sellafield 2016/17 procurement plan · pdf filethe sellafield 2016/17 procurement plan...

Sellafield 2016/17 Procurement Plan

Procurement and Contracting Strategy

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Table of Contents

1 Foreword ................................................................ 3 7 Supporting Information on Programmes ..............19 and Major Tier 2 Procurements

2 Introduction and Purpose ....................................... 4 3 Procurement Principles and Practices ................... 6

7.1 Major Programme Data Sheets ............................19

4 2016/17 Procurement Plan .................................... 7

7.1.1 Pile Fuel Storage Pond .......................................... 19

4.1 Procurement Schedule........................................... 7

7.1.2 First Generation Magnox Storage Pond ............... 22

4.2 Procurements on a Page ....................................... 7

7.1.3 Magnox Swarf Storage Silos ................................25

4.3

Procurement Plan from Framework Contracts

7.1.4 Pile Fuel Cladding Silo .........................................28

and Agreements ..................................................... 7 7.1.5 Security Emergency Management .......................31 4.4 Doing Business with Sellafield ............................... 7

and Resilience Programme

5 Strategic View ....................................................... 10

7.2 Framework Contracts ...........................................32

5.1 Major Programme Overview ................................ 10

7.2.1 Design Services Alliance ......................................32

5.2 Trends in the Supply Chain Spend Profile ........... 11

7.2.2 Infrastructure Strategic Alliance...........................33

6 Strategic Initiatives ............................................... 12

7.3 Framework Agreements .......................................34

6.1 Market Enhanced Model ...................................... 12

7.3.1 Decommissioning Delivery Partners ....................34

6.2 Supplier Relationship Management ..................... 13

7.3.2 Multi Disciplinary Site Works ................................38

6.3 Supply Chain Development Programme .............. 14

7.3.3 Enabling Innovation Framework ...........................40

6.4 Category Management......................................... 15

7.3.4 Recently Awarded Major Projects ........................42

6.5 Logistics ............................................................... 16

7.4 Shared Service Alliance .......................................43

6.6 Small and Medium Enterprises Action Plan ......... 17 Appendix A – Integration of Business and …….…44 Procurement Planning

6.7 Socio Economic Approach ................................... 18 Appendix B – Sellafield Ltd Timeline……….……...45


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1. Foreword Sellafield Ltd has undergone a change of ownership as a result of the NDA changing the operating model for the business. Our mission to keep the site safe and secure, whilst efficiently driving to make it safer through risk and hazard reduction remains unaltered. The ownership change, whilst significant, is still relatively minor when compared to the changes required over the next five to ten years. We have been an operating, reprocessing-centric site for the last 50 years, that will completely alter as Thorp and Magnox cease in the next five years. This necessitates different skills, systems, leadership and capabilities. We continue to enjoy the support of the NDA and government in funding our mission to record levels, but our demands are escalating even faster; so efficiency through the elimination of redundant processes is mandatory. This is all done in two communities – West Cumbria and North Warrington, and our mission must have lasting positive socio-economic impacts in those regions that have supported us throughout. Now that we are a stand-alone company, we are seeking to engage in long-term, collaborative relationships with partners that share our values and ambition. Partners that can enhance our capability, bring expertise that we lack; but ultimately making us safer, sooner. We look forward to this new chapter in our evolution and to your role in it. Please work with our Supply Chain Director, Martin Chown, to make a difference. Paul Foster Chief Executive Officer, Sellafield Ltd

Over the next four years Sellafield Limited will be entrusted with ~£2.0Billion per annum of public funding, to support the Sellafield mission of keeping the site safe and secure, whilst accelerating risks and hazards reduction and delivering value for money to the UK taxpayer. To successfully deliver the mission and execute the scope of work set out in the short range Operating Plan (3 years) and the longer term Corporate Plan (20+ years) Sellafield Ltd will continue to be heavily reliant on having access to a sustainable supply chain with the necessary capability and capacity to deliver in the region of 60% of our planned work.

To enable delivery of the mission we shall engage the supply chain in the following business improvement initiatives:

• Increase Collaboration – Through long term Strategic Alliances, increasing trust to avoid man marking, engaging in strategic discussions through Supplier Relationship Management (SRM), Supply Chain Development (SCD) activities and Market Engagement

• Eliminate Waste – By seeking fit for purpose solutions, challenge existing specifications, procuring Commercial Off the Shelf Solutions, Capturing LFE, removing constraints and improving work planning and logistics

• Standardisation – Where practicable, seek standard solutions at component, system and facility level, through the implementation of Category Management

• Innovation – Seeking Fit for Purpose Solutions • Socio-Economics - Encourage the recruitment of

apprentices, graduates and the long term unemployed from the communities adjacent to our sites in West Cumbria and Warrington

• Small and Medium Enterprises (SME) – Seek commitments from our Tier 2 Suppliers that they will deliver between 20 and 25% of their scope via SME’s

By implementing the above business improvement initiatives, it is Sellafield’s goal to deliver a minimum of 5% year on year efficiencies from the supply chain. The Sellafield 2016/17 Procurement Plan provides a visibility of all planned procurements with a value in excess of £100K that will be procured in the next 3 financial years and an overview of business improvement initiatives that are either inflight or planned to improve the quality of work delivered, value for money and schedule delivery.

We trust that this information will aid your short term business planning, business development activities and longer term strategic planning and encourage you to view Sellafield Ltd as a blue chip client of choice. Please email any suggested improvements to our procurement plan to the Supply Chain Ombudsmen. [email protected]

Martin Chown Supply Chain Director, Sellafield Ltd


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2 Introduction and Purpose Welcome to the 2016/17 edition of the Sellafield Ltd Procurement Plan. Building upon last years’ edition, this document sets out how Sellafield Ltd engages with the supply chain in order to deliver Operating Plan and the overall site mission. Operating under a new governance model with NDA, Sellafield Ltd has become a subsidiary of NDA. This new subsidiary model will help Sellafield Ltd build on, and accelerate progress in hazard and risk reduction and decommissioning and deliver it more efficiently. This new arrangement replaces the Parent Body Organisation (PBO) model. Under the new arrangements the Sellafield Ltd Baseline Plan will replace Performance Plan 14 (PP14). Below is a pictorial representation of the new commercial model.

The Sellafield Ltd Baseline Plan will provide, at a summary level, the hundred-year lifetime of the Sellafield site, scope and schedule and likely costs and will replace the previous Lifetime Plan, also known as PP14. The Corporate Plan is also a new plan, which will take a twenty-year view of Sellafield Ltd. This will enable Sellafield Ltd to undertake longer term business planning. The Corporate Plan will be finalised in Autumn 2016. The Operating Plan sits beneath the Corporate Plan and is the agreement between Sellafield Ltd and the NDA on what will be delivered at Sellafield over the next two to three years. Refreshed every year, the Operating Plan replaces the need for separate PAFs and PBIs; corporate targets, the Excellence Plan and business plan. The Procurement Plan, Procurement Schedule and the Procurements on a Page are the Commercial

enablers to deliver facilitate delivery of the Corporate Plan and the Operating Plan. Below pictorially is the line of sight between the Sellafield Ltd Baseline Plan, Corporate Plan, Procurement Plan, Procurements on a Page and the Procurement Schedule (See Appendix A for an Enlarged Version).

The principle aim of this Procurement Plan is to: • Provide an overview of how we conduct

procurements • Engage with the supply chain • Provide an overview of commercial initiatives that are

in flight • Provide a longer term strategic view of site activities • Provide a summary of major programmes to help

provide a context for projects and contracts to be delivered.

Read in conjunction with the Procurement Schedule and the Procurements on a Page, this Procurement Plan sets out the supply chain opportunities over the coming three year period. Furthermore we have sought to outline a number of our existing Tier 2 contracts in order to highlight potential areas of opportunity for the Tier 3 and Tier 4 supply chain. Sellafield Ltd encourages and expects our Tier 2 supply chain to spend ~30% with Small Medium Sized Enterprises (SMEs). Working with the Tier 2 supply chain enables Sellafield Ltd and NDA to meet the Government SME spend targets. Before moving into this years’ plan, listed below is a summary of our key Commercial Achievements in 2015/16. 2015 / 2016 Highlights Overview • £1.23 Billion* spent with the supply chain


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• 950 suppliers contracted with, 350 of which were

Small Medium Sized Enterprises (SMEs) • 45,291 contracts placed of which 41,973 (92.7%)

were against pre-existing catalogues or Frameworks • In excess of £50M of supply chain savings delivered • £68.66M direct Sellafield Ltd spend (6%**) with SMEs

* Including “ERES” spend ** Excluding “ERES” spend

Significant Contract Awards • The first Category Management contract, for

the supply of high integrity In Cell and Out Cell Cranes

• Decommissioning Delivery Partners Framework to support high hazard reduction

• Collaborative Procurement – Agency Supplied workers

• Civil Inspections and Topographical Services Framework

• Provision of Machined and Fabricated spares • Collaborative Procurement – Supply of Bulk

and Packaged Chemicals • Collaborative Procurement – Supply of

Maintenance, Repairs and Operations (MRO) Consumables

• Enabling Innovation Framework (EIF) – Technical Solutions

Procurements to Support our SME and Socio- Economic Commitment The monthly Procurement Schedule, published on the Sellafield Ltd website now includes a data set specific to SME opportunities. Further details together with contacts and useful information can be found in the Sellafield Ltd SME Procurement Plan, a copy of which is on the Sellafield Ltd website. The type of opportunities identified specifically for SME’s include: • Risley/Sellafield coach services • Provision of Website Hosting and Development • Laundry services • Maintenance of Fork Lift Trucks • Site shuttle buses • Maintenance of Compressors and Air Conditioning

Sellafield Ltd would encourage SME’s to participate in any procurement where they believe they can add value and not to limit there participation of aspirations to work identified in the SME procurement plan.

• Socio Economics - a dedicated Head of Socio Economics continues to lead the work in delivering socio-economic benefits to the local community. We have also appointed a Socio economics Supply Chain Lead to liaise with the SMEs.

Contact Information

Head of Socio Economics – Helen Fisher Telephone: +44 (0)19467 85400 Socio Economics Supply Chain Lead – Michael Moore Telephone: +44 (0)19467 76132

Investing in the Supply Chain

• Small, Medium Enterprise (SME) - over the last few years

Sellafield Ltd has focused on ensuring SMEs’ are at the forefront of its commercial thinking. Sellafield Ltd has delivered improvements to its procurement and contract management processes through its SME Action Plan and Responsible Procurement Programme (RPP) to enhance the importance of socio-economic factors in contract evaluations and to encourage suppliers to make firm commitments that can be measured and realised. In 2016/17 Sellafield Ltd will be working within the framework of an NDA Estate wide plan for procuring growth in the supply chain, with particular emphasis on increasing spend with SME.

• Supplier Forum - a very successful Annual ‘Supplier Forum’ was held at Energus on 15 September 2015 under the overarching theme “Delivering through effective partnerships.” The event continues to go from strength to strength with over 500 attendees and an additional 200 requests to attend. As part of the event information was provided to the supply chain on a number of Commercial improvement activities and opportunities, EU Procurement Rules and the Small Medium Size Enterprise (SME) Growth Agenda and the Socioeconomic Strategy as well as information regarding the Site Prioritisation Process.

