The Nuclear Decommissioning Authority

NDA Competition Update

01 May 2007

The competition to secure a Parent Body Organisation (PBO) for the Magnox South Site Licence Company (SLC) was launched in early April 2007 when a Pre-Invitation Notice (PIN) was published in the Official Journal of the European Union.

The Magnox South SLC brings together the NDA's sites at Berkeley, Bradwell, Dungeness A, Hinkley Point A and Sizewell A.

The competition will be administered in an open and transparent manner in accordance with European Union procurement guidelines and it seeks a company or consortium to act as the PBO that will own shares in the Magnox South SLC for the period of the contract.

The Parent Body Organisation will supply key managers to the Site Licence Company to provide it with innovation and strategic direction. The annual spend of the SLC is approximately £225m The fee for the contract is related to the annual spend, risk and opportunities, and performance.

As part of a detailed programme of market engagement an Industry Seminar was held at Beaumont House Conference Centre, Old Windsor, Berkshire on Thursday 14 June. This event aimed to inform interested parties of the overall aim and scope of the contract, the more detailed timetable and the process to be followed.

Sellafield Parent Body Organisation Competition

Competition Meanwhile four groups have entered the Competitive Dialogue Stage of the PBO competition for Sellafield Ltd: CH2M HILL International Nuclear Services Ltd; Fluor Limited in partnership with Toshiba; SBB Nuclear (consisting of Serco Holdings Limited, Bechtel Management Company Limited, and BWXT Nuclear Services (UK) Ltd); and Washington Group International Limited / AMEC Nuclear Holdings Limited/ AREVA NC.

Two others, Energy Solutions and Jacobs, withdrew from the competition in early April citing their need to support ongoing commitments to the NDA, BNG and other clients in this field. All six organisations had successfully met the Pre Qualification Criteria stage of the competition process and were invited to enter the Competitive Dialogue stage which is due to continue until October 2007. Following this stage the NDA will issue Invitations to submit Final Tenders with the results to be announced in the summer of 2008.

The Industry Day for the Sellafield Ltd competition which took place in November 2006 attracted over 200 people representing the nuclear industry, multi-national organisations and stakeholders.

Valued at over £1 billion a year the competition is regarded as one of the UK's largest ever public procurements.

The contract on offer will be for an initial five years with options to extend up to a total of 17 years. After it is awarded there will be a period of transition before commencing fully in early 2009.

Under the competition process, the successful PBO bidder will become the temporary owner of the shares in the Site Licence Company (SLC) which is responsible for the decommissioning and commercial operations at Sellafield, Calder Hall, Windscale and Capenhurst sites. The PBO, will own the shares of the SLC for the duration of the contract, and will be responsible for driving performance and value for money for the NDA.