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UNCLASSIFIEDThis document has been reviewed by a Y-12 DC/UCNI-RO and has been determined to be UNCLASSIFIED and contains no UCNI. This review does not constitute clearance for public release.Name: Date:

Consolidated Nuclear Security, LLCGeorge Singleton, Mission Baseline Director,

Program Integration

Sam Easterling, Program Manager, Environment, Safety & Health

Kerry Grooms, Director, Y-12 Site Wide Support, Quality Performance & Analysis

Richard Atwood, Business Management Manager, Supply Chain Management

1

Nuclear Security Enterprise

2

Combined strength of the CNS companies

Bechtel

Project ManagementConstructionOperations

Lockheed Martin

OperationsInformation TechnologySupply Chain Management

Booz, Allen, Hamilton

TransformationCost Savings

SOC

SecuritySafeguarding SNM

ATK

High ExplosivesHigh-Hazard Operations

Ingredients for success 3

• Ensure reliability of the U. S. Nuclear Weapons Stockpile;

- Perform manufacturing, assembly, disassembly, quality evaluation, and storage of nuclear weapons and their components

• Supply nuclear material for naval nuclear propulsion

• Support nonproliferation efforts which make the world a safer place

• Deliver solutions to other emerging national security challenges

What does CNS do?

Mission delivery supports U.S. national security

3

Support for Our Mission Remains Strong

• CNS Stockpile Stewardship mission continues at a rapid pace

• Support for the Uranium Processing Facility is solid; Site preparations are ongoing

• Our Nuclear Non-Proliferation and work for a broad set of other government agencies is strong and growing

• We are developing and implementing integrated strategies to improve site infrastructure and improve the quality and safety of our employee’s working conditions

FY 2015 FY 2016Budget

%Change

Total Weapons Operations $1,250 $1,489 19% Construction Line Items $344 $448 30%

Nonproliferation $53 $65 23% Other Mission Work $117 $119 2%

Total $1,764 $2,121 20% ($ are in Millions)

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Potential Future Opportunities

• Infrastructure revitalization is a CNS Strategic goal- Recapitalization of our enduring facilities is gaining momentum- Uranium Sustainment – New Program- New Facilities

o Administrative Support Complex at Pantexo Emergency Operations Center at Y-12

- Disposition of excess facilities is critical and will increase - Investment of savings from cost reduction initiatives

• Significant cost efficiency initiatives include- General manufacturing activities- Lithium processes- Packaging and storage

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CNS is dedicated to mission delivery while seeking greater cost efficiency

v

UNCLASSIFIEDThis document has been reviewed by a Y-12 DC/UCNI-RO and has been determined to be UNCLASSIFIED and contains no UCNI. This review does not constitute clearance for public release.Name: Date:

What do you need to know about ES&H to do business with CNS Y-12?

Sam EasterlingEnvironment, Safety & Health

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August 27, 2015

Integrated Safety Management System

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How Does ISM Apply to Subcontractors at Y-12?• DEAR 970.5223-1, Integration of

Environment, Safety, and Health into Work Planning and Execution applies to all onsite subcontracts• Know the Scope of Work (SOW)-

CNS will define •Service, Construction, Delivery work vary in complexity and hazards

•Be inquisitive until your team fully understands the SOW

•Be inquisitive for expectations as well as specified requirements

•Be inquisitive regarding required training for site access

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How Does ISM Apply to Subcontractors at Y-12?• Analyze the Hazards

•Activity Hazards Analysis documents task and associated hazards and controls (include workers and ES&H professionals) address both onsite hazards and work activity•SOW includes existing conditions including onsite hazards (CNS)

•Your team must analyze the hazards related to your activities

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How Does ISM Apply to Subcontractors at Y-12?

• Develop and Implement Hazard Controls

•Using a graded approach utilize a hazard analysis document to identify controls for each hazard associated with tasks to be performed

•Eliminate the hazard, or provide engineering, administrative or personal protective equipment controls for worker protection

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How Does ISM Apply to Subcontractors at Y-12?

• Perform the Work within the Controls•After planning your work, follow the plan

•Expect Y-12 Oversite provided by Subcontract Technical Representatives and ES&H Professionals

•Pause work when conditions, hazards or work scope changes

• Provide Feedback for Continuous Improvement•Gather feedback from your team and your Y-12 Customer

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What information is needed BEFORE onsite begins?

