Nuclear Presentations

Nuclear M f t iManufacturing

Outreach

Welcome

OPPORTUNITYOPPORTUNITY KNOCKING

Ashok BhatnagarSenior Vice President,

TVA Nuclear GenerationTVA Nuclear Generation Development and Construction

February 18, 2009

Energy Needs

Increasing demand

Meet demand by:Meet demand by:-Building nuclear and CTg-Conserving

ReliableEnergySupplyWhy Nuclear?

Clean Air Value

pp y

EconomicD l t

y

Forward Price

Stability Less

Development

CompetitiveElectricity Zero Air

Emissions

Dependence on Oil

and Gas

Low$1 07 Local BenefitsProtection

against CO2risk

LowFuel

TransportationRisk65%

of

$1.07 Local Benefitsfor

Every $1 Spent

Up to 2400

Lowers Average Cost of Power

High Capacity Factors7 x 24 Power

of Total Cost

Fixed

Jobs During Constructionand 400-500

During OperationPer Unit

Foundation of Safety

TVA Nuclear

SequoyahWatts Bar

Browns Ferry Bellefonte Sitey Bellefonte Site

Watts Bar Unit 2Watts Bar Unit 2

• On schedule, on budget

• Current staffing – 1600

• Orders placed for major equipmentOrders placed for major equipment

Domestic Nuclear Supplier BaseKnown Areas Of NeedKnown Areas Of Need

• Ultra-heavy (>350 ton) forgings

N l G d ASME (N t ) P• Nuclear Grade, ASME (N-stamp) Pumps

• Nuclear Grade, ASME Valves,

• Nuclear Grade, ASME Heat Exchangers

• Metallic Reflective “Mirror” Insulation

Challenges OpportunitiesImprovements

Shortage of skilled craftsg

Fabrication of equipment

Where To Next?

Bellefonte Option

Identified Power Planning Need2015 – 2020

Bellefonte Site(Alabama)

Key MessagesKey Messages

• Enjoy!

• Network!

• Opportunity is knocking. Answer it!knocking. Answer it!

Nuclear Energy CoalitiongyNEI Vendor ForumFebruary 18, 2009February 18, 2009

What is the Tennessee Valley Corridor?y

• National award-winning regional economic and technology development group

• Featuring key leaders across eight congressional districts in four states

• With active support of region’s top public and private technology partnersp p gy p

• Working together to grow and attract the high-tech jobs of the future

• Working in close consultation with the region’s Congressional delegation

Two-Fold MissionTwo-Fold Mission• To promote the TennesseeTo promote the Tennessee

Valley Corridor as one of the nation’s top science and technolog cente sand technology centers

• To promote and leverage the Corridor’s research andthe Corridor s research and technology assets for new jobs and new investment

TVNEC ObjectivesTVNEC Objectives• Develop and Expand the Nuclear p p

Industry Cluster in the Tennessee Valley Corridory

• Evaluate and Promote Ultra Heavy F i C bilit i th V llForging Capability in the Valley

• Promote the Development and TestingPromote the Development and Testing of Small Power Reactors

Tennessee Valley RegionTennessee Valley Region1. East Bridge Business Park

2. Commerce Park

3. The Horizon Center

4. Roane Regional B&T Park

5. Jackson Co. Industrial Park

6 Scottsboro Industrial Park6. Scottsboro Industrial Park

7. Cummings Research Park

8. JetPlex Industrial Park

9. Mallard/Fox-Creek Ind. Park

10. Enterprise South Ind. Park

11. Chattanooga Riverfront

12. Hiwassee River Park

13. Nickajack Ind. Park & Port13. Nickajack Ind. Park & Port

Technology and Business Parks

Regional Offerings• Location: Logistics and Projectsg j

Existing and planned high value nuclear projects

• Regional SynergyMajor Engineering Procurement Construction contractors in areaMajor Engineering Procurement Construction contractors in area

Qualified 2nd and 3rd tier vendors in area

• Workforce ExpertiseNuclear and manufacturing workforce availabilityNuclear and manufacturing workforce availability

Training pipelines, vocational and educational institutions

• Access to Research and Technologyk id i l bOak Ridge National Laboratory

SimCenter: National Center for Computational Engineering

Y-12 National Security Complex

NASA M h llNASA Marshall

U.S. Army on Redstone Arsenal Supplier

U.S. Interstates and Waterways

TVCTVC

•Crossroads of major interstate system

•Rail access

•Waterway access via Tennessee River

U.S. Energy Usage

TVC

TVC i C t l t USTVC is Central to US energy use, production and availability

Department of Energy and NASA

32 46

TVC

1 Mixed Oxide Fuel project (MOX)

1

35 8

7

1 Mixed Oxide Fuel project (MOX)2 Uranium Processing Facility3 Integrated Facility Disposition Project4 High Flux Isotope Reactor5 NASA Marshall6 Y-12 National Security Complex7 Oak Ridge National Lab8 Savannah River Site8 S S

Current U.S. Reactor Sites66

51

2

1

67 49

50 50 54

53 53

48 48

52 52

43 43

45

44 443941 40

1516 16

13

12

13 11 11

14 146 6

78 8

22

55

4

182

43

64 64

55

6856

48 4347 47

43

424246

34

37

35 35

37

19 19

36

1010

1 Maine Yankee2 Seabrook3 Pilgrim4 Millstone5 I di P i t

19 Surry20 Brunswick21 Catawba22 Robinson

38 Big Rock Point39 Fermi40 Perry41 Davis-Besse

55 Cooper56 Callaway57 Grand Gulf58 River Bend

6363

626262

61 61

69 69 30 30

29 29

33 3331 31

202022

21 21

2424

3123

25 255 Indian Point6 Limerick7 Oyster Creek8 Hope Creek9 Salem

10 Calvert Cliffs11 Peach Bottom12 TMI13 Beaver Valley14 Susquehanna15 RE Ginna16 Nine Mile Point

23 VC Summer24 AW Vogtle25 EI Hatch26 St Lucie27 Turkey Point28 Crystal River29 JM Farley30 Browns Ferry31 Oconee32 Bellefonte33 Sequoyah

41 Davis Besse42 Braidwood43 Dresden44 DC Cook45 Palisades46 Clinton47 LaSalle County48 Quad Cities49 Duane Arnold50 Prairie Island51 Monticello52 Byron

58 River Bend59 Waterford60 South Texas Project61 Comanche Peak62 Palo Verde63 San Onofre64 Diablo Canyon65 Vallecitos66 WNP67 Fort Calhoun68 Wolf Creek69 Arkansas Nuclear One

60 60

5758

59

29 29 25 25

2826

26

2717 JA Fitzpatrick18 Vermont Yankee

33 Sequoyah34 Watts Bar35 McGuire36 Shearon Harris37 North Anna

52 Byron53 Point Beach54 Kewaunee

69 Arkansas Nuclear One 2727

Proposed U.S. Reactor Sites

70

8371

89

72

82

73

84

74

75

78

80

81

86

85

PROPOSED70 Nine Mile Point71 Susquehanna72 Calvert Cliffs73 Harris





76

77

79

88 87

73 Harris74 W. Lee75 VC Summer76 Levy County77 Turkey Point78 Vogtle79 River Bend80 Grand Gulf81 Bellefonte82 North Anna 83 Fermi84 Callaway

5 Indian Point6 Limerick7 Oyster Creek8 Hope Creek9 Salem10 Calvert Cliffs11 Peach Bottom12 TMI13 Beaver Valley14 Susquehanna15 RE Ginna16 Nine Mile Point



58 River Bend59 Waterford60 South Texas Project61 Comanche Peak62 Palo Verde63 San Onofre64 Diablo Canyon65 Vallecitos66 WNP67 Fort Calhoun68 Wolf Creek69 Arkansas Nuclear 1 7784 Callaway

85 Amarillo86 Comanche Peak87 South Texas88 Victoria County89 Bruneau




69 Arkansas Nuclear 1

Combined Sites66

51

2

1

70

67 49

50 50 54

53 53

48 48

52 52

43 43

45

44 443941 40

1516 16

13

12

13 11 11

14 146 6

78 8

22

55

4

182

43

8371

89

64 64

55

6856

48 4347 47

43

424246

34

37

35 35

37

19 19

36

101072

82

73

84

32

46

PROPOSED70 Nine Mile Point71 Susquehanna72 Calvert Cliffs73 Harris





6363

626262

61 61

69 69 30 30

29 29

33 3331 31

202022

21 21

2424

3123

25 25

74

75

78

80

81

86

85

1

3 45 8

73 Harris74 W. Lee75 VC Summer76 Levy County77 Turkey Point78 Vogtle79 River Bend80 Grand Gulf81 Bellefonte82 North Anna 83 Fermi84 Callaway

5 Indian Point6 Limerick7 Oyster Creek8 Hope Creek9 Salem10 Calvert Cliffs11 Peach Bottom12 TMI13 Beaver Valley14 Susquehanna15 RE Ginna16 Nine Mile Point



58 River Bend59 Waterford60 South Texas Project61 Comanche Peak62 Palo Verde63 San Onofre64 Diablo Canyon65 Vallecitos66 WNP67 Fort Calhoun68 Wolf Creek69 Arkansas Nuclear 1

60 60

5758

59

29 29 25 25

2826

26

27

76

77

79

88 87 Radius 500 Mi 805 Km

84 Callaway85 Amarillo86 Comanche Peak87 South Texas88 Victoria County89 Bruneau




69 Arkansas Nuclear 1 272777

TVNEC for the Supplierpp

TVNEC

Supplier

Vision: Bridging the Gapg g pSuppliers, EPC’s

TVNECTVNEC

Utility

SupplierSupplier

DOE

pp

Supplier

Supplier

Regional SynergyMajor Engineering, Procurement, or Construction contractors working in area

Regional Synergyg y gy

• 2nd Tier Suppliers and Servicespp

Nuclear Inspection and testing >10 companies

B i t M f t i 50 iBasic component Manufacturing >50 companies

Large Scale Construction Services >20 companies

Nuclear Services >15 companies

Workforce DevelopmentWorkforce Development

Skilled Worker TrainingSkilled Worker TrainingApproximately 23 four-year institutionsApproximately 23 four year institutions with enrollment of almost 100,000 students

Approximately 25 Community Colleges/Tech Institutions with enrollment of approximately 55,000 students

QuestionsQVisit our website:

www.tennvalleycorridor.orgy g

OR Contact:

Gary Gilmartin

TVNEC Lead

Ph (865)-241-1790

Cell (865)-466-0748( )

[email protected]

New Nuclear Pl tPlants

Outlook

Doug Walters, NEI202-739-8093, [email protected]

New Nuclear PlantsGl b l SGlobal Status

• 43 plants under construction 3 p a ts u de co st uct o– ~ 37 GW

• 108 plants on order or planned in 24 countries– ~ 121 GW

• 266 projects under consideration in 27 countriesSt t t f i t t/ l– Statement of intent/proposal

Source WNA Jan 2008

Proposed New Nuclear PlantsProposed New Nuclear Plants

• 17 Applications17 Applications• 26 Units• 5 Designs• 5 Designs

Short-TermOrder long-lead items

COL review

Site preparation

COL Approval

Construction

Arrange financing Load fuel

COL submittedCOL submitted

Start-up testing (4-6 months)

Commercial operation

Pre-COL construction

General procurement

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

pGeneral procurement

Licensing & Construction Then and NowThen and Now

THEN NOWDesign as you build Plant designed before construction begins

Changing regulatorystandards and requirements

More stable process: NRC approves site, design, construction & operation before construction begins and p gsignificant capital is placed “at risk”

No design standardization Standard NRC-certified designs – 70+% Standard

Inefficient construction Lessons learned from overseas projectspractices Modular construction practices

