ESS Active Cells Project RACE Update for September

ESS Active Cells Project RACE Update for September 19 Target Collaboration Board 03 rd September 2019 |

Presentation Overview 1. 2. 3. 4. 5. 2 | Overall Project Progress Work Package Updates Schedule Status Change Management Risk Management

1. Overall Project Progress General Progress Ø Installation phase planning progressing well in readiness for Crane Rail & Pit Lid installation (Nov 19 – Feb 20) and Aug 20 main works. Ø Other progress on preparation for design reviews, change control, recruitment, audit action close out, cost reviews and VIP visits. Procurement & Contract Management Ø Procurement programme progress being maintained broadly to baseline and agreed Change Control process has helped ensure procurements delivered to schedule. Delivery continues to be achievable, albeit with cost & schedule risks. Pit Lids and Waste Transfer System slipped – not critical path. Ø CEMAR contract management software package working well to manage let contracts (NEC 3 Contracts for Shaft Cutting Station, Component Transfer Hatch, Shield Doors & Floor Valves and Remote Handling System). Machining station contract just awarded. Ø Aggressive contract management has been required to maintain schedule of critical path activities and avoid compensation events that would impact budget and schedule. Ø Circa 25% of contracts awarded, representing 65% of estimated procurement value. Saving against Oct 18 forecast of >£ 5. 8 m Team Ø 3 | Team continues to develop. RACE recruitment drive has brought additional engineering resource, providing resilience. Senior Construction Manager and Quantity Surveyor recruited

2. Work Package Updates 2. 1 Confinement and Shielding 2. 2 Remote Handling System 2. 3 Size Reduction 2. 4 Electrical Distribution & Signalling 2. 5 Safety Systems 2. 6 Control System 4 |

2. 1 Confinement and Shielding Ø Ø Ø Intrabay Door and Floor Valve Ø Mechanical systems developed Ø C&I in progress Ø (Mechanical) Design review planned 05/09 Ø Material hold point 24/09 Ø Developed installation story board in collaboration with ESS Component Transfer Hatch Ø Design of the shield doors and tunnel underway Ø Glovebox specification under development Ø VR model received for UKAEA ergonomic review Ø HLCS and LLCS software dev underway Ø Design review due 15/11 Pit Lids Ø Pit Lid prototype Re-bar inspection Ø Fabrication of SS “box” components Ø Manufacturing drawings for full in progress Penetration Plug CDR complete Fire Suppression system CDR complete 5 |

2. 2 Remote Handling System Ø Robotic Handling System: Ø Ø Contract awarded. Kick off meeting and risk reduction meetings held, and design ongoing Waste Transfer System: Ø Tender issued, tenders received, negotiation ongoing. Initial costs align approximately with forecasts Gantry deployed robots, 8 t and 3 t auxiliary hoists 25 t Remote Crane 6 |

7 | James Fisher Nuclear / SCX Concepts RACE

2. 3 Size Reduction Ø Machining Station Ø Ø Ø Tender complete Contract awarded Kick off meeting 07/08/19 Ø Ø Fabricated Assemblies Ø Ø 8 | Requirements capture complete Internal requirements review carried out Shaft Cutting Station Ø Ø Ø Detail design progressing Detail design review planned Final cutting trials complete

2. 4 Electrical Distribution & Signalling Ø 4 Contracts awarded Ø Ø Ø 9 | Ø x 2 - connectors (blind mating ODU, remote handling JFN). First part orders placed Ø x 2 - Radiation tolerant lighting and cabling. Currently finalising first part orders CDR action report completed and approved Final proof testing of Master E/stop system on dev rig. Drawings & documents being finalised for approval for manufacture Simulation for lighting suitability within the Active Cells Support to other work package interfaces, critical for supplier detailed design reviews PIN undertaken to generate market interest in manufacturing. Tender pack near completion for release on 19/08/19 Preparation of over 250 drawings and CAD models to be released for manufacturing tender