• For moderately complex/complex and/or moderately hazardous/hazardous work

• Submit Seller Safety Qualification Questionnaire (Procurement Public Website)• Experience Modification Rate for the past 3 years (Provided by your

Insurance Carrier)• Copies of your OSHA 300-A Log• Reference contact information from other customers who know your

safety performance• OSHA citations (type, standard citation and resolution)• Written ES&H Program if not already on file• Written Hazard Communication Program if not already on file• Information about your company’s safety and health professionals,

safety meetings and audits

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What information is needed BEFORE onsite begins?

• Depending on work complexity and hazards ES&H deliverables will be required • Inventory of hazardous materials for on site use

(monthly updates required)• Y-12 ES&H Plan to identify how ES&H

requirements are to be implemented while onsite

• Hazard Analysis Documentation • Some SOWs may require additional safety and

health programs to be submitted for approval (asbestos abatement, confined space entry, lockout/ tagout etc.)

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STOP WORK AUTHORITY

• All persons on site, including Seller’s personnel, have the right and responsibility to stop work or decline to perform an assigned task whenever they discover:

• Conditions that pose (because of a reasonable belief) an imminent risk of death, serious physical harm or other serious hazard to workers or the public;

• Conditions that, if allowed to continue, could adversely affect the safe operation of, or could cause serious damage to the facility; or

• Conditions that, if allowed to continue, could result in release, from the facility to the environment, of radiological or chemical effluents that exceed regulatory limits.

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Expectations

• Performance Excellence

• Deliverables meet high standard (complete and applicable to the subcontract)

• Questioning Attitude by both Subcontractor Key Personnel and Employees

• Embrace Oversight with Openness (Learning Process)

• Know your Subcontract Administrator and Subcontract Technical Representative – They are there to help your team

• Promptly Report Accidents/Incidents in accordance with the contract- bad news does not get better with time

• Trust in utilizing feedback from workers and customers for continuous improvement

• Same Objectives – Subcontractor and Company succeed or fail together

• Communicate

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v

Kerry GroomsDirector, Y-12 Site Wide Support

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This document has been reviewed by a Y-12 Derivative Classifier/UCNI Reviewing Official and has been determined to be UNCLASSIFIED and contains no UCNI. This review does no constitute clearance for public release.

____________________________________________

Quality and Quality Assurance Program

• Quality is a degree of excellence• Good or bad• Workmanship• Accuracy• Value

• A Quality Assurance (QA) Program is:• All those planned and systematic actions necessary to provide

adequate confidence that a structure, system, or component will perform satisfactorily in service

• Simply, it is a documented recipe for planning, controlling, verifying, and documenting work

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Nuclear and Non-nuclear Quality• Nuclear Quality - Referred to as Quality Level ‘Q’ at Y-12

• Requires most rigorous quality controls• A documented QA Program that meets NQA-1, Quality Assurance

Requirements for Nuclear Facility Applications OR• Y-12 will do Commercial Grade Dedication of the item or service

• Non-nuclear Quality – The rest of the work (Quality Level Risk Significant or Commercial)• Typically only requires the QA Program the supplier uses for their

normal work• Depending on item or service may require:

• A documented QA Program• Evaluation by CNS Supplier Quality

CNS Expects ALL suppliers to do quality work!

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Nuclear Quality

• Supplier will be evaluated by CNS Supplier Quality – Placed on the Evaluated Suppliers List (ESL)

• Suppliers will prepare a project specific Quality Assurance (QA) Plan:• Describes how quality requirements will be implemented• Plan will be approved by the Company• Revisions approved before implementation

• QA Plan can refer to:• Suppliers existing QA Plan• Implementing procedures

• Verbatim flow down of requirements to all sub-tiers is required!!

• Sub tier suppliers• Will also have project specific QA Plans approved by supplier• Sub tier suppliers are also audited

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Supplier Evaluation Process• Comparison of supplier’s QA program to QA requirements in procurement

package

• CNS Supplier Quality will conduct an evaluation that will verify:• Supplier’s procedures implement the QA program requirements• Supplier’s procedures are being implemented

• Will include:• Document reviews• Interviews• Field observations• Shop inspection• Records review

• Identified problems will require correction• May be able to start some work prior to correction

You only get one chance to make a good first impression

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Expectations

• Work must meet specifications

• Changes to specifications must be documented

• Must follow procedures

• Documentation must be pristine

• Documentation provides• Evidence quality and technical requirements were met• Traceability of materials, personnel training, test, inspections, etc.• Assurance that all required actions are complete

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Dos and Don’ts

• DO – Read the specification/procurement package in detail and ask questions. Make sure you understand the technical, quality, and document submittal requirements

• DON’T – Rely on a cursory understanding of the specification/procurement package requirements

• DO – Implement your quality program requirements using procedures

• DON’T – Rely on ‘skill of the craft’, ‘corporate experience’, etc., to implement your quality program

• DO – Follow your procedures

• DON’T – Leave the quality program documents and procedures on the shelf

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Dos and Don’ts

• DO – Provide prompt, thorough responses to identified problems.

