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Farid

M.

Berry

Vice

President

&

Project

DirectorSargent & Lundy LLC

June

25,

2013

Role of the OWNER’S ENGINEER in Technology Assessment, Licensing, Engineering and Construction

Technical Meeting on Technology Assessment for

Embarking Countries

IAEA Headquarters, Vienna, Austria

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• Sargent & Lundy

• Owner’s Engineer

– Owners Engineer Roles/Tasks

» Technology Assessment

» Licensing

» Engineering & construction

• Commercial Technical Specification

• Division of Responsibilities (DOR)

• Quality Assurance/Oversight

• Integrated Project Schedule

• Training

• Why Owner’s Engineer?

• Selecting an Owners Engineer

• Summary

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• 122 years of leading global power industry experience

• Headquartered in Chicago, USA

• Exclusive focus on power industry• Nuclear Quality Assurance Program

– Topical Report which has been reviewed and accepted by theUSNRC.

• ISO 9001:2008 Certified Quality System

• 2,600+ staff members

• Ranked in top 5 AE’s Globally in Power by Engineering News-Record.

Profile Profile

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• Over 600 clients

– 150 fossil power clients

– 120 nuclear power clients

– 40 power delivery service clients

– 340 consulting clients

Client BaseClient Base

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Areas of Expertise Include: Areas of Expertise Include:

-- Project Concept Development

-- Preliminary Financial Evaluation/Capital Cost Estimating

-- Site Selection, Feasibility studies

-- Transmission Impact Studies-- Environmental Evaluation

-- Licensing, Permitting, and Document Preparation

-- Detailed Design/EPC Implementation

-- Procurement/Quality Control-- Construction Management

-- Preparation and System Startup Testing

-- Operations & Maintenance Consulting

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New Nuclear Plant Timelineew Nuclear Plant Timeline

Greenfield SiteGreenfield Site

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8

Feasibility

Studies/

Technology

Assessment

SelectEPC/Technology

Contractor

Construction

License

Issued

Fuel Load

COD

Reactor,

Simulator

order

Year 9 Year 10

EPC

Negotiations LWA GrantedEPC Site Mobilization

Preliminary Rx

Technology

Selection

Final SiteSelection

Licensing

Startup &

Testing

Construction

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OwnerOwner’’ s Engineer Roles/Tasks s Engineer Roles/Tasks• Site Selection

• Technology Assessment/Selection

• Licensing support

• Engineering, Procurement, Construction (EPC) CommercialTechnical Specification and Bid Assistance

• Division Of Responsibilities (DOR)

• Contract negotiations support

• Develop overall project execution plan

• Develop an integrated master project schedule

• Identify and quantify project risks and develop a risk mitigation

plan

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OwnerOwner’’ s Engineer Roles/Tasks s Engineer Roles/Tasks

(cont.)(cont.) • Develop design for site specific activities and owners assigned activities• Develop & update project cost estimate

• EPC experience

• Maturity of Design

• Shield building design to meetaircraft impact resulted incost increase of $900Millions

• Regulatory Environment

• Procurement

• Review EPC contractor’s procedures and related documents

• Perform audits on behalf of the Owner

• Represent Owner in EPC contractor’s procurement activities

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OwnerOwner’’ s Engineer Roles/Tasks s Engineer Roles/Tasks

(cont.)(cont.) • Perform design reviews on behalf of the Owner of vendor documents (e.g.,drawings, calculations, specifications, constructor/vendor document submittals,etc…)

• Support Owner with reviewing EPC contractor costs, schedule, and progress

• Support the owner with plant testing and startup

• Provide construction support: oversight, engineering, licensing, procurement and commissioning.

