Decommissioning site management, UK (Deadline: 14 May 2010)

1 April 2010

The appointment, through competition of a Parent Body Organisation (PBO) to take ownership of the Dounreay Site Restoration Ltd (DSRL) Site Licence Company (SLC).


Nuclear Decommissioning Authority

Pelham House Pelham Drive Calderbridge Cumbria

Attn: Dounreay PBO Competition Manager

CA20 1DB Calderbridge


Tel. +44 1925802603


Fax +44 1925802526

The successful Participant will take ownership of the DSRL SLC, through share transfer under the terms of a Parent Body Agreement (PBA). The PBA includes provisions which govern the terms of the PBO’s ownership of the DSRL SLC. The PBA is distinct from the Site Licence Company Agreement (SLCA), (a direct contract between the SLC and NDA) which defines the SLC’s mission, strategy and objectives. The successful Participant will be required to cause the SLC to enter a revised SLCA once it has acquired ownership of the SLC’s shares through the award of the PBA.

The NDA will continue to set the strategy for the Dounreay site. The appointed PBO will be required, through its ownership of the SLC, to provide the expertise and leadership necessary to optimise value for money and performance to deliver the NDA strategy for the site, as articulated in the NDA’s client specification.

Participants will be required to develop target cost proposals, within the approved planned assured funding cap of £150Million per annum, to deliver the NDA’s requirements, most critically taking the site to its Interim End State on the most cost effective basis. These proposals must ensure continued safe, secure and environmentally responsible operations, and must also strike an optimum balance between total cost, near term cost reduction, hazard reduction, impact on the Interim End State date, maintenