliance

Model: SSA as commercial hub of the nuclear decommissioning estate SSA Programme Team: 16 full-time team members Category Management: 6

5 Shared Services Alliance Delivering Value through Collaboration Alliance Members: 9 organisations SSA Network: 200+ people Collaborative Contracts: 60+ Annual Supply Chain spend: 420m+ Collaborative Spend: 20% of estate Collaborative Savings: 367m since 2010 Portfolio Operating Model: SSA as commercial hub of the nuclear decommissioning estate SSA Programme Team: 16 full-time team members Category Management: 6 collaborative categories Business Improvements: 9 process integration projects Programme Collaborative Value: 175m of benefits to be delivered by SSA by 2020

Shared Services Alliance Collaborative Procurement

Technology : Operations : Nuclear : Contingent

People Services Travel Fleet Insurance Financial

Estates Security Energy / Utilities Building

Networks Telecoms Print Chemicals / Materials

6 Shared Services Alliance Collaborative Procurement Categories People : Corporate : Buildings : Technology : Operations : Nuclear : Contingent Labour Professional Services Training Resourcing People Services Travel Fleet Insurance Financial Services Office Services Facilities Management Estates Security Energy / Utilities Building Services Services Hardware Software Projects Networks Telecoms Print Chemicals / Materials Consumables Engineering Services Equipment Nuclear Services Packaging Transport Treatment Disposal

7 Shared Services Alliance Collaborative Procurement Pipeline Recently Awarded Stationery Magnox Led (Crown Commercial Service) April 2017 ILW Reinforced Concrete Boxes Magnox Led May 2017 Lease Cars Magnox Led (Crown Commercial Service) July 2017 Waste Characterisation & Assurance Support Services LLW Repository Ltd Led August 2017 Procurements Underway Health Physics Magnox Led Award in December 2017 IT Services Dounreay / LLWR / Magnox Award in Dec 2017 / Sellafield Launching in Mid 2018 Air Filtration Sellafield Led Launching in November 2017 Future Pipeline Learning & Development Services Sellafield Led Contingent Labour Sellafield Led Specialist Nuclear Services Magnox Led Facilities Management / Security Services Sellafield & Magnox Led Equipment Hire SSA Led

8 Shared Services Alliance Collaborative Improvement Projects Process Selection Questionnaire launched in CTM with a streamlined, standardised set of questions for greater consistency across estate tenders Award process being reviewed to provide an integrated estate-wide question catalogue Tender template developed and piloted on Health Physics Services Collaborative Procurement before wider adoption next year Contracts Model terms and conditions piloted on Health Physics Services Collaborative Procurement Goods template in development for Air Filtration Collaborative Procurement Simplifying Flowdown Terms: Insurance / Audit / Payments Terms / Intellectual Property (to follow) Seeking supply chain feedback on key clauses Systems esourcing: Optimising use of CTM and encouraging Tier 2 suppliers to advertise opportunities Spend Analytics / Market Intelligence: Estate-wide tool to better understand spending, opportunities for collaboration and market / suppliers Ecosystem: Procurement underway for estate-wide collaboration and hosting platform Quality Working to align principles for Contract Quality Requirements and Quality Plans across the estate to support greater consistency Piloting a joint supplier assessment to test concept for wider integration of supply chain audit and assessment programmes across the estate

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10 Dounreay Stephen Adamson Commerical Director

Dounreay Partnership Established 1950 s as UK s first reactor test site.

11 Dounreay Site owned by the Nuclear Decommissioning Authority Operated by Dounreay Site Restoration Limited, a company owned by the Cavendish Dounreay Partnership Established 1950 s as UK s first reactor test site. Annual supply chain spend c 100M. Decommissioning expected to be complete by circa 2033

12 Programme HMG priority Exotics / fuels FCA / reactor dismantling Shaft and silo Interim End State Priority to 2018 : Removal of hazardous materials. 2018/19 programme moves to large, high value projects. P&SC strategy focussed delivering appropriate supply chain capability Waste removal / storage Construction Demolition Site remediation

13 Dounreay Materials Test Reactor 7m contract. First turnkey decommissioning opportunity at Dounreay. Five bidders in ITT stage. Contract award anticipated April Robust socioeconomic proposal required. Will be embedded in contract.