• Supplier Relationship Management (SRM) - Sellafield

Ltd has implemented a process called Supplier Relationship Management (SRM) which is about developing two-way mutually beneficial relationships with our most strategic suppliers in a way that delivers greater levels of innovation and value than could be achieved by operating independently. With key suppliers this means • close co-operation • alignment to company objectives • regular two-way dialogue to improve processes • measuring / improving performance

The Top 20 suppliers based on costs and/or risk were identified in 2014 and each supplier was aligned to an Executive Team Member and Commercial Head. There is a minimum engagement with these suppliers on a twice yearly basis, to review and measure the status of the relationship and determine any potential improvement activities.


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3 Procurement Principles and Practices Sellafield Ltd recognises the need to work collaboratively with the supply chain, to achieve the overall mission - delivering value for money, accelerate hazard reduction and to keep the Sellafield site safe and secure. Sellafield Ltd will achieve this through: • Supplier Relationship Management (SRM) –

improving the strategic alignment between Sellafield Ltd and our strategic partners

• Supply Chain Development Programme (SCDP) – working with our supply chain to eliminate waste and improve business to business practices

• Category Management (CM) – driving value through aggregation, standardisation, challenging specifications and working practices to realise a transformation in performance

• Entering into Strategic Alliances to secure capability and capacity to support the business investment

• Site Logistics – reducing vehicular access to the Sellafield site to reduce the security risks and reduce the traffic on the A595

• Improving the overall quality of our tender documents, updating the standard terms and conditions and listening to supply chain feedback on our standard Works Information and from the SCDP on the NEC ECC form of contract

• Working closely with the G6 to remove barriers to progress and challenging existing working practices and specifications to deliver fit for purpose (FfP) solutions

By implementing all the above initiatives Sellafield Ltd will deliver a programme of cost and schedule efficiencies with minimum target of 5% on a year on year. Sellafield Ltd strives to: • Deliver open, transparent, timely and consistent

communications at all levels • Adhere to standard procurement and contract

management processes • Embed collaborative working with the supply chain • Use learning from other Nuclear Clients and

industries • Engage early with the market to test acquisition and

sub-contract strategies and obtain early Contractor and manufacturing input into design and constructability

In addition, Sellafield Ltd gives full support to the NDA’s Supply Chain Charter - which aims to improve relationships, planning and performance through all tiers of the supply chain supporting the NDA estate. The main principle behind the charter is for all levels of the supply chain “to be a good client”. All Sellafield Ltd suppliers are encouraged to flow down this Charter to their suppliers.

The link to the NDA Supply Chain Charter is below https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/466882/supply_chain_charter_October_2015.pdf Sellafield Ltd has also developed an SME charter to improve the engagement between Tier 2 suppliers and SMEs and encourage its suppliers to honour the charters commitments. The link to the Sellafield Ltd SME Charter is below http://suppliers.sellafieldsites.com/files/2012/12/SMETier2-Charter_Jan16.pdf Sellafield Ltd Procurement Management Sellafield Ltd applies a Portfolio and Programme management approach to it's procurements by seeking to aggregate demand, standardise to Commercial off the Shelf products (COTS) and systems and looks for transformational performance by seeking new solutions and ways of working. Sellafield Ltd manages procurement activities through the following principles: • Use the most appropriate procurement and

contracting strategies • Support the local economy and key stakeholders • Require Tier 2 organisations to deliver sub set socio-

economic plans • Demonstrate the highest professional ethics,

standards and conduct • Deal with suppliers in a manner which is non-

discriminatory; provides for equal treatment; is open and transparent; provides for mutual recognition and is proportionate to the nature and value of articles being procured

• Meet all external regulatory requirements, including legal, health and safety, quality, environmental, sustainability, Public Procurement Regulations and European Procurement Directives

• Deliver effective supplier management and development

• Develop a capable and sustainable supply chain and minimise barriers to entry;

• Ensure that all goods and services purchased conform to specified requirements at the point of use

Sellafield Ltd works to these principles by employing the following practices: • Focus on delivering maximum value for money over the

long term, maximising value added from the supply chain and continuing to focus on cost reduction

• Use competition to maximise value for money and where appropriate employ multi supplier framework arrangements to maintain a competitive environment


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• Develop contract strategies that have appropriate

incentives designed around relative importance of cost (capital or whole life) schedule and functionality

• Seek “commercial, off the shelf” (COTS) products and services rather than bespoke; use functional, output or performance-based specifications where possible in order to increase the potential supply base (and thus competition)

• Engage early with suppliers and markets to allow them time to develop innovative strategies and solutions for Sellafield Ltd and encourage the entry of new suppliers

• Drive (through supply chain management) a robust continuous improvement culture that learns from internal and external experience, critically assesses our performance against high standards, and supports growth and development

• Include Value Analysis / Value Engineering clauses in contracts to encourage contractors to offer alternative methods of delivery; Sellafield Ltd also conduct cost analysis, especially where competition is limited

For specific procurements: • The sourcing strategy will comply with the options

available under Public Contracts Regulations (PCR) - Open Procedure, Restricted Procedure, Negotiated Procedure, Competitive Dialogue, the recently introduced Competitive Procedure with Negotiation and use of Crown Commercial Service (CCS) Framework Agreements

• Sellafield Ltd’s preference to use the NEC Suite of contracts (with flow downs) where ever practicable

• To design the incentives around the project critical success factors (Time / Cost / Quality) or other wider influencing factors for example SME or Socio- Economic Targets

• To allocate risk to the Parties most capable of managing the risk

• Any decision to make a direct award (rather than to compete) is supported by an internal justification process structured according to value

Note with respect to the changes to the Public Contracts Regulations (PCR): The PCRs were updated in February 2015 to PCR 2015, bringing about some welcomed changes and new procedures. This included Lord Young’s SME friendly reforms to open up public sector procurement and remove barriers for SMEs. The reforms also included an obligation to make prompt payments to Contractors and Suppliers and the requirement to cascade the obligation into the lower Tiers of the supply chain; the use of lotting strategies – lotting strategies to attract SMEs by size or specific skill set; the removal of the use of a Pre-Qualification Questionnaire (PQQ) for below PCR threshold procurements and the use of Contracts Finder.

Sellafield Ltd have updated the Procurement Schedule in accordance with the new regulations. 4 2016/17 Procurement Plan

4.1 Procurement Schedule The Procurement Schedule gives details of recently awarded and forthcoming procurements with a value >£100k over the next three years. Suppliers can still bid for procurements with a value < £100k as these opportunities will be advertised on the Complete Tender System (CTM). For each planned procurement the Procurement Schedule has information on: • Title of the Procurement • Expected value range • Dates for Invitation to Tender and Contract Award • Indicative Commercial Model including cost

conditions and Incentivisation We are currently undertaking a strategic review of the undernoted procurements to finalise the proposed scope of work associated with each contract, the optimum delivery strategy and route to market. Therefore the information provided in the procurement schedule and procurements on a page should be treated as provisional and is likely to change. Sellafield Ltd will issue an update on these procurements later in the calendar year once the Delivery and Acquisition strategies have been approved.

• Market Enhanced Model Strategic Partner – ID TBC • The SIXEP Contingency Plant - Construction and

Inactive Commissioning Contract – ID 3511 • The Replacement Analytical Services Project – ID

3990 • Sellafield Product and Residue Store Retreatment

Plant ID 5028 • Major Projects Delivery Partners – ID TBC

The Procurement Schedule is updated monthly and published as a spreadsheet on our website; the latest version can be found at www.sellafieldsites.com/suppliers

4.2 Procurements on a Page The ‘Procurements on a Page’ document is intended to provide additional information on the scope of our key procurement opportunities by expanding upon the existing descriptors in this Plan and the Procurement Schedule. These documents however are designed only as a guide, as specific procurement details will be made available through the normal process. Each Procurement ID is unique to the specific procurement. This enables the supply chain to cross reference from the Procurement Schedule to the individual Procurements on a Page and vice versa.


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The ‘Procurements on a Page’ are to be read in conjunction with this Procurement Plan and the Procurement Schedule. These documents can be found at www.sellafieldsites.com/suppliers

4.3 Procurement Plan from extant Framework Contracts and Agreements

Frameworks cover a range of products and services - for example Design Services, Decommissioning, Infrastructure, Gases, Chemicals, Technical Services, Personal Protective Equipment, and Multi Disciplinary Site Works - and typically run for a number of years.

Each year ~ 50% of external spend will be procured by Sellafield Ltd using the most appropriate extant framework. The Procurement Schedule gives information on which organisations, or consortium of companies, have recently been awarded frameworks, the generic scope of the work and the anticipated annual expenditure range. Sellafield Ltd continues to work on improving the visibility of call off opportunities under our existing framework agreements to improve the visibility of opportunities for potential Tier 3 and 4 Suppliers.

4.4 Doing Business with Sellafield Ltd

Sellafield Ltd website The Supplier area of the website is dedicated to providing our suppliers, both new and existing with relevant information. It provides an overview of direct Sellafield Ltd commercial opportunities, upcoming procurements with planned timescales, details of current suppliers where suppliers could potentially win sub contract work, specific information on projects and framework contracts that are held by our direct suppliers as well as useful communication updates and our supplier events calendar. For further information please visit www.sellafieldsites.com/suppliers If you wish to engage with Sellafield Ltd as part of our supply chain, here is some information on how to do business with Sellafield Ltd. Supplier Portal and Registration

Sellafield Ltd are committed to provide timely and relevant information on our website, of interest to all existing and prospective suppliers. To register an interest in attending one of our future Supplier Forums please take time to visit the website and browse the categories. To be kept up to date with supply chain events please visit www.sellafieldsites.com/suppliers and link to ‘supplier events’. Then please complete the

online registration which is quick and easy to do. Complete Tender Management (CTM)

This is our Tender Management Tool. For further information please visit www.sellafieldsites.com/suppliers and link to ‘Commercial Opportunities’. Here you will find training materials and a direct link to the CTM system. For assistance on all CTM queries please email [email protected]

How are opportunities advertised?

