The Nuclear Decommissioning Authority

11 July 2008

The Nuclear Decommissioning Authority NDA has today announced that Nuclear Management Partners Ltd, consisting of Washington International Holdings Ltd., AMEC and AREVA NC is the Preferred Bidder in the competition to secure a Parent Body Organisation (PBO) for the Sellafield Site Licence Company (SLC).

The NDA will now enter into a period of contract finalisation with Nuclear Management Partners Ltd prior to a decision on the award of the contract in October 2008. The selection of nuclear Management Partners Ltd follows an extensive competition process in accordance with EU procurement rules culminating in the detailed evaluation of final bids from four bidders.

When awarded the PBO contract will offer business to the value of initially around £1.3 billion per annum with associated fee of approximately £50 million per annum, subject to the level of improved SLC performance and efficiency achieved.

The contract would be awarded initially for a period of five years with the potential of further extension periods, subject to performance, to a total of 17 years.

The Sellafield site licence company manages & operates, on behalf of the NDA, the reprocessing and waste storage facilities at Sellafield, the former nuclear power stations Calder Hall and Windscale (all in West Cumbria), and the Capenhurst nuclear site and an Engineering Design Centre at Risley in Cheshire.

Dr Ian Roxburgh, Chief Executive of the NDA said:

“The selection of Nuclear Management Partners Ltd as the preferred PBO bidder is a significant step forward in the NDA’s drive to attract world class management and innovation to the UK’s nuclear decommissioning industry.

We have successfully completed an intensive evaluation process aimed at securing the best possible parent body for the Sellafield SLC, where the most complex challenges we face exist.

Nuclear Management Partners Ltd have emerged from a very strong field of four bidders, all of whom surpassed the evaluation threshold. The NDA will now move towards contract finalisation and ultimately the award of this contract, the successful implementation of which is crucial to the mission of the overall clean-up and decommissioning of the UK’s existing nuclear legacy.”

Stephen Henwood, Chairman of the NDA added:
“This competition involves one of, if not the, most significant public sector procurements for UK PLC. The importance of achieving world class performance throughout the Sellafield sites cannot be underestimated.

Nuclear Management Partners Ltd have emerged from a very strong field and I would like to thank all four bidders for the time and resources they have put in to this process. I have been extremely impressed with the extent and robustness of the evaluation of the four bids and I look forward with confidence to the successful conclusion of this competition.”

Press and Media enquiries should be made to either Bill Hamiton, Head of Communications 01925 802193/07816315132 or Brian Hough, Communications Manager 01925 802177/07812 554009

Background

The Sellafield PBO Competition, held in accordance with EU procurement rules, will secure a new parent body that will own the shares in Sellafield Ltd, the site license company SLC). Following the announcement of the preferred bidder there is a period of contract finalisation before the award of the contract, scheduled for October 2008. Following a period of transition the shares will be transferred from BNFL to the new parent body later in the year.

The NDA invited four organisations/consortia to submit final bids following a period of competitive dialogue. The three other bidders who submitted final tenders were

• CH2MHill Nuclear Services Ltd
• Fluor Limited in partnership with Toshiba
• SBB Nuclear, consisting: Serco, Bechtel and Babcock & Wilcox

The NDA intends that these other bidders remain in reserve and as such the NDA will continue to respect commercial confidence on all four bids.

In October 2007 the NDA announced it would reflect on industry feedback and review the remaining elements of the competition schedule with Government. The pause in the competition process has enabled ourselves and Government to consider lessons learnt from the first two competitions (LLWR and Sellafield) to achieve the best way forward to

• maximise the value for money in achieving the NDA’s mission
• ensure market feedback is taken into account
• secure a competitive market to support the drive for efficiencies and innovation.

That work will continue over the next few months and we expect to be in a position to announce the way forward before the end of the year.