Encouraging SMEs HMG Policy targets spending 1 in 3 of Govt. supply chain spend with SMEs. LINC initiative launched August 2017.

14 Encouraging SMEs HMG Policy targets spending 1 in 3 of Govt. supply chain spend with SMEs. LINC initiative launched August Designed to facilitate easier engagement with UK-wide SMEs. Key objectives : innovation, collaboration, sustainable economic development.

>100 companies registered so far. 80% have never worked with Dounreay before.

15 LINC Process 2 opportunities per quarter. Maximum value 150k per opportunity. Simple, one-time registration. Opened for registration on 1 st August. >100 companies registered so far. 80% have never worked with Dounreay before. LINC with Sellafield launched in October. DSRL & Sellafield working to integrate both schemes.

and High Active Processing Cells In Cell

16 Linc Packages 1&2 Package 1 Package 2 Intermediate Level Waste Size Reduction Facility Feasibility Workshop 2 LINC companies 1 of which is new to DSRL Medium and High Active Processing Cells In Cell Components Size Reduction, Removal and Packaging DSRL requires innovative approaches to address this requirement Proposals deadline 17 November 2017

Decommissioning Services c 400M contract Maximum 7 year term Establishes long-term partnerships to deliver large-scale construction and decommissioning

17 Decommissioning Services c 400M contract Maximum 7 year term Establishes long-term partnerships to deliver large-scale construction and decommissioning Commercial and diversification opportunity for local supply chain Significant (10%) weighting on socioeconomic contribution Finalising with stakeholders.

18 Contacts

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20 Magnox - Delivering Through our Supply Chain Sho Dutta Magnox Head of Procurement and Supply Chain

22 Programme THANK YOU

23 Waste Programme Current & Upcoming Opportunities Works Description Estimated value Site(s) Hunterston Weather Envelope 24m Hunterston Traws 3m 3 box 2m Trawsfynydd B462 Tube Stores POCO Project 5m Harwell R2 POCO phase 1m Berkeley Major Contracts in Delivery Works Description Indicative value 6m 3 Box Containers 20-30m Interim Storage Facilities (ISFs) 20m ENCAP 19m Site Magnox Estate & Dounreay Hinkley, Chapelcross, Berkeley, Hinkley, Chapelcross Awarded Supplier Amber Precast Interserve Construction NSG

24 Waste Programme Current & Upcoming Opportunities Works Description Estimated value Site(s) Hunterston Weather Envelope 24m Hunterston Traws 3m 3 box 2m Trawsfynydd B462 Tube Stores POCO Project 5m Harwell R2 POCO phase 1m Berkeley Major Contracts in Delivery Works Description Indicative value 6m 3 Box Containers 20-30m Interim Storage Facilities (ISFs) 20m ENCAP 19m Site Magnox Estate & Dounreay Hinkley, Chapelcross, Berkeley, Hinkley, Chapelcross Awarded Supplier Amber Precast Interserve Construction NSG

25 Waste Programme Current & Upcoming Opportunities Works Description Estimated value Site(s) Hunterston Weather Envelope 24m Hunterston Traws 3m 3 box 2m Trawsfynydd B462 Tube Stores POCO Project 5m Harwell R2 POCO phase 1m Berkeley Major Contracts in Delivery Works Description Indicative value 6m 3 Box Containers 20-30m Interim Storage Facilities (ISFs) 20m ENCAP 19m Site Magnox Estate & Dounreay Hinkley, Chapelcross, Berkeley, Hinkley, Chapelcross Awarded Supplier Amber Precast Interserve Construction NSG