• DON’T – Delay response or only correct easily corrected problems

• DO – Flow down quality requirements to your sub tiers verbatim AND verify implementation

• DON’T – Interpret requirements or rely on history with a sub tier as basis for accepting items or services if an audit is required

• DO – Ensure you document changes to the requirements

• DON’T – Rely on verbal changes to the requirements

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Questions

25

v

UNCLASSIFIEDThis document has been reviewed by a Y-12 DC/UCNI-RO and has been determined to be UNCLASSIFIED and contains no UCNI. This review does not constitute clearance for public release.Name: Date:

CNS Supply Chain ManagementRichard Atwood

Business Management Manager forSupply Chain Management

Consolidated Nuclear Security, LLC

Richard.Atwood@cns.com

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Consolidated Nuclear Security• M&O for the Y-12 National Security Complex and Pantex Plant, located in

Oak Ridge, TN and Amarillo, TX, respectively.

• Transition of sites March 2014 – July 1, 2014

• Now 14 months into Contract performance

Organizations at Y-12 and Pantex integrated into one SCM organization from fragmented Procurement, Logistics, Property organizations at both sites.

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Pantex, $85,402,084

Y-12, $272,871,613

Pantex & Y-12 Subcontracting Dollars(October 1, 2013 - September 30, 2014)

Total = $358.3M

29Excludes credit cards

Total CNS Subcontracting Dollars

050

100150200250300350400

July - Sept 2014 2015 (thru July)

$99.

2

$564

.8

$ (m

illio

ns)

Fiscal Year

30

Small Business, 56.4%

Big Business, 43.6%

CNS Small Business Spend(FY 2015 thru July)

$213.5M$165.1M

Subcontracting TypesContract Type: Fixed Price/T&M/Cost

• CNS approach: Select the contract type based on specificity of the SOW or Specification

• NNSA has a renewed focus on limiting so called “risky” contract types (T&M and Cost)

• Bias to fixed price awards, using commercial terms when possible (considering size and complexity of award).

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Subcontract Strategies• Act as an integrated Supply Chain organization in concert with Pantex

• In procurement, CNS will soon have one set of terms and conditions and one consolidated procurement policy document that governs our acquisition requirements.

• Consolidated procurements are pursued with the goal of aggregated spend supporting cost reduction initiatives. • Several commodities are scheduled for consideration in FY 16: Auto Parts, Software,

Pagers, and strategic Basic Ordering Agreements for inventory commodities are some examples.

• Combine business processes, procedures, and Information Technology applications to act as a single organization.• Help other functional organizations identify disconnects between the two sites to

simplify the procurement process.

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CNS use of the NNSA SCMC• NNSA Supply Chain Management Center

• The SCMC is a DOE Headquarters program operated from the Kansas City Plant, National Security Campus (NCS), under NNSA prime contract to Honeywell

• Mission of the SCMC is to implement strategic sourcing for the NNSA as an enterprise. DOE EM sites are being added to this program.

• Sites are encouraged and measured in the use of SCMC tools (reverse auctions/e-catalog tools).

• Benefits include the ability to quickly issue subcontracts under SCMC agreements, as SCMC agreements have been approved by a NNSA Contracting Officer. (DOE Policy Flash 2014-18)

• NNSA direction is to place SCMC agreements on the top of the order of precedence of acquisition strategies.

Web link:

https://thescmcgroup.com/index.html

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CNS Procurement ForecastSee the Y-12 Subcontracting Forecast website: In the future, Pantexopportunities will be added.

Web link includes Y-12, DOE, and UPF: http://www.y12.doe.gov/suppliers/procurement/subcontracting/subcontracting-forecasts

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Doing Business with CNS: FY16 Challenges• Suppliers, please keep the SAM information current

• FFATA related submittal (CNS to report subcontract awards >$25K) • Need DUNS number• Congressional Codes

• Management and Operating Subcontract Reporting Capability (MOSRC)

• Pending requirement for all DOE M&O contractors to report small business transactions

• Draft prime contract clause scheduled to be flowed to M&O contractors by October 2015.

• Requires M&O enrtry of 59 fields of data to federal database monthly for small business transactions >$3,000.

• Will require further disclosures from subcontractor community (number of employees)

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