Main opportunity public intervention when plant is essentially complete

More opportunities to intervene at well-defined points in process. Intervention at the end of the process must be based on objective evidence that acceptance criteriaessentially complete based on objective evidence that acceptance criteria, defined in the license, have not been, and will not be met

US Commercial Outlook to 2020US Commercial Outlook to 2020

• First 4 – 8 plants expected to start• First 4 8 plants expected to start commercial operations in 2016– Others under construction– Others under construction– Building rate and projects adjusted based on

the success of the first few projectsthe success of the first few projects

• Potential for new plants 15 20 i 2020 35+ i 2030– 15 - 20 in 2020; 35+ in 2030

– If first projects are successful

Equipment & Commodities for Fi t Ei ht Pl t (E l )First Eight Plants (Examples)

• Cable – over 1800 milesCable over 1800 miles• Nuclear grade valves – 4000 to 24000 • Pumps -- 1000 to 2000• Pumps 1000 to 2000 • Nuclear grade piping – 30 – 150 miles• Concrete over 3 million cubic yds• Concrete – over 3 million cubic yds• Electrical components -- Over 700,000

Structural & reinforcing steel 500 000 tons• Structural & reinforcing steel -- 500,000 tons• Large and small heat exchangers -- 500 to 1300

Support for New Nuclear & Expanded US Manufacturing BaseExpanded US Manufacturing Base• Bipartisan political support• Strong public support• Solid support from laborSolid support from labor• Strong support from other industries• Growing support from environmental• Growing support from environmental

community

The FutureThe Future

• New nuclear power plants will be builtp p– Need for power, environmental limitations and

need for long-term stability in electricity prices

• Opportunity is there -- will US-based manufacturers be able to take advantage?g

SSOUTHOUTH TTEXASEXAS PPROJECTROJECT

What Does a Nuclear Project Look Like?

Will JumpPlant General Manager – STP Units 3&4

February, 2009

IntroductionIntroductionIntroductionIntroduction

• The South Texas Project• The South Texas Project

• A compelling case for nuclear

• Projects of the past

• This time around• This time around

• Total project approach

• Challenges and risks

THE SOUTH TEXAS PROJECTTHE SOUTH TEXAS PROJECT\ _ g X X Z\ÅÑÜÉä|Çz _|äxá g{ÜÉâz{ XåvxÄÄxÇvx |Ç XÇxÜzç ZxÇxÜtà|ÉÇ

• STP Nuclear Operating Company

• Ownership structureOwnership structure

• Impressive site

• Existing units

• Expansion plans

A Compelling Case for NuclearA Compelling Case for NuclearA Compelling Case for NuclearA Compelling Case for Nuclear

• Performance of existing fleet

• Energy Policy Act of 2005

• Safe

• Predictable and economic

• Clean

Projects of the PastProjects of the PastProjects of the PastProjects of the Past• Standard construction techniques

• Type writers and carbon paper

• Information technology

• Integrated schedulesIntegrated schedules

• Communication and collaboration skills

• Fear and intimidation

• Overall brute force

This Time AroundThis Time AroundThis Time AroundThis Time Around

• Project management finesse

• STP culture – coupled with best construction approach

• High standards of excellence• High standards of excellence

• Planning mentality

• Strong communications

• Collaboration & decision makingg

• Teamwork

• Project management tools

Total Project ApproachTotal Project ApproachTotal Project ApproachTotal Project Approach

• LicensingLicensing

• Engineering procurementEngineering, procurement and construction

• Staffing and training

Key RisksKey RisksKey RisksKey RisksKey RisksKey RisksKey RisksKey Risks

• Existing plant performance

• Supply chain

• Skilled work forceSkilled work force

E i ti Pl t P fE i ti Pl t P fExisting Plant PerformanceExisting Plant Performance

Operating units the main focus• Operating units the main focus

• Project office offsite

• Strategic communications plan used

• Employee transfer plan well controlled

• Integrated work force management plang g p

• Increased pipelines support both

Supply ChainSupply ChainSupply ChainSupply Chain

• Early in the process• Early in the process

• Significant quantities of material and equipment

• Safety related

• Non-safety relatedNon safety related

• U.S. supply chain has eroded

• Early planning is key

• Long lead equipment

Skilled Work ForceSkilled Work ForceSkilled Work ForceSkilled Work Force

• Work force management plan

• Training programs

Recruiting• Recruiting

• Educational programs

• College relationships

• Working with partners• Working with partners

Skilled Work ForceSkilled Work ForceSkilled Work ForceSkilled Work Force

Closing ThoughtsClosing ThoughtsClosing ThoughtsClosing Thoughts

Exciting times• Exciting times

• Nuclear power renaissance is realNuclear power renaissance is real

• Significant challenges ahead

• Planning reduces risk

• Need to act now

Q ti /AQuestion/Answer

AREVAAREVA New Plants Update

“We’re not just building a plant, we’re building an

Rick Bonsall, PEManager, LWR Programs

AREVA NP, Inc.Ch l tt NC industry.”Charlotte, NC

An integrated nuclear supplier serving the entire nuclear power cyclep y

Fuel fabricationEnrichment

Renewable energies

Reactors

Chemistry

OTHER SOURCESUsed fuel treatment

RecyclingMOX fuelfabrication

Services OF ELECTRIC POWER

TransmissionMining

treatment Services

Distribution

Front End Division

Reactors and ServicesDivision

Back End Division

Transmission & DistributionDivison

AREVA Locations in the U.S.

Richland WA (785)AREVA NP (670); CEC (91);

Bellevue WA (337) T&D

Benicia CA (135)

Naperville IL (50)AREVA NP

Marlborough MA (150) AREVA NPMills WY (29)

CI (3); Pathfinder Mines (7); COGEMA Mining (19)

Meriden CT (395)Canberra

/ ( )

AREVA NP (670); CEC (91); Numatec (11); PacTec (3)

T&D

Medford OR (125)T&D

Bethlehem PA (85) T&D

Lynchburg VA (1,700)AREVA NP (NA Headquarters)

Benicia CA (135)AREVA NP

Woodbury/Dover NJ (71)AREVA NP (10); Canberra (61)

Washington DC (48)AREVA (15); CI (33)

Eddystone PA (71) T&D

Cranberry PA (86)

San Jose CA (70)AREVA NP

Alpharetta GA (64)AREVA NP (60); Canberra (4)

Charlotte NC(545) AREVA NP (520); CI (25)

( )

Albuquerque NM (104)Aquila (87); AREVA NP (15);

Canberra (2)Aiken/Seneca SC (113)

AREVA NP (105); CI (5); Canberra (3)

AREVA (15); CI (33)

> 5,200 AREVA Employees in U.S.

Fort Worth TX (50)AREVA NP

Nuclear Operation Sites

Transmission & Di t ib ti Sit

p yNuclear Operations

at 22 LocationsDistribution Sites

AREVA’s 2030 scenario for nuclear power construction or life extension of 500 GWeconstruction or life extension of 500 GWe

833 : WEO - 2007 Stabilization 450ppm

731 : WNA - 2007 Upper

691 : IAEA - 2007 High

GWe net installed

Life extension

New Construction

635344AREVA529 : WNA - 2007 Reference

525 : WEO - 2007 Alternative

447 : IAEA - 2007 Low

Theoretical end of life

447 : IAEA 2007 Low

415 : WEO - 2007 Reference

438 : DOE EIA - 2006 267

186

372

2007 2030

EPRTM Nuclear Plant

• 1600 MWe, 4590 MWth• Four independent safety

systems in separate safeguard buildings

• Designed for airplane hazards

• Being Deployed Worldwideg p y• NRC Design Certification

underway• Selected by UniStar NuclearSelected by UniStar Nuclear

FIRST Generation III+ Under Construction

4 units under construction

Olkiluoto 3, Finland Flamanville 3, France Taishan 1&2, China

Additional units proposed across the globe

2nd EPR i F

India - 2 Units

UAE - 2 units

South Africa Canada

2nd EPR in France

United Kingdom

P j t d t di t bilit b iltProject and cost predictability built on real experience

Steady Progress at OlkiluotoSteady Progress at OlkiluotoGeneral Site View

Cable Tray Installation

Reactor Vessel Arrives

Turbine Building

Olkiluoto Unit 3 - first Gen-III plant under construction, setting the stage for a world-wide renaissance of nuclear power generation

A large diversified supplier network supports this complex project

U.S. EPR™ Projects

UniStar Calvert Cliffs UnitUniStar Calvert Cliffs Unit--3, Maryland3, Maryland Ameren Callaway UnitAmeren Callaway Unit--2, Missouri2, MissouriCOLA submitted March 2008COLA submitted March 2008 COLA submitted July 2008COLA submitted July 2008

UniStar Nine Mile Point UnitUniStar Nine Mile Point Unit--3, New York3, New YorkCOLA submitted October 2008COLA submitted October 2008

PPL Bell Bend, PennsylvaniaPPL Bell Bend, PennsylvaniaCOLA submitted for October 2008COLA submitted for October 2008

U.S. EPR™ standardized fleet already underway

Anticipated growth: The “Bridge the Gap” ProgramTo Successfully meet future needs

Ability to respond to rising demand for nuclear energy and to help our Customers answer to market requirements

Driven at the highest level of and across the organization Processes to build on experience and improve efficiency Organization able to implement and benefit from itOrganization able to implement and benefit from itPersonnel competences and experiences

S d iti th l h iSecures resources and capacities across the value chain Mining and Uranium supplyFuel capacitiesIndustrial capacities

Answer to global market trends reduce project risks

Industrial capacities Engineering resources

AREVA NP Inc.

Answer to global market trends, reduce project risks and efficiently implement with a strong regional focus

Bridging the Gap: Secure Fuel Supply For the existing and new build fleets

> Mining: Large investments:6 production sites in North America, Africa, pand Asia6 additional sites planned to enter portfolio by 201220%-25% of global market share20%-25% of global market share

> EnrichmentFrance: Georges Besse II (~ €3.0B)

• Capacity of 7.5M SWU potentially up to 11.0M p y p y pSWU

• Modularity enabling production to start in 2009 United States: Eagle Rock in Idaho (~$3.0B)

• Capacity of 3 0M SWU• Capacity of 3.0M SWU• Authorization via diplomatic channels in

progress• Customers have signed letters reserving

capacity

AREVA NP Inc.

capacity

AREVA is Investing in EPR™ Supply Chain

AREVA is investing in supply chain certainty

AREVA NP Inc.

AREVA is investing in supply chain certainty.

AREVA, Northrop Grumman Announce JVAREVA Newport News, LLC

> 300 000 sq are foot facilit> 300,000 square-foot facility comprising a $360 million investment in commercial nuclear manufacturingg

> Ground-breaking in May of 2009 fully operational in2009, fully operational in December 2011

> JV brings access to approximately 1,000 engineers and 10,000 craft. Of the 10,000 craft, AREVA gains access to approximately 4,000 welders, 1,000 of which are SS welders.

AREVA NP Inc.

Bridging the Gap: TalentResources for existing and new build projectsg p j

8,600

Hiring

5 900

11,500 > 12,000

5,900

2005 2006 2007 2008

Hiring Integration Training

Investing in human capital: more than one new hire every hour

AREVA NP Inc.

y

Bechtel's Global Professional Nuclear Resources

20,000employees withe p oyees t

nuclear experience

5 0005,000engineers with nuclear

power experiencepower experience

AREVA NP Inc.