• Support design activities/interface with operating units

• Independent engineer evaluation

• Training

• Miscellaneous support (Deployment, etc…)

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Technology AssessmentTechnology Assessment

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Technology AssessmentTechnology Assessment• Suitability for available sites

• Amount of power needed

• Reliability / Availability

• Costs – Capital

– O&M

• Risks associated with each technology

– Technical (First-of-Kind issues)» Passive vs, active

– Licensing

– Schedule

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Technology Assessment (continued)Technology Assessment (continued)• No reliance on AC power for safety systems

• Reduced reliance on operator actions

• Large margin to safety limits

• Fewer Active components - less capital / O&M Costs

• Modular construction

• Better predictability of cost and schedule

• Etc…

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Licensing Licensing

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Licensing Licensing• IAEA General Guidance for the Licensing Process

– Pre-Construction SAR (PCSAR)

– Pre-Operation SAR (POSAR)

– Station SAR (SSAR)

• US NRC (10 CFR 50 and 52)

– 10 CFR 52- Single process

» Early Site Permit (ESP)

• Approval to secure one or more sites for future use

» Combined Construction and Operating License (COL)

• ITAAC unchartered

– 10 CFR 50- Two step process

» Separate construction and operating license

• OE support: License application, RAI’s, Analysis, etc…

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EPC Commercial Technical Specification EPC Commercial Technical Specification

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EPC Commercial Technical Specification EPC Commercial Technical Specification

Requirements Overview Requirements Overview• Relationship to EPC Contract

– Will be a Supplement to EPC contract

– Includes technical requirements

» Owners requirements

» Country local and regional requirements

» Industry Lessons Learned

» Regulatory requirements

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• Goal = Issue Commercial Technical Specification that delivers aState of the Art Plant to the owner

– Emphasis on nuclear industry Lessons Learned to date

» 60 year design life

» Industry requirements (EUR/URD)

» Specific operating experience

» INPO/WANO operating experience

» S&L design experience

– Augment the Proven Technology (DCD)

– Specify critical design and procurement requirements

EPC Commercial Technical Specification EPC Commercial Technical Specification Requirements Overview (Cont Requirements Overview (Cont’’ d) d)

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– Adds value relative to requirements affecting:

» Plant operations

» Reliability

» Availability

» Maintenance

» ISI/IST

» ALARA

» Design philosophy

» Design margin

» Construction and transition from construction to operation

» Outage optimization


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• EPC Commercial Technical Specification Structure

– Parallels US NRC NUREG-0800 (Standard Review Plans)

– Additional sections added for:

» Regulatory (Country specific)

» Cooling Media

» Site Infrastructure - Barge Facility, Haul Road, etc…

» Initial Site Development

» Final Site Development

» Fukushima Impact/Requirements

» Misc. Sections


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DesignDepartures EPC CommercialTechnical

Specification

EPC CommercialEPC Commercial

TechnicalTechnical

SpecificationSpecification

Lessons Learnedfrom the 1970s and

1980s on LWRs

Industry Codes,

Standards, Regulatory

Industry

Experience, EUR,

URD, EPRI,

WANO, INPO,

etc..

S&L Nuclear New

Build Design, etc.

Project Specific

Details

Technology

Design

Licensing

Requirements,

Local and

Regional

Requirements

QA/QC

Requirements

Inputs to EPC Commercial Technical Specification Inputs to EPC Commercial Technical SpecificationOperating

Experience

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CONTENTS of the

EPC Commercial Technical SpecificationRequirements

Technical Requirements (ContTechnical Requirements (Cont’’ d) d)

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1. General Plant Description and Design Philosophy

2. Site Characteristics

3. Design of Systems, Structures, and Components

4. Reactor

5. Reactor Coolant System and Connected Systems

6. Engineered Safety Features

7. Instrumentation and Controls8. Electrical Systems and Equipment

9. Auxiliary Systems

10. Steam and Power Conversion


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11. General Radwaste Protection

12. Radiation Protection

13. Conduct of Operations

14. Initial Test Program

15. Accident Analysis

16. Technical Specification

17. Quality Assurance

18. Human Factors Engineering


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19. Severe Accidents

20. Cooling media and Related Facilities

21. Site Infrastructure- Barge Facility, Haul Road, etc…

22. Initial Site Development

23. Final Site Development

24. Unit 1 Transition from Construction to Operation

25. Items Critical to Quality


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26. Construction Oversight, Construction Optimization IncludingConstruction Command Center

27. Procurement Plan, Requirements and Oversight

28. Risk Analysis and Mitigation

29. Fukushima Impact/Requirements

– Hazards (Flooding and Seismic)