Opportunities are also via advertised Contracts Finder. Contracts Finder lets you search for information about contracts worth over £10,000 with the government and its agencies at www.gov.uk/contracts-finder OJEU (Official Journal of the European Union)

All opportunities above the relevant thresholds are advertised through OJEU. For more information please visit www.sellafieldsites.com/suppliers and link to commercial opportunities / EU public sector rules / how to do business. Tier 3 and 4 suppliers

Small to Medium Enterprises (SMEs) and specialist suppliers (Tier 3 and 4 in the NDA model) will usually supply to the Sellafield sites via integrated Tier 2 contracts. Information on the scope of these can be found in the Procurement Schedule and contract notices, and at occasional ‘Meet The Buyer’ events organised by Development Agencies Details on the Tier 2 suppliers including key contacts can be found on the Sellafield Ltd website http://suppliers.sellafieldsites.com/procurement-opportunities/tier-2-suppliers/

Innovation Proposals Sellafield Ltd is committed to encouraging the introduction of innovation to our business. Sellafield Ltd recognise that the supply chain has vast experience across many industry sectors and can help us deliver our business in an increasingly efficient and effective way. Innovation can come in many forms, from development of new technologies, or novel application of existing technologies, or through to changes to working practices or procedures. Whatever the idea, we recognise that our suppliers will want to protect them, and we can do this through confidentiality agreements as necessary. We will actively manage the process of introducing innovative ideas to the business and for further information please visit www.sellafieldsites.com/suppliers and link to ’Innovation and Suggestions’


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Introduction to Delivery on the Sellafield Site Suppliers of goods and materials will find little difference between Sellafield Ltd and any other customer. However, carrying out work on nuclear sites has its own requirements, which you would be made aware of when tendering. The Contractor Management and Leaseholders Department, formally known as the Resident Engineers department oversees all on site contractors, and have an input into the tender process. An overview of requirements on contractors and suppliers for work on Sellafield sites is available from the Contractor Management and Leaseholders Department +44 (0)19467 86441. Market Engagement Over the past several years significant progress has been achieved by Sellafield Ltd in embracing and deploying best practice approaches to Pre-Market Engagement (sometimes referred to as Early Market Engagement). Sellafield Ltd have focused on improving and gaining strategic as well as tactical benefit from conducting Pre-Market Engagement activities, primarily in relation to recent Major Projects and increasingly across the portfolio of operations to support procurement activity. The level of Pre-Market Engagement will be proportionate to the scale and complexity of the project. Effective Pre-Market Engagement also supports the business commitment to improve operational performance through early supplier engagement. Engaging with the market before starting the formal procurement process is regarded as best practice and helps to maximise value for money from the resulting procurement. Supplier Events The schedule below give indicative dates for early market engagement events. Updates and confirmed dates will be posted on the Sellafield Ltd website at www.sellafieldsites.com/supplier-events Sellafield Ltd also arranges various supplier events to keep the supply chain informed such as the Supplier Forum, ‘Meet The Buyer’ and the Decommissioning Exhibition. If you wish to be kept informed of news and supplier events, please register at http://suppliers.sellafieldsites.com/supplier-events/

Industry Days Date

Industry Day Indicative

Date Market Enhanced Model (MEM)

Q3 2016/17

SIXEP Contingency Plant (SCP)

Q3 2016/17

SPRS Repackaging Plant (SRP)

Q3 2016/17

Category Management – Protection Systems

Q2 2016/17

Analytical Services Replacement Facility Project (ASRF)

Q4 2017/18

Post Contract Management Arrangements Over recent years Sellafield Ltd has been undertaking a number of activities to strengthen and improve our Post Contract Management Arrangements which are summarised below: a) Works Information Improvements in Works Information Quality • New format developed to align terminology

and structure with the NEC Suite of Contracts

• Specifications and Standards updated to ensure they are current

• The role of the intelligent customer clarified

b) Contract Management Sellafield Ltd has introduced a range of Contract Management, Administration and Training Templates, standardising a best practice approach to post contract management. These have been developed and deployed across the Major Projects Group of projects together with the adoption of a site-wide electronic system for the management of NEC contracts (CEMAR) which will provide improved discipline, tighter control and greater visibility of contract performance which, in turn, will lead to improved efficiency. Supply Chain Ombudsman Sellafield Ltd is the only UK Site License Company (SLC) with a Supply Chain Ombudsman. The Ombudsman offers a confidential and unbiased route for the supply chain to raise issues or complaints relating to how Sellafield Ltd undertakes its procurement activities. The Supply Chain Ombudsman is also responsible for a number of supply chain development and engagement activities as well as being able to explain how to do business with Sellafield Ltd.


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Contact Information

Supply Chain Ombudsman Telephone: +44 (0)19467 81963 Assistant to Supply Chain Ombudsman Telephone: +44 (0) 19467 80117 Supply Chain Innovation Telephone: +44(0)1925 834012 Supply Chain Quality Telephone: +44(0)19467 85645


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5 Strategic View

5.1 Major Programme Transitions • The Major new construction projects that support the retrievals, processing, packaging and storage of ILW wastes

from Legacy Ponds and Silos are completed that enable bulk retrievals to commence • Reprocessing of Magnox Metal fuels is completed and plants move from operations into Post Operational Clean Out

and Decommissioning phases • Reprocessing of Oxide fuels is completed and parts of Thorp move from operations into Post Operational Clean

Out and Decommissioning phases • Vitrification of High Level Waste is completed and the Vitrification lines move from operations into Post

Operational Clean Out and Decommissioning phases

The timeline shown below illustrates the major transitions that are planned across the Sellafield Site up to 2030: It is recognised that changes of this scale and complexity will only be successfully accomplished with active engagement of employees, supply chain, regulators and other stakeholders.

(See Appendix B for an Enlarged Version of the Diagram)


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5.2 Trends in the Supply Chain Spend Profile

The total spend profile shown below (based upon the Operating Plan 2016) illustrates: • Spend on New Construction and Major Asset Care ramping up to, and peaking at ~ £802m per annum in 2017/18 • Plant Enhancements and Asset Care Projects average ~ £620m per annum for the first six years before declining

to ~ £520m per annum for the final four years • Operations and Maintenance spend is steady at ~ £700m per annum before gradually declining to ~ £550m per

annum as reprocessing operations are completed • Post Operational Clean Out (POCO) and Decommissioning expenditure peaks this year at ~ £205m thereafter

reducing to ~ £123m per annum in 2024/25 and 2025/26 • Functions and other costs reduce from ~ £500m to ~ £450m per annum in 2025/26

External spend has been analysed by programme as illustrated below:

• Supply chain spend peaks in 2017/18 at ~ £1.2 billion, then declines to £900m per annum in 2024/2025, before increasing the following year

• New Construction and Major Asset Care spend peaks in 2017/18 at ~ £514m per annum reducing to ~ £331m in 2024/25 with an average spend of ~ £430m over the 10 years

• Plant Enhancements and Asset Care spend peaks in 2017/18 at ~ £426m per annum reducing to ~ £323m in 2025/26 with an average spend of ~ £366m per annum over the 10 years

• Operations and Maintenance spend steadily increases and peaks in 2020/21 at ~ £41m with an average spend of ~ £32m per annum over the 10 years

• POCO and Decommissioning spend reduces from ~ £80m per annum in 2016/17 reducing to ~ £48m per annum in 2025/26

• Functions and Others spend reduces steadily from ~ £177m per annum in 2016/17 to ~ £156m per annum in 2025/26

Note - The Operating Plan identifies the cost profiles for the 3 years 2016/17 to 2018/19 inclusive. The cost profiles beyond this point are an assumed position.

0

500

1000

1500

2000

2500

2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26

£M

New Construction & Major Asset Care Plant Enhancements & Asset Care

Operations & Maintenance POCO & Decommissioning

Functions & Others

0200400600800

100012001400

2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26

£M

New Construction & Major Asset Care Plant Enhancements & Asset Care

Operations & Maintenance POCO & Decommissioning

Functions & Others


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6 Strategic Initiatives To increase security of supply and to deliver increased value from the supply chain, Sellafield Ltd is developing and implementing a number of strategic initiatives: • Market Enhanced Model (MEM) • Supplier Relationship Management (SRM) • Supply Chain Development Programme (SCDP) • Category Management (CM) • Logistics • Small and Medium Sized Enterprises Action Plan • Socio-Economic Strategy

6.1 Market Enhanced Model (MEM) As part of the transition to a Market Enhanced Site License Company, Sellafield Ltd is seeking to acquire market enhancement capability through strategic partners to support delivery of our long term objectives. The stated function of the MEM is to assist Sellafield Ltd in making best use of its own capabilities and combining these with services provided by the supply chain. The engagement is likely to be long-term, up to 15 years.

During 2015/16 significant market engagement was used to develop the strategic need and competition principles for the MEM; further engagement with the supply chain may be required, prior to the scope, acquisition strategy and sub-contracting strategy being shared with the market during 2016/17. Provisional targets for 2016/17 include the following: • Gain approval for the Outline Business Case • Hold industry day(s) in Q2 / Q3

• Publish a contract notice in the Official Journal of the European Union (OJEU)

• Commence procurement of scope bundles

The diagram depicted below shows the models for the old and new arrangements.

Further details will be made available as appropriate through the supplier section of our website and the MEM CTM portal (via Rft 8397).


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6.2 Supplier Relationship Management (SRM) • Sellafield Ltd continues to rationalise its pattern of

engagements with the supply chain to ensure an integrated approach is adopted which will support delivery of the site priorities

• A key feature of this relationship management is periodic strategic dialogue between Sellafield Ltd’s critical suppliers and a nominated member of the Sellafield Ltd Executive. This dialogue covers a broad range of issues related to site-wide strategic matters and priorities relevant to that supplier

• This strategic engagement provides a focus on site-wide strategic issues, relevant to Sellafield Ltd’s overall relationship with each key supplier, addressing matters such as future direction, alignment to Sellafield Ltd’s Strategy, including socio economics/growth, and future capacity/capability needs

Engagement Level with Suppliers

• The Sellafield Ltd Executive has now completed its first

round of engagement with key suppliers. • The transfer of ownership of Sellafield Ltd from NMP to

the NDA and the implementation of the new governance model has resulted in some changes to the Sellafield Ltd Executive Management Team and this will result in some changes to the representatives that support SRM.

• On an annual basis, the Key Supplier List will be reviewed and updated to ensure it remains aligned with the critical areas for the business, taking cognisance of completed and or awarded contracts

• This approach is being integrated with NDA and other Site License Companies (SLCs) to ensure consistency and alignment across the NDA estate

SRM Strategic

SCDP Operational

Market Engagement

Tactical

Future projects, capability and capacity, supplier business direction and

potential business opportunities

Collaborative engagement with the

Supply Chain to identify and implement changes

that will improve the efficient and effective

delivery of work at Sellafield

To test with the Supply Chain there capability and

capacity to deliver a specific scope of work and that the proposed terms &

conditions are attractive


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6.3 Supply Chain Development Programme (SCDP) The primary objective of the Supply Chain Development Programme is to improve the health, capacity and performance of the Sellafield supply chain. The Supply Chain Development Programme continues to build on the works outlined in the 2015/16 Procurement Plan and will focus on 4 key areas of improvement during 2016/17, as summarised below:

1. Wider Roll Out of Self-Assessment

The new Self-Assessment tool allows Sellafield Ltd and suppliers to measure themselves annually against a consistent set of benchmarks, which are relevant to our business needs. Participation is voluntary and the results of the Self-Assessment allow an organisation to identify areas of best practice as well as areas for improvement. Sellafield Ltd will work with suppliers (individually and within groups where there are common issues) to address improvement opportunities. Similarly it is hoped that suppliers will work collaboratively to share best practice as a means of helping other organisations to improve their performance. During 2015/16, Sellafield Ltd worked with 13 volunteer organisations to pilot the process. In collaboration between the supply chain and Sellafield Ltd, the results have been analysed together with the associated Learning from Experience (LfE). Implementation plans continue to be developed in 2016/17 with the 13 volunteer organisations.

2. Accelerate the Onboarding of Contractor Resources to the Sellafield Programme

The Supply Chain Development team will continue to provide direct support to a broader programme of work within Sellafield Ltd, which is focused on reducing the overall time and effort required to get personnel to the work face, from the point of first identifying a business need. This is a complex and challenging programme with many interfaces. It nonetheless has the potential to deliver significant benefit to Sellafield Ltd and the supply chain.