AREVA NP / Bechtel Proprietary Information

AREVA Vision: Share with more supplierspp

• A new generation of suppliers for a new generationA new generation of suppliers for a new generation of reactors– Increase the capacity of the current supply base / add new

supplierssuppliers

• Long-term partnerships will be developed with suppliers in order to:– Offer competitive solutions worldwide to our customers

• INTERNATIONAL PROJECTS

– Respond to national localization programs– Respond to national localization programs• DOMESTIC PROJECTS

AREVA P h i A T fAREVA Purchasing: A Team of more than 1000 professionals worldwide…

Involve Suppliers in a Continuous Improvement ApproachApproach

• Stimulate supplier creativity through contracts• Stimulate supplier creativity through contracts focused on quality, cost and delivery objectives

• Encourage active supplier participation in co-cou age act e supp e pa t c pat o codevelopment initiatives

• Develop and formalize long-term partnerships

• Work toward multi-project agreements

40 to 60 billion dollars at stakefor EPR suppliers through 2020for EPR suppliers through 2020

We need you…

Optimizing The Supply ChainOptimizing The Supply Chain

Brenda PetrilenaWestinghouse Electric Company

Director, Supply Chain Management

Nuclear Power PlantsProject Supply & Supplier Engineering

Presentation OverviewPresentation Overview

• Westinghouse Overview• The Global Demand for Nuclear Power• AP1000 Overview - Simplificationp• Westinghouse Supply Chain Challenge• Westinghouse Forecasted Purchasesg• Westinghouse Expectations from the Supply Base• SummarySummary

Westinghouse OverviewWestinghouse Overview

• Vision – Westinghouse will be the customers’ choice to supply leading-Vision Westinghouse will be the customers choice to supply leadingedge nuclear technology, to satisfy the world’s growing demand for energy

• 3 Core Competencies –– Nuclear Power Plants – Specializes in designing and delivering new nuclear

power plants, and manufactures precision stainless steel componentsp p , p p

– Nuclear Services – State of the art field services, engineering services, repair and replacement services, and training to our global utility customers

– Nuclear Fuel – The world’s leading integrated supplier of nuclear fuel– Nuclear Fuel – The world s leading integrated supplier of nuclear fuel products and services

The Demand for Nuclear PowerAP1000 W ld idAP1000 Worldwide

• China– Contracts for 4 units at Sanmen and Haiyang sites– Contracts for 4 units at Sanmen and Haiyang sites– Site prep work underway at both sites

• USAP1000 D i C tifi ti d b th NRC 12/30/2005– AP1000 Design Certification approved by the NRC on 12/30/2005

– 6 AP1000 Combined Operating Licenses accepted and docketed to date (12 units)1 additional COL expected in 2009 (2 units)– 1 additional COL expected in 2009 (2 units)

– 3 signed EPC contracts (6 units)• Additional interest/potential opportunities in United

Ki d C d I di UAE S th Af i S thKingdom, Canada, India, UAE, South Africa, South America, Southeast Asia, Central/Eastern Europe

The Nuclear Renaissance has arrived!

The Demand for Nuclear Power

Bellefonte

North AnnaDominion1 ESBWR

Constellation1 EPRBellefonte



Constellation1 EPR

AP1000 in the USOutside map area:

Fermi – Detroit Edison – 1 ESBWRCallaway – Ameren – 1 EPR


Calvert CliffsDominion

1 EPRBellefonte

TVA/Southern Co.2 AP1000s

1 ESBWR1 EPRBellefonteTVA/Southern Co.

2 AP1000s

1 ESBWR1 ESBWR1 EPRNine Mile Pt – Unistar – 1 EPRBell Bend – PPL – 1 EPR

1 ESBWR

Amarillo

Comanche PeakLuminant

2 USAPWR

Lee NuclearDuke/Southern Co.

HarrisProgress Energy

2 AP1000s Lee Nuclear

Duke/Southern Co.

HarrisProgress Energy

2 AP1000s

AmarilloAmarillo Pwr

2 EPRs

2 USAPWRs

2 AP1000s

Riverbend

Grand GulfEntergy

1 ESBWR

VC SummerSCE&G/Santee Cooper

2 AP1000

Vogtle

2 AP1000s

RiverbendRiverbend

Grand GulfEntergy

1 ESBWR

Grand GulfEntergy

1 ESBWR

VC SummerSCE&G/Santee Cooper

2 AP1000

Vogtle

Victoria CountyExelon

2 ABWRs RiverbendEntergy

1 ESBWR

1 ESBWR VogtleSouthern Co./Co-owners

2 AP1000sLevy County

Progress Energy

South TexasNRG Energy, Inc.

.2 ABWRs

2 AP1000s

RiverbendEntergy

1 ESBWR

RiverbendEntergy

1 ESBWR

1 ESBWR1 ESBWR VogtleSouthern Co./Co-owners

2 AP1000sLevy County

Progress EnergyLevy County

Progress Energy

South TexasNRG Energy, Inc.

.2 ABWRs

2 AP1000s

2 ABWRs

Levy CountyProgress Energy

2 AP1000sTurkey Point

FPL

EPC

2 AP1000sEnergy demand growth is

concentrated in the Southeast

Best Solution for New Plants–Si lifi tiSimplification

Simplicity in:Simplicity in:• Design

• Safety• Safety

• Construction

• Procurement

• Operations

• Maintenance

Design SimplificationFewer ComponentsFewer Components(compared to current operating fleet)

F tFewer components.Less costly to build, operate and maintain

Construction SimplificationM d l i tiModularization

Typical Breakdown of AP1000 ModulesStructural Modules

Piping Modules

Mechanical Modules Total

Containment 41 20 12 73

Typical Breakdown of AP1000 Modules

Containment 41 20 12 73Auxiliary Building 42 34 29 105Turbine Building 29 45 14 88A B ildi 10 10Annex Building 10 10

Total 122 99 55 276

Modularization allows construction tasks that were traditionallyperformed in sequence to be completed in parallel.

Westinghouse Supply Chain ChallengeWestinghouse Supply Chain Challenge…

Transition from “Design” to “Delivery”

Pl S D liPlan Source Make Deliver

Optimizing the Supply Chain.Work with suppliers who provide exceptional products & services.

Westinghouse Forecasted PurchasesWestinghouse Forecasted Purchases

Major Components Electrical Mechanical*Steam Generator *Class 1E/Non-1E Batteries *Heat Exchangers*Reactor Vessel *Class 1E/Non-1E Battery Chargers *Condensers*Control Rod Drive Mechanism *FH System Underwater Camera Equipment *Cooling Fans*Containment Vessel *FH System Underwater Camera Lights *Gas Cooler*Reactor Coolant Pumps (RCP) *Fiber-Optic cable *Piping Penetrations*Refueling Machine *Transformers *Metal Reflective Insulation*Fuel Handling (FH) Machine *RCP Switchgear *Pumps*Polar Crane *Po er Cable *Filters/Filter S stems*Polar Crane *Power Cable *Filters/Filter Systems*RCP Variable Frequency Drives *Main Generation Circuit Breaker *Tanks*Cask Crane *Pressurizer Heater Assemblies *Demineralizers*Integrated Head Package *Distribution Panels *Ion Exchangers*Simulator *Inverters *Moisture Separators*Pressurizer *Battery Monitors *Screens*Passive Safety Heat Exchanger *Electrical Penetration Assemblies *Degasifier Column/SeparatorPassive Safety Heat Exchanger Electrical Penetration Assemblies Degasifier Column/Separator*Installation & Operation Tools *Special Tools*Shipping & Handling Fixtures

Fuel Instrumentation & Control Valves & Piping*New Fuel Jib Crane *Panels *Valves - 38 Valve Classifications*New Fuel Elevator & Hoist *Cabinets ASME Section III*New Fuel Elevator & Hoist *Cabinets -ASME Section III*Fuel Transfer Conveyor *Cabinet Enclosures -ASME B16.34*New Fuel Storage Racks *Instrumentation -Safety Related*Spent Fuel Storage Racks *Switches -Non-Safety Related*Fuel Transfer Tube *Pressure Gauges *Skimmers*Spent Fuel Shipping Casks *Elements *Strainers

*Controllers *Mechanical ConnectionsControllers Mechanical Connections*Transmitters *Mechanical Disconnects*Detectors *Safety Class Piping*Probes *Rupture Discs*Monitors *Pipe Support

Westinghouse Expectations from the Supply BaseWestinghouse Expectations from the Supply Base

• An unwavering commitment to quality and safety

C• Cost competitiveness

• Value the prevention of errors

• Own and proactively solve problems

• Aggressive and predictable in terms of delivery

• Able and willing to share in the risk for future business as demand grows

• Utilize lessons learned for continuous improvement

• Teamwork

SummarySummary• Westinghouse – 3 Core Competencies, Nuclear Power Plants, Nuclear

Services, Nuclear FuelServices, Nuclear Fuel

• AP1000, Best Solution for New Plants – Passive safety, simplification, fewer components, less costly to build, operate and maintain

• Modularization allows construction tasks that were traditionally performed in sequence to be completed in parallel

• Westinghouse is aggressively purchasing equipment components• Westinghouse is aggressively purchasing equipment, components, commodities and services

• Supplier expectations: quality, safety, cost, value the prevention of errors, own & proactively solve problems, delivery, share the risk, continuous improvement, teamwork

Bechtel:The First Name in Nuclear Power

2009

Snapshot of Bechtel TodaySnapshot of Bechtel TodayBechtel Group … One of the World’s Most Experienced Builders

110 years of experience

p p

y p

Over 40 offices worldwide—40,000 employees40,000 employees

Active on 390 projects in 46 countriescountries

Bechtel … Number 1 contractor E i i N R dper Engineering News-Record

(ENR )• Bechtel ranked # 1 since 1998Bechtel ranked # 1 since 1998

Commitment to Safety: Bechtel named

Nuclear InnovationsNuclear Innovations

Peach BottomFirst HTGR reactor

EBR-1

Fi t l First HTGR reactorFirst nuclear reactor

VallecitosGeneral Electric’s

A Historyof Firsts General Electric s

first BWRof Firsts

Turkey Point

NPDCanada’s first

CANDU

Humboldt Bay

First pressure suppression Turkey Point

First pre-stressed, post-tensioned concrete

containment

suppression containment

Nuclear InnovationsNuclear Innovations

Indian Point 3One piece

replacementreplacement

V. C. SummerLaser templating A History

of FirstsGen III—ALWRs

Licensing (COLs,R. E.

of FirstsLicensing (COLs,

ESPs)StandardizationModularization

Ginna

Through-dome

l

PalisadesTemporary containment

opening

replacement

Nuclear Industry’s Most Experienced Contractor

The leading U.S. EPC/CM contractor

Worldwide nuclear plant activities• 88% of the 104 U.S. plants• 150 worldwide

Extended power upratesSteam generator replacementsReactor vessel head replacementsReactor vessel head replacementsM&O contractor for U.S. national laboratoriesC bi d t ti d tiCombined construction and operating licensesEPC on new generation

Number 1 rankingOverall U.S. contractor by ENRBest in safety by Occupational Safety

Professional ResourcesProfessional Resources

20,000,employees with

nuclear experience

5,000engineers with nuclearengineers with nuclear

power experience

Nuclear—Market SegmentsNuclear—Market Segments

Operating Plant Major Modifications New Plant

ServicesMajor Modifications Generation

New GenerationNew Generation

TVA—BellefonteABWR cost study y

TVA—Watts Bar Unit 2DSEPCompletion

Bellefonte

Completion

Dominion—North AnnaSiting and constructability studiesESPCOL

Southern—VogtlegESPCOL supportSite-specific engineering

North Anna

Exelon—Texas site (Victoria County)COL

Vogtle

New GenerationNew Generation

AREVAEPR U.S. adaptationConstructability reviews

Constellation—Calvert CliffsESP COL Engineering

Calvert CliffsESP COL Engineering

UniStarBOP ConstructionConventional IslandConventional Island

South Carolina Electric & GasCOL Site-specific engineeringV.C. Summer

Florida Power & LightCOL Extended power uprates

GE/Hitachi ABWR DeploymentGE/Hitachi ABWR DeploymentSTP Nuclear Operating Company

• Siting • COLSouth Texas

Supply ChainSupply Chain

Global procurement andGlobal procurement andvendor relationships

$25 billion annual spending$ p g

All major global suppliers

Global Supply Network—Global Supply Networkvendor surveillance, expediting, logistics,

d Q lit C t land Quality Control

Supply ChainSupply Chain

What do we look for in our suppliers?suppliers?

