NDAs Strategy - Update Feb 2013 Duncan Thompson Head of Strategy Development Version 2

NDA’s Strategy - Update

Feb 2013

Duncan ThompsonHead of Strategy Development

Version 2

Today’s Discussion Points

1. NDA’s Strategy - Strategic Themes

2. Strategy Content – Expectations over 20 years

3. The delivery model – recap

4. 2012 - Feedback on strategy development infrastructure

5. Strategy development priorities for each Theme

6. Immediate next steps

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NDA Strategy – Published April 2011NDA Strategy

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Strategic ThemesNDA Strategy

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Scope of NDA Strategy

Site End States

Land Quality Management

Decommissioning & Clean-Up

SITE RESTORATION NUCLEAR MATERIALSSPENT FUELINTEGRATED WASTE

MANAGEMENT

BUSINESS OPTIMISATION

CRITICAL ENABLERS

Exotic Fuels

Oxide Fuel

Magnox Fuel

Uranics

Plutonium

Non-Rad & Hazardous

Lower Activity Waste

Higher Activity Waste

Land & Property Management

Revenue Optimisation

People

Research & Development

HSSSEQ

Competition

Contracting & Incentivisation

Asset Management

Socio-Economics

Info & Knowledge Management

Supply Chain Development

International Relations

Funding

Transport & Logistics

Public & Stakeholder Engagement

NDA Strategy

10 and 20 year expectations (AS AT 2011)

During the next 10 years (by 2021) we expect:• all Magnox stations to have been defuelled and spent fuel reprocessed to

a long-term stable form

• three of the Magnox sites to have entered the Care and Maintenance phase in readiness for Final Site Clearance

• significant progress to have been made on high hazard reduction programmes, this includes progress with the retrieval of materials from Legacy Ponds and Silos at Sellafield.

• the management of all NDA sites to have been competed

• all NDA’s non core assets to have been disposed of

• to commence Surface-Based Investigations Phase for the Geological Disposal Facility (GDF).

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10 and 20 year expectations (AS AT 2011)

During the next 20 years (by 2031) we expect:• all other Magnox sites to have entered Care and Maintenance

• decommissioning to have been completed at Harwell and Winfrith

• at Dounreay, all ILW to have been removed from the shaft and all residues from the Dounreay Fast Reactor (DFR)

• at LLWR, the Plutonium Contaminated Material (PCM) facilities to have been removed

• confirmation of a site’s suitability to host a Geological Disposal Facility that complies with safety and environmental regulatory requirements, and commence the Construction and Underground Investigations Phase.

FOR MORE DETAILED, RECENT AND SITE BY SITE TARGETS GO ONLINE FOR OUR STRATEGY AND OUR ANNUAL BUSINESS PLAN.

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Implementation – NDA’s Intelligent Client Model

NDA Operating model

- Performance contracts- Performance monitoring- Deep dive assurance reports- Performance & financial reporting

- Long term scenario planning- Options development

- Corporate Planning- Securing & allocating funds- Operational planning

- Selecting delivery partners- Contract Incentivisation

- Sanctioning of major projects- Post project approval reports

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NDA Contract Model

COMPETITION

CONTINUITY

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Transferable SLC

2nd tier Subcontractors perform the scope of their

Subcontracts

Parent BodyParent Body

NDANDA

RegulatorsRegulators

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Parent BodyOwner of licensee

Transferable SLCLicenseePrimary Contract with NDA

1. Ownership of SLC shares

2. Primary NDA Contract

3. Parent Body Agreement

4. Subcontracts

5. Statutory consultation requirement

6. Statutory and/or Licence or consent requirements

Strategy development infrastructure - SDIG, TOGs, underpinning groups and R&D interfaces

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1 Feedback Received - Positive

• Strategy development infrastructure has served us well, thematic approach is good, MOD has adopted similar.

• Overall shape and structure of strategy development mechanics is comprehensive and involves participation from the relevant parties.

• Engagement works well - TOGs are a good fora.• Gated process is good.• Engagement with NDA on strategic issues good, MOD continues

to increase participation in TOGs.• NDA strategy team people are professional, proactive and pivotal.• SDIG provides helpful briefing and opportunity for discussion. • Strategy content is good – no issues.

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1 Feedback Received - Suggestions

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2 Further improvements planned for 2013

– Create a Site Restoration Roadmap in order to provide better visibility of the strategic issues and risks that drive our Strategy Development work.

– Create and maintain an integrated strategy development workplan for use at SDIG and TOGs.

– Report progress against the strategy development workplan.– Make NDA’s Strategic decision calendars (and SLC decision

calendars) more visible and accessible. – Use strategic tolerances and dashboards to provide Strategy

implementation feedback to SDIG– Critical enablers TOG - make it work.– Start to consider approach to next version of NDA’s published

strategy.

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Site Restoration Roadmap – within the Strategy Development Cycle

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ROADMAPStrategic estate-wide view of implementation plans

Issues, risks and opportunities

NDA’s Integrated Strategy Development Workplan

Alternative Strategic futures Estate-wide strategic coordination

SLC Decision Calendar

Critical Enablers Strategy

Development Work Plan

Site Restoration Strategy


IWM Strategy


SF&NM Strategy


Revised NDA Strategy, Guidance and Client Specifications

Performance indicators Strategic Tolerances and

Dashboards

External influences· Policy changes· Stakeholder views· Regulatory changes· Other

Strategic Decision Calendar

LTP’s

Site Restoration Roadmap

What is a roadmap?

• A communication tool that conveys the restoration strategy for our estate. It demonstrates the key milestones to be achieved and the attributes of each site as restoration progresses.