3. Making it Easier to do Business with Sellafield Ltd

During 2015/16, Sellafield Ltd reviewed a number of aspects of the way that it engages the supply chain to deliver works, goods and services across the site. This included market engagement with the supply chain to review the works contract terms and conditions in use on our capital projects (NEC3 Engineering and Construction Contract and Flowdowns). Following the supply chain engagement the key finding can be found in the “Supply Chain Development Programme Contract Terms and Conditions Improvement Project Report” http://www.sellafieldsites.com/wp-content/uploads/2016/03/SCD-1-Programme-ECC-Contract-TCs-Summary-of-Market-Engagement-Feedback-Recommendations-Feb-2016.pdf

We have a number of recommendations to improve the way that we engage the supply chain, which during 2016/17 Sellafield Ltd will prioritise and implement. Executive Performance Reporting to Support Supplier Relationship Management During 2015/16 Sellafield Ltd trialled the production of an Executive level report, to inform the bi-annual Supplier Relationship Management meetings with it’s top 20 most strategic suppliers. The report collates existing data already in use across the wider business. The focus during 2016/17 will be to embed production of the Executive Performance Report as part of business as usual and develop it to align with proposals within NDA for an estate wide supplier report.


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6.4 Category Management (CM) To secure capacity and capability of the supply chain to meet the forward demand, Sellafield Ltd has adopted a strategy for category management, similar to that used in other industries. The objectives are to: • Identify the supply of key categories in order to

underpin Major Project, Operations and Maintenance and Decommissioning delivery

• Improve value for money over the whole category lifecycle

• Improve Sellafield Ltd’s demand forecasting processes and systems

• Engage with the supply chain to develop strategies to meet the demand profile

• Facilitate engineering design reviews so that standardisation and modularisation can be introduced where appropriate for categories across a site wide basis

The category management process has a number of steps: 1) Demand Analysis from site lifetime plan - identify

the products/services for which commodity management is appropriate. These drivers are Capacity, Cost and/or Quality

2) Analyse the demand profile over time across the Sellafield site

3) Set up Technical workshops with existing suppliers to assess the possibility for Sellafield Ltd to drive standardisation

4) Develop strategies accordingly - for example, if demand exceeds supply, strategies might include

a. Reprogramming so that peaks and troughs are smoothed out and annual demand matches supply

b. Developing alternative sources of supply - new entrants

c. Standardising specifications so that lead time can be reduced and supply increased

d. If required, capacity reservation contracts - take or pay for key categories

During 2015, Phase 1 was completed culminating in contracts being awarded for High Integrity Cranes and tenders for the supply of Tanks and Vessels and Shield Doors. Phase 2 also commenced and in the coming 12 months Invitation to Tenders will be issued for the next three categories Glove boxes, Fire Alarm Systems and Ventilation Systems. Category Management will also begin to evaluate an additional three categories which is likely to include Roofs and Control Systems. In 2016 Phase 3 of initiative will also begin the objectives of which will be: • Integration within the company • Integration with industry • Developing lifecycle economic performance data

for assets • Asset level Category Management


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6.5 Logistics The Inbound Logistics and Warehousing Programme (IL&W) is delivering a series of projects that will assist in enhancing security and improve the Inbound Transportation strategy within the company. The purpose is to provide 21st Century solutions which will result in a change to a forty year culture in material handling and management. In addition to providing benefits to Sellafield Ltd, the programme will assist the supply chain in co-coordinating deliveries, and enhance / improve the delivery of Sellafield Ltd major projects. The first project within the IL&W programme is the implementation of a Control Tower Project, which will bring order and visibility to all commercial vehicle deliveries to Sellafield Ltd sites. Sellafield Ltd awarded the contract in November 2014, and engaged with a Logistics Service Provider (LSP) partner, Peterson Ltd, to implement a Control Tower concept consisting of a Delivery Management System (DMS) which will become the ‘booking agent’ for all commercial vehicle deliveries to all Sellafield Ltd sites in West Cumbria. Within the first year of operations, scheduled to begin in March 2016, approximately 20% of current commercial vehicle deliveries (predominantly transferable consumable deliveries) will be redirected to a security and distribution centre which has been established within a 45,000 sq. ft. location at the Lillyhall Warehouse facility. The items will be security screened and consolidated into loads for onward delivery to Sellafield Ltd. The remaining vehicle loads will be identified as non- transferable and will continue to arrive at the Sellafield site main gate. The Lillyhall Warehouse has been refurbished and reconfigured to provide a ‘cross dock’ operation and will be managed by the LSP. The Delivery Management System (DMS) was implemented in late January 2016. This project is fully aligned with the NDA’s strategic theme and objective for maintaining site security. The project has both security and commercial objectives and benefits, and the Office for Nuclear Regulation has an expectation that IL&W will provide the required security benefit by reducing the number of commercial vehicles requiring access to the Sellafield site. The Control Tower Project contract was awarded to Peterson Ltd in November 2014 at the end of an extensive process to determine the required calibre of logistics service provider to partner with Sellafield Ltd.

Project 2 - Sellafield Transit Centre (STC) The second IL&W project, Sellafield Transit Centre, completed the required design stage working with Amec Foster Wheeler (via the MDSW Framework – section 7.3.2) who together with Sellafield Ltd determined the correct design and position for the centre. During Q3 2015, the project became part of the Enterprise Programme Office (EPO) prioritisation exercise, and was deferred. However, the project is now under review to commence at the beginning of financial year 2016 / 17. The STC will assist Sellafield Ltd in achieving our security objectives by ensuring that all commercial non-transferable deliveries to site are searched in accordance with the standards demanded by ONR. The STC will ensure that deliveries to site are security checked in an environment that enables professional, thorough checks to take place, whilst also minimising the impact to other users of the site’s gates. Project 3 - Long Term Distribution Centre (LTDC) The LTDC Project at Sellafield Ltd Lillyhall warehouse facility will address Sellafield Ltd.’s requirements for extended internal warehousing storage capacity and create an effective single-centre of excellence for Sellafield Ltd logistics. During 2015, this project was subject to the EPO prioritisation process and was only provided sanction and funding to progress to initial optioneering stage. The optioneering phase has been completed, and the project is under review to progress at the beginning of financial year 2016 / 17. The LTDC will focus on the refurbishment and reconfiguration of the Sellafield Ltd Lillyhall facility to provide an operating base for the new 3m3 box logistics operation, ‘house’ the Control Tower Project, continue Sellafield Ltd inventory storage and distribution operation, and the ability to ‘stage’ equipment for major projects prior to delivery to site in a ‘just in time’ process. The Inventory Rationalisation Programme is a key enabler to creating capacity for the LTDC refurbishment and reconfiguration activities and will continue to focus on the alignment of inventory and equipment against actual demand.


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6.6 Small and Medium Enterprises Action Plan It is essential to Sellafield Ltd that we have a diverse and vibrant supply chain and integral to this objective is for the Small and Medium-sized Enterprise (SME) community to have the optimum opportunity to flourish alongside others in the supply chain. We see this as vitally important, as SMEs often provide unique specialist capability, allied to innovative thinking and agility. By opening up opportunities for SME suppliers we will stimulate growth and jobs, and enhance the Sellafield programme by SMEs creative and innovative expertise. Our target for expenditure with SME’s in 2016/17 is 25% and Sellafield Ltd with the support of our Tier 2 suppliers will strive to meet this target. At Sellafield Ltd it’s not just about the numbers, we know small businesses are vital to healthier, stronger local communities, so to make a real impact at a local level, we continue to work with our supply chain and recognise that we can do more by adopting a more collaborative approach. We are committed to using our position to optimise the use of and development of SMEs around the country and especially close to our sites. We are aware that many SMEs are apprehensive about engaging, directly or indirectly, with the Sellafield system due to both real and perceived ‘roadblocks’. Through our ongoing engagement and proactive approach with SMEs we are gaining a greater understanding of the barriers that we need to tackle. We are in the process of preparing our SME procurement plan for 2016 / 2017 and will publish it in June 2016. The purpose of the SME Procurement Plan is to help SMEs f ind out more about the opportunities associated with the Sellafield programme of work and how to become part of the Sellafield Ltd supply chain. The plan also includes some useful information about how SMEs can best prepare themselves to take advantage of the opportunities to win work on the programme. SME opportunities are also a subset of the Procurement Schedule which is currently published via the Sellafield Ltd website, and covers one off procurements < £5m in value and frameworks with a lifetime value of < £25m. Details of awarded projects, contracts and frameworks are provided in the same location so that SMEs can investigate sub-contract opportunities.

Opening the Door to Opportunity

As part of Sellafield Ltd’s commitment to support SMEs we hosted the first Opening the Door to Opportunity event. We organised the event, so that small businesses were aware of the opportunities available on the Sellafield site, could pitch for work packages and also educate themselves further on working with our major suppliers and their supply chain. The event also aimed to promote better relationships between small businesses and big companies. Our aspiration is that businesses, especially those close to our site, are not reliant on the Sellafield site for work and use the opportunity the Sellafield site brings to diversify their client base and grow their order books with other companies.

Following the success of this event we are looking at opportunities to host similar events in the future.

Supply Chain Charters for Sellafield Ltd

We believe that to drive economic growth and provide a return on investment to the tax payer, large and small businesses must learn to collaborate effectively together for mutual benefit. Our SME good practice charters build on the NDA charter and pledge our major Tier 2 supply chain partners commitment to SMEs and vice versa. The charters are aimed at fostering good working relations and behaviours across our Tier 2 and SME supply chain. The charters establish ten commitments for Tier 2 and SME engagement and are intended to help build relationships between major companies and small businesses. Above all, the charters are practical. They are not about vague commitments but achievable objectives. They send a clear message to our supply chain that we know the value of working with SMEs and reinforce our commitment, passion and expectation for responsible business.


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6.7 Socio Economic Approach

On the 1st April 2016, Sellafield Ltd became a subsidiary of NDA and took responsibility for socio-economics, with NDA oversight. This model change has allowed Sellafield Ltd the opportunity and confidence to lead socio-economics far beyond ‘input’; we are now able to focus on maximising the economic impact and social value from all the resources, activities and investment within the Sellafield system. Sellafield Ltd is entering a crucial four year period in its modern history; by 2020, the company’s mission will have changed fundamentally from focus on nuclear production into one of the world’s largest environmental restoration projects. We recognise that during this period of change it will not only be challenging for Sellafield Ltd but also the regions in which it operates. During this time, it is incumbent upon us to continue to have a positive impact on the community. We believe this can only be achieved by developing mature, honest and collaborative relationships with our stakeholders and supply chain. We are eager to work with organisations that can support us through this transition and are keen to encourage and support a prosperous economic region. Our socio-economic priorities remain the same – skills, growth and communities, with demonstrable performance. We are committed to working in collaboration with our supply chain to deliver socio-economic activities that optimise socio-economic impact. We will do this by;

• Ensuring that our socio-economic activities

enhance the Sellafield site mission and our communities

• Ensuring that our socio-economic activities are informed and directed by evidenced needs and trends

• Continuing to build reciprocal trusted relationships, with our stakeholders and communities working together to achieve collective success and create shared value

• Delivering socio-economic impact through an integrated organisational approach encompassing resources, funding and all business practices

• Seeking to enhance socio-economic performance through robust monitoring, assurance and scrutiny, audit, evaluation, benchmarking and best practice

• Ensuring that socio-economic reporting is clear, transparent and success is be shared and celebrated

• Seeking opportunities to leverage external resources

and additional investment to maximise impact • Aiming to provide a positive sustainable impact that

avoids community dependency on Sellafield Ltd.