2. 5 Safety Systems Ø New contract awarded to Frazer Nash Consultancy to support activities for CDR in December 2019 Ø Documentation and hardware design prepared for Safety Workshop Ø 2 day radiological safety system workshop held to finalise UKAEA requirement for ESS safety case and concept hardware design Ø UKAEA finalising documents for ESS approval September 19 Ø Hardware, to be integrated into supplier equipment, defined and selected Ø Personnel assessment documentation completed (to be used for employees undertaking work on safety systems) Ø Final proof testing of Master E/stop system on dev rig. Drawings & documents being finalised for approval for manufacture Ø Support to other work package interfaces, critical for supplier detailed design reviews 10 |

2. 6 Control System Ø Ø Ø Ø Ø Cortex core development progressing – v 4 released Viewing System tender issued for Cameras, Pan & Tilt Unit and Controllers – TQ’s ongoing, submission due w/c 02 Sept 19 Networking & Server design and architecture progressing. Investigating feasibility of using fibre switching of video system to monitors in control room Investigating parts and equipment required for prototype Network and Server system and use of ESS loan servers Control room commenced - requirements, design and basic layout options to work towards CDR early 2020 Component Transfer Hatch control simulator software received and successfully setup on an example Beckhoff PLC system for testing and integration by OPC-UA Work ongoing to integrate OPC-UA client into the HLCS/HMI software Work ongoing to prototype HMI screens to control the low level equipment Ongoing interface discussions with other work package equipment suppliers CTH Simulator Control Room Layout 11 |

4. Schedule Status 12 |

4. 1 Critical Path Ø Ø Ø 13 | Commercial Confinement & Shielding (Doors, Floor Valves, Component Transfer Hatch) critical path Remote handling system and machining station close to critical path All work packages become critical path through installation due to sequential planning. Opportunities exist to re-plan concurrent activities but this increases risks associated with management of work site etc.

4. 2 Installation Sequence 14 | RBOT

4. 3 Schedule Risk description Constrained Resource Delayed Access to Site Delivery of Critical Path Work Packages Installation Delays Commissioning Delays 15 | Mitigation • • • • Comprehensive RACE recruitment programme and increased use of ASW’s Critical path activities prioritised Use of wider UKAEA staff (e. g. PMO assistance with tender reviews etc. ) Communication of schedule between ESS, UKAEA and supply chain Availability of local storage facilities Installation windows in contracts; collaborative planning with ESS Contracts awarded on schedule (C&S Jan 19, RHS Apr 19, MS Jul 19) T-minus review in contract plans, piecemeal feedback minimises surprises On-site storage to de-risk logistics Ongoing detailed installation planning to optimise efficiency in collaboration with ESS installation co-ord. Minimise concurrent installation where possible Identify/agree early access for prep work where possible Seek opportunities for delegated H&S management (permit issue etc) Comprehensive FAT maximises “plug & play” to reduce commissioning issues Experienced supply chain SQEP commissioning team

5. Change Management Early Warnings Ø Ø Ø Elec Junction Box – further development required to define impact Pit Lids + revised delivery strategy (inc prototype) PBIP Geometry NBPI Length variations EW for possible increase in manufacturing cost for SCS EW for possible extra work to allow storage of monolith Components in Cell and control of casks from monolith to ACF from ACF control room A/W STFC approval Ø Machining Station CR 107 – approval granted, final admin being closed out Ø Project labour baseline – CR 094 approved in principal granted, close out actions to be agreed 16 |