26 Decommissioning Programme Current & Upcoming Opportunities Works Description Estimated value Site Wylfa Turbine hall Asbestos removal WP2-WP m Wylfa Dungeness Boiler Annex Demolition 10m Dungeness Offsite Discharge Pipeline (ODP) 3m Harwell MAETP Modification of Site Pipework Enabling Discharge < 0.5m Dungeness Cooling Tower Basins Capping & Groundwater Diversion 1.5m Chapelcross Major Contracts in Delivery Works Description Modular Active Effluent Treatment Plants Sub Programme Indicative value Site Ponds 6m Various Kurion Hinkley Asbestos Plant & Structures 15m Hinkley Point A Hertel SGHWR Reactors 60m Winfrith Awarded Supplier James Fisher Nuclear Wylfa Asbestos WP1 Plant & Structures 4m Wylfa Kaefer

27 Decommissioning Programme Current & Upcoming Opportunities Works Description Estimated value Site Wylfa Turbine hall Asbestos removal WP2-WP m Wylfa Dungeness Boiler Annex Demolition 10m Dungeness Offsite Discharge Pipeline (ODP) 3m Harwell MAETP Modification of Site Pipework Enabling Discharge < 0.5m Dungeness Cooling Tower Basins Capping & Groundwater Diversion 1.5m Chapelcross Major Contracts in Delivery Works Description Modular Active Effluent Treatment Plants Sub Programme Indicative value Site Ponds 6m Various Kurion Hinkley Asbestos Plant & Structures 15m Hinkley Point A Hertel SGHWR Reactors 60m Winfrith Awarded Supplier James Fisher Nuclear Wylfa Asbestos WP1 Plant & Structures 4m Wylfa Kaefer

28 Decommissioning Programme Current & Upcoming Opportunities Works Description Estimated value Site Wylfa Turbine hall Asbestos removal WP2-WP m Wylfa Dungeness Boiler Annex Demolition 10m Dungeness Offsite Discharge Pipeline (ODP) 3m Harwell MAETP Modification of Site Pipework Enabling Discharge < 0.5m Dungeness Cooling Tower Basins Capping & Groundwater Diversion 1.5m Chapelcross Major Contracts in Delivery Works Description Modular Active Effluent Treatment Plants Sub Programme Indicative value Site Ponds 6m Various Kurion Hinkley Asbestos Plant & Structures 15m Hinkley Point A Hertel SGHWR Reactors 60m Winfrith Awarded Supplier James Fisher Nuclear Wylfa Asbestos WP1 Plant & Structures 4m Wylfa Kaefer

29 Enablers & Asset Management Programmes Current & Upcoming Opportunities Works Description Estimated value Site(s) Access & Insulation Framework 15m p.a All Magnox Sites IT managed service 10m p.a. All Magnox Sites Asbestos Monitoring 5m p.a. All Magnox Sites Specialist Nuclear Services 20m p.a. All Magnox Sites Training & Development Services 10m p.a. All Magnox Sites Facility Management - Hard & Soft 18m p.a. All Magnox Sites Portable Metrology 2/3m p.a. All Magnox Sites Installed Metrology 2/3m p.a. All Magnox Sites

Enablers & Asset Management Programmes Current & Upcoming Opportunities Works Description Estimated value Site(s) Access & Insulation Framework 15m p.a All Magnox Sites IT managed service 10m p.a. All Magnox Sites Asbestos Monitoring 5m p.

30 Enablers & Asset Management Programmes Current & Upcoming Opportunities Works Description Estimated value Site(s) Access & Insulation Framework 15m p.a All Magnox Sites IT managed service 10m p.a. All Magnox Sites Asbestos Monitoring 5m p.a. All Magnox Sites All Sites Specialist Nuclear Services 20m p.a. All Magnox Sites Training & Development Services 10m p.a. All Magnox Sites Facility Management - Hard & Soft 18m p.a. All Magnox Sites Portable Metrology 2/3m p.a. All Magnox Sites Installed Metrology 2/3m p.a. All Magnox Sites