In delivering the Sellafield Ltd mission there are many long term business challenges and opportunities in the coming years. Successful contractors will be those that make firm commitments to support and work with Sellafield Ltd in creating economic and social value, including delivering on socio-economic performance targets. Examples of the objectives we seek include (but are not limited to): • Socio-economics embedded throughout the supply

chain • Socio-economic contractual requirements (at all levels)

to be appropriate to contact value and scope • Supplier’s resources and assets available to support

the community, as appropriate • Simplified “routes to market” for lower tier suppliers. • Collaboration in recruitment, employability and training

schemes • Collaborating to build a sustainable and vibrant supply

chain with a healthy mix of small medium enterprises (SMEs) able to support but not reliant on the Sellafield Ltd mission

• Securing a sustainable legacy from the resources and investment at Sellafield Ltd

Sellafield Ltd believes that maximising the value that the Sellafield programme brings to the local and national economies is a collective responsibility. It is too important and too large a challenge for Sellafield Ltd to tackle alone. We therefore look to our supply chain partners at all levels to embrace and play their part in delivering socio-economic impact.


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7 Supporting Information on Programmes and Major Tier 2 Procurements

7.1 Major Programme Data Sheets 7.1.1 Pile Fuel Storage Pond

The Pile Fuel Storage Pond (PFSP) is the first of four Legacy Ponds and Silos facilities at Sellafield prioritised for clean up by the NDA as part of the hazard and risk reduction programme. PFSP is a sub-divided open air storage pond which was built in the 1940s and 1950s to store, cool and prepare reactor fuel prior to reprocessing. It contains skips of irradiated metal and oxide fuel which needs to be retrieved and transferred for reprocessing or repackaging prior to disposal. This is challenging because the pond has remained open to the elements for more than 60 years and, alongside fuel, contains radioactive sludge and miscellaneous intermediate and low level wastes which need to be retrieved and treated through separate waste streams.

Current Programme Baseline Target Overall cost range £250 - 500m Overall schedule end date 2040

Programme Outcomes Target Date The PFSP programme will achieve the following outcomes

1. First Export of Sludge July 2016 2. Ready to Commence Pond Mar 2019

Dewatering The PFSP programme successes to date 1. Complete Canned Fuel Retrievals Completed Oct 2015 2. Complete Metal Fuel Retrievals Bulk Metal Fuel

Completed Feb 2016 and transfer to onsite store

Programme Structure Programme Acquisition Strategy Approach • Establishing the required capabilities and grouping into

tranches of work to deliver outcomes • Identifying and prioritising the critical success factors

(time/cost/quality) and influencing factors for each capability or project

• Understanding delivery capability requirements and gaps in service needs for programme management, project management, design, project execution, operations and decommissioning and demolition

• Determine whether the requirements should be delivered by Sellafield Ltd or the route to procure the required capability from the supply chain (for example existing framework, category management or new procurement)

• Standardising the manufacture of equipment and service delivery across the projects (where appropriate)

• Undertaking market analysis, early market engagement and optioneering to underpin the commercial case and acquisition strategy

• Individual project procurements where appropriate shall be based on the New Engineering Contract (NEC3) Suite of Contracts

• The incentivisation mechanism for contracts will be design around the project specific critical success factors (time / cost and quality (functionality)) and their relative importance

Acquisition Strategy • Governance of design and project execution will remain

a core function of Sellafield Ltd • Retrieval of waste and waste management operations

will be undertaken by Sellafield Ltd and, where appropriate, supported by the programme partners

• Decommissioning activities will primarily be procured through the Decommissioning Delivery Partner (DDP) Framework

• Management, supervision and execution of Design will be undertaken by the Design Services Alliance (DSA)


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Programme Tranches The approved Interim End State (IES) Objective is to take the PFSP facility to an improved environmental state, requiring minimal ongoing care and maintenance prior to final decommissioning. It is currently assumed that this end point will be when the facility is dewatered. To achieve this, the programme has been structured in 6 tranches as set out below.

PFSP Programme Tranches Programme Benefits

1. Retrieval and Export of Canned Fuel

Benefits realised July 17 – now completed in October 2015

Improved fuel handling and consolidation capability Reduced radiological risk to environment through reduction in pond inventory Maintenance Activities reduced due to obsolescence of Criticality Related Systems

2. Retrieval & Export of Metal Fuel Benefits realised August 17 – bulk Metal fuel exported in February 2016

Improved fuel handling and consolidation capability Reduced radiological risk to environment through reduction in pond inventory

3. Initial Retrievals and Export of Sludge

Encapsulation to modern storage facility Benefits realised July 18

Last Bulk Sludge stored in the corral (outcome) leading to; - Improved Visibility of Pond Structure - Reduced risk to the facility Last Bulk Sludge in Passive Storage Reduced mobility of Radioactivity from Encapsulation

4. Retrieval & Export of ILW Pond Solids Benefits realised March 2023

Decreased Solid Waste Inventory Reduced Radiological Inventory Increased availability of floor space for Bulk Desludging Increased Opportunity to Dewater the Plant (Final Dewatering)

5. Residuals and Dewatering Benefits realised March 2029

Enhanced Bulk Sludge Capability through early deployment Reduced Activity by removing all residual items from the facility Fewer systems to monitor and maintain as the facility is left in a safer state

6. Dewatering of the Pond Structure Benefits realised March 2029

Final hazard removal, reduced facility operating costs, increased transferable retrievals knowledge and increased reputation.


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Major Procurements to support the PSFP Programme The table below identifies the significant capabilities that have recently been awarded or require to be procured to support the delivery of the PFSP programme.

Retrievals and Asset Care Projects

A number of major projects are required for different types of materials and / or different locations within the Storage Pond

Cost Schedule

£36 - 90m 2022/23

Scope Value Start Complete Storage Pond No 1 Local Sludge Treatment Plant (MDSW Framework)

£10 - 25m 2014/15 2016/17

(LSTP) Export - including modifications for thick sludge (Amec Foster Wheeler and Nuvia) £5 - 10m 2014/15 2018/19

Accelerated ILW Capabilities £10 - 25m 2014/15 2022/23 Dewatering and Descaling Preparation (post studies) £1 - 5m 2016/17 2019/20

Asset Care and Infrastructure Improvement £10 - 25m 2017/18 2022/23 Export Capability


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7.1.2 First Generation Magnox Storage Pond

The First Generation Magnox Storage Pond (FGMSP) is the second of four Legacy Ponds and Silos facilities at Sellafield prioritised by the NDA for clean up as part of the hazard and risk reduction programme. FGMSP was constructed in the 1950s and 1960s to store, cool and prepare Magnox fuel for reprocessing. It contains skips of used nuclear fuel which needs to be retrieved and transferred for repackaging prior to disposal. This facility presents significant challenges because alongside the fuel, the pond also contains radioactive sludge, fuel fragments and other debris which need to be retrieved and treated through separate waste streams.

Current Programme Baseline Target Overall cost range £4.0 - 5.0b Overall schedule end date 2048

Programme Outcomes Target Date The FGMSP programme aims to achieve the following outcomes 1. Commence sludge retrievals Apr 2016 2. Commence bulk fuel retrievals Apr 2016 3. Pond fuel bar uncemented bits in Sep 2018

skips exported 4. Completion of Bulk Sludge and 2028

3 Fuel Retrievals

Programme Acquisition Strategy Approach • Establishing the required capabilities and grouping into









Acquisition Strategy • Programme management and project management will

be a core Sellafield Ltd function; programme partners will be appointed to augment Sellafield Ltd capability

• Governance of design and project execution will remain a core function of Sellafield Ltd

• Retrieval of waste and waste management operations will be undertaken by Sellafield Ltd and, where appropriate, supported by the programme partners

• Management, supervision and execution of Design will be undertaken by the Design Services Alliance (DSA)

• Execution of large scale capital projects will be undertaken by an Engineer Procure Contract (EPC) contract awarded after a public procurement process

• Smaller scale projects will be undertaken via the Decommissioning Delivery Partner (DDP) Framework and the Multi Disciplinary Site Works (MDSW) frameworks as appropriate

• The DDP will provide FGMSP with a range of capabilities through the complete life cycle from Programme Management to Waste management Nuclear Operations.


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FGMSP Programme Structure To aid in delivery of intermediate and end benefits the programme has been structured into five tranches to provide the capability and outcomes for the retrieval and interim storage of waste (Tranches 1 & 2), the treatment of those wastes for long term storage (Tranche 3) and the decommissioning of the legacy and new build facilities down to the base slab (Tranches 4 & 5). An end state position for each Tranche is outlined below.

FGMSP Programme Tranches Programme Benefits

Tranche 1 (Preparation for Retrievals) The capability has been created to remove Higher Activity Waste (HAW) sludge, fuel and Miscellaneous Beta Gamma Waste (MBGW) from FGMSP on a daily basis into modern containment to protect the environment, the public and the workers from this hazardous material.

Creation of diverse waste retrieval capabilities

Tranche 2 (Waste Retrievals) The bulk of all sludge, fuel and MBGW has been removed from the FGMSP legacy facilities.

Reduced radioactive inventory stored in facility

Tranche 3 (Waste Treatment) The capability has been created to treat sludge, fuel and MBGW from FGMSP on a daily basis for long term storage, further reducing the hazard. The bulk of all sludge, fuel and MBGW has been treated suitable for long term interim storage prior to final disposal.

Reduced hazard (waste treated/passivated) and suitable for long term storage

Tranche 4 (POCO and Dewatering) The residual sludge, fuel and MBGW have been removed from both the Legacy buildings and new build storage & treatment facilities.

All risk and hazard removed (all radioactive inventory removed)

Tranche 5 (Decommissioning) Both the legacy buildings and new builds have been demolished and only the building base slab remains, removing the Nuclear Decommissioning

Reduced liability and reduced operations and maintenance costs


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Major Procurements The Table below identifies the significant capabilities that have recently been awarded or require to be procured to support the delivery of the FGMSP programme.

Sludge Packaging Plant 1 (SPP1) Buffer Storage Facility – Awarded Packages

Cost £260 - 525m Schedule 2029/30

Work Packages Value Start Complete Process Improvements £10 - 25m 2014/15 2017/18 Process and Export Facility £250 - 500m 2017/18 2032/33

Retrievals and Processing Projects

A number of major projects are required for different types of materials and / or different locations within the Storage Pond

Cost Schedule

£1.2 - 2.1b 2026/27

Work Packages Value Start Complete Bulk Sludge and Fuel Retrievals Capability £200 - 250m 2014/15 2019/20 Bulk Uranics Fuel Treatment Construction £500 -1000m 2021/22 2033/34 Decanner and Residual Retrievals £50 - 100m 2019/20 2029/30 Sort, Segregate, Consolidation & Condition Capabilities

£50 - 100m 2014/15 2020/21

Wetbays Residual Recovery Capability £10m 2016/17 2017/18 Settling Tank Sludge Retrieval Project £25 - 50m 2016/17 2022/23 Solid Treatment Plant Technology Underpinning Project

£1 - 5m 2014/15 2016/17

Plant and Equipment and Asset Care Projects – Awarded Packages

A number of major projects are required for new plant and equipment and to maintain / enhance assets to support the overall programme.