• Similar Culture and Values

• Certainty of outcome…deliver as sold

– Quality

Val e– Value

– On Time

• Make our end product to theMake our end product to the ultimate customer better

Managing the Ri k f th NRisks of the New Nuclear Market

Frank LopezSenior Vice President of

International and Commercial Nuclear

CH2M HILL at a GlanceCH2M HILL at a Glance

• Headquartered in Denver, Colorado ENR Ranksq ,• More than 300 offices on six continents

in 41 countries worldwide

ENR Ranks

CH2M HILL#1

in Program Management for 5 consecutive years

• More than 25,000 employees• 100 percent employee owned and US SEC registered

B dl di ifi d 12 b i t• Broadly diversified across 12 business sectors• US$6 billion in revenue (2008)

CH2M HILL Nuclear Business Group Serves Four Market SegmentsServes Four Market Segments

• Nuclear New Build and Program Management– Program Management for new build– Siting, licensing, permitting of new nuclear power plants– Balance of plant, capital upgrades, program management/owner’s engineer for

existing power plantsexisting power plants

• Defense Nuclear Liabilities Management – Federal and non-federal traditional environmental management (D&D, waste

management, environmental restoration, etc)management, environmental restoration, etc)

• Nuclear Infrastructure Management – DOE NNSA/Science/Nuclear processing operations and maintenance, infrastructure

upgrades, process and facility engineering/design and facility EPC

• Nuclear Fuel Cycle Management and Civil Liabilities– Enrichment, fuel reprocessing – Spent nuclear fuel handling, storage and disposition

CH2M HILL’s Role in New Nuclearand Program Managementand Program Management

• Areva – Combined Operating p gLicense Application Support– Calvert Cliffs

Nine Mile Point– Nine Mile Point– Bell Bend

• Amarillo Nuclear Energy –Project Management Services Agreement

• Exelon Early Site Permit• Exelon Early Site Permit

CH2M HILL’s Role in New Nuclear and Program Management contProgram Management cont.

• ENEC (UAE) – Program Management to build a fleet of nuclear reactors in Abu Dhabi

• Shearon Harris (NC) – Combined Operating License Application for Progress Energy

• Levy County (FL) – Combined Operating License Application for Progress Energy

• ITER (France) – International fusion research plant( ) p• AECL (Canada) – Waste storage facility design• Toshiba (Japan) – Modular reactor design• British Government Embedded support for nuclear new build policy• British Government – Embedded support for nuclear new build policy

and procedure development

CH2M HILL Mega-Program Management ExperienceManagement Experience

Rocky Flats Closure Project, Colorado, USA

Thames Tideway Tunnel Project, United Kingdom

London 2012 Olympic & Paralympic Games, United

Kingdom

Panama Canal Widening,Republic of Panama

Masdar, UAE Deep Tunnel Sewage System and Changi Water Reclamation

Emirates Nuclear Energy Corporation, UAE

Water Reclamation Plant, Singapore

Challenges facing Nuclear New Buildg g

• Supply chain for large components• Supply chain for large components• Financing• Skilled laborSkilled labor• Public acceptance• Cost optimization Effective Program p• Schedule Management is

crucial to meet th h llthese challenges

Program Management Provides the F ame o k to AccomplishFramework to Accomplish:

• Integration / linkage of all projects within program• Integration / linkage of all projects within program• Alignment across the program to achieve efficient,

predictable and cost-effective, program delivery and operations

• Augmentation, integration and leverage of scarce talentOptimizing and integrating business technical• Optimizing and integrating business, technical, management, project delivery, and operations solutions

• Addressing internal and external factors, challenges, and g , g ,managing multiple activities

Fl N l PFluor Nuclear Power

Welcome to the Renaissance

P t d bPresented by Tom Dawson Procurement Manager gFluor Nuclear Power

FEBRUARY 18 2009FEBRUARY 18,2009

WHAT IS THE NUCLEAR RENAISSANCE ?

KING ELECTRICAL UTILITIES

QUEEN NSSS PROVIDERS

KNIGHTS IN SHINNING ARMOR EPC CONTRACTORS

THE CALVARY YOU THE SUPPLIERS

Who is FluorWho is Fluor Five business units who provide global EPC services for clients

Employees: 46,000+ (2,750 with nuclear experience)

Corporate HQ: Dallas, TX

N l P HQ G ill SCNuclear Power HQ: Greenville, SC

International Nuclear Power Office: Camberley, UKy,

Recent Annual Spend: $14 billion

Fluor Nuclear ServicesFluor Nuclear ServicesFluor has provided Nuclear Services for clients since 1946

During the 70’s and 80’s, Fluor constructed 10 nuclear power plants and supported completion of another 10 units. Our experiences include:include:

Reactor Design & Modification

Recent Non-Reactor Nuclear Design / Build

Self Perform Reactor Procurement & Construction

Reactor Operating Plant Support Services

Nuclear Facility Decommissioningy g

Fluor Nuclear Renaissance C it tCommitment

January 2007 re-established Fluor Nuclear Power to focus on the following markets:following markets:

Nuclear new build in U.S., UK and other (selective) global markets

Capital projects at operating nuclear plants

During 2007 we underwent ASME audits for regaining Nuclear Code Stamps and Nuclear Certificates

In February 2008 we received our Nuclear Code Stamps and Nuclear Certificates

Fluor Current Nuclear ProjectsFluor Current Nuclear Projects

Oconee Nuclear FacilityOconee Nuclear FacilityDuke Oconee – Plant Upgrades

Engineering, Procurement and Constructiong g,Procurement has started and will continue through 2010

South Texas Projectj

STPNOC Units 3 & 4Engineering Procurement and Construction of 2 x 1300 MWEngineering, Procurement and Construction of 2 x 1300 MW ABWR

Procurement has started and will continue through 2015

Fluor Supplier NeedsFluor Supplier Needs

Safety Related and Non-Safety Related suppliers are needed to support current projects

Needs include:eeds c udecivil /structural, mechanical and electrical constructionpermanent plant equipment and materials

Examples of 10CFR50 Appendix B safety related suppliers in short supply:

Structural /Civil materials - concrete fabricated rebarStructural /Civil materials - concrete, fabricated rebar, fabricated structural steel, grout, fire/explosion proof doors, etc.Electrical equipment and materialsq p

Fluor Strategic Supplier RelationshipsFluor Strategic Supplier RelationshipsSupplier Integration – The PEpC Process

Construction Industry

Institute (CII) indicates:

ENGINEERINGFLUOR

StrategicSuppliers

4%–8% cost savings

10% 15%pROCUREMENT

CONSTRUCTION

PROCUREMENT10%–15% savings in

time

The ability to influence the cost of a project is greatest at the beginning of a project – bringing strategic suppliers in early is essential to success

OverviewOverviewEXAMPLE

Schedule Specifications/Drawings

Return w/ Comments

CLIENTReview & Comment

Accepted

Develop Bidder List

CLIENTFor review and

comment within 10 daysSole Contractor

ContractorIssues RFQ

ContractorySole Source Tech./Comm.

Justification

ContractorReceives

ContractorPrepares Bid

Contractor prepares Equipment Purchase

ContractorIssues RFQ

Clarification/NegotiationBids

pEvaluation

q pApproval (EPA)

Contractor Executes Subcontractwith supplier

CLIENTExecutes EPA within 5 days

Clarification/Negotiation

with supplierExecutes EPA within 5 days

Bid EvaluationBid Evaluation•Commercial Evaluation

–Go/No Go Compliance with Terms and Conditions

–Cost–Schedule–Schedule–Experience–Financial Resources–Shop Loading (How Busy Are They?)p g ( y y )

Bid EvaluationBid Evaluation

•Technical Evaluation–Head-to-Head Comparison of BidsIdentify Evaluation Items–Identify Evaluation Items

–Rate Each Bidder on Evaluation Items–Evaluate Cost Adders/Subtractors–Supplier Questions and Clarificationspp Q–Determine Technically AcceptableBiddersBidders

Bid EvaluationBid Evaluation

•Final Evaluation–Compare Commercial and Technical EvaluationsEvaluations

–Combine Cost Adders/Subtractors With Commercial Cost Evaluation to DetermineCommercial Cost Evaluation to Determine Evaluated CostSelect Lowest Evaluated Cost–Select Lowest Evaluated Cost, Technically Acceptable Bidder

Bid EvaluationBid Evaluation•Award Subcontract/Purchase Order

–Clarification Meetings & Negotiations With Recommended Bidder

–Submit Recommendation With Backup to Client for Approval

–Submit Recommendation With Backup to Owner for Approval

l f f–Upon Approval, Conform Specification to Successful Bidder’s ProposalI S b t t/P h O d–Issue Subcontract/Purchase Order

Vendor Data ReviewVendor Data Review•Required Vendor Data Specified in Contract

b l d f•Submittal Requirements Form Identifies:What is Required

•Drawings Calculations•Drawings Calculations•Schedules Test Reports•Procedures Weld maps

When it is RequiredWhen it is Required•With bid 30 days after award•Design completion Prior to test Aft t t With hi t•After test With shipment

Its Purpose•For Review •For Approval •For Information

Vendor Data ReviewVendor Data Review

Vendor Timeline

rem

ent

ete

rd C

ontr

act

ove

Des

ign

ase

for P

rocu

r

catio

n C

ompl

e

n Fa

bric

atio

n

Com

plet

e

e at

Job

site

all

Design Idle Procure Mat’ls Fabricate Test Idle

Aw

ar

App

ro

Rel

ea

Fabr

i

Beg

i n

Test

C

Arr

ive

Inst

a

Vendor Data ReviewVendor Data Review• Fluor will establish secure area online for each

d ’ di t b itt l f d tvendor’s direct submittal of data• Data received electronically by Document Control

• Notifications sent to the following for review–Responsible Engineer (RE)–Quality (if safety-related) –Construction (as applicable)Startup (as applicable)–Startup (as applicable)

–Client (as requested)–Owner (as requested)Owner (as requested)–Others (as determined by RE)

Vendor Data ReviewVendor Data Review

•Submittal dispositioned by RE•Submittal dispositioned by RE–A AcceptedB Accepted with comments–B Accepted with comments

–C Not acceptable/ResubmitD Information Only–D Information Only

•Comments, if any, consolidated by RE and t d t d f l tireturned to vendor for resolution

Strategic RelationshipsStrategic Relationships

Fluor Supply Chain Agreements

Supplier Relationship Agreements (SRA)

Contractor Strategic Relationship Agreements (CSRA)(CSRA)

Becoming a Fluor Supplier/ContractorBecoming a Fluor Supplier/Contractor

Visit our booth

Pick up and complete the Nuclear Supplier Form

After completion return form via e-mail, fax or exhibit booth

Orest HrynewychOrest Hrynewych

Manufacturing Outreach Workshops

Chattanooga, TNFebruary 18, 2009y

Sargent & Lundy...

• More than 118 years of power industry leadership and experienceexperience

• 100% exclusive dedication to power industry

R t ti f i t tl idi hi h lit• Reputation for consistently providing high quality engineering services

• Extensive state-of-the-art technical resources (people• Extensive state of the art technical resources (people, tools, and processes)

• More than 2,650 staff resources

• Consistently ranked by Engineering News-Record as a top global power industry consultant

What we know for sure…..What we know for sure…..• We are and will be performing engineering and

d i i f l it f t l tdesign services for new nuclear units for at least the next 20 years.

