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Ref  : CM-DFH4-2014-1
                                                    BEAZLEY                   Issue : 1

                                               DFH 4 Series Spacecraft        Date : 28 Sept 2014
                                                                                                 Page 9 of 38









            5.2 PROGRAMMATIC ASPECTS
            In  this  section,  the  2014  Insurance  presentation  will  be  reviewed  and  observation  /  comment  /  recommendation  and
            assessment will be provided based on the information available (REF1 to REF6), also some generic comments based on
            experience and not presented in the readings will be discussed. This section is common to the four spacecrafts under
            consideration. Several flags have been raised because the author of this document does not have experience with CAST,
            may be BEAZLEY does have more insight and can withdraw several items.



                   Topic                 Observation                    Comment /Assessment          Cri

                               It is not clear if the proposed spacecraft and   Is it a “what you see is what you get” approach
                                mainly the payload correspond to a real need  or a “classic” contract?
                                with a contract with the final customer with
                                closes on delivery date, in orbit performances
                               Approval right for the main milestones. What
                                is the penalty scheme that they intend to put in
                                place and the payment plan (interconnected                             .
                                with an agreed achievement for each milestone
                  Customer      subject to payment.
                  satisfaction   Is the final customer involved in the program   To be clarified.
                                (from design / test / delivery)
                               Are the company / team in charge to operate   To be clarified.
                                the satellite involved in the design /
                                performances of the spacecraft?
                               What are the customer approval rights?   To be clarified.
                               What is the visibility given to the Customer on
                                similar design/equipment  embarked on other
                                satellite and belonging to other Customers
                               Despite the fact that it is stated that they are   To be clarified
                                ISO certified, it is not clear what is the size of
                                the quality organization, what is the reporting
                                line (independency), how they control internal
                   Quality      to China and external suppliers ...
                               What is the official language of the program   If it is Chinese, it will be difficult to do Inquiries
                               What is the visibility and rights they have to  (including brokers).
                                control the quality on their subcontractors in
                                China and outside China

                  Program      Unclear what is the team size for each project?   Need further details on the responsibility of each
                                                                    team member and on  their reporting line
                 Management     Do  they  have  a  management  plan?  Is  the   It seems that key people are working on multiple
                                technical support dedicated to one program or
                                multi programs?                     projects (the program manager on Laosat who is
                                                                    also Chief designer  on  China  sat, it is  also  the
                                                                    case  for  the  Program manager of  Chinasat  9A
                                                                    who is also the program manager of Chinasat 18
                                                                    etc..  Their  project  organization  and  the
                                                                    difficulties for them to present project dedicated
                                                                    person raises doubt on how they will be able to
                                                                    manage all these programs simultaneously
                               520 persons are developing in 2014, 2 satellite   To  be  clarified..  How  the  personnel  is  split
                  Technical     based on DFH 4 bus generation, 2 are under  between  the  various  program will  work.  How
                   Human        development with the DFH 4 S bus and they  the  conflict  between  the  programs  (facilities,
                                are designing the new generation of bus DFH 4  people, HW) are resolved  and by  whom.  Will


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