KCRIMS / NSMC Kansas City Responsive Infrastructure Manufacturing & Sourcing

1. National Nuclear Security Administration Kansas City Plant Transformation KCRIMS / NSMC Kansas City Responsive Infrastructure Manufacturing & Sourcing National Secure Manufacturing Center “The KCRIMS project, including the NSMC facility, is a cornerstone of the future success of the DOE.”- Steven Chu Secretary of Energy Rick Lavelock Sr. Program Manager Honeywell FM&T

2. 3 4 1 2 3 4 1 2 3 4 2005 2006 2007 3 4 1 2 3 4 1 2 3 4 KCRIMS / NSMC Program Timeline Calendar Years Shown SAIC Alternate Site Study KCRIMS Draft Business Case Facility Acquisition Report NEPA Briefs Completed NEPA Appeal Dismissed D’Agostino Congressional Testimony Site Selection & Press Release Developer Selected Restart Solicitation Financing Secured NEPA Suit Win BAFO NEPA EA Decision Functional Teams Short List NEPA NOI RI Roadmap Draft EA Public Comment Ends CD-0 1 2 3 4 1 2 3 4 1 2 3 2008 2009 2010 1 2 3 4 1 2 3 4 1 2 3 Strategy Team CD-1 IPR Mitigated FONSI SEAB Report Lease / PIEA Negotiations Joined GSA for Facility Acquisition PIEA Finalized GSA Bid Bust NNSA January Process NSMC MOA Congressional Approval Lease Agreement Bids Received Lease Signed Construction Start Solicit Developers NRDC NEPA Suit Filed OMB Approval KCRIMS Final Business Case First KCRIMS Transformation Plans

3. KCRIMS Transformation Plan Elements 2005 KCP 2014 KCP KCRIMS Integrated Interdependent Enterprise Maintenance Of Cold War Era Capacity and Redundant Capabilities Responsive Infrastructure Business Process Transformation Revised Governance New Facility Strategic Sourcing & Sizing Commercial Supply Base Commercial Supply Base Enablers Transformation Actions • Modern Infrastructure • 1.0 M ft2 (DP Mission) • 2300 employees (given same workload) • Low fixed costs • Reconfigurable • 70% outsourced • 65 years old • 3.1 M ft2 • 2950 employees • High fixed costs • Low utilization • 55% outsourced Transformation Elements Reduces footprint over 50% and operational costs by 25%

4. Current Bannister Federal Complex NNSA 3.1 M ft2 Controlled 2.8 M ft2 In Use GSA & Tenants 2.0 M ft2 Controlled

5. National Security Campus Site Plan • For the 20 year lease, the real estate assets will be: • Owned by: PIEA • Designed, built, financed • and maintained by: CPZ • Leased by: GSA • Occupied & operated by: • NNSA/Honeywell Facilities design for flexibility to accommodate all plausible stockpile scenarios.

6. Site Construction Progress

7. KCP Transformation Schedule Summary Cost $138M $705M (Private Funds) $291M ($264 KCRIMS) ($27 NSMC) $85M _______ $1,219M 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Facility Acquisition & Business Transformation Phase 1: Final IT & Security Install Private Construction Rolling 19 Month Relocation Occupancy Project Including Relocation Phase 2: Bannister Disposition Planning & Execution Phase 3: Integrated Phases for a Comprehensive Transformation

8. KCP Operating Requirements 55% Reduction in Operating Requirements

9. KCRIMS Status Outsourcing 204/204 Parts = 100% Complete Build Aheads 10,352 Pieces Complete = 117% of Plan FY09 FY10 FY08 Business Process Transformation Cumulative Labor & Expense Savings = $236M Inventory Reduction Space Requirements Reduced 63% Headcount Millions $

10. NNSA Mission Space From To Manufacturing Space 1.26 M 0.65 M Administrative Space 1.84 M 0.35 M Total Usable Space 3.10 M 1.00 M From To Make Parts (approx) 3800 (46%) 1000 (35%) Buy Parts (approx) 4400 (54%) 1800 (65%) Note: Changes in total numbers due to W80 and B61 requirements changes. • Major Sourcing Activities: • Plating • Cables • General Machining • Printed Wiring • Assemblies • Injection, Compression, & Transfer Molding • RTV Silicone & RTV Desiccant Molding • Thermoforming • Major Process Changes: • Liquid Spray Paint changing to Powder Coating • Repackaging/Testing Carcinogenencapsulant KCRIMS Strategic Sourcing & Sizing Strategic Sourcing and Sizing Plan:

