Inbound Logistics and Warehousing Programme Control Tower Project

2. Inbound Logistics and Warehousing ProgrammeControl Tower Project Sellafield Ltd. Industry Briefing Day

3. Welcome – Safety and Domestic Arrangements Paul Stuart – Head of Supply Chain Review of Today’s Agenda Safety Message: Road Safety in Cumbria – John Sidney

4. Today’s Agenda 09:15 Welcome, Domestic Arrangements Paul Stuart Introduction to Industry Briefing Day Safety and Overview of Sellafield Ltd John Sidney Overview of Inbound Logistics & Warehousing Paul Shawcross Programme and Project 1 Control Tower Partnering with a Logistics Service Provider & Pat Mills Delivery Management System Security and Distribution Centre Neil Braine Questions & Answers All 10:30 Comfort Break 10:45 Commercial - Method of Contract/PQQ/Timescales Steve Kennedy Transport Data & Socio Economic Considerations John Sidney Questions & Answers All Summary & Next Steps Paul Stuart 11:30 Close

5. Safety & Overview of Sellafield Ltd John Sidney Head of Supply Chain Strategy

6. Safety Share : Road Safety by Design 6

7. Sellafield – Europe’s largest, most complex nuclear site • Over 250 nuclear facilities on 2 square miles • Operated for over 60 years • Budget FY 2013/14 @£1.8bn • Employs over 10,000 people • Figure equates to almost 30 per cent of Copeland workforce

8. Overview of Inbound Logistics & Warehousing Programme Control Tower Project Paul Shawcross Programme Manager

9. Drivers 1) Security 2) Commercial 3) Resilience

10. Visits to several UK Sites similar to Sellafield London Heathrow Terminal 5, Construction Heysham - Morecambe Bay Gas On-shore warehousing & distribution centre for Offshore platforms Olympic Village Construction & Operations in highly congested areas / DMS Network Rail Milton Keynes – Operations & Deliveries TESCO Rugby – Multi-modal Distribution Warehousing with Road & Rail LLWR Examination of rail deliveries JCB Fradley – Large scale component Logistics, Warehousing & issue Jaguar JIT process for manufacturing AWE Construction in high security areas ATOS Delivery Management System used in Olympic Village deliveries Security & trace detection Goods and personnel screening Contractors and Supply Chain Conversations with 100’s of Sellafield Supply Chain entities Lambert Smith Hampton Studied the practical use of Lillyhall as base for work

12. Partnering with a Logistics Service Provider Delivery Management System (DMS) Pat Mills Major Projects/Logistics Lead

13. Major Components of Control Tower Project

14. Current process for delivery to Sellafield Ltd (SL) Limited visibility of goods and materials transiting onto site 10 delivery locations on SL estate No delivery management system at Sellafield Security process at Main Gate and Warehousing process is solid 100% of goods transiting through SL Main Gate are searched Clashes between HGV/LGV transport and personnel accessing Main Gate Delays in moving materials/plant onto site Additional charges from supply chain for wait times Most procurement packages terms are “Delivered” Results in the following scenario:

15. Average morning at Sellafield Main Gate

16. Logistics Services for Sellafield: Primary Services: Partner with SL Inbound Logistics and Warehousing and Security personnel to staff the new SL Control Tower. Design and Retrofit of the SL Lillyhall Warehouse Provision & implementation of a Delivery Management System Specification, purchase and commissioning of security equipment and warehousing equipment Secondary Services: Provision of Lorries, vans and conveyance to forward materials from S&DC to Sellafield Sites – NON - NUCLEAR Provision of Tagging and Bonding process for forwarded goods Warehouse Management System - receipt and control of materials whilst in LSP custody during process Receiving and interim–receiving of goods. Cross-docking of daily loads received from the Supply Chain, security screening, consolidation of those loads and freight forwarding to SL Sites.