• We are and will be preparing, evaluating, andWe are and will be preparing, evaluating, and recommending procurement of nuclear equipment, materials, and services for new nuclear units over this time periodnuclear units over this time period.

• Our information on manufacturing suppliers of equipment, materials, and services is limited.

• The South Eastern States are well positioned to supply the market.

South East is Well Positioned to S l th M k tSupply the Market

• Piping• Steel• Concrete• Cable• Instruments• Instruments• Pumps• Valves• Valves• Heat Exchangers

What Manufacturers Need to KKnow

• Three types or levels of equipment will beThree types or levels of equipment will be used in new nuclear plants– Safety relatedSafety related– Important to safety– Non-safety relatedNon safety related

• Manufacturing capabilities and qualifications must be robustqualifications must be robust…

Manufacturing RequirementsManufacturing Requirements

• Sargent & Lundy will issue procurementSargent & Lundy will issue procurement specifications requesting detail, accuracy, specific schedules, and hard commitments.

• Codes and standards requirements must be known and followed.

• AISC • ASTM• ANSI B31 1 • HEI• ANSI B31.1 • HEI• ASHRAE • IEEE• ASME Section III • ISA

• NFPA

ExamplesExamples

T• Piping (30-150 Miles)

Types• Nuclear Safety-Related

– ~60%

p g ( )

• Steel (500,000 Tons)

• Concrete (>3 M Cu Yards)60%

• Important to Safety– 10%

Yards)

• Cable (>1800 Miles)

• Instruments (>8,000)• Non-Safety Related

– 30%• Pumps (>1,000)

• Valves (15,000-24,000)• Heat Exchangers (<500)Heat Exchangers (<500)

• Hangers (10,000-15,000)• Containment Penetrations

(>250)(>250)

Requirements to Sell to the N l M k tNuclear Market

• Safety-Relatedy– N-Stamp– NQA-1 Program

NUPIC OK– NUPIC OK• Important to Safety

– NUPIC OK

Capacity to meet demandNUPIC OK

– Scaled down QA Program• Non-Safety Related

– Commercial Grade

Sargent & Lundy’s Expectations of M f tManufacturers

• Requested Design Information is• Requested Design Information is– Technically Correct

Complete– Complete– On Schedule

M f t ' St ff A il bl t S t• Manufacturer's Staff Available to Support– Engineering & Design– Installation – Testing & Startup

What Sargent & Lundy Will Do to A i t M f tAssist Manufacturers

• We will provide opportunities for lunch• We will provide opportunities for lunch and learn meetings to highlight your products and capabilities to our staffproducts and capabilities to our staff

• Sargent & Lundy will work with you for mutual successmutual success.

ConclusionConclusion

Get involvedGet involvedPrepare a PlanE t th Pl ith th d i i dExecute the Plan with the end in mind…Contact Sargent & Lundy when you are ready.

Sargent & Lundy55 East Monroe StreetChicago, IL 60603312-269-6630www.sargentlundy.com

The Shaw Group IncThe Shaw Group, Inc.Shaw Nuclear Services

Ed TerresDirector, AP1000 Nuclear Procurement (Domestic)

Corporate ProfileCorporate ProfileCorporate ProfileCorporate ProfileFounded in 1987, The Shaw Group Inc. provides premier engineering, design, construction maintenance fabrication and manufacturing services to private-construction, maintenance, fabrication and manufacturing services to private-sector and government clients in the energy, chemicals, power, nuclear, environmental, infrastructure and emergency response markets.

• Name: The Shaw Group Inc.• Headquarters: Baton Rouge, Louisiana• Public corporation: NYSE Symbol: SGR• 2007 Revenue: $5.7 Billion• Backlog: $14.0 Billion*• Number of employees: 27,000 • Web site www.shawgrp.com

* As of the three month period ending 11/30/07

Worldwide LocationsWorldwide Locations

138 U.S. Locations

33 International Locations33 International Locations

Shaw Power- NuclearShaw Power Nuclear• Full service engineering,

design, procurement and construction

• China State Nuclear Power Technology Company

Services Significant Customers

construction

• Configuration management

• Licensing support and safety analysis

• Duke• Southern• Entergy• SCANA• Exelon

• Major component replacement

• Operating plant services

• Exelon• Progress • LES - National Enrichment

Facility• Tennessee Valley Authority • Dominion

• Maintenance & modifications services

• Decontamination & decommissioning services

• Dominion• Entergy• TXU• KOPEC• Florida Power and Light

FENOC• Environmental services

• Spent fuel dry storage

• FENOC

AP1000 Consortium awarded 4- Nuclear reactors in China;

Nuclear new-build backlog over $$700 million

AP1000 Domestic O t iti

AP1000 Domestic O t iti

Westinghouse/ Shaw

OpportunitiesOpportunitiesWestinghouse/ Shaw Consortium furnishes AP1000 to domestic utilities• Conceptual design• Detailed engineering• Project management• Construction

management• Engineering and

design servicesdesign services• Site-specific

engineering

AP1000 Project Procurement T L dTeam Leaders

• VogtlegReggie Black – Project Procurement [email protected]

• VC SummerFred Stallings – Project Procurement [email protected]

• LevyMik V h P j t P t MMike Vaughn – Project Procurement [email protected]

Project StatusProject Status

• Standard Plant and Site Specific Engineering in ProgressStandard Plant and Site Specific Engineering in Progress• Vogtle and VC Summer Sites are Preparing to Mobilize to

Begin Site Development P t i S tti St t f P t f• Procurement is Setting Strategy for Procurement of Equipment and Commodity Items

• Request for Quotations for Multi-Project Agreements for j gIdentified Equipment is Underway

• Module Team In Place• Module Facility Under Construction• Module Facility Under Construction

Doing Business with Shaw lNuclear

• Need suppliers that can provide Balance of Plant and pp pConstruction Support Materials and Equipment

– Pumps (CCW, Condensate, Misc. Vertical, Misc. Horizontal)p ( , , , )– Mechanical Equipment (Heat Exchangers, Water Treatment)– Electrical Equipment (Switchgear, Bus Duct, MCCs, Panel

boards, etc.)– Site Subsurface (Piping, Storm Drains, Ductbank)– Civil Support ( Rebar, Structural Steel, Grating, Decking)– Bulk Commodities (Electrical & Mechanical)( )– Construction Support (Welding, Safety Supplies, Hand Tools)

Doing Business with Shaw lNuclear

• Perspective new suppliers need to complete Shaw Registration Form• Suppliers will be Qualified to meet needs based on schedule

• Key Attributes for Qualification Considerations

• Meeting quality & schedule requirements • Technical expertise and problem solving• Demonstrated financial strength • Strong Quality Program in accordance with industry norms• Strong Quality Program in accordance with industry norms• Adequate capacity to meet long term supply commitments • History of competitiveness in product group or market

• Contact Shaw Procurement representatives for more information regarding the projects in your area

Company Overview and Nuclear Credentialsand Nuclear Credentials

60 continuous years of nuclear engineering60 continuous years of nuclear engineering and construction services

URS Corporationp• Global leader in the engineering,

construction, management and servicesconstruction, management and services industries

• URS Corp. and Washington Group merged in November 2007merged in November 2007

• Fully integrated services to support the full project life cycle

• Projects in over 30 countries and all 50 states

• 56,000 employees56,000 employees• Corporate Headquarters—San Francisco,

California www.urscorp.com

Rankingsg• #449 -- Fortune 500

• #1 -- ENR’s List of the Top 500 Design Firms (8th consecutive year)• #1 -- ENR s List of the Top 500 Design Firms (8th consecutive year)

• #2 – ENR List of Power Design Firms

– #2 Nuclear

• #8 – ENR List of Power Contractors

– #5 Nuclear

– #2 Fossil

– #6 Transmission & Distribution

– #9 Fossil

– #4 Transmission & Distribution

– #3 Operations & Maintenance

• #3 -- Building Design & Construction’s Design/Construct List

N d O f A i ’ S f t C i b O ti l H d M i

– #6 Operations & Maintenance

• Named One of America’s Safest Companies by Occupational Hazards Magazine (Washington Division*)

• #12 -- ENR’s List of Top 100 Design-Build Firms

Revenue and Business MixExpected 2008 Revenues*:

$9.8 billionURS Corp FY2007 2Q08 Outlook $9.8 billion

Power Sector

URS Corp FY2007 2Q08 Outlook 2008

Revenue $5.4 B $4.79 B $9.8 B

O ti $311 2 $250 3 M Sector21%Industrial &

Commercial26%

Oil & Gas

Operating Income

$311.2 M

$250.3 M

Net Income $132.2 M

$108.8 M $197 –207 M

Federal Sector35%Infrastructure

18%

Oil & Gas9%

M 207 M

Shareholder Equity

$3.5 B $3.5 B

Book of $30 B $30 7 B 18%Book of Business

$30 B $30.7 B

* Based on midpoint of guidance range for sector revenues.

A Rich Nuclear Heritage CompanyE

N

GINEERS

B

UILDER

S

Strategic Acquisitions for Growth

$ 10.0

Washington Group International Construction, Power, DOE

$9 8(1)

$ 7.0

$ 8.0

$ 9.0

Bn)

Commercial / Industrial

PM/CM, Transit, Private Sector, International

F d l O&M

$9.8(1)

$ 4.0

$ 5.0

$ 6.0

Rev

enue

s, $

B

Infrastructure/

Transportation

Federal O&M

$3 2 $3.4$3.5 $4.2

$5.4

$0.1 $0.3$ 1.0

$ 2.0

$ 3.0

( Public Sector

$0.4 $0.8$1.4

$2.2 $2.3 $2.4$3.2

1. Expected revenue (approximate) for FY 2008.

$ 0.01990 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Major MarketsPower Federal

FacilityStart-up

Construction &

Decommissioning &

Operations &Technical

C ltiPlanning, Design &

ProjectD l t

ProgramM t Start-upConstruction

Management&

Closure

Industrial & Commercial Infrastructure

MaintenanceConsulting Design & Engineering

Development Management

Industrial & Commercial Infrastructure

Nuclear Capabilitiesp• Integrated full service capability• 7000+ nuclear professionals• 7000+ nuclear professionals• World’s largest nuclear safety / licensing consulting firm − WSMS

– 500 criticality, risk assessment, security, fire protection, emergency planning analystsanalysts

• Support to OEMs for certification of new advanced reactor designsM i t i d l t ti bilit• Maintained nuclear construction capability– Major Modifications / maintenance – Construction of DOE nuclear facilities; recent large projects − Hanford WTP,

INL IWTUINL IWTU– First new commercial nuclear construction under new licensing guidelines– Best Practices review of Japanese projects; relationships with Hitachi and MHI

Nuclear Capabilities Cont.Nuclear Capabilities Cont.

