Waste Treatment and Immobilization Plant (WTP)

1. Waste Treatment and Immobilization Plant (WTP) Bechtel Supplier Quality Program and Expectations for Supplier Performance Mark Watts Manager, Supplier Quality U.S. Department of Energy Bechtel National, Inc.

2. Introduction • Waste Treatment and Immobilization Plant (WTP) • Location: Hanford Nuclear Reservation • Client: Department of Energy, Office of River Protection • Cost: $5.7 Billion • Schedule: 2002 - 2011 • Estimated Procurement Awards: Nearly $2 Billion • Progress: Design 61% Complete 23% Construction Complete

3. Introduction January 2002 January 2003

4. Introduction High-Level Waste Facility Pretreatment Facility Low-Level Waste Facility Temporary Office Building Temporary Combination & Fabrication Shop Temporary Warehouse Two Concrete Batch Plants Waste Treatment Plant Construction Site March 2004

5. WTP Supplier Quality (SQ) Program • Through a program of planned Supplier survey, audit, source verification, and receipt inspection activities, the WTP Supplier Quality Program assures the quality and acceptability of those procured items and services designated as Important To Safety (ITS) • Important To Safety Defined: • Structures, systems, and components (SSCs) that serve to provide reasonable assurance that the facility can be operated without undue risk to the health and safety of the workers and the public.

6. WTP Supplier Quality (SQ) Program • The BNI Supplier Quality Program implements ASME NQA-1 1989, Quality Assurance Program Requirements for Nuclear Facilities • The BNI Supplier Quality Program assures compliance to 10 CFR 830 Nuclear Safety Management, Subpart A, Quality Assurance (PAAA) • ITS procurements are identified to the Supplier by the Quality Level (QL) designator incorporated into the Bechtel Purchase Order Number, i.e., 24590-WTP-QL- PHO1-00003

7. WTP Supplier Quality (SQ) Program • The Bechtel Supplier Quality Program is intended to independently verify the achievement of quality by the supplier • The existence of nonconforming conditions, supplier QA Program deficiencies, excessive rework, and other discrepancies, are indicators that Bechtel expectations for supplier quality performance have not been met. • The achievement of quality by the Supplier as independently verified by Bechtel, is the basis for assuring that ITS materials and equipment will perform their intended ITS function

8. WTP Supplier Quality (SQ) Expectations • Bechtel expectations for Supplier quality performance include: • Effective Supplier Commitment to Quality – All Levels • Effective, Mature, and Compliant, Supplier Quality Assurance Program Implementation • Verbatim Compliance to Bechtel Purchase Order (PO) Technical Requirements • Clear, Timely, and Frequent Communication – utilizing established lines • Compliant and Defect Free Material Delivered, the first time • Compliant and Defect Free Documentation Delivered, the first time

9. WTP Supplier Quality (SQ) Expectations • WTP Project Experience to date: • Failure to recognize the supply of ITS materials and equipment is not a business-as-usual condition • Failure to effectively implement, monitor, and assess the Supplier QA Program • Failure to recognize, define, or comply with all PO requirements

10. WTP Supplier Quality (SQ) Expectations • WTP Project Experience to date (cont.): • Failure to communicate or pass PO requirements across all affected elements of the Supplier organization • Failure to flow and enforce PO requirements through the supply chain • Failure to confirm assumptions or clarify conflicting, ambiguous, obscure, and/or vague PO requirements

11. WTP Supplier Quality (SQ) Expectations • Consequence of Failure • Delayed Material and Equipment Shipments • Delayed Invoice Payment • Backcharge • Suspension of Work • Increased cost to the Government • Unsatisfactory Bechtel Supplier Performance Rating • Increased exposure to DOE PAAA regulatory enforcement • Negative publicity

12. WTP Supplier Quality (SQ) Resources • Bechtel Acquisition Services Representative • Supplier Commitment to Compliance Agreement • Bechtel Guide Document: 24590-WTP-GPG-AS-008, Quality Verification Document Preparation Guide • Bechtel Supplier Quality Representatives • Supplier Quality Program Questions Mark Watts, BNI Supplier Quality Manager: 509-371-2211 or mtwatts@bechtel.com