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Construction Solutions for the National Enrichment Facility Eunice, New Mexico Presentation for the SMWIA Power Generation Summit June 18-19, 2008 Washington, D.C. By H-Y TECH Mechanical & Construction Services, LLC Albuquerque, New Mexico What is the National Enrichment Facility (NEF)?

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Construction Solutions for the National Enrichment Facility Eunice, New Mexico


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construction solutions for the national enrichment facility eunice new mexico

Construction Solutions for the National Enrichment FacilityEunice, New Mexico

Presentation for the

SMWIA Power Generation Summit

June 18-19, 2008

Washington, D.C.

By

H-Y TECH Mechanical & Construction Services, LLC

Albuquerque, New Mexico

H-Y TECH MECHANICAL & CONSTRUCTION SERVICES, LLC

what is the national enrichment facility nef
What is the National Enrichment Facility (NEF)?
  • Vanguard facility for the next generation of nuclear power plants…
  • Facility for the refinement of uranium into the material fuel rods are formed from…
  • Owner – Louisiana Energy Services (LES), US subsidiary of URENCO (a Dutch company)…
  • Construction Manager -- Washington Group International (WGI)…
  • First nuclear facility simultaneously granted a construction AND operating license…
  • Uses the gas centrifuge method of refinement…

H-Y TECH MECHANICAL & CONSTRUCTION SERVICES, LLC

where is eunice new mexico
Where is Eunice, New Mexico?
  • Where many of these type of facilities will be built – in remote locations!
    • 330 miles, 5 hours from Albuquerque, NM – home of the parent companies…
    • 125 miles, 1½ hours from Lubbock & Midland-Odessa, TX…
    • 250 miles, 4 hours from El Paso, TX

Eunice, NM

H-Y TECH MECHANICAL & CONSTRUCTION SERVICES, LLC

what is h y tech
What is “H-Y TECH?”
  • H-Y TECH is:
    • Separate and distinct company…
    • Jointly owned by JB Henderson & Yearout…
    • Formed specifically to execute mechanical scope of work for the NEF project…
    • Is NOT a Joint Venture…

Yearout Mechanical, Inc.

H-Y TECH MECHANICAL & CONSTRUCTION SERVICES, LLC

background and timeline
Background and Timeline
  • Background:
    • Strong support and encouragement from the State of New Mexico and Governor Richardson to use New Mexico contractors…
    • Outstanding local and community support of the project and H-Y TECH…
  • Timeline:
    • Initial meetings with WGI – October, 2006
    • Contract executed with LES – April, 2007
    • Work started – June, 2007

H-Y TECH MECHANICAL & CONSTRUCTION SERVICES, LLC

why form h y tech
Why form H-Y TECH?
  • No one New Mexico contractor with the band-width to execute a project of this magnitude…
  • Strong encouragement from the State and Governor…
  • Teaming of two companies with similar skill sets and cultures…
  • Maximizing total bandwidth by incorporating the best of each mother ship…

H-Y TECH MECHANICAL & CONSTRUCTION SERVICES, LLC

challenges
Challenges
  • Combining of two cultures into one – Non-negotiable Code of Ethics and Core values:
    • Respect and trust of one another and others…
    • Safety as a value…
    • Integrity…
  • Establishment of a successful cash flow model:
    • H-Y 100% funded by mother ships…
    • Early and frequent billings…
    • Aggressive management of receivables…
    • Establishment of Line of Credit for H-Y…

H-Y TECH MECHANICAL & CONSTRUCTION SERVICES, LLC

challenges continued
Challenges(continued)
  • Establishment of an NRC-recognized NQA-1 quality program:
    • Developed and gained approval of an NQA Quality program…
    • Mother ships have extensive DOE lab experience – NQA presented a higher level…
  • Building a new, separate company from scratch!
    • H-Y in and of itself is approximately the size of each parent company…
    • Build H-Y while not impacting parent companies…

H-Y TECH MECHANICAL & CONSTRUCTION SERVICES, LLC

benefits
Benefits
  • Provide work opportunities for Union contractors and craftsmen – preclude non-union contractors…
  • Develop the ability to team with other contractors to take on scope of this magnitude…
  • Development of a new revenue and profit source…
  • Develop expertise to support the nuclear market segment…
  • Develop a new team of construction professionals…
  • Provide a solution to an international energy supplier…

H-Y TECH MECHANICAL & CONSTRUCTION SERVICES, LLC

questions
Questions??

H-Y TECH MECHANICAL & CONSTRUCTION SERVICES, LLC