Cost Schedule

£190 - 350m 2019/20

Work Packages Value Start Complete Effluent Distribution Asset Improvement £25 - 50m 2014/15 2020/21 Export / Inlet Building £40 - 50m 2014/15 2016/17 FGMSP Asset Restoration £25 - 50m 2014/15 2020/21 Isolations and Risk Reduction Project £25 - 50m 2014/15 2017/18 Self Shielded Box Interim Storage Facility/Procurement of Boxes

£50 - 100m 2014/15 2025/26


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7.1.3 Magnox Swarf Storage Silos

The Magnox Swarf Storage Silos (MSSS) is the third of four facilities at Sellafield known collectively as the Legacy Ponds and Silos. We are focussed on safely decommissioning these buildings as part of our hazard and risk reduction programme. MSSS is a series of silos into which fuel cladding from the early Magnox programme was tipped. It represents one of the largest hazards on the Sellafield Site. Our objective is to retrieve the material and package into a passively safe form ready for disposal. This is challenging as the building is old and not designed to support retrieval of the material and as the waste is uncertain in composition and in a difficult chemical and physical form.

Current Programme Baseline Target Overall cost range £6.9-14.5Bn Overall schedule end date 2100

Programme Outcomes Target Date The MSSS programme aims to achieve the following outcomes 1. SEP2 Machine ready to Dec 2019

commence retrievals 2. BEP floodgrout available to May 2021

remove sludge / mixed waste 3. MSSS stream full retrieval May 2021

capability available 4. Bulk retrievals complete 2045-2050

Programme Acquisition Strategy

The acquisition strategy was developed in line with the following approach: • Identifying the programme benefits

Programme Acquisition Strategy • Establishing the required capabilities and grouping into







• Individual project procurements where appropriate, will be placed on the NEC3 suite of contracts.


Acquisition Strategy • Programme and project management will be a core

Sellafield Ltd function, with augmentation of Sellafield Ltd capability via Decommissioning Frameworks and Crown Commercial Services (CCS)

• Management and execution of Design will be undertaken by the Design Services Alliance (DSA)

• Execution of large scale capital projects will be undertaken by an EPC contract awarded after a public procurement process

• Other Project execution will be delivered through the appropriate utilisation of Sellafield Site, Decommissioning and Crown Commercial Services (CCS) frameworks or individual procurements as appropriate. The use of the Site Service Cell will be considered for elements of manufacturing and fabrication

• Active commissioning will be undertaken by Sellafield Ltd and the Site Service Cell considered

• Operations will be undertaken by Sellafield Ltd supported by specific expertise for original equipment manufacturers as appropriate

• Decommissioning and Demolition will be procured, via a competitive tender for demolition


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The MSSS programme is being delivered in 7 tranches, which will support the realisation of 7 benefits, result in successive risk reduction and the removal of the hazard posed by the waste currently stored in the MSSS facility. Tranches 1 - 3 fall within the timescales of this Procurement Plan.

MSSS Programme Tranches Programme Benefits

1. Pre retrievals risk reduction structured as a

programme Comprehensive plan detailing procurements that support effective delivery of Tranche 1 is in place and the key contracts that support capability delivery have been awarded and are appropriately incentivised to drive performance.

1. Safer, More Efficient Control and Delivery of Work

2. Risk and Consequence from Hydrogen Event Reduced and Facility More Resilient

3. Reduced Risk from a Seismic Event and Facility More Resilient

2. Waste Removal and Management Capability Comprehensive plan detailing procurements that will support effective delivery of Tranche 2 is in place and some of the contracts that support capability delivery are in place. These tranches will also deliver the key Retrievals and Major Projects described below.

4. Site risk and MSSS facility risk and hazard reduced due to bulk waste retrieval

3. Full stream operations capability 5. Site Hazard and Risk Reduced Due to MSSS Residual Waste Removed

Major Procurements The Table below identifies the significant capabilities that have recently been awarded or require to be procured to support the delivery of the MSSS programme.

MSSS Major Plant Construction Projects

These contracts will typically be placed as EPC contracts

External Cost Schedule

£2.3 - 2.81b 2024/25

Scope

Value Start Complete

Box Encapsulation Plant (BEP) £240 - 336m Awarded 2020/21 Silo Maintenance Facility Construction £150 - 175m Awarded 2018/19


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MSSS Supporting Projects

Cost £71 - 165m Schedule 2039/40

Scope Value Start Complete

East End Crane Replacement £5 - 10m 2015/16 2020/21 MSSS Transport Packages £1 - 5m 2020/21 2025/26 SEP (Solid Waste Storage) Asset Restoration £25 - 50m 2015/16 2020/21 SEP Solid Waste Storage Prep for Retrievals £5 - 8m 2015/16 2020/21 Storage Waste Silo Reconfiguration

£10 - 25m

2019/20

2039/40 SEP machine Transport Packages £5-10m 2016/17 2025

EPS Waste Transfer Route £15-20m 2016/17 2019 Package to Box Transfer Facility £150-300m 2018/19 2028-2030


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7.1.4 Pile Fuel Cladding Silo

The Pile Fuel Cladding Silo (PFCS) programme manages and mitigates the radiological and environmental risk and hazard presented by the inventory held within the facility. The facility itself consists of a concrete silo structure divided into six compartments. The silo was commissioned in 1952 and was the main site store for dry intermediate level waste from a variety sources including the Windscale piles and Calder Hall was tipped into the silo. The inventory and condition make it one of the top four decommissioning priorities in the UK. A programme of work is currently underway to install the capability to retrieve the waste and package into 3m3 boxes for interim storage pending future conditioning and ultimate disposal.

Current Programme Baseline Target Overall cost range £1.9 - 3.8bn Overall schedule end date 2075

Programme Outcomes Target Date The PFCS programme will achieve the following outcomes 1. 6 No. Silo Doors Installed Apr 2017 2. Compartment 5 Hole cutting complete Nov 2017 3. Commence Early retrievals Nov 2020 4. 1st Box received into BEPPS/DIF Feb 2021 5. Commence Full Retrievals Sept 2030 6. Bulk Retruievals Complete Jan 2030

7. Waste Treatment Plant Construction 2033 - 2045

Programme Acquisition Strategy The acquisition strategy was developed in line with the following approach:

• Identifying the programme benefits • Establishing the required capabilities • Grouping the capabilities into tranches of work to deliver

outcomes • Identifying and prioritising the critical success factors


• Understanding delivery capability requirements and gaps in terms of service needs for programme management, project management, design, project execution, operations and decommissioning and demolition

• Determine whether the requirements should be delivered by Sellafield Ltd or procured from the supply chain (for example existing framework, category management or new procurement)





Acquisition Strategy • Programme management, project management and

governance of design will be core Sellafield Ltd functions

• Design for capital projects prior to the value transition by the Design Services Alliance with management and supervision by Sellafield Ltd

• Execution of large scale capital projects have been procured on an EPC basis

• Other supporting projects will be delivered through the use of existing frameworks where appropriate. The use of the Site Service Cell will be considered for elements of manufacturing and fabrication

• Active commissioning will be undertaken by Sellafield Ltd and the Site Service Cell considered

• Operations will be undertaken by Sellafield Ltd supported by specific expertise for original equipment manufacturers as appropriate

• Decommissioning and Demolition will be procured, via a competitive tender for demolition


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Programme Tranches

PFCS Programme Tranches Programme Benefits

1. Preparation for Retrievals - Capability to access waste and commence retrievals, waste packaging and storage capability and definition of future campaigns Duration Now to 2020

• Increased confidence in waste retrieval technologies • Programme ALARP delivering the earliest start date • Continued safe and secure hazard reduction

2. Initiate Retrievals “Early Retrievals” – Early retrievals operations, commence sustained bulk retrievals and develop decommissioning strategy

Duration 2020 - 2022

• Early risk reduction through reduced quantity of waste in compartments

• Improved knowledge and waste retrieval capability • Continued safe and secure hazard reduction

3. Optimised programme and final retrievals – Future campaigns retrieval operations, preparation for decommissioning and completion of waste treatment definition Duration 2022 - 2030

• Reduction in radiological risk to workers, public and environment

• Improved knowledge of PFCS waste characteristics • Reduced inventory stored in facility • Continued safe and secure hazard reduction

4. PFCS Facility Decommissioning – Post Operational Clean Out (POCO) of PFCS Silos and Retrievals Facility.


• Reduced operational costs of PFCS Silo facility

• Increased footprint on Sellafield site to support other missions

5. PFCS Waste Treatment - Commence design and build of PFCS waste treatment facility and preparation for POCO, decommissioning and demolition of PFCS waste treatment facility


• Reduced Hazard (waste treated/passivated suitable for long term storage)

6. PFCS Waste Treatment Decommissioning - POCO of waste treatment facility followed by decontamination and demolition Waste 2049 - 2075

• Reduced operational costs • Increased footprint on Sellafield site for other missions • Reduced liability to NDA

• Tranche 1 - Of the PFCS Programme is dependent on the delivery of 4 large capital projects, 2 of which are included in the PFCS Programme Retrievals & Waste Handling Capability and the Box Encapsulation Product and Package Store (BEPPS-DIF) with the other 2 projects Box Encapsulation Plant (BEP), and the Silo Maintenance Facility (SMF) are delivered as part of other programmes.

• Tranche 1 - also includes the procurement of 3M3 Stainless Steel Boxes, Flasks and Transportation

• Tranche 2 - primarily covers the trialing and operations of the retrievals capability on single silo

• Tranche 3 - design and manufacture of the retrievals capability based on the preferred solution developed under the lead and learn approach and the operation of the facility


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• Tranche 4 - of the works requires the design and construction of an overbuilding to allow the PFCS facility to be decommissioned and demolished once the Silos have been emptied.

• Tranche 5 - requires the design and construction of a Waste Treatment Facility to deal with the wastes arising from the decommissioning of the PFCS facility.

• Tranche 6 - POCO of waste treatment followed by decontamination and demolition

Major Procurements The Table below identifies the significant capabilities that have recently been awarded or require to be procured to support the delivery of the PFCS programme.

