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Nuclear decommissioning contracting
structures - lessons learned
John Houlden
Nuclear decommissioning contracting
structures – lessons learned
Background – Nuclear decommissioning
in the UK
 A busy decade for UK nuclear
decommissioning contracting
 NDA’s role in decommissioning and
clean-up of the UK’s civil public sector
nuclear sites:
- Early nuclear research facilities
- Magnox nuclear power plants
- Processing plant and facilities at
Sellafield
 NDA’s (and its contractors’)
experience has shaped the UK’s
nuclear decommissioning sector
 The market and contracts have
changed significantly over the last 10
years Sites designated to the NDA
Nuclear decommissioning contracting
structures – lessons learned
NDA’s decommissioning contract
models
 The NDA’s contract models influence the rest of the sector:
- Largest buyer – contracts are a barometer for the maturity of the wider market
- End customer – terms/risk allocation agreed between NDA and SLCs are flowed down to
supply chain
 Two/three? generations of NDA decommissioning contract model:
- Management & Operations Contracts (M&O) – Sellafield, LLWR, Magnox, RSRL
- Site Licence Company Agreements (SLCAs) – Dounreay (2010), Magnox and RSRL (2014)
- Strategic partner? – Sellafield (2015)
Risk
M&O
Cost plus
Future?
Fixed Price
SLCA
TCIF
Future?
TC
Nuclear decommissioning contracting
structures – lessons learned
NDA’s Contracting Framework
Parent Body Organisation
Site Licence Company
(including employees
contributed by the PBO known
as the secondees)
2nd tier Subcontractors
NDA
Regulators
Ownership
of SLC
Parent Body
Agreement
M&O/SLCA
Statutory
Consultation
Requirement
Sub-contract(s)
Statutory and/or
Licence or consent
Overview of the key parties, relationships and contracts:
Nuclear decommissioning contracting
structures – lessons learned
Legal issues: contract
Cost
Time
Quality
Delivery
Nuclear decommissioning contracting
structures – lessons learned
Legal issues: getting to contract
Process:
Contract Notice PQQ Dialogue
Final
Tender Clarification/
Contract
PHASE 3:
Refined Solutions
PHASE 2:
Detailed Solutions
[Downselect?]
PHASE 1:
Outline Solutions
[Downselect?]
Decision/
Standstill
Only period for
negotiation
 Key issues:
 Compliance with EU procurement law
 Time/costs
 Competitive pressure
Nuclear decommissioning contracting
structures – lessons learned
Lessons learned
Nuclear decommissioning contracting
structures – lessons learned
Contact Details
John Houlden
Partner
Tel: 0117 902 2796
Email: john.houlden@burges-salmon.com
Nuclear decommissioning contracting
structures – lessons learned
This presentation gives general information only and is not intended to be an exhaustive statement of the law. Although we have taken
care over the information, you should not rely on it as legal advice. We do not accept any liability to anyone who does rely on its content.

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2016 TotalDecom Presentation - John Houlden

  • 1. Nuclear decommissioning contracting structures - lessons learned John Houlden
  • 2. Nuclear decommissioning contracting structures – lessons learned Background – Nuclear decommissioning in the UK  A busy decade for UK nuclear decommissioning contracting  NDA’s role in decommissioning and clean-up of the UK’s civil public sector nuclear sites: - Early nuclear research facilities - Magnox nuclear power plants - Processing plant and facilities at Sellafield  NDA’s (and its contractors’) experience has shaped the UK’s nuclear decommissioning sector  The market and contracts have changed significantly over the last 10 years Sites designated to the NDA
  • 3. Nuclear decommissioning contracting structures – lessons learned NDA’s decommissioning contract models  The NDA’s contract models influence the rest of the sector: - Largest buyer – contracts are a barometer for the maturity of the wider market - End customer – terms/risk allocation agreed between NDA and SLCs are flowed down to supply chain  Two/three? generations of NDA decommissioning contract model: - Management & Operations Contracts (M&O) – Sellafield, LLWR, Magnox, RSRL - Site Licence Company Agreements (SLCAs) – Dounreay (2010), Magnox and RSRL (2014) - Strategic partner? – Sellafield (2015) Risk M&O Cost plus Future? Fixed Price SLCA TCIF Future? TC
  • 4. Nuclear decommissioning contracting structures – lessons learned NDA’s Contracting Framework Parent Body Organisation Site Licence Company (including employees contributed by the PBO known as the secondees) 2nd tier Subcontractors NDA Regulators Ownership of SLC Parent Body Agreement M&O/SLCA Statutory Consultation Requirement Sub-contract(s) Statutory and/or Licence or consent Overview of the key parties, relationships and contracts:
  • 5. Nuclear decommissioning contracting structures – lessons learned Legal issues: contract Cost Time Quality Delivery
  • 6. Nuclear decommissioning contracting structures – lessons learned Legal issues: getting to contract Process: Contract Notice PQQ Dialogue Final Tender Clarification/ Contract PHASE 3: Refined Solutions PHASE 2: Detailed Solutions [Downselect?] PHASE 1: Outline Solutions [Downselect?] Decision/ Standstill Only period for negotiation  Key issues:  Compliance with EU procurement law  Time/costs  Competitive pressure
  • 7. Nuclear decommissioning contracting structures – lessons learned Lessons learned
  • 8. Nuclear decommissioning contracting structures – lessons learned Contact Details John Houlden Partner Tel: 0117 902 2796 Email: john.houlden@burges-salmon.com
  • 9. Nuclear decommissioning contracting structures – lessons learned This presentation gives general information only and is not intended to be an exhaustive statement of the law. Although we have taken care over the information, you should not rely on it as legal advice. We do not accept any liability to anyone who does rely on its content.