Magnox further opportunities Magnox Stand

Equipment Supply Project Asset Management

Systems Characterisation, and Problematic and

Programme Solid ILW & Fuel Element Debris -

Equipment Site Restoration Programme Magnox

31 Magnox further opportunities Magnox Stand Presentation Loop Harwell Tubestore POCO Equipment Supply Project Asset Management Projects POCO and Characterisation of Process Systems Characterisation, and Problematic and Opportunity Wastes Plant and Structures Programme Solid ILW & Fuel Element Debris - Provision of Design, Build and Installation of Equipment Site Restoration Programme Magnox Supplier Opportunity Pages

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33 Commercial Review and Update Alex McCarthy Head of Commercial, LLWR

It manages the national Low Level Waste Repository in West Cumbria on behalf of the Nuclear

34 Introduction LLW Repository Ltd is a waste management company, providing services to customers to treat and dispose of low level radioactive waste. It manages the national Low Level Waste Repository in West Cumbria on behalf of the Nuclear Decommissioning Authority (NDA) and oversees a National LLW Programme to ensure that lower activity waste is managed effectively across the UK.

36 FY 2016/17 Supply Chain Summary Information 53.6m spend in the supply chain (Includes on behalf of our UK Customers) Funding for spend from NDA and income from Customers 42.4m spent with 20 suppliers SME Spend for Direct and Indirect (via our major suppliers) 35% What we buy: Engineering, Construction, and Decommissioning Services Waste Management Services (Treatment / Disposal / Characterisation) Business Services (IT / Facilities Management / Agency Workers) Professional Services (Safety Cases / Health Physics / Consultancy) Logistics Services (Container Manufacturing / Licensing / Transport) Goods (PPE / Materials / Consumables / Vehicles / Office Supplies)

37 FY 2017/18 YTD Supply Chain Summary Information Quarter 1 (April June incl.) 13.8m spend in the supply chain (Includes on behalf of our UK Customers) 12.2m spent with 20 suppliers (YTD) SME Spend for Direct and Indirect (via our major suppliers) 32% Quarter 2 (July September incl.) 12.3m spend in the supply chain (Includes on behalf of our UK Customers) 23m spent with 20 suppliers (YTD) SME Spend for Direct only 25%

38 Our Operating Environment Published NAO reports regarding specific commercial performance areas: Improving value for money in non-competitive procurement of defence equipment Crown Commercial Service The Nuclear Decommissioning Authority s Magnox contract Initial release of Holliday Review Place greater focus on commercial skills and abilities. UKNWM Parent Body and M&O Contract extension notified by December? Over the next 5 years, subject to approvals, We aim to continue providing and managing waste services for UK waste generators, We hope to gradually increase the capability of waste management and disposal services offered at the Repository Site, and, We intend to continue programme delivery for Repository Site and Infrastructure development.

39 Procurement Status and Developments Procurement Plan is published monthly at: Recent & Current Procurements and Contracts Waste Characterisation & Assurance Services IT Services New Finance and HR software services replacing Sellafield hosted SAP/OPMS Acquisition Strategy under development for Engineering, Design, and Construction services and works (EDCF) Health Physics Services Renewed focus on lower value purchases for better value Greater emphasis on Procurement s understanding of Business Cases early integration with project/engineering teams 4 minor discussion groups throughout today Procurement (general), Waste Management Services, Business & Functional Services, and Site & Programmes.

40 Thank you

41 Thursday 2 November 2017 EventCity, Manchester

42 The Dreadnought Submarine Programme Carolyn Bellars MOD

43 Introduction The Dreadnought submarine programme is the United Kingdom s programme to replace the four Vanguard Class ballistic missile submarines (SSBNs) that carry the UK s independent nuclear deterrent. The new submarines will deliver the Government s commitment to maintain a Continuous At Sea Deterrence (CASD) posture into the 2050s and beyond. In March 2007, Parliament voted to support the Government s plans to renew the UK s independent strategic nuclear deterrent with a class of new Successor submarines Following early concept work, the MOD announced, on 18 May 2011, the start of a five-year long 3bn Assessment Phase, the main purpose of which was to refine the design of the submarine and capture the associated costs In July 2016 MPs voted decisively to maintain the current CASD posture, with 472 votes for the motion and 117 against In September 2016, the MOD signed the Delivery Phase 1 contract, initiating construction the first Successor submarine, at Barrow in Furness On 21 October 2016 the Queen approved the name HMS Dreadnought for the Successor First of Class

44 Main Production Start On 5 October 2016 the Defence Secretary carried out the ceremonial cutting of steel for the new submarines. The programme is the largest UK submarine project in a generation and will be one of the most complex undertaken by British industry.