PFCS Major Plant Construction Projects

Contracts typically let as EPC or construct only contracts Cost £870-1.020b Schedule 2049

Scope Value Start Complete Silo Retrievals Capability (Tranche 1) - Awarded - RAP & Silo Doors - Retrievals Equipment £280 - 340m 2014 2019/20 - Waste Handling - Control Room Building Services ILW Storage Capability (Tranche 1) - Box Encapsulation Product Plant Store - Awarded £160 -£180m 2014 2019/2020

Silo Retrievals Capability (Tranche 3) £70 - £90m 2027 2034

Overbuilding (Tranche 4) £100 - £120m 2029 2035

Waste Treatment Plant (Tranche 5) £200 - £250m 2033 / 35 2045 / 47

PFCS Tranche 1 & 2 Supporting Projects

External Cost Schedule

£107-119m 2036

Scope Value Start Complete Sellafield Box Procurement Project - Awarded

£100 - 110m 2015 2036

3m3 ILW Packages - Awarded £2.5 - 5.0m 2015 2021 Transport - Awarded £4.1m 2014 2018/19


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7.1.5 Security Emergency Management and

Resilience Programme (SERP)

The Sellafield Security Emergency Management and Resilience Programme will deliver wide ranging changes to existing security, safety and emergency management arrangements across the Sellafield business. The portfolio comprises Sellafield Security Enhancement Programme (SSEP), Sellafield Resilience Programme (SRP) and Emergency Management Improvement Programme (EMIP). SERP’s aim is to deliver a cohesive solution to Sellafield Ltd’s resilience, emergency management and security requirements on behalf of the Senior Responsible Officer. It comprises enhancements to physical security, cyber security, emergency management procedure and resilience arrangements. The SERP portfolio comprises a diverse mix of projects covering:- • Design and delivery of physical security

enhancements including fencing and fence line technology

• Design and delivery of a new main site control facility

• Design and delivery of cyber security improvements • Creation of enhanced emergency response

procedures • Provision of off and on site facilities and bespoke

and off the shelf equipment to enhance resilience

The acquisition strategy for the diverse requirements of the SERP portfolio is firstly to make use of existing Sellafield Framework arrangements, the Infrastructure Strategic Alliance (ISA), the Design Services Alliance (DSA), the Multi Discipline Site Works framework (MDSW) and the Shared Service Alliance (SSA). In addition a number of SERP specific framework contracts have been created for design, civils delivery and IT support. Where the scope requirement cannot be met by existing arrangements, then specific procurements will be made, through open competition via the Official Journal of the European Union (OJEU) where appropriate. The primary procurement opportunities relating to SERP are listed below, for further information please refer to the Procurement Schedule, please note ‘procurements on a page’ have not been produced, for these opportunities:

Key Outstanding Procurements for SERP

Work Package Potential Procurement Route

Potential Contract Value

Forecast Contract Award

Resilience equipment and facilities

Various packages £20m Over 2016 to 2017

Security Fencing - Procurement and Installation

OJUE Procurement - ITT under evaluation

£39m Under evaluation award September 2016


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7.2 Framework Contracts 7.2.1 Design Services Alliance

The scope of the Design Services Alliance (DSA) is for nuclear design engineering and safety case services across the whole of the Sellafield Site. The contract duration is fifteen years, subject to performance. The DSA engagement is effectively split on an operational basis with Progressive Alliance leading design projects within Decommissioning and AXIOM taking the lead within the Operations division. In addition to this both partners provide design support to the Major Projects area. Progressive Alliance is a consortium of Cavendish Nuclear and AECOM, whist AXIOM is a joint venture consisting of Jacobs, AMEC, Mott Macdonald and Assystem.

Each major operating unit within Sellafield is represented by a supply chain Business Manager who works closely with the Sellafield Ltd Design Managers and demanders in ensuring the best value solutions and supply chain structures are engaged to deliver. Each consortium is responsible for their own acquisition strategy and make / buy policy. As such, organisations wishing to supply products and services should engage directly with Axiom and Progressive. It is anticipated that around 20% of work will be delivered by the Tier 3/Tier 4 supply chain, if this occurs, then it is envisaged that approximately £16M of work will flow through to the DSA supply chain.

Axiom Progressive

Consortium Members AMEC, Jacobs, Assystem and Mott MacDonald

Cavendish Nuclear and AECOM

Alliance Procurement Manager Joanne Woodward Michael Orland

Telephone 01925 675764 0161 222 5613

Email [email protected]

[email protected]

The DSA has developed a structured engagement programme of supplier engagement in collaboration with Britain’s Energy Coast (BEC). These regular engagement sessions facilitate a better supply chain and SME understanding of future opportunities and the mechanism(s) for engaging with the DSA. In addition quarterly forums in West Cumbria with key suppliers have been established to facilitate further collaboration in the DSA. Suppliers who wish to engage with the DSA should approach the Alliance Procurement managers (see contacts above) in the first instance, who can then direct them to current opportunities or contacts to ensure future opportunities are made visible.


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7.2.2 Infrastructure Strategic Alliance

The overall scope of the Infrastructure Strategic Alliance (ISA) is to provide a range of essential infrastructure asset services to the Sellafield site. The contract was awarded in December 2012 to the Morgan Sindall Arup joint venture and is in the 4th year of an initial five year period. The contract includes the option to extend for a further two periods of five years, subject to performance, to the maximum duration of fifteen years. The joint venture is delivering a programme management and project delivery service for a range of infrastructure assets, including: • Steam generation and on-site distribution • Electricity generation and on-site distribution • Water supply to site and on-site distribution • Compressed air generation and distribution • Civil infrastructure (including security facilities) • Drainage network and sewerage treatment plant • Roads, bridges and car parks • General building facilities

Organisations wishing to supply products and services should engage directly with the ISA Supply Chain Manager, Michelle Edmondson.

Joint Venture Members

Morgan Sindall / Arup

Contact Michelle Edmondson

Telephone 019467 81024/07837601360


Address Albion 2, Albion Sqaure, Whitehaven

The ISA delivers its scope against sub programme strategies (for steam, electricity, water, etc) and a Works Plan that is prioritised by asset risk. The delivery of the electrical sub programme strategy will be the vehicle for the delivery of the category management strategy for electrical distribution. Sellafield manages the performance of the alliance through the ISA Client Management Team who utilise tools from the ISA Collaborative Management Plan, such as the Contract Management Plan, Audit, Incentivisation Plan and Supply Chain Plan. The Client Management Team also monitors factors such as SME utilisation, the use of appropriate payment terms and the interfaces with clients from across the site.

The ISA applies the Make Buy Process to sub-programmes and projects to determine the best athlete for delivery. Sellafield Ltd resource is considered initially in the delivery of elements of the ISA scope which are relevant to in-house capabilities including personnel from Site Maintenance Services. The following provides an indication of the primary delivery vehicles deployed to date and the further supply chain opportunities available with the ISA:

Area of Scope Primary Delivery Vehicle Secondary Delivery Vehicle

Programme management, master planning and studies

Morgan Sindall Arup / Sellafield Ltd

Non-nuclear design Arup / Sellafield Ltd DSA & Supply Chain

Nuclear design DSA Arup, Sellafield Ltd & Supply Chain

Civils implementation work Morgan Sindall Supply Chain

Mechanical implementation work Supply Chain

Electrical implementation work Supply Chain

Provision of materials Supply Chain


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7.3 Framework Agreements 7.3.1 Decommissioning Delivery Partnership (DDP)

The Decommissioning Delivery Partnership (DDP) is a ten year (5+5) framework agreement for discharging decommissioning delivery activity on the Sellafield Site. It is the successor agreement to the existing Decommissioning Framework Agreement (“DFA2”) and MDSW framework agreements and consolidates the decommissioning scope of these frameworks with additional scope that includes strategic planning, process assurance, solution innovation and risk reduction support (inter alia). DDP will, therefore, build on the success of MDSW and DFA2, while the potential long duration facilitates a more strategic approach to project and programme planning and delivery. This permits behavioural change and for the supply chain to influence and provide a much more effective delivery vehicle, in turn driving and focusing Sellafield Ltd on continuous improvement. DDP is an essential part of Decommissioning’s strategy for delivering its work programmes between 2015 and 2025. The intent of DDP is to provide a flexible route to the supply chain and Sellafield Ltd in response to evolving strategic requirements and emergent scope. The structure of DDP is a follows:


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Each Lot delivery partner will be incentivised to perform at an acceptable level and continuously improve performance through a Performance Assurance Model (or PAM) used to monitor and track performance of each of the Delivery Partners and Sellafield and comparisons made between them.

Lot 1

Consortia Members Contact

Atkins Doosan Areva Project Team (ADAPT)

Atkins, Doosan Babcock, Areva Steve Topping [email protected]

Cumbria Nuclear Solutions Limited (CNSL)

James Fisher Nuclear, React, Stobbarts, Shepley, WYG, Westinghouse Electric Company

Nick Houghton [email protected]

Integrated Decommissioning Solutions (IDS)

EnergySolutions, Hertel, North West Projects, Westlakes Engineering

Dave Wilson [email protected]

The Nexus Decommissioning Alliance

Costain Oil and Gas Rob Phillips [email protected]

Lot 2


The Decommissioning Alliance (TDA)

EnergySolutions EU Ltd, Jacobs UK Ltd, Westinghouse Electric Company UK Ltd

Mike Gull [email protected]

Lot 3


Amec, Hertel, Shepley (I3 Decommissioning Partnes)

Amec Foster Wheeler, Hertel, Shepleys (strategic partners: James Fisher Nuclear, National Nuclear Laboratories, Tenet Consultants)

Ed Welsh [email protected]


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FGMSP - Decommissioning Delivery Partnership - Planned During 2016/17 for delivery by The Decommissioning Alliance

Scope 2016/17 Value Award Date 1039322 Refurbishment of Sub Change Supporting Structure £ 10,000 May 16

1025053 Re-route sump Discharge Pipework - Fab & Install £ 42,884 June 16

PMP Authorising support to SPP1 £ 11,000 July 16

Commissioning Support to EPC £ 270,000 July 16

Supply chain to provide a managed service for commissioning resource on FGMSP work streams £ 1,278,864

July 16

Commissioning Support £ 2,435,250 July 16

WP9 Lifting Requirement £ 872,332 July 16

Inlet Building Staircases - Installation - Lighting £ 75,000 July 16

Bit Bins Behaviour Modelling Technical underpinning of the fuel case £ 50,000 July 16

Phase 1 Commissioning £ 397,500 July 16

Ongoing commissioning support £ 337,500 July 16

1041342 Provision of a new switchroom £ 170,000 August 16

1044155 Trash screen improvement (Fabricate) £ 20,000 August 16

1044155 Trash screen improvement (Install) £ 56,000 August 16

1044772 Threat to Electricity supply £ 40,000 August 16

1045180 Mortuary Cell Roof Surface Water Drainage £ 60,000 August 16

1031752 Decanner Cave Lighting £ 32,592 September 16

Replace the Dry Decanner Roof - Procure long lead items (Kalzip rolls of steel) Specialist £ 20,000

September 16

Replace Main Building Compressed Air & Instrument Air Supply System £ 72,000 October 16 Complete the FGMSP Decanner 40te Crane Substantiation - Crane Hook Stand £ 100,000

November 16

1041453 Replacement Handrails Along the Cave Roof £ 25,000 November 16

Refurbish / Replace Demineralised Water System - Procurement £ 146,000 December 16

1025249 Hydrogen Monitoring System Replacement £ 85,952 December 16

Remote Operative Vehicle Long Term Support Works / ROV operations / ROV maintenance / ROV Capital £ 750,000

January 17

WP27 Pond Overflow £ 20,000 January 17

1045177 Collapsed Surface Water Drain £ 75,000 January 17

Replacement of GNI Power Supply - Procurement & Manufacture £ 33,000 February 17

1028887 Fire Alarm Panel £ 12,108 March 17

1039322 Refurbishment of Sub Change Supporting Structure £ 10,000 May 16

Inlet Building Staircases - Installation - Lighting £ 75,000 July 16


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Decommissioning Delivery Partnership - Planned During 2016/17 for delivery by i3 Decommisioning Alliance

Scope 2016/17 Value Award Date

Asset Care £30,000 September 16

Asset Restoration £264,163 October 16

£135,000 February 17

£903,264 March 17

Building Modifications £174,000 October 16

£35,000 October 16

£744,000 January 17


Electrical Distribution £504,000 July 16

Liquor Level Management £50,000 August 16

Preperation for Retrievals £41,449 August 16

£585,692 October 16

£439,232 November 16

£124,351 December 16


£603,624 March 17

SEP 3 R&D £338,000 December 16

Ventilation £645,291 August 16

£1,049,804 September 16

£5,880 September 16

£896,632 September 16

£21,088 October 16

£1,035,000 December 16


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7.3.2 Multi Disciplinary Site Works

The overall scope of the Multi Discipline Site Works (MDSW) is predominantly focused on site based works delivery within the disciplines of Civil, Electrical and Mechanical with associated support requirements. The framework duration was initially for a period of two years (+1+1 optional), with an expected value of £50M-£70M per annum. The contract has now been extended for the extra 2 years and will expire in January 2017. The framework is multi-party with three members, Amec Nuclear UK, Hertel UK and Shepley Engineers, with groups of jobs and tasks, as well as larger individual projects delivered to Sellafield Ltd. At present each Contractor holds a Jobs and Tasks Contract for an aligned operating unit on Sellafield to deliver miscellaneous packages of work with a value range up to £800k. Above the £800k threshold the contractors are invited to tender for works under the framework Terms and Conditions. Each Delivery Partner is responsible for their own acquisition strategy and make / buy policy. As such, organisations wishing to supply products and services should engage directly with Amec Nuclear UK, Hertel UK and Shepley Engineers. Sellafield Ltd manages the performance of the framework with a basket of incentives covering safety, cost and quality. Sellafield Ltd also monitors factors such as use of SMEs and appropriate payment terms. During 2014/15, some projects have been commenced and others have been planned during the year as described in the tables below. The forecast split between the framework partners is shown below.

