Nevada Site Office Management & Operating Contractor Post Award Briefing

1. Nevada Site OfficeManagement & Operating ContractorPost Award Briefing Jay H. Norman Source Evaluation Board Chair

2. Overview • Major Contract Elements • Contractor Organization • Key Personnel • Transition Plan • Schedule for Document Approval • NSO Actions • NSO Transition Team

3. Major ElementsNew Contract Clauses • Contractor Assurance System (CAS) • Identifies risks, key activities, and accountabilities • Notification to CO of significant changes • Rigorous, risk based, credible self-assessments, feedback and improvement • Encourages third party certifications (VPP, ISO 9001, ISO 14001) • A method of validating assurance processes • Integration with ISM and ISSM

4. Major Elements New Contract Clauses (Cont) • NNSA/NSO Oversight • Contractor cooperation with NSO personnel • Nuclear facility and high hazard activities, oversight at transaction level • When CAS is operating effectively, nonnuclear operations oversight at systems level • For programs, projects, and business systems, oversight focus on PEP and CAS metrics and targets

5. Major Elements New Contract Clauses (Cont) • Parent Organization Oversight • Monitor Contractor’s programmatic ISM and ISSM performance • Assist Contractor in meeting mission and operational requirements

6. Major Elements New Contract Clauses (Cont) • Award Term • Initial contract performance period – 5 years • Starts in second full year of the contract • Must meet performance objectives: • Meets all commitments in support of Stockpile Stewardship Levels 1 and 2 milestones identified in the Milestone Reporting Tool • Earns greater than 95% of Incentive Fee performance measures in PEP • Award Fee rating greater than 85% in PEP • Meets or exceeds Award Term Incentives in PEP • If met, contract can be extended one year up to a maximum of 10 years total contract performance

7. Major Elements New Contract ClausesAward Term (Cont) • Decision on Award Term is unilateral by FDO • Failure to earn Award Term twice makes clause inoperative • “Significant failure” can result in loss of up to 3 years of earned Award Term • Defined by CO • In areas of management controls or performance failure

8. Major Elements New Contract Clauses (Cont) • Liaison Support with OGAs • Requires Contractor to support NSO interface with other agencies. Examples: • DNFSB • AF • State regulatory agencies

9. Major ElementsSimilar Contract Clauses • Workforce Transition, Contractor Compensation, Benefits, Pension, and Labor Relations • Retain existing employees except current Key Personnel and direct reports • Existing labor agreements to remain in force • Salary and benefits comparable to existing • Pension plan preserves accrued benefits and recognizes earned service credit • Personnel Appendix to be submitted for CO approval

10. Major ElementsSimilar Contract Clauses • Fee Policy • No change from current contract • Performance Based Management • No change from current contract • Continuation of Predecessor Contractor’s Obligations • Contractor will assume existing agreements and regulatory obligations entered into under the current contract

11. NSTec Organization and Key Personnel

12. Proposed NSTec Governance • Appoint NSTec General Manager and evaluate performance • Assess performance and provide reachback to corporate resources • Develop/Update Parent Organization’s Oversight Plan • Act as fiduciaries wrt NSTec including appointment/ oversight of audit committee NSTec Board of Directors Jim O’Neill, Chair 4 NG 1 CH2MHILL 2 AECOM 1 NFS Parent Organization Oversight Committee Gregg Donley, NG; Chair with one or more senior executives from each partner NSTec, LLC General Manager Dr. Steven M. Younger Deputy General Manager Mike Butchko Senior Advisory Group Troy Wade Bob Seldon Lisa Gordon-Hagerty • Monitor activities, performance, and issues with focus on ISM, ISSM, nuclear and non-nuclear operations • Bring best practices and lessons learned • Facilitate NSO interaction at corporate level • Assess adequacy of employee compensation and incentive programs • Bring corporate support as needed Provide Assistance and Consultation as required by NSTec General Manager

13. ESH&Q Functions Gary Griess Environmental Policy & Compliance Safety & Health Quality Assurance Independent Audit & Assessment

14. Business Operations & CFO Functions Jack Stumpf Controller Contracts and Purchasing Project Finance and Budgets Information Technology

15. Planning & Integration Functions Al Rubalcaba Cost Estimating Baseline Integration and Control Performance Measurement, Risk Analysis and Strategic Planning IT System Design and Reporting

16. DESS – Experimentation Functions Physics Experimentation Diagnostic Development and Instrumentation Livermore Operations Los Alamos Operations Jim Holt

17. Test Readiness Functions Ping Lee Readiness Planning High Bay Authorization Basis Archiving Field Operations

18. Defense Facilities & Nuclear Operations Functions Dave Post Resources/Requirements Management Nuclear Facilities Management and Support Operations and Nuclear Support Non-Nuclear Facilities and Management Support

19. Homeland Security & Defense Applications Functions Bob Summers Emergency Response Non-Proliferation Counter Terrorism Center Other DOE & Non-DOE Work

20. Environmental Management Functions John Ciucci Waste Operations Waste Programs Nuclear Waste Transport Environmental Restoration and Monitoring

21. Site Operations Functions A.C. Hollins Engineering Medical Services Emergency Operations Services Construction Services Facilities and Infrastructure Logistics Services

22. NSTec Critical Activities • Mobilization of the Transition Team 1 April • NSO approval of the Transition Plan ~15 April • Accept transfer of incumbent personnel • Prepare employee benefit packages • Prepare and validate payroll system • Prepare and validate ES&H Plan • Prepare to execute oversight plan • Validate process to accept assets

23. NSTec Key Issues • Safety • Incumbent employees • Continuity in operations • Communication and relationships

24. Schedule for NSO Approval of Contractor’s Key Documents • Transition Plan • Personnel Appendix A • Parent Organization Oversight Plan • Diversity Plan • Small Business Plan Approved by Procurement CO

25. NSO Actions • Support review/approval process for documents • Provide information to assist Contractor during transition • Issue new COR delegations

26. NSO Transition Team • Core Team • Team Leader Jay Norman • Legal Advisor Kathy Izell • Business Darby Dieterich • National Security John Leppert • Administrative Catherine Morris • Points of Contact • Safety Mike Marelli • Infrastructure Gerry Babero • Environment Sabine Curtis • Security Heidi Brock • Human Relations Advisor Andy Gonzales (SC)