45 Roles of the Key Organisations

46 Programme Scale The commitment to maintain the UK s independent nuclear deterrent to deter the most extreme threats to our national security and way of life was confirmed in the 2015 Strategic Defence and Security Review. The deterrent is not about short term threats, but the threats the nation and our allies may face in the future. These threats are not diminishing and we need the capability to match the threat. SDSR15 also reset the estimated cost for the design and manufacture of the four Dreadnought submarines and announced the move away from a traditional single Main Gate approach to a staged investment approach with multiple control points. The first control point was approved in July 2016, and production started in September Size of UK Government Megaprojects (GB pounds Billions) The expected cost for the design and manufacture of the four Dreadnought submarines is likely to total 31bn (including inflation over the 35 year lifetime of the programme). 0 Crossrail HS2 Phase 1 HS2 Phase 2 London Olympics Dreadnought

47 Engineering Scale Technological advances addressing threat changes, increased safety requirements, new design production strategies and modular construction are factors that mean it is not simply a modified Vanguard, but a wholly new submarine design.

Dreadnought Supply Chain Although MOD has contracted directly with BAE Systems and Rolls-Royce for production, hundreds of suppliers across the UK

This underlines the fact that the nuclear deterrent represents a significant national undertaking, which is drawing on cutting edge capabilities,

48 Dreadnought Supply Chain Although MOD has contracted directly with BAE Systems and Rolls-Royce for production, hundreds of suppliers across the UK are working on the Dreadnought submarine programme. This underlines the fact that the nuclear deterrent represents a significant national undertaking, which is drawing on cutting edge capabilities, innovation, design and engineering skills available in the UK, and is providing employment opportunities and development prospects for a substantial number of apprentices, trainees and graduates in a wide range of technical and other disciplines.

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50 NATO Submarine Rescue System (NSRS) Cdr Ian Duncan RN Programme Manager NSRS Submarine Delivery Agency

51 NSRS Overview Designed to rescue 150 submariners down to depths of 610m/2000ft at pressures up to 6 Bar A Jointly owned by the UK, France and Norway GOCO system operated by JFD under contract to NSRS PT who manage the system on behalf of the 3 partner nations Is made up of three different independent systems: - Remotely Operated Vehicle - Submarine Rescue Vehicle - Transfer Under Pressure NSRS is specifically packaged for rapid deployment by air transport NSRS is on constant standby for rescue operation in any part of the world Largely Commercial Off The Shelf (COTS)

52 NSRS Project Timeline

53 Projected Timeline

54 Rescue Cycle

55 NSRS Mates NATO PFP France Italy Netherlands Norway Poland Portugal Spain Turkey UK Sweden Russia

56 NSRS Operations Key MOPORTS AIRPORTS Exercise DISSUBS Intervention Exercise SRV Target Exercise

58 Next Steps and Opportunities? MOD will be tendering for the 3 rd In Service Support Contact for NSRS in the timeframe and is keen to engage with industry ahead of this Contact the Programme Office in Bristol: DESSMIS-NSRS@mod.gov.uk If interested, register with MOD Defence Contracts:

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60 Submarine Dismantling Supply Chain Opportunities Jim Cochrane Programme Manager Submarine Dismantling Project Submarine Delivery Agency

61 Why are we doing this? To provide a safe, environmentally responsible and cost-effective solution for the dismantling of the UK s defuelled nuclear powered submarines.