– Mitigating Strategies for Beyond Design Basis Events – Etc…

30. Training and Training Facilities


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Division of Responsibilities Division of Responsibilities

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DOR DOR

Site Infrastructure

Power Block

Licensing Permitting

Security

Etc…

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Quality Assurance/Vendor OversightQuality Assurance/Vendor Oversight

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Quality Assurance/ Vendor OversightQuality Assurance/ Vendor Oversight

Quality Assurance/Quality Control

– Develop and Implement QA/QC Program for an independentassessment of the effectiveness of programs and processes related

to design, procurement, construction, maintenance and operationactivities, as well as the effectiveness of human performance inimplementing program and process requirements

– Objective:

» Ensure that the programs and processes deliver high quality project work. This should account for safety culture, includingthe establishment of a safety-conscious work environment,QA, industrial safety, radiological safety and problemidentification and resolution

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Quality Assurance/Quality Control Approach

– QA/QC is integrated in design, construction and procurement

– Utilize Commercial Grade Dedication requirements

» Technical requirements

» Quality requirements

» Acceptance Method

– Verify each level of the procurement chain - audit suppliers often

– Establish an inspection frequency and scope

– Emphasize QA and technical requirements through performance-

based inspections

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Quality Assurance/Quality Control Approach (continued)

– Assess effective implementation of manufacturing and fabrication

processes to provide assurance of product quality

– Establish and maintain document control and records managementsystems early

– Establish a corrective action program

– Emphasize root cause analysis and/or extent of condition asrequired to ensure that any proposed corrective action addressesthe underlying QA performance drivers

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Quality Assurance/Quality Control Approach (continued)

– Inspection and test process verifies that the completed projectmeets specified design basis attributes, including performance

features and characteristic – Historical records of calibrations, audits, testing, maintenance,

certifications, etc… need to be maintained as part of the permanent plant records

– Ensure installed material/components meet intended function andoperability requirements

– Oversight and inspections of suppliers’ facilities

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Quality Assurance/ Vendor OversightQuality Assurance/ Vendor Oversight Quality Assurance/Quality Control Approach (continued)

– Counterfeit material can compromise safety relatedcomponents/systems/structures

» Establish a process to quickly identify counterfeit material• Qualified suppliers

• Oversight and inspections of supplier facilities

• Proper material documentation and traceability

• Material that cannot be traced back to the original source should be considered suspect

• Corrective action program

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Prevention, Detection, Correction Prevention, Detection, Correction

PROCUREMENT PROCESSEARLY LATER

PREVENT DETECT CORRECT

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Manufacturing Oversight Manufacturing Oversight

• Develop a Manufacturing Quality Oversight Plan for successfuloverview of equipment and component fabrication

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Manufacturing Oversight Manufacturing Oversight

--

Shop OverviewShop Overview

• Field Observation- Example: Transition shell forging

– Normalizing and tempering witness point implemented and signed asacceptable

– Documentation for steel melt, heat analysis, and forging arereviewed and confirm compliance with SA-508 material spec andshop work control documents

– Inspect Shop Quality Process from a technical and programmatic

standpoint

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Manufacturing Oversight Manufacturing Oversight -- Witness Point TripWitness Point TripObservationsObservations

• Equipment calibration documentation acceptable?

• Work control documentation maintained current?

• Procedure requirements correctly reflected in work control documents?

• Heat analysis documents material specification compliance?

• Shop quality control reviews completed as required?

• Impact of risks that can occur during the test: – Example, Seismic event-Had no effect on operations but no

procedure in place to mitigate

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Integrated Project Schedule Integrated Project Schedule

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Master Baseline

Schedule

Project

Schedule

Subproject

Training

Schedule

OE

Activities

Schedule

Start-upDesignSchedule

Procurement

Schedule

Subproject

Owner

Schedule

ConstSchedule

18 Month

Pre-ConstSchedule

Owners

ActivitiesSchedule

Develop

TrainingProgram

Implement

Training

Testing

Schedule

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Level I: Project Summary ScheduleLevel I: Project Summary Schedule

Level III: Publication / Control Level ScheduleLevel III: Publication / Control Level Schedule

Level IV: Supporting DetailsLevel IV: Supporting Details

Schedule fragments orSchedule fragments or

Deliverable listings, quantityDeliverable listings, quantity

data, etc..data, etc..

