CFP named as preferred bidder in £multi-billion nuclear decommissioning contract

1st April 2014

CFP (Cavendish Fluor Partnership) named as preferred bidder in £multi-billion nuclear decommissioning contract.
(This does not include Dounreay and the new contract refers only to the Magnox sites)

Savings of at least £1 billion in the decommissioning programme of 12 nuclear sites are anticipated after the Nuclear Decommissioning Authority (NDA) today named the Cavendish Fluor Partnership as the Preferred Bidder in the competition to take ownership of Magnox Ltd and Research Sites Restoration Ltd (RSRL).

The proposals submitted by Cavendish Fluor Partnership will take the 12 historic nuclear sites into the final stages of decommissioning and, in line with the NDA's strategy, will significantly reduce demands on the public purse.
Cavendish Fluor Partnership is a specially created joint venture between Cavendish Nuclear and Fluor Corporation.
The successful bid was selected from four tender submissions which were evaluated against a range of criteria including cost, health, safety and security, underpinning technical rationale, commercial terms and approach to socio-economics.
Today's announcement is a key milestone in the two-year competitive process to secure a world-class Parent Body Organisation (PBO) for the two Site Licence Companies. Tenders from four bidding consortia were subject to comprehensive evaluation and scrutiny over the last four months.

A mandatory standstill period and a five-month transition phase now follow while the contract between the NDA and Cavendish Fluor Partnership is finalised and all legal processes are completed.

During the transition period, members of the new executive team will introduce themselves to the workforce and the current management team.

Following successful transition, Cavendish Fluor Partnership will become the new Parent Body Organisation and take ownership via the transfer of shares of two site licence companies, Magnox Ltd and RSRL, on 1st September 2014. Until this point, the current PBOs will remain in charge and the three remaining bids will also be held in reserve.
Cavendish Fluor Partnership will build on the progress already made in decommissioning and environmental restoration at these historic sites and deliver the outcomes required by NDA at a lower cost than currently planned.

The competition was based on the key criteria of securing the highest standards of safety and environmental performance, together with value for money for the UK taxpayer.

John Clarke, NDA Chief Executive, said:"The selection of Cavendish Fluor Partnership as the preferred bidder is a significant step in our drive to attract world-class management and innovation to our sites.

"We have undergone a comprehensive and rigorous process aimed at securing the best possible parent body for these challenging sites. Cavendish Fluor Partnership bring a successful track record and extensive nuclear experience that will bring enormous benefits to the decommissioning and clean-up programme."

Magnox Ltd is responsible for decommissioning 10 Magnox reactor sites, located in England, Scotland and Wales, which were the first generation of civil nuclear power plants in the UK built during the 1950s and 60s. RSRL is responsible for decommissioning two pioneering nuclear research centres at Harwell and Winfrith. The incumbent PBOs, EnergySolutions and UKAEA, will hand over to the new PBO on 1st September when the shares will be transferred, marking completion of one of the most significant public sector contracts to be awarded in 2014.