6. Risk Management Overall Risk – see current issues on next slide for additional detail Ø Increased likelihood of costs increasing as a result of issues emerging with contractors Ø Shaft Cutting Station manufacturing cost increase due to re-price agreed on contract award (circa £ 45 k increase). Note: contractor offered circa £ 150 k discount at tender stage, hence £ 45 k represents positive outcome Ø Travel & Subsistence budget under review as detailed installation phase planning gathers pace Ø Increased potential for schedule delay as contractors plans have slipped a little Risk Values Ø Values previously calculated using impact/probability matrix Ø Cost from matrix values allocated to each risk based on pre mitigated and post mitigated risk scores Ø Further analysis required as part of STFC modelling exercise: Revised process agreed with STFC Ø Ø 17 | Individual modelling of each risk based on 3 -point estimate Estimates completed May 19 Initial draft modelling underway by STFC Awaiting output from modelling to inform next step in revised process

Current Issues Shield Doors Ø Design review slipped. Further slip may impact manufacturing (missed factory slot); consequential impact on schedule as critical path. Can be mitigated by contractor. Pit Lid Ø Delivery plan slip due to strategy to procure prototype. Installation de-coupled from critical path. Amended strategy being developed to discuss with ESS ahead of procurement. Size Reduction Ø Potential lack of resource at Aquila due to staff churn. Will not affect critical path. Recruitment programme ongoing. Ø Target station component interface sheet turnaround slow. Further updates could impede progress. Ø Lack of definitive data on monolith components - Lack of PBIP interface definition (covered by JIRA-223). Electrical Distribution Ø Conduit fill ratio may not meet regulation. To be confirmed through design process with suppliers. Ø Supplier interface definition time scales could impact delivery date. Ø Potential capacity constraint as equipment suppliers designs evolve. Installation Detailed construction phase plan ongoing. Increased likelihood of additional resource to facilitate ‘dovetailed’ work with ESS as RACE plan assumed ‘unfettered’ access to ACF. Budget Shortfall mitigations ongoing. T&S budget under review as Installation Planning refines detail. 18 |

6. 1 Overall Project Risks Risk Costs May Exceed Budget Factors include inaccurate estimates, customer led change, increased equipment complexity and market forces (FX, inflation). L I 5 3 3 4 1 5 Increased T&S costs likely as installation phase planning matures. Supplier Unable to Meet Timescales Factors include: poor performance, cost escalation (uncollaborative behaviour focusing on raising compensation events). Installation based on 'unfettered access' which can’t be provided Risk of Post Tender Challenge (Reducing as contracts are let) Risk of challenge from unsuccessful bidders that may result from close evaluated scores and pricing (Note: likelihood tending to reduce with each contract award) Constrained Resource Long term absences, sickness, shared allocation across other projects, lack of specialists/specialist ‘checkers’ may impact schedule performance or drive up costs where interims are required 19 | 4 3 ↗ Improving → No Change ↘ Worsening Mitigation: Risk reducing as contracts awarded. Mitigation has included increased market engagement, minimised scope, de-nuclearized specs (where poss. ) and procurement strategy revised to OJEU ‘negotiated’ procedure. Estimates revised based on feedback from tenders / contracts. Continued adherence to agreed change control methodology. Stakeholder engagement to avoid 'surprises' and 'open-book' approach to increase confidence. Negotiate long-term site accommodation, re-forecast T&S Contractors schedules used to improve estimates/plans. Contract management (using CEMAR) includes monthly on-site, and weekly Skype, progress meetings + T-minus readiness reviews focused on installation to meet RBOT. NEC 3 mandated early warnings maximise opportunity to mitigate. Expert commercial support (inc Quantity Surveyor) and collaborating with ESS (and RACE site manager) on site planning and coordination. Defendable evaluation process open and transparent Scoring metrics based on objective assessment Evaluation team collaboration removes potential for individual unconscious bias Multiple rounds of review Comprehensive RACE recruitment programme Specialist training for F/T staff (e. Plan conducted, other training needs being assessed) Cross project/function liaison to maintain adequate resourcing + use of consultants Work planning to smooth peaks/troughs O/T for key personnel to make up shortfall of long term absenteeism Additional junior support on low level activities to free up senior resource ↘ → ↗ →

End Jim Melling – 03 Sept 2019 20 |