• Big project planning and execution over the past 20 years– Performed 45 nuclear plant outages– Performed over 300M workhours on mods and maint– Completed 15 refueling outages of less than 30 days

• Continuing to build major program portfolio − 2008 awards– Hanford waste tank remediation– M&O of the UK’s low level waste repository in West Cumbriap y– Selected for management of nuclear cleanup at the UK’s

Sellafield complex– M&O of Yucca Mountain– Savannah River Site Liquid Waste Management

Power Business Unit Designed and / or constructed

250 000 MW worldwide

Europe

250,000 MW worldwide

North America184,100 MW

Middle East /

Asia / Pacific37,000 MW

8,000 MW

Middle East / Africa

2,400 MWLatin America20,600 MW

Every region of the world

Every segment of the life cycle

Every major nuclear or

fossil technology cyclefossil technology

Commercial Nuclear Experiencep

• Engineer of Record 38 unitsConstructor of Record 23 units• Constructor of Record 23 units

• Engineering Modifications 100 units• Maintenance 56 units

Pl t S t S i 79 it• Plant Support Services 79 units• QA 109 units• Licensing Support 58 units

SGR 20 it l t d• SGRs 20 units completed, 3 units backlog

• RPV Head Replacements 8 units completed, 1 unit backlogFi t l f iliti i It l J M i S it l d B il S i• First nuclear facilities in Italy, Japan, Mexico, Switzerland, Brazil, Spain, and Taiwan

Proven Safety Performance

2004 2005 2006 2007Days Away from Work Rate 0 1 0 1 0 1 0 1

y

Washington Division training program has certified 1,500

Washington Division

Days Away from Work Rate 0.1 0.1 0.1 0.1Medical Recordable Rate 0.7 0.6 0.7 0.5Total Recordable Cases Rate 1.1 1.0 1.1 0.9EMR 0.68 0.68 0.65 0.68Direct Hire Exposure Hours57,596,41952,693,61452,832,61454,274,471

program has certified 1,500 managers/supervisors

Exceeded the U.S. Nuclear Industry Lost Time Rate of 0.4 in 2006 by achievinga company-wide rate of 0.1 for over 52 million work hours

First ever alliance between an engineering and construction

company and OSHAPower Business Unit

2004 2005 2006 20072004 2005 2006 2007Days Away from Work Rate 0.14 0.03 0.18 0.02Medical Recordable Rate 0.87 0.7 1.2 0.61Total Recordable Cases Rate 1.17 0.76 1.46 0.64EMR 0.68 0.68 0.65 0.65

Voted one of America’s 17 safest

Port Washington Generating Station earned OSHA VPP Star status in August 2007OSHA Corporate Pilot Program VPP Star status awarded to Washington Division in August 2006

Direct Hire Exposure Hours10,113,0237,610,051 7,828,373 8,497,463

Voted one of America’s 17 safest companies –

“Occupational Hazards” magazine

awarded to Washington Division in August 20065th Company inducted into program / First E&C Company

—Georgia Pacific, International Paper, U.S. Postal Service, Dow Chemical

PowerMajor MarketsMajor Markets

New Generation• Coal-fired power plants

Conventional• Clean air retrofits

— Sulfur oxides nitrous• Fossil and Nuclear• Transmission & Distribution

Modification Services Technical Services

– Conventional– Circulating fluidized bed– Gasification (IGCC)

• Combustion turbine plantsC bi d l

— Sulfur oxides, nitrous oxides, particulates, mercury

• Modifications• Maintenance

• Transmission & Distribution• Studies• Licensing• Consulting• Engineering– Combined cycle

– Simple cycle• Nuclear

– Boiling Water

• Component replacement— Steam generators— Pressurizers— Reactor vessel heads

g ee g• Construction Management• Utility Management• Outsourcing / Seconding

– Pressurized Water

URS Nuclear Center – Commitment to the Nuclear IndustryNuclear Industry

• Dedicated full scope nuclear project execution

• Fort Mill, SC—21 miles from Charlotte, NC• Proximate to URS resources:

– Energy & Environment base in Aiken, SCgy ,– Washington Safety Management

Solutions, Washington Energy Center in Aiken, SC

– SGT base in Charlotte, NC– 7000 in-house nuclear trained

professionalsA l i h i

URS Nuclear Center Established March 2008

• A nuclear-rich region– Universities, OEMs, utilities, E&C firms

Manufacturing & Services OpportunitiesOpportunities

Need capable qualified suppliers of both safety• Need capable, qualified suppliers of both safety and non-safety related nuclear power plant equipment material and servicesequipment, material and services

• Meet applicable codes and standards or working toward becoming qualifiedtoward becoming qualified– Regulatory Guides and/or ASME, IEEE, ANSI,

ASNI ACI etcASNI, ACI, etc.

Sample of Equipment & Service O t itiOpportunities

St t l St l S it h• Structural Steel Manufacturers

• Pipe Fabricators

• Switchgear• Motor Control Centers• Panel ManufacturersPipe Fabricators

• Valve & Operator Manufacturers

• Panel Manufacturers• Diesel Generator

Manufacturers• Fire Protection/Detection

Services• Testing Laboratories

• Radwaste Systems ManufacturersS li S t• Testing Laboratories

• Containment Liner – Design, Fabricate, Install

• Sampling Systems Manufacturers

• Instrument & ControlDesign, Fabricate, Install• Cable Manufacturers

– Power, Control, Fiber

Instrument & Control Manufacturers

• Heat Exchanger M f

How do I become a supplier?How do I become a supplier?

• Visit www.urscorp.com and click on Washington s t u sco p co a d c c o as gtoDivision

• Fill out the information as completely as possible• Important qualifications:

– Previous experience– Quality assurance compliance requirementsQuality assurance compliance requirements– Safety Record– Financial Stability– Ability to meet Corporate/Project Insurance Requirements– Ability to meet Corporate/Project Insurance Requirements– Availability and Reliance of Supply– Small Business Concern Program, if applicable

Nuclear ComponentsComponents

Supplier Pe specti ePerspective

Babcock & WilcoxNuclear Operations GroupNuclear Operations Group

M.T. Childerson

Presentation TopicsPresentation Topics

• B&W Experience• B&W Experience• Quality Assurance Organization

I t f L d hi• Importance of Leadership• Culture of Quality• Keys to Success

What Does It Take to be Successful in the Nuclear Industry?What Does It Take to be Successful in the Nuclear Industry?

B&W ExperienceB&W Experience

• 1940’s – 1950’s: Research• 1940 s 1950 s: Research Projects

• 1960’s 2000’s major supplier of• 1960 s-2000 s major supplier of reactor equipment and steam generatorsgenerators

• Supplied industry with over 1300 l h ll d1300 large, heavy-walled vessels

B&W Has A Solid Perspective of What It Takes to be Successful.

Quality Assurance OrganizationQuality Assurance Organization

• Independent from, and p ,have equal authority to design and gmanufacturing

• Quality Manual DrivenQuality Manual Driven• Independent authorized

nuclear inspectionnuclear inspection agency approval of QM

Quality Manual converts requirements into your quality system.

Importance of LeadershipImportance of Leadership

• Effective leadership is essential to assure• Effective leadership is essential to assure the mission is always known, understood, embraced and accomplishedembraced, and accomplished

• Leadership BehaviorsD h t i i ht– Do what is right

– Relentless pursuit of excellenceh f ll bl– Recognize humans are fallible

– Value diversity of thought


• Leadership Behaviors (cont’d)• Leadership Behaviors (cont d)– Encourage identification of weaknesses

Nurture a culture open to oversight and– Nurture a culture open to oversight and critique

– Place high value on training and development– Place high value on training and development– Intolerant of behavioral choices that do not

comply with requirementscomply with requirements


• Leadership Behaviors (cont’d)• Leadership Behaviors (cont d)– Do not tolerate normalization of deviation

Exhibit and demand highest level of integrity– Exhibit and demand highest level of integrity in word and action

Proper Execution and Management of Activities Depend onProper Execution and Management of Activities Depend on Leadership

Culture of QualityCulture of Quality

• Quality must be at the forefront of all• Quality must be at the forefront of all activities and decisions

• Encourage and accept a questioning• Encourage and accept a questioning attitude and open communicationN f f i l• No fear of reprisal

Quality focus integrated into all activities, every minute, every day.

PeoplePeople

• Skilled craftsman and engineering g gprofessionals harder to find

• Strong and extensive trainingStrong and extensive training program required

• Personal ownership• Personal ownership• Quality concerns promptly

investigated quickly and formallyinvestigated, quickly and formally addressed

Staffing to support nuclear QA system is a significant challenge.

Keys to SuccessKeys to Success

• Solid understanding of the requirements• Solid understanding of the requirements• Investment in human capital

O f i ti• Openness of communications• Human Performance Improvement

Techniques (Institute of Nuclear Power Operations)

Consider using Human Performance Improvement TechniquesConsider using Human Performance Improvement Techniques

ClosingClosing

• Take advantage of the• Take advantage of the opportunities in the nuclear industry renaissanceindustry renaissance

• Commit to developing the systems and staffsystems and staff

• Your leadership team and l t b itt demployees must be committed

for the long term

You can control your success as a quality nuclear supplier!

Quality Assurance R i t dRequirements and Breakout Sessions

James Fisicaro, NEIFebruary 18, 2009

Purpose of PresentationPurpose of Presentation

• Customer Requirements and ComponentCustomer Requirements and Component Categories

• Typical ExamplesTypical Examples • Describe Breakout Sessions

Customer Requirements and C C iComponent Categories

• Customer provides requirements in• Customer provides requirements in purchase order

• Two types of Components• Two types of Components– Safety Related– Non-Safety Related y

• Supplemented Quality Requirements• Commercial

• Refer to Fact Sheet for Definitions• Refer to Fact Sheet for Definitions

Typical ExamplesTypical Examples

• Safety RelatedSafety Related – Reactor Vessel, Pressurizer, Primary Piping,

– Class 1E emergency ac power (Emergency Diesel Generator)

– Seismic Design Class I

• Non Safety Related – Turbine

– Condenser Cooling Water

– LightingLighting

Typical ExamplesTypical Examples

• Non-Safety-Related, Significant Contributor to Plant y , gSafety – Associated with passive plant design:

Ch i l d l t l t• Chemical and volume control system• Normal residual heat removal system• Backup feedwater system.p y

• Non-Safety-Related, Radioactive Waste – Liquid Radioactive Waste System– Gaseous Radioactive Waste System– Solid Radioactive Waste System

Typical Examples and iRequirements

• Non-Safety-Related, Credited for Regulated Events (Augmented Quality)– Fire Protection

• Fire water pumps, fire main piping system, fire detection p p , p p g y ,

– ATWS (Anticipated transients w/o SCRAM) • PWR: Sensor output to final actuation device• BWR: Alternate Rod Injection (ARI), Standby liquid control system (SLCS)j ( ), y q y ( )• Diverse SCRAM system

– SBO (Station Blackout) • Alternate Battery Systems, Alternative off-site AC power sourcesy y , p

DOE/DOD/NRC DifferencesDOE/DOD/NRC Differences

• DOE/DOD requirements are different than• DOE/DOD requirements are different than NRC requirements.

• ISO QA Programs don’t address all NRC• ISO QA Programs don t address all NRC requirements

Breakout SessionsBreakout Sessions

• Two breakouts• Two breakouts– Safety Related and Non Safety Related

(Supplemented Quality Requirements)(Supplemented Quality Requirements)– Non Safety Related (Commercial)

• Breakouts will repeat twice• Breakouts will repeat twice• Logistics

NEI Vendor Outreach Breakout

Commercial Materials, ,Parts, and Services

Marc H Tannenbaum Electric Power Research InstituteMarc H. Tannenbaum – Electric Power Research Institute

Chattanooga, TennesseeFebruary 18 2009February 18, 2009

Commercial Materials, Parts, and ServicesServices

• Opening Comments– Marc Tannenbaum, Electric Power Research ,

Institute

• Overview of Industry ExpectationsLarry Davenport Tennessee Valley Authority– Larry Davenport, Tennessee Valley Authority

• A Local Vendor’s Perspectives– Dan Anderson, Diversified Supply Company

• Engineer, Procure & Construct (EPC) P iPerspectives– Danny Leigh, Fluor

Closing Remarks• Closing Remarks

Commercial Supplier Expectations in the

Nuclear Power IndustryNuclear Power Industry

NEI Vendor Outreach – Chattanooga, TNFebruary 18, 2009

Marc Tannenbaum, EPRI,Project Manager

Licensee Procurement Basics –Safety Class

Safety Related

Safety Class

Two basic

Nonsafety

Two basic safety classifications

. . . Those structures, systems and components that are relied upon to

remain functional during and following design basis events to assure:

(1) The integrity of the reactor coolantRelated classifications exist for Licensees:

(1) The integrity of the reactor coolant pressure boundary

(2) The capability to shut down the reactor and maintain it in a safe shutdown

condition; or

(3) The capability to prevent or mitigate the consequences of accidents which couldconsequences of accidents which could

result in potential offsite exposures

(Ref. 10CFR50.2)Plant equipment that is not Safety Related

May include equipment that is subject to specific regulatory requirements or p g y qcommitments (Augmented Quality)

Who are our suppliers?