Level II: Management SummaryLevel II: Management Summary

Level 0: Project Milestone SummaryLevel 0: Project Milestone Summary

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Integrated Project Schedule Integrated Project Schedule--OutputOutput(Continued)(Continued)

– Around the clock critical path/near critical path to optimize the schedule

» Critical path

» Near critical path

– Parallel activities and resource management

» Parallel paths with manpower and equipment

» Use the largest of the large equipment/modules to optimize tasks

– Contingency planning

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Training Activities/PlansTraining Activities/Plans

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Training Activities/PlansTraining Activities/Plans

• Training Planning Activities1. Training Plans» QA

» Construction

» Technical

» Security

» Operation

» Etc…

2. Training Material Development

» Systems, Maintenance, Construction, Radiation Protection,Engineering, etc…

3. Training Implementation

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Why OwnerWhy Owner’’ s Engineer? s Engineer?

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• Owner’s engineer support the owner in a successful planning,oversight, execution and implementation of the project frominception through commissioning.

• Owner’s engineer reduce overall project risk for the owner.

• Owner’s engineer ensures deliverables are in-line with owner’sexpectations.

• Owner’s engineer can reduce a project’s overall project cost

(capital, operation and maintenance)

• Savings through control of project schedule, defined scopeand management, and overall project controls.

• Design optimization that reduce the owner’s lifecycle costs.

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• Owner’s engineer, brought in when project still inconceptual stage, can help with defining the project size,location, technology selection, configuration, scope,interfaces, and schedule.

• Owner’s engineer, involved from project inception can help,develop a project execution plan and contracting strategy.Owner benefits from having a dedicated engineering advisorwho is familiar with all aspects of the project and will help

the owner identify opportunities that may otherwise beoverlooked while avoiding or minimizing risks.

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• Some of the activities that an owner’s engineer can provideinclude:

» Defining and/or reviewing the project scope.

» Developing a detailed DOR.

» Developing project design criteria.

» Assessing and evaluating the budget.

» Conducting feasibility and site selection studies andalternatives analysis.

» Analyzing available technologies and their suitability tothe project and owner’s NPP goals.

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» Preparing integrated project schedules.

» Preparing technical commercial specifications.

» Support with the licensing process, permitting and

environmental processes

» Support with EPC contract documents, including RFP(request for proposal) and evaluations.

» Provide detailed design, overall project management,contract administration, and construction oversight.

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» Preparation and/or review of equipment procurementspecifications and ensure suppliers are in compliancewith all contract requirements.

» Support development of configuration management

control that captures the plant design basis.

» Support owner’s process management, implementationof earned value, project cost reporting and trending.

» Develop of the training program and capacity building» Support plant commissioning process (system turnover,

start-up tests, punch lists, performance testing, etc…).

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Selecting an OwnerSelecting an Owner’’ s Engineer? s Engineer?

• Prior experience:

» Design (NI, TI and BOP)

» Licensing

» Procurement

» Quality

» NSSS experience

» Operation

» Oversight

» Project Management

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SummarySummary Strategies for SUCCESS

» GET INVOLVED

» Qualified Owners Engineer

» EPC commercial technical specification» Integrated DOR

» Integrated project schedule/plan

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Summary (continued)Summary (continued) Planning through operation

Develop and Monitor an integrated plan that captures information and data for:

» Planning (Site selection, technology selection, Material reservation, etc…)

» Design (Systems, foundations, structures, component/Material specification,

etc…)

» Procurement (Technical specifications, Material selection and management,etc…)

» Construction (Construction execution, oversight, Material availability, etc…)

• June 18, 2013- China “Cable was not available, they used bigger size

(stronger)”

» Start-up (Training, testing, Material replacement/repair, fuel load, etc…)

» Operation (Maintenance & Material management, outages, etc…)

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Thank You

9-berry

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