What will it be used for?• To provide an accessible, clear representation of the

restoration journey for each of our sites.• To inform NDA’s strategy development planning, by helping us

to systematically identify risks and opportunities in the current plans and allowing us to map out the consequence of implementing strategic alternatives.

Our current strategy development priorities are developed using expert professional judgement but would benefit from a roadmap to help with systematic identification of

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Strategy Development Topics - Spent Fuel and Nuclear Materials

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IWM Strategy


SF&NM Strategy




Dashboards



LTP’s

▪ Potential new build scope

Deliverables in 2013/14 - DRAFT - Spent Fuel and Nuclear MaterialsMagnox1.0 (Op plan N087): Confirm strategic position for the Magnox Contingency

Options - wetted fuel and dry fuel. (Q4 12/13). Complete Annual Review of Strategy deliverability. (Q4 13/14)

Oxide2.0 Complete annual review of Strategy.(Q2 13/14)3.0 Support DECC in achieving satisfactory outcome to difficult fuels in

consultation (BNFL and UKAEA). (Q4 13/14)4.0 Carry out Credible Options study on Spent Fuel Management in the UK for

New Build Fuel for DECC. (Q4 13/14)

Exotics5.0 (Op Plan N085): Deliver a “map” of all NDA liability spent fuels and nuclear

materials that are external to NDA sites. (Q1 13/14)6.0 Credible Options study on fuel disposition route for all exotics not already

covered (excluding propulsion fuel). (Q? 13/14)7.0 Secure final decision on management of MOD propulsion fuel. (Q? 13/14)

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Deliverables in 2013/14 - DRAFT - Spent Fuel and Nuclear MaterialsPu8.0 Provide updated advice to Government on Pu Disposition.

- Advise on what technologies to take forward. (Q1 13/14)- N078 recommend to Government, forward management plan to implementation. (Q3 13/14).

9.0 Determine forward strategic closure plan for remaining overseas owned Pu (especially Japanese) (timing dependant on 8.0).

Uranics10.0 Continue to underpin our Uranics Strategy, including establishing a strategic

position on NDA owned stocks of reprocessed and tails uranium (including establishing the principles for whereby some quantities of uranium, for which there is no reasonable prospect of recovery, could be sentenced as waste.) (Q4 13/14)

11.0 Review policy/strategic principles for overseas owned uranics. (Q2 13/14)

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4b Strategy Development Topics - Site Restoration

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IWM Strategy


SF&NM Strategy




Dashboards



LTP’s

Deliverables in 2013/14 - DRAFT - Site RestorationSite Restoration

21.0 Op Plan Target N057:- Publish NDA perspective of opportunities for re-use of NDA land in the short term, and credible longer term uses of NDA Land. (Q4 - 12/13)- Publish practitioners guide to proposing preferred Site Interim and End States within context of agreed approach to institutional controls. (Q3 – 13/14)- NDA completed review of proposed site interim and end states for inclusion in Lifetime Plans. (Q? 14/15)- NDA approval of site interim and end states for inclusion in Lifetime Plans. (Q? 14/15)

22.0 Op Plan Target N089. Specification for Magnox Competition:- Final Magnox/RSRL Client Specification issued to support final invitation to submit final tenders. (Q2 13/14)

23.0 Publish Site Restoration Roadmap. (Q4 13/14)

24.0 Publish strategic position on the optimal period of quiescence for Magnox reactors. (Q4 13/14)

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Strategy Development Topics - Integrated Waste Management

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IWM Strategy


SF&NM Strategy




Dashboards



LTP’s

Deliverables in 2013/14 - DRAFT - Integrated Waste ManagementIWM12.0 Op plan Target N107: Development of an “national” plan for the treatment

and storage of alpha contaminated wastes. (Q4 13/14)13.0 Op plan Target N083: Develop a national co-location and waste

consolidation preferred strategic position for the treatment and storage of higher activity wastes (12/13). – then develop a national implementation plan (timing TBC 13/14).

14.0 Support to HMG on a co-ordinated UK approach to Higher Activity Waste Strategy. (Q4 13/14)

15.0 Investigate decision criteria for near surface disposal of radioactive waste. (TBC 13/14) - Decision criteria for HAW in Scotland. - Consider wider implication for radioactive management across UK.

16.0 Consider implication of Scottish HAW Policy on GDF inventory. (Q2 13/14)17.0 Achieve implementation of special measures on FGMSP. (? TBC)

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4d Strategy Development Topics - Critical Enablers and Bus. Optimisation

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IWM Strategy


SF&NM Strategy




Dashboards



LTP’s

Deliverables in 2013/14 - DRAFT - Critical Enablers and Bus. Optimisation R&D18.0 Op Plan Target N080: Publish the 2013 UK Radioactive Waste Inventory.

(Q4 13/14)19.0 Publish NDA directly funded 5 year R&D programme. (Q3 13/14)19.0 Carry out new improved style of project technical assurance reviews: (TBC

13/14) - SDP - UFCF.

MOD25.0 Agree Decommissioning Planning Service Scope for VDAD. (Q2 13/14)26.0 Support MOD in decision making on SDP. (Q2 13/14)

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Immediate Strategy Development Next Steps - 3 Months

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– Finalise 13/14 targets and create an integrated strategy development workplan for use at SDIG and TOGs.

– Commission work to create a Site Restoration Roadmap.

– Report progress against the strategy development workplan.

– Use strategic tolerances and dashboards to discuss strategy implementation

– Critical enablers TOG – make it work.

Documents

NDAs Strategy - Update Feb 2013 Duncan Thompson Head of Strategy Development Version 2