Our suppliers fall into 2 main groups• Safety Related or “Nuclear” suppliers

– Engineer, Procure, Construct Firms (EPCs)– Nuclear Steam Supply System Firms (NSSSs)Nuclear Steam Supply System Firms (NSSSs)– Original Equipment Manufacturers (OEMs)– Original Equipment Suppliers (OESs)– Distributors– Third Party Qualifiers

• Nonsafety Related or “Commercial” suppliers• Nonsafety Related or Commercial suppliers– Original Equipment Manufacturers (OEMs)– Original Equipment Suppliers (OESs)– Distributors

Commercial Nuclear Generation SuppliersGeneration SuppliersAEs

NSSS’sOEMsOESs

OEMsOESs

AEs OEMs

NSSS s Distributors Distributors

EPCsAEs

NSSS’s OESsDistributors

Commercial Nuclear FacilitiesCommercial Nuclear Facilities

Design Construction Operations

Expectations for Safety-Related (Nuclear) Suppliers(Nuclear) Suppliers

• Maintain an approved nuclear quality assurance program• Standard commercial considerations• Charge a fair price for goods and services

Read the p chase o de ca ef ll e e time• Read the purchase order carefully every time– Focus on the technical requirements– Communicate any discrepancies before shipping– Provide accurate delivery estimates– Communicate when things change

• Always provide high quality products• Always provide high-quality products• Be aware of substandard, counterfeit and fraudulent

items

Expectations for Non Safety-Related (Commercial) SuppliersRelated (Commercial) Suppliers• Ensure the quality of items provided

St d d i l id ti• Standard commercial considerations• Charge a fair price for goods and services

Re d the p h e o de ef ll e e time• Read the purchase order carefully every time– Focus on the technical requirements– Communicate any discrepancies before shippingCommunicate any discrepancies before shipping– Provide accurate delivery estimates– Communicate when things change

• Provide a high-quality product• Be aware of substandard, counterfeit and

fraudulent itemsfraudulent items

Historical Substandard, Counterfeit and Fraudulent Item Concerns in the US Nuclear

Power Industry

Fasteners Piping

Circuit Breakers MCCBsWorm GearsPumps

Tubing FlangesValves

Worm Gears

Pipe Fittings

1E Components Anti Rotation Keys

Pipe Fittings

Structural SteelFire Protection Equipment

SealantsRelays

Fire Protection Equipment

Preventing Substandard, Counterfeit and Fraudulent Items

• Stay current• Stay current– Monitor counterfeiting news– Participate in related industry committees / p y

organizations – Maintain a list of your suppliers– Maintain a list of sub-tier suppliers for importantMaintain a list of sub tier suppliers for important

parts– Report and pursue known or suspected

counterfeitingcounterfeiting

Preventing Substandard, Counterfeit and Fraudulent Items

Implement Robust Procurement Controls

Fraudulent Items

• Implement Robust Procurement Controls – Trust but verify– Perform vigilant receipt inspectionsPerform vigilant receipt inspections– Guard Intellectual Property– Communicate and maintain a relationship with

your OEMsyour OEMs• Be aware of approved distribution chains

– Question your supplier’s design control and et n poli iereturn policies

Non-Quality Materials & ServicesMaterials & Services

Utility ExpectationsUtility Expectations

Larry Davenport - TVAFebruary 18, 2008

What does the utility expect?What does the utility expect?

• High Quality Productsg Q y• Experienced and Qualified Service Personnel • Competitive Pricing for Comparable Goods

O S h d l D li• On Schedule Delivery• Complete Compliance with Contract/PO Terms • Clear Accurate and Timely Communication• Clear, Accurate and Timely Communication• Zero Defects• EPC contractor emulates the client’sEPC contractor emulates the client s

expectations for Quality and Cost of procured items

High Quality ProductsHigh Quality Products

• The PO Specification and Technical Notes• The PO Specification and Technical Notes will describe the item or service.

• Read the Request for Proposal/Quote• Read the Request for Proposal/Quote (RFP/RFQ) carefullyQ t li ti d li h d l th t• Quote realistic delivery schedule that allows appropriate time for a quality

d tproduct

Experienced and Qualified P lPersonnel

• Ensure your engineers and technicians are• Ensure your engineers and technicians are trained and qualified to perform the activities requested by the purchaseractivities requested by the purchaser– All requirements will be delineated in the RFP

Proof of training/certification will be required– Proof of training/certification will be required– Safety for your employees and ours is

ParamountParamount

Competitive Pricing for C bl G d S iComparable Goods or Services

• Most utilities compete by bid process• Most utilities compete by bid process• Suppliers must read and understand all

commercial and technical requirements ofcommercial and technical requirements of the RFP/RFQWh i d bt f i t• When in doubt of any requirement, immediately contact the buyer, agent or

t t t t l ifi ticontract manager to get clarification.

On Schedule DeliveryOn Schedule Delivery

• RFP/RFQ will typically state a required• RFP/RFQ will typically state a required delivery date, but may request bidder to quote best deliveryquote best delivery

C t ti f N N l Pl t• Construction of New Nuclear Plants are based on complex schedules, dependant

t t i l d li f tupon accurate materials delivery forecasts

Contract ComplianceContract Compliance• Understanding of and strict compliance with all

terms and conditions of the PO or contract is expected

• Your personnel and any subcontractors you employ must also understand and comply with th t d ditithe terms and conditions

• “Overcommunicate” with the customer and your li t b th ti lsuppliers to ensure both parties always

understand contract/PO status

Clear Accurate & Timely C i tiCommunication

Communication is the critical link in the supply chain that will make or break a projectthat will make or break a project

• From Receipt of RFP/RFQ until last invoice is paid, both the customer and the supplier must maintain open and honest channels of communicationsupplier must maintain open and honest channels of communication

• Only Procurement can revise a contract or PO

• Changes to contracts and POs must be made by formal revision

• Any change must be approved in writing by the authorized Procurement Agent y g pp g y g(Buyer or Contract Manager)

Zero DefectsZero Defects

• Your Goal is to deliver a defect-free product in a timely manner

• “Measure Twice, Cut Once”

• Your expectations of your suppliers are the h h fsame as the purchaser expects of you

NEI Vendor Outreach Breakout

Supplying Commercial Materials, Parts, and Services

Dan Anderson Diversified Supply IncorporatedDan Anderson – Diversified Supply, Incorporated

Chattanooga, TennesseeFebruary 18 2009February 18, 2009

TYPICAL TYPES OF ORDERS AND S C Q STHEIR BASIC REQUIREMENTS

• Commercial standards apply• Commercial standards apply.

• Safety-related. Nuclear certification. Customer deals directly with manufacturer.Customer deals directly with manufacturer.Traceability from the point of manufacture.

• Safety-related. Nuclear certification.yTraceability from shipping point.

• Quality-related. Minor documentation may be required such as shelf life/date code information.

STANDARDS OF NUCLEAR SUPPLY

• Understand and communicate requirementsq

• Develop a diverse base of products and manufacturersmanufacturers

• Maintain document control/product traceability

• Verify material conformity to QA level requirements

• Provide 24/7 service to accommodate emergency needs

SAFETY AND SECURITYO i O Si S l W hOperating an On-Site Supply Warehouse

• Controlled access to materialsControlled access to materials

• Cooperation with site security and• Cooperation with site security and surveillance

• Adherence to site safety guidelines

CHALLENGES• Servicing multiple customers per site• Meeting expedited delivery• Meeting expedited delivery

requirements on special needs productsproducts

• Strict standards for product uniformity and documentationand documentation

• Tracking down hard-to-find products• Supporting Plant Outages• Supporting Plant Outages

REWARDSREWARDS

• Expanding customer base• Expanding customer base

O t iti f li f di t ib ti• Opportunities for new lines of distribution

• $$$

Non Safety Material, Items, &Material, Items, & Services Procured

b EPCby EPC

Shift from Safety Related to Reliability RelatedyDanny Leigh - Fluor

EPC and their RoleEPC and their Role

• Each License invokes specific requirements for ac ce se o es spec c equ e e ts onon-safety critical activities on the EPC

• Procurement documents for items and services d b h EPC ill i l d fprocured by the EPC will include or reference

documents describing applicable design bases, design requirements, and other requirementsdesign requirements, and other requirements necessary to ensure component performance

• Specific commercial, technical, and quality requirements are applied to non-safety related items.

General Vendor Considerations

• Components – Form Fit Function – Will• Components Form, Fit, Function Will be invoked by EPC

• Reliability focus• Reliability focus• Design – Will be required to support

d i b i f f t it tili ddesign basis for non-safety items utilized in non-safety systems.

General Vendor ConsiderationsC ti dContinued

• A new or separate QA program is not required, p Q p g q ,the supplier’s procedures describing the quality controls applied to the subject equipment, and will be subject to verification by the EPC Qualitywill be subject to verification by the EPC Quality or Engineering organizations

• Supplier history and performance will be key focus areas EPC will utilize industry operatingfocus areas. EPC will utilize industry operating experience (OE) from license during the selection of qualified supplier

h C Q l h• May have EPC Quality or Engineering oversight during fabrication and testing of Non-safety items

General Vendor ConsiderationsC l d dConcluded

• Material – Substandard Fraudulent• Material Substandard Fraudulent Controls – Will be invoked by EPC

• EPC may invoke selected QA process t l t b i l t d b thcontrols to be implemented by the

Supplier. Specific Quality processes h ld b id tifi d i th EPC hshould be identified in the EPC purchase

documents.

Commercial Materials, Parts, and Services – Closing RemarksServices – Closing Remarks

• QuestionsQuestions

• Where to go for help?• Where to go for help?– EPC Firms– NEINEI– EPRI

• Closing Remarks– Marc Tannenbaum

1

NEI Vendor Outreach Breakout (Materials Parts and Services(Materials, Parts, and Services

required by a QA Program) James Fisicaro - NEI

Chattanooga, Tenn.

February 18, 2009y ,

Breakout Number 1Breakout Number 1

Opening Comments – Jim Fisicaro (NEI)Opening Comments – Jim Fisicaro (NEI)

Overview of NRC Regulation and

Requirements – Tom Niessen (TVA)

EPC and their Role – TV Sarma (Bechtel)

– EPC and their role

– How to attain an ASME stampHow to attain an ASME stamp

– How to operate under a Vendor’s QA

Breakout Number 1 (cont)Breakout Number 1 (cont)

How to Operate under a Vendor’s QA Program How to Operate under a Vendor s QA Program

– Curtiss-Wright Flow Control Company –EES

G W l ki – Gary Wolski

– What to look for when a vendor provides a

h d purchase order to you.

Where to go for help? Jim Fisicaro

Closing Remarks – Jim Fisicaro

3

Quality Assurance PProgram

Requirementsq

Thomas Niessen, TVAFebruary 18, 2008

Purpose of PresentationPurpose of Presentation

• Regulatory environmentRegulatory environment • Quality assurance role • Basic QA requirements• Basic QA requirements • Component classifications and vendor types• Quality assurance requirements for vendors• Quality assurance requirements for vendors • Next steps and where do you go for help

Regulatory EnvironmentRegulatory Environment

• The NRC Commissioners set policy, direction, e C Co ss o e s set po cy, d ect o ,and approve new regulations.

