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Civil decommissioning market – an update Presented by Ron Gorham Head of Supply Chain Development and Commercial Relationships.

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Presentation on theme: "Civil decommissioning market – an update Presented by Ron Gorham Head of Supply Chain Development and Commercial Relationships."— Presentation transcript:

1 Civil decommissioning market – an update Presented by Ron Gorham Head of Supply Chain Development and Commercial Relationships

2 Agenda Overview - Update since last event - Some important statistics National solutions to national problems - Improvements to the procurement processes - Future developments Quick review of the challenges around the sites

3 Update SLCs now largely re-bundled and re-licensed in accordance with NDA strategy Westinghouse and Magnox Electric Ltd in private sector ownership Consultation on (2008/2011) business plan closed Bids for Sellafield PBO competition due 7 April 1 st competition for the LLWR awarded yesterday

4 Nukem’s – presentation to 2006 Safespur event “Tier 2 Contractors’ Experience of Procurement in the NDA Market”

5 Perceived Trends in 2006 Negative - scope of work poorly specified - clients generally risk adverse - complex pricing mechanisms - assess (and accept) significant risks in short timeframe Positive - significant increase in work tendered (particularly at Magnox and Sellafield) - increase in the average tender value

6 This year the NDA will spend approximately £2.5bn Just under £1.3bn will enter the Supply Chain at Tier 2

7 Our Objectives Principal Objectives: – Encouraging highest health, safety, security and environmental performance –Determining the scope of the liabilities – Delivering hazard reduction – Progressing decommissioning and clean-up – Managing radioactive waste safely –Maximising commercial value Secondary Objectives: – Providing socio-economic support – Skills, R&D and supply chain development Delivered through competition, cost control and efficiency drive

8 3 Year Trend Analysis

9 Supply Chain Spend

10 The SLC, the NDA and the Market The SLCs work with the NDA to develop the Market Each SLC publishes an Annual Site Procurement Plan Each SLC has the same drivers to compete work as the NDA Work is awarded into the Market by the SLC The majority of money enters the Supply Chain Movement towards ‘portfolio buying’ The Market has a key role in influencing our policies and procedures

11 Supply Chain Development Initiatives NDA Supply Chain Development team National forums for aspiring PBOs, SLCs and Supply Chain and Tier 3/4 and SMEs Increased harmonisation of flowdown conditions and improved standardisation of Generic Contractor Information Shared Services initiative

12 Future Developments Draft Supply Chain Development Strategy Publication of Supply Chain statistics Improved Supply Chain communications including greater visibility of work below Tier 2 Improved Annual Site Procurement Plans Opportunities for collaboration with other ‘Nuclear Clients’

13 Environmental Challenges: Radioactive Contaminated Land Bradwell - effluent pipeline Dounreay - waste disposal facilities, drains, radioactive particles Hinkley Point A - cooling ponds Hunterston A - cooling ponds, effluent pipeline Low Level Waste Repository - waste disposal/storage facilities Sellafield - separation area Trawsfynydd - cooling ponds Windscale - Pile 1 Winfrith - waste management facilities, effluent pipeline But also…

14 Environmental Challenges: Non-radioactive Contaminated Land Solvents e.g. Capenhurst, Chapelcross, Dounreay, Harwell, Sellafield, Springfields, Winfrith, Wylfa Hydrocarbons e.g. Hinkley Point A, Hunterston A, Sellafield, Springfields, Wylfa Toxic metals e.g. Chapelcross, Springfields Munitions/ explosive residues Asbestos

15 Some key challenges Potential for a complex mixture of radioactive and non-radioactive contaminants in ground and groundwater Difficult to characterise ground (and detect leaks): - beneath existing facilities - in built-up areas - in operational areas Laboratory analysis can be logistically difficult and expensive Waste hierarchy (pressure on disposal facilities) Large quantities of current and historical data Impact of climate change (particularly coastal erosion and sea-level rise) relevant to many sites One size will not fit all!

16 Questions?

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