17. Logistics Services for Sellafield: Secondary Services (continued): Eventual Ex-Works collections of SL Supply Chain goods with delivery either to the S&DC or to SL sites. (Beginning in 2nd year of contract) Provision of standard Freight Forwarding services Arrangement of heavy lift or heavy haul transport as required Provision of Transportation Metrics (KPIs) to Sellafield IL&W Provision of Packaging and Preservation capability Relationship with British International Freight Association Ability to bring UK and International Best Practices to Sellafield Identification of methods for cost reductions for transportation in SL & Contractor Supply Chain Daily/weekly/monthly reporting to SL

18. DMS will be the booking agent for all commercial vehicle access to the Sellafield Ltd facilities in west Cumbria. The Control Tower concept and DMS gives visibility of inbound transits and information on shipments. 40% of deliveries are expected to deliver to the Security & Distribution Centre (transferable loads) Transferable loads will be cross-docked, screened, consolidated, tagged, bonded and forwarded to site 60% of deliveries are expected to arrive at the Sellafield site Main Gate (non-transferable loads) mostly for Projects Non-transferable loads will transit directly to the Main Gate or eventually through the SL Transit Centre Delivery Management System

19. The DMS will enable commercial goods and materials to be delivered according to information provided from the Supply Chain. Estimated 70,000 commercial deliveries per year 6 primary locations and 4 others. Potentially 15 concurrent deliveries ~ 25 delivery points within Sellafield site. Representatives from each Contractor or Supply Chain tier 2 organisation will require training in the use of the DMS . Unscheduled deliveries will be refused access to the Sellafield site or the S&DC (though some flexibility allowed) Delivery Management System WHO, WHAT, WHEN. WHERE, WHY & HOW? BOOKING - DAY/TIME

20. Security & Distribution Centre Neil Braine Control Tower, Project Manager

21. Sellafield Lillyhall Warehouse – November 2013

22. Security & Distribution Centre Design, Refurbish & Operate Existing facility at Lillyhall 45,000ft² • Key Features • Delivery Bays • Unloading / Lay Down Areas • Warehouse Equipment • Security Screening Equipment • Bonded Area • Secure Out Despatch Bays • Services • Unloading • Goods Receipting • Goods Tracking • Security Screening Activities • Consolidating Outbound Loads • Freight forwarding to Sellafield sites

23. Illustration of Security & Distribution Centre

24. Project Lifecycle

25. Questions & Answers Break (Back in 15 minutes)

26. Inbound Logistics and Warehousing ProgrammeControl Tower Project Sellafield Ltd. Industry Briefing Day 8 November 2013

27. Contractual Engagement Steve Kennedy Contract Officer

28. Contractual Engagement Commercial Strategy Competition Timescales Pre-Qualification Questionnaire

29. Commercial Strategy One Contract: Single Logistics Service Provider Duration – four years operational OJEU Restricted process Method of Contracting Estimated Contract Value

30. Competition Timescales

31. How to do Business with Sellafield Complete Tender Management (CTM) CTM will be the primary communication tool. The PQQ must be submitted via CTM, (two hard copies must also be provided). Sub contractor opportunities (Tier 3 & 4) Further information available atwww.sellafieldsites.com/suppliers

32. Pre-Qualification Questionnaire Selection Criteria: General Information Finance & Insurance Health & Safety Quality Security Design Past Performance & Experience Current Capability & Resource Environment Socioeconomics

33. Transportation Data & Socio Economic Considerations John Sidney Head of Supply Chain Strategy

34. Transportation Data Traffic count data for Sellafield site from April - August 2012 Weekly average for HGVs = 1000 and for LGVs = 3450.

35. Transportation DataFebruary & March 2013 3.5 / 7.5 Ton trucks < 20 Ton HGV’s Artic 26/44 Ton HGV’s Tippers Flatbeds Tanker trucks Low Loader Plant & Equipment Skip trucks Skip trucks Transit trucks (white vans) Transit Trucks (White Vans) Pick up Trucks Mini Buses Other (30% less than previous data)

36. Sellafield – Current Best Estimate

37. Sellafield and Our Community We employ almost 25% of our local community We rely on each other to enable safe and effective operation of the site Our suppliers are integral to the success of the relationship When you work with Sellafield we expect you to support our operational effectiveness now and for the future

38. UK Government - Small & Medium sized Enterprise Agenda Sellafield Ltd participates in the SME reporting programme led by Cabinet Office We produce a quarterly report to NDA on direct SME spend, and periodic survey reports of SME spend by our Tier 2 contractors There is an expectation that our subcontractors support us in this process It is important that SMEs can compete on a level playing field and that all reasonable opportunities are available to them Sellafield Ltd Total Supply Chain Spend – In £m’s (2012/13 Figures)

39. Questions & Answers Comments

40. Summary & Next Steps Thank you for attending