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NDA invites Magnox and RSRL bidders to ‘Participate in Dialogue’
03 December 2012
Five global organisations have passed the first hurdle in the £multi-billion pound competition to take over the management of 12 historic nuclear sites.
Valued at around £7 billion in total, the new contract represents one of the UK's largest public procurement exercises and will see ownership of Magnox Ltd and RSRL Ltd transferred to an organisation with the international skills and experience to take forward a complex long-term decommissioning programme.
The Nuclear Decommissioning Authority (NDA), which owns the sites, has today formally invited organisations who successfully passed the pre-qualification stage to take part in a period of dialogue lasting more than six months.
The organisations are:
- The Babcock Fluor Partnership
- CAS Restoration Partnership (CH2M Hill, Areva, Serco)
The final configuration of the consortia partners must be confirmed by 14 December 2012.
The NDA expects to award the contract, which is valued at £4-5 billion over the first seven years and almost £2 billion for the following seven years as decommissioning activities wind down, after a two-year process that is laid down by EU regulations.
The competition to appoint a new Parent Body Organisation for the two Site Licence Companies (SLCs) was launched in July this year. Following today's issue of the Invitation to Participate in Dialogue, the prospective bidders will begin a series of site visits and information gathering in January, to be followed by formal face-to-face dialogue with members of the NDA's competition team for further information gathering.
Scheduled to take place in February onwards and continue until September, the formal dialogue period may be extended if the NDA concludes it is necessary. Access to sites for prospective bidders will continue during this time.
The dialogue process is designed to assist the prospective bidders in preparing final tender submissions.
It is expected that the formal invitation to submit final tenders will be issued following the dialogue period, and that, following evaluation of the tenders, the preferred bidder will be announced early in 2014.
Steve Dixon, the competition manager, said:
"We are delighted by the level of interest that major organisations from both the UK and overseas have shown in the competition, and we are pleased to be entering the crucial stage of formal dialogue. This really is the crux of the competition process for all parties, and is vital in helping the participants in putting together their proposals. It will have a significant impact on making sure that we achieve the best possible outcome for the Magnox and RSRL sites."
The new PBO will take ownership of shares in the two SLCs and introduce a new senior management team to oversee decommissioning activities at the 12 sites. The existing site workforces will remain in place.