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Insight Newsletter
Edition 8 - February 2012 (3Mb)
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Led by Roger Hardy, Babcock's Managing Director and Dounreay Managing Director Designate, the team is spending time in the area during the three-month transition period as work continues on finalisation of the contract between the NDA and BDP, which, subject to a successful conclusion, will lead up to the contract award at the end of March.
BDP is a specially created consortium comprising Babcock International Group, CH2M Hill and URS Holdings (UK) Ltd.
The Dounreay competition, which began two years ago, will be the first closure contract award to take one of the NDA's sites to an agreed Interim State and will only conclude following a successful transition. The second bid will remain in reserve until the contract award and transfer of DSRL shares to BDP.
One of BDP's first major announcements was to the Dounreay Site Stakeholder Group, where Mr Hardy informed community representatives, regulators and government representatives that BDP anticipates reaching the Interim State – when all major decommissioning work will be complete – between 2022 and 2025, up to 17 years earlier than the estimated 2038 date announced two years ago.
One of the key criteria for the competition to appoint a world-class contractor was to bring forward decommissioning timescales and reduce costs by at least £500 million.
In a ground-breaking move for the NDA, BDP would also be contractually committed to continuing to support the NDA and other community bodies in a wide range of socio-economic initiatives aimed at helping to diversify the economy away from dependence on Dounreay.
| Next Competition |
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Later this year, the NDA will launch a formal competition to appoint a new contractor for both the Magnox Site Licence Company and the Research Sites Restoration Limited (RSRL) Site Licence Company.
An informal market survey has already provided feedback from potential bidders on a possible strategic approach, and a more formal engagement with the market will take place in the months ahead, once the NDA has finalised the structure of the competition. |
Nigel Lowe, NDA Head of Programme at Dounreay, said:
"The Dounreay contract is a target cost incentivised fee model and it, together with the technical challenges of Dounreay, will require a different paradigm for how the NDA's Site Facing Team and the NDA collectively interfaces with the new PBO and DSRL. It is an exciting time and we are all looking forward to what lies ahead."
Roger Hardy said:
"Being selected as preferred bidder is a fantastic achievement. BDP brings together outstanding international decommissioning and site management expertise and we look forward to working with NDA and the teams at DSRL to complete the closure programme safely and cost effectively."
Competition is central to the NDA's strategy as part of its statutory duty to secure value for money while promoting competition and best practice.