11. FTI Accomplishments to Date • Transitioned HR & Staffing to HON Corporate model • Consolidated over 90 software applications • Implemented Engineering Support Specialist • Consolidated IT servers • Outsourced staffing administrative support • Implemented a facilities pause plan • Outsourced Medical Services and Carpenter Shop • Consolidated Waste Management Functions • EDSV Data Center shut down • Shut down the Flexible Manufacturing System (FMS) • Eliminated the on-site Fire Department • Eliminated the Emergency Operations Center • Closed down and outsourced the Plating Department • Implemented additional outsourcing of products • Implemented new IT tools for Finance and Program Management • Consolidated store rooms/reduced inventory • Implemented Honeywell Operating System (HOS) • Implemented Fact-Based Quality (FBQ) • Executed co-sourcing plan for IT services

12. Transition Governance Structure NNSA HQ NNSA HQ NNSA KCSO NNSA KCSO Honeywell Honeywell Transition Approval Committee (TAC) Chris Gentile Corporate Oversight Corporate Oversight Robin Stubenhofer Bill Ross David Feather Gloria Zarrella Brian Fischer Jeff Fuller Transition Transition Process Process Expert Expert Chris Gentile / Bill Ross Transition Leads Sending Team Receiving Team NSMC Production Dan Grote NSMC Production Lee Hoover Production Linda Wright Production Linda Wright New Facility Dan Fritts HSE Don Fitzpatrick Sourcing Linda Wright HSE Curt Valle Facilities Denny Fulmer Bart Stuckey Jim Jeffries Relocation Dale Lock * * * * * HR Gina Angello Lobaugh Facilities Mike Ginder Bart Stuckey HR Gina Angello Lobaugh Brad Hughes Kurt Lorenzen Bridge Functions Security Russel Bruch Steve Zvacek * * Security Mike Ginder Steve Zvacek Quality Rick Vanhoose Quality Rick Vanhoose Transition Program Management KCRIMS - Rick Lavelock FTI – Steve Halter NSMC – Steve Halter NSMC Growth – Dave Lowe Integrated Project Planning – Diana Blackburn* Communications – Sharon Robinson * * * * * * IT John Engel Philip Clark IT John Engel Philip Clark ISC Curtis Mears ISC Rick Vanhoose Biz Ops Kevin Baughn PM Robert Repine Biz Ops Kevin Baughn PM Robert Repine Red denotes NSMC leader or co-leader * denotes NSMC POC added to team

13. KCRIMS Strategic Sizing Summary Delivers reductions in infrastructure costs while fulfilling NNSA mission requirements

14. Relocation Planning Macro Plan Update Results • Update to overall & phase durations – Move Phases: 105: KCRIMS – 100; NSMC - 5 • Changes/Additions to the Macro Plan (i.e. equipment quantities) • Confirmation of departmental sequencing • Factors in resource constraints • Move Duration • Start dates following Security Transitions (Two months after bldg completion for KCRIMS, Four months for NSMC) • KCRIMS:January 23, 2013 – August 7, 2014 (391 working days) ~18.5 Months • NSMC: September 10, 2013 – January 23, 2014 (93 working days) ~ 4.5 Months

15. KCRIMS/NSMC Project Summary • Reduces KCP operational cost by $100M annually (FY06 dollars) • Reduces KCP total footprint by over 50%, weapons funded space by 2/3rds • Project has positive cash flow (savings > costs) for entire duration • Reduces energy consumption by over 50%, LEED Gold sustainability • Flexible to accommodate any all anticipated stockpile scenarios • Lease allows easy adaptation of future NNSA business model • Comprehensively planned to assure schedule deliveries • Full and robust risk management program • Provides 1500 construction jobs and generates $1.2B of near term stimulus Project Demonstrates Responsible Government

16. KCP National Security Campus Questions?