62 Location of Laid-up Submarines

63 Initial Dismantling Stage 1

64 Initial Dismantling Stage 1

65 Recycling

66 Challenges for Stage 2

67 Next Steps and Opportunities?

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69 A Geological Disposal Facility for the UK Simon Napper Radioactive Waste Management

70 Radioactive Waste Management The delivery organisation for the GDF Part of the NDA Vision: A safer future by managing radioactive waste effectively, to protect people and the environment Mission: Deliver a geological disposal facility and provide radioactive waste management solutions

71 GDF Key Elements A suitable site with a willing host community Waste packaged in a form suitable for permanent disposal A robust safety case and design

73 Initial Actions National Geological Screening public consultation completed mapping what we know (and what we don t) about the relevant aspects of geology publishing the outputs Land Use Planning GDF designated a Nationally Significant Infrastructure Project public consultation parliamentary scrutiny Working With Communities public consultation will set the framework for the siting process

74 Government Consultations government-led (BEIS) supported by RWM as the delivery organisation two consultations, 14-weeks running concurrently series of regional briefing events consultations (and responses) online your chance to influence policy on the GDF

75 RWM Web:

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77 Sellafield Ltd Opportunities Alan Hartley Head of Procurement

3 Strategic Themes: Safe, Secure Site Stewardship Demonstrable Progress Return on Investment Performance; How we manage the

78 Sellafield Ltd Update Vision; A world leader in solving complex nuclear challenges Mission; Safely and securely remediate the Sellafield site to benefit the industry, nation and region. 3 Strategic Themes: Safe, Secure Site Stewardship Demonstrable Progress Return on Investment Performance; How we manage the business, make decisions, measure and govern work Technology; Information and data, and how we will innovate Structure; How we set up the organisation structurally and physically People; What we will expect from our people

Supply Chain Transformation Investing in our people Attracting new talent Commitment to collaborative working: Attaining ISO 44001 - Collaborative business relationship management Developing

79 Supply Chain Transformation Investing in our people Attracting new talent Commitment to collaborative working: Attaining ISO Collaborative business relationship management Developing new approach to SRM Enhancing and investing in technology Developing new contracting strategies ensuring: Agility Output based contracts Challenging everything we do (culture and behaviours)

80 Good To Great Stood In The Result Stood In The Result

implement ISO 44001:2017 Challenge only open to registered companies Companies can register at any

81 SMEs Collaborating to Deliver Innovative Solutions Challenge SME Registration Platform SME Collaborative Solution Rejection Sellafield Ltd Evaluation First challenge: Develop a plan to implement ISO 44001:2017 Challenge only open to registered companies Companies can register at any time Deployment

82 Sellafield Ltd Opportunities Site & Corporate Services Contracts Provision of Legal Services Provision of Print Management Services Provision of IT Services IT Project Delivery Services CH&P Boiler Park O&M Contract Civilianised Guard Force Facilities Maintenance & Services Projects, Technical Services & Category Management Category Management - Glove Box Systems Supply of HEPA Filters Category Management - Supply of Control Systems Supply of Radiation Protection Instrumentation Security of Concrete Supply to the Sellafield Site Project Document Control Services (2019) Supply of Fire Protection Systems Provision of Inspection and Quality Assurance Services

Accessing Opportunities At Sellafield Ltd Sellafield 2017/18 Procurement Plan Useful Links: https://www.gov.uk/government/organisations/sellafield-ltd https://www.gov.uk/guidance/how-to-do-business-with-sellafield-ltd https://www.

83 Accessing Opportunities At Sellafield Ltd Sellafield 2017/18 Procurement Plan Useful Links: Initial Contact:

84 Thursday 2 November 2017 EventCity, Manchester

85 Thursday 2 November 2017 EventCity, Manchester

National Nuclear Laboratory Overview

National Nuclear Laboratory Overview BECBC 06/09/17 Dr Lindsay Edmiston; Acting Business Leader Waste Management and Technology NNL at a Glance NNL: The principal R&D organisation to underpin UK s national