Forecast Split

Amec Foster Wheeler

Contact Brent Boadhurst

Telephone 019467 78408


Address Sellafield

Hertel

Contact Brian Raby

Telephone 07778 941803 / 01642 513458


Address Sellafield

Shepley

Contact Paul McBain

Telephone 019467 78700


Address Sellafield Site


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Major Packages in Delivery at start of 2016/17 being managed by Amec

Scope Value Award Steam Workpacks 4 & 5 £0.9m April 16 VPS Roof Replacement

£1.48m April 16

WTC Roof Replacement £0.1m April 16 FGMSP SSCC Enabling Works £1.04m April 16 THORP NAR Re-boiler

£2.52m April 16 MSCF Bulk Excavation

£0.8m April 16 Infrastructure Jobs and Tasks Contract £0.3m Annual

Major Packages in Delivery at start of 2016/17 being managed by Hertel

Scope Value Award BES Cable Replacement £0.6m April 16 MSSS+ Work Packages £15.2m April 16 Decommissioning Jobs and Tasks Contract £9.26M Annual

Major Packages in Delivery at start of 2016/17 being managed by Shepley

Scope Value Award Distillation Columns £0.7m April 16 FHP Plant Room 4 £1m April 16 Fire Alarms Replacement £1.2m April 16 Dounreay £2m April 16 SIXEP Service Lines £1m April 16 B209 Plenum North £0.8m April 16 Production Operations Jobs and Tasks Contract £18.6m Annual

Major Packages Planned During 2016/17

Scope Value Award Steam Lines £1m April 16 Steam Lines £0.7m April 16 Internal AGR Transit Lines £2m April 16 Fan 6 and 7 £0.9m April 16 New road access around BTC £0.85m April 16 Major Projects £3.4m April 16


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7.3.3 Enabling Innovation Framework

The Enabling Innovation Framework (EIF) is a client support service that adds value throughout the project lifecycle. The objective is to work with Sellafield personnel to produce the best possible description of what needs to be done in order to maximise opportunities for creative solutions. As such the scope could include; • Support to problem framing; establishing clarity

over needs and priorities • Establish project purpose, principles, roles and

tasks before the detail is decided • Problem definition; translate service requirements

into clear functional / technical requirements • Support in establishing correct measures, metrics

and targets for success • Improve understanding of supply chain capability • Support challenge to unnecessarily bespoke

solutions, application of unnecessary standards and specialist requirements

• Support to constructive challenge of ongoing requirements and cost estimates

EIF within SL Project Life Cycle

The EIF consists of 14 suppliers:

• AMEC Foster Wheeler • Atkins • Capita Symonds • Cavendish Nuclear • Energy Solutions • EPI Consulting • Nichols Group • Northwest Projects • NSG Environmental • Quintessa • REACT Engineering • Tenet Consulting • TUV SUD Nuclear Technologies • Westlakes Engineering


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Nichols Group NSG Environmental Northwest Projects

Contact Stephen Jones Michelle Wise Graham Banks

Telephone (0)7730 814027 (0)1189 817315 (0)1257 231604


michelle.wise@ nsgconsultancy.com

graham.banks@ northwestprojects.co.uk

Quintessa REACT Engineering Tenet Consulting

Contact George Towler Tim Fox Aidan McManus

Telephone (0)1925 885954 (0)1946 813778 Ext. 112 (0)1925 377936

Email georgetowler@ quintessa.org [email protected] aidan.mcmanus@

tenetconsultants.co.uk

TUV SUD Nuclear Technologies

Westlakes Engineering

Contact Dr Rob Thied Andy Hooper

Telephone (0)1946 66378 (0)1946 595555

Email [email protected] [email protected]

EIF suppliers contact details AMEC Foster Wheeler Atkins Capita

Contact Kevin Christie Chris Heron Philip Oldfield

Telephone (0)1925 675667 (0)1946 692345 (0)1928 752500

Email [email protected] [email protected] [email protected]

Cavendish Nuclear Energy Solutions Epi Consulting

Contact Mandy Bell Maxine Riley Andrew Tarcy

Telephone (0)1928 705679 (0)1946 599977 Ext. 211 (0)20 7993 2520

Email mandy.bell@ cavendishnuclear.co.uk [email protected]

[email protected]


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7.3.4 Recently Awarded Major Box Encapsulation Plant (BEP) The EPC Framework Contract was awarded to the BEP Delivery JV (Jacobs / Amec / Balfour Beatty) was awarded on the 26th of September 2014, with a focus to achieve completion of inactive commissioning prior to the end of December 2019, the framework was placed on a cost reimbursable basis with estimated value in a range of £240M to £336M.

In summary the scope of the BEP project includes design development and completion, procurement and manufacture, construction and testing, inactive safety commissioning and support to active safety commissioning to deliver the capability to encapsulate intermediate level waste in grout matrix within 3m3 Stainless Steel Containers. The following is a summary of the type of work to be procured by the BEP Delivery JV: Mechanical Plant & Equipment, 15te and 5te Cranes and Lifting Systems, Robotics, Vessels and Tanks, GRP Tanks, Pumps, Air Compressor packages, Roller shutter doors, Fire Detection systems, CCTV cameras, Ductwork and Air Handling Units, Structural Steelwork, Fabricated Steel/ Metalwork, External Cladding, etc. Contact Details: Rachel Beech, BEP Delivery JV Supply Chain Manager Email address - [email protected]

Box Encapsulation Product and Package Store and Direct Import Facility (BEPPS-DIF) M+W High Tech Projects UK Limited have been appointed as the EPC Contractor for the BEPPS1/DIF Project, The Project value is £149.9M, with a start date of the 5th Jan 2015 and a Completion Date of the 17th September 2017. The Project will provide an import facility and above ground storage for containerised Intermediate Level Waste (ILW) until the Geological Disposal Facility (GDF) becomes available. The scope of the Project is summarised as follows: Completion of the partially-built twin-vault BEPPS; New construction of the DIF; Completion of the partially-built Services Building supporting the whole facility, including the Box Encapsulation Plant, BEPPS and DIF; Completion of the export tunnel providing an alternative import/export route to BEPPS. M+W High Tech Projects UK Limited will package, integrate and manage the successful delivery of the Project with all other Sub Contract and Procurement packages being performed by the supply chain. Parties or Companies seeking further information or details with regard to potential Sub Contract and Procurement opportunities on the Project are

directed to - Mr Steve Rothwell, Supply Chain Manager Nuclear M+W High Tech Projects UK Limited, Business Phone; 0161 762 3503, [email protected]

Interim Storage Facility (ISF) The contract was awarded to the Infrastructure Strategic Alliance (Morgan Sindall/Arup) in April 2015 to design and build an Interim Storage Facility to house self-shielded boxes (based on a reference design used by Magnox for its facilities). The project is focused on achieving a completion date of Summer 2017. The design work was placed on a reimbursable basis and completed in March 2016 with the major construction contract commencing April 2016 on a Target Cost basis with an estimated total project value range of £23.5m - £25m The ISF project includes design development and completion, procurement, construction and testing and inactive commissioning to deliver the capability to store self-shielded containers. The following is a summary of the type of work to be procured by the ISA Delivery team: Mechanical Plant & Equipment, Roller shutter doors, Fire Detection systems, Ductwork and Air Handling Units, Structural Steelwork, Fabricated Steel/ Metalwork, External Cladding, etc. Contact Details: Michelle Edmondson, ISA Supply Chain Manager Email address – [email protected]


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7.4 Shared Services Alliance

The Shared Service Alliance (SSA) is designed to deliver value through collaboration. The SSA Vision is “Industry leaders working together to identify, develop and deliver value and improve performance across the NDA estate and across the public sector”. Six strategic objectives, set out below, support achievement of the Vision and are aligned to the NDA Business Plan and emerging Governmental direction on operational efficiencies.

Strategic Objective Scope

Asset Optimisation To identify, implement and monitor opportunities to optimise assets through collaboration across the participating entities in the SSA. Opportunities fall into three areas - tangible assets, people assets and inter-SLC services

Standardisation To standardise • Our processes, systems and documents so that working

anywhere on the NDA estate looks the same to those in the supply chain. To implement measures that result in suppliers seeing the estate as one with simpler, more consistent and common approaches being taken to reduce costs and improve process times

• Commodities used across the estate e.g. hard hats, one piece protective suits, overalls etc

Cross SLC Service Provision To improve the value and provision of services delivered through major collaborative procurements and to strengthen the commercial arrangements governing such service provision

Knowledge Sharing To share knowledge and exploit learning from experience (including suppliers) to deliver benefit across the NDA estate

Collaborative Supply Chain Management

Joint engagement with the supply chain to improve value delivered and to ensure an effective supply chain exists for all critical business requirements across the estate

Collaborative Procurement Includes all life-cycle activities associated with aggregating demand, procuring, managing contract and delivering benefits collaboratively to add value to the NDA estate. Deliver more value by moving beyond simple aggregation to a more transformational approach - something completely new or different

Collaborative procurements cover a range of products and services. Details of planned collaborative procurements, current contracts and responsible personnel are available at http://suppliers.sellafieldsites.com/procurement-opportunities/ This information is updated quarterly. Where appropriate, market engagements days are held prior to launching a collaborative procurement. These are an opportunity for the supply chain to advise on how the procurement can be structured to maximise value for money - for example feedback on lotting strategies or standardisation of specifications. Information of market engagement days is provided via the Sellafield website.


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Appendix A- Integration of Business and Procurement Planning

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Disclaimer

Important Information This communication and its contents have been provided to you for informational purposes only. This communication is not advice on or a recommendation of any kind with respect to the matters described herein, including without limitation, contracting structures, contracting instruments, contracting strategies, related legal and commercial issues or any combination of such matters. This communication does not offer advice. No information contained herein constitutes an offer or solicitation by or on behalf of Sellafield Ltd to enter into any contractual arrangement. Sellafield Ltd. makes no representations or warranties express or implied, regarding the accuracy, adequacy, reasonableness or completeness of the information, assumptions or analysis contained herein or in any supplemental materials, and Sellafield Ltd. accepts no responsibility or liability in connection therewith. Opinions expressed in this document are subject to change without notice. This document represents Sellafield Ltd’s current Procurement Plan which is subject to review and change.

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