• Code of Federal Regulations contain i h b (10CFR 50requirements that must be met (10CFR 50

Appendix B). • The nuclear industry operates in a regulated• The nuclear industry operates in a regulated

environment.• The Nuclear Regulatory Commission (NRC)The Nuclear Regulatory Commission (NRC)

provides regulatory oversight of the nuclear industry.

Regulatory Environment (cont)Regulatory Environment (cont)

• NRC• NRC– Washington office approves license

amendments applications etcamendments, applications, etc.– Regional inspectors perform site inspections.– Resident inspectors on current operating sites– Resident inspectors on current operating sites

to provide continuous inspection oversight. – Plans to have at least five full time residentPlans to have at least five full time resident

inspectors at each new nuclear site.

Regulatory Environment ( )(cont.)

• Licenseece see– NRC rules and requirements for almost all activities– NRC provides continuous oversight – NRC may impose fines or penalties for rule violations

• Engineering, Procurement, and Construction (EPC) vendors(EPC) vendors – required to follow rules per procurement contracts

with Licensees.• Reactor designers

– required to follow rules per procurement contracts with Licenseeswith Licensees.

Customer Requirements and d C iVendor Categories

• Customer provides requirements in• Customer provides requirements in purchase order

• Vendors are classified related to the• Vendors are classified related to the Systems, Structures and Components (SSC) provided(SSC) provided.– Safety Related

N S f t R l t d– Non-Safety Related.

Component CategoriesComponent Categories

• Safety Relatedy– ASME NQA-1 and ASME Section III– Dedicated Commercial Grade Items (CGI)

• Non-Safety Related – Supplemented Quality Requirements

• Non-Safety-Related Significant Contributor to Plant Safety• Non-Safety-Related, Significant Contributor to Plant Safety• Non-Safety-Related, Radioactive Waste• Non-Safety-Related, Credited for Regulated Events

(A t d Q lit )(Augmented Quality)

– Commercial Items (no dedication)

Safety Related DefinitionSafety Related Definition

Safety-related (10 CFR Part 50.2) y ( )• This term applies to structures, systems, components,

procedures, and controls of a facility or process that are li d i f i l d i d f ll irelied upon to remain functional during and following

design basis events to assure:– (1) The integrity of the reactor coolant pressure boundary(1) The integrity of the reactor coolant pressure boundary– (2) The capability to shut down the reactor and maintain it in

a safe shutdown condition; or(3) h b l h f– (3) The capability to prevent or mitigate the consequences of accidents which could result in potential significant offsite exposures.


• Safety Related (NRC Reg. Guide 1.26)Safety Related (NRC Reg. Guide 1.26)– Reactor Vessel, Pressurizer, Primary Piping,

– Class 1E emergency ac power (Emergency Diesel Generator)

– Seismic Design Class I

• Non Safety Related – Turbine

– Condenser Cooling Water

– LightingLighting


• Non-Safety-Related, Significant Contributor to Plant y , gSafety ( NRC SECY 95-132)– Associated with passive plant design:

Ch i l d l t l t• Chemical and volume control system• Normal residual heat removal system• Backup feedwater system.p y

• Non-Safety-Related, Radioactive Waste (NRC Reg. Guide 1.143)– Liquid Radioactive Waste System– Gaseous Radioactive Waste System– Solid Radioactive Waste SystemSolid Radioactive Waste System


• Non-Safety-Related, Credited for Regulated Events (Augmented Quality) ( NUREG 0800-SRP-17.5)– Fire Protection ( 10 CFR 50.48) (NRC Reg. Guide 1.189)

• Fire water pumps, fire main piping system, fire detection p p , p p g y ,

– ATWS (Anticipated transients w/o SCRAM) (10 CFR 50.62) (NRC Generic Ltr. 85-06)

• BWR: Alternate Rod Injection (ARI), Standby liquid control system (SLCS)a od j o ( ), a dby qu d o o y ( )• PWR: Sensor output to final actuation device,• Diverse SCRAM system

– SBO (Station Blackout) (10 CFR 50.63) (NRC Reg. Guide 1.155)( ) ( ) ( g )• Alternate Battery Systems, Alternative off-site AC power sources


• ASME Section III endorsed by 10 CFR 50.55aASME Section III endorsed by 10 CFR 50.55a– S/R Vessels and Piping (NCA-4000)– Material Supplier (NCA-3800 or 3900)pp ( )

• Dedicated CGI – Commercial Grade Item (10CFR Part 21)o a ad ( 0 a )

• Not design or manufactured as a basic component– Basic Component-designed and manufactured under a

nuclear QA programnuclear QA program

• Acceptance process for item’s critical characteristics

Quality Assurance Program iRequirements

• Requirements flow down from COL• Requirements flow down from COL applicant through vendors and sub vendorsvendors– 10 CFR Part 21

10 CFR Part 50 55e– 10 CFR Part 50.55e– QA Requirements as specified in Purchase

documentdocument

QA ProgramQA Program

• Written QA program that covers 10 CFR Part 50, Appendix B and p g ppNQA-1-1994.

• Criterion IV to Part 50 and Requirement 4 NQA-1

P t 50 i t– Part 50 requirement

• To the extent necessary procurement documents shall require suppliers to have a quality assurance program gconsistent with the applicable requirements of this appendix

– NQA-1

i il di• similar wording

• Vendors exist that can help with development of QA Programs

DOE/DOD/NRC DifferencesDOE/DOD/NRC Differences

• DOE/DOD requirements are different than NRCDOE/DOD requirements are different than NRC requirements.

• DOE and nuclear industry uses NQA-1DOE and nuclear industry uses NQA 1• No Part 21 reporting, unless NRC regulates• NRC Requires a Program that implementsNRC Requires a Program that implements

10CFR50 Appendix B• ISO Programs don’t meet NRC RequirementsISO Programs don t meet NRC Requirements

AuditingAuditing

• Owner– Surveys or qualification audits for new suppliers– Supplier-Triennial Audits, perform audits themselves or use NUPIC– Internal-Annual or once during the activity being performed

h f– Right of Access– Surveillance

• NUPIC (Nuclear Procurement Issues Committee)A dit f d b d NUPIC t th t ll lti l– Audit performed by owner under NUPIC agreement that allows multiple owners to utilize audit results.

– NUPIC performs audit based on vendors being placed on the approved supplier list.

• NIAC (Nuclear Industry Assessment Committee)– Similar to NUPIC but allows suppliers to audit sub suppliers and utilize for

multiple suppliers.

What do you do next?What do you do next?

• Talk to EPC Vendors/Utilities to indicate interest • Vendors/utilities will describe their wants and needs. • Vendors/utilities will discuss their requirements. • Work to develop a QA Program (several actions are necessary)• Work to develop a QA Program (several actions are necessary)

– (Identify a QA Manager– Obtain and review the regulations and codes and standards– Develop QA Program for the Organizationp Q g g– Develop Procedures for the implementation of the program elements applicable

products or activities – Qualify and certify appropriate personnel

Implement program or have all elements available for implementation if order is– Implement program or have all elements available for implementation if order is received

– Etc.

What do you do next? (cont )What do you do next? (cont.)

• Don’t contact NUPIC/NIAC and ask for an audit. – Utility/Vendor will do this once added to approved supplier list

EPC CONTRACTOR

QUALITY ASSURANCE PROGRAM

IMPLEMENTATION

U S NUCLEAR REGULATORY COMMISSION (NRC )COMMISSION (NRC )

ESTABLISHED QA PROGRAM REQUIREMENTS FOR Q QCONSTRUCTION OF NUCLEAR POWER PLANTS IN 10 CFR 50, APPENDIX BREQUIRES CERTAIN PIPING SYSTEMS AND REQUIRES CERTAIN PIPING SYSTEMS AND COMPONENTS COMPLY WITH ASME CODE SECTION III REQUIREMENTSENDORSED ASME NQA-1 QA STANDARD AS AN ACCEPTABLE BASIS FOR COMPLYING WITH THE REQUIREMENTSREQUIREMENTS

EPC CONTRACTOR QA PROGRAMEPC CONTRACTOR QA PROGRAM

COMPLIES WITH 10 CFR 50 APPENDIX B AND ASME NQA 1 ASME NQA-1 APPLICABLE TO SAFETY RELATED ITEMS AND ACTIVITIES DURING DESIGN, PROCUREMENT AND CONSTRUCTION PHASES OF NUCLEAR POWER PLANT CONSTRUCTIONLICENSEE/OWNER CONTRACTS SPECIFY LICENSEE/OWNER CONTRACTS SPECIFY APPLICABLE QA PROGRAM REQUIREMENTSTHE EPC CONTRACTOR SHALL PASS ON THE QA PROGRAM REQUIREMENTS TO SUPPLIERS QA PROGRAM REQUIREMENTS TO SUPPLIERS AND SUBCONTRACTORS

EPC CONTRACTOR QA PROGRAM IMPLEMENTATIONIMPLEMENTATION

SUPPLIERS OF SAFETY RELATED HARDAWRE SHALL HAVE A QA PROGRAM CONSISTENT SHALL HAVE A QA PROGRAM CONSISTENT WITH 10 CFR 50 APPENDIX B AND NQA-1EPC CONTRACTOR SHALL APPROVE THE SUPPLIER QA PROGRAM AND ITS SUPPLIER QA PROGRAM AND ITS IMPLEMENTATION SUPPLIER SHALL HAVE SUPPLEMENTAL IMPLEMENTING PROCEDURES SUPPLIERS OF SAFETY RELATED ITEMS SHALL COMPLY WITH 10 CFR PART 21 COMPLY WITH 10 CFR PART 21 SUPPLIERS ARE ALSO SUBJECT TO THE OWNER AND NRC ADDITIONAL OVERSIGHT FOR ACCEPTANCE OF THE HARDWAREACCEPTANCE OF THE HARDWARE

EPC CONTRACTOR QA PROGRAM IMPLEMENTATIONIMPLEMENTATION

SUBCONTRACTORS PROVIDING ON-SITE SERVICES MAY PERFORM UNDER THEIR OWN CONTRACTOR APPROVED QA PROGRAM & PROCEDURES OR UNDER THE CONTRACTOR QA PROCEDURES OR UNDER THE CONTRACTOR QA PROGRAM PER CONTRACT REQUIREMENTSWHEN PERFORMED UNDER THE CONTRACTOR QA PROGRAM, SUBCONTRACTOR IS PROVIDED WITH AND SHALL COMPLY WITH THE CONTRACTOR PROCEDURES IN THIS CASE THE CONTRACTOR PROCEDURES. IN THIS CASE THE CONTRACTOR WILL PERFORM QA/QC FUNCTIONS

ASME CODE SECTION IIIOBTAINING CODE STAMPOBTAINING CODE STAMP

OBTAIN CODEBOOKS

SUBMITAPPLICATION

CONTRACT WITH

DEVELOPQA

IDENTIFY REQUIRED BOOKS TO ASMEAIAPROGRAMSTAMPS

ASME ISSUESCERTIFICATES

ASMESUCCESS

N: VESSEL, PUMP, VALVE, PIPING SYSTEM, ETC.

NPT: PART, PIPING SUBASSEM-BLY & APPURTENANCE

SECTION IISECTION III

APPLICANT COMPLETES

CERTIFICATES& STAMPS

PERFORMSSURVEY

UNSUCCESSFUL

BLY, & APPURTENANCENV: PRESSURE RELIEF VALVENA: INSTALLATIONQSC: MATERIAL ORGANIZATION

(NO STAMP ISSUED)NS: SUPPORTS (NO STAMP)

SECTION IIISECTION VSECTION IX

CORRECTIVE ACTION

Documents

Nuclear Presentations