Sellafield Ltd has announced the first four delivery partners under it Decommissioning Delivery Partnership. The contracts to consortia made up of 12 companies will last ten years and alongside the decommissioning objectives will also provides socioeconomic benefits including jobs, apprenticeships and work for local SMEs around Sellafield. This is thought to be the UK’s first ever public procurement that guarantees benefits for the community. The overall framework is predicted to be worth around £500million.
In order to be chosen, the companies had to demonstrate how they will support Sellafield Ltd’s socioeconomic strategy, with particular emphasis on the key themes of skills, growth and community. They were also assessed on other factors including quality and value during a two-year tendering process.
Of the 12 selected companies, 11 are based in, or have a significant presence in, Cumbria. All have committed at least 20 per cent of their sub-contracting spend with small to medium-sized enterprises.
The successful companies, working as part of four consortia or joint ventures, are now working with Sellafield Ltd to finalise the details of their socioeconomic commitments. Sellafield Ltd is also finalising the framework agreements with two other consortia who were successful in the initial tendering process, and they will be confirmed once legal and commercial arrangements are in place.
Among the pledges given by the selected companies are:
- a ‘local first’ recruitment approach, with one consortium aiming for 95% of work to be done by Cumbrian workers
- a commitment to give 150 jobs to ‘under-represented or disadvantaged’ people
- a commitment to create up to 240 new apprenticeships over the 10 year agreement
- companies promising to provide training, school outreach and business mentoring and, in what is believed to be a first for public spending in the UK, these commitments will be written into the contract, meaning companies would lose out financially if they fail to deliver.
- Independent data analysis of the £500M DDP framework has found that 1,140 jobs a year could be created or supported during the 10-year contract period
The delivery partners confirmed so far are:
- Integrated Decommissioning Solutions (comprising Energy Solutions EU Ltd, Hertel (UK) Ltd, North West Projects Ltd and Westlakes Engineering Ltd)
- The Nexus Decommissioning Alliance (Costain Oil, Gas and Process)
- Cumbria Nuclear Solutions Ltd (Shepley Engineers, James Fisher Nuclear Ltd, REACT Engineering Ltd, Jacobs Stobbarts, Westinghouse Electric Company UK Ltd, WYG Engineering Ltd).
- The Decommissioning Alliance (Jacobs UK Ltd, Energy Solutions EU Limited, Westinghouse Electric Company UK Ltd)
Paul Foster, Managing Director of Sellafield Ltd, said: “Our first priority will always be the safe, secure and cost-effective clean-up of Sellafield.
“But alongside that is a commitment to help deliver a long-term, sustainable economic future for our local community.
“DDP will help achieve this by placing socioeconomic outcomes at the heart of the contract from the outset and by holding contractors to account on delivery.
There is extra ‘headroom’ in the framework of up to £1.5 billion, meaning the total investment could potentially be even greater than the predicted £500m, depending on how Sellafield Ltd prioritises and delivers its work.
The successful companies announced have also unsurprisingly welcomed the awards. Westinghouse’s Vice President and Managing Director, United Kingdom and Middle East, Dave Unsworth said, ““This means Westinghouse will be an important part of Sellafield’s decommissioning program for the next decade. We look forward to working together with our consortium partners to provide a safe, innovative and cost-effective solution that contributes to cleaning up hazards at the most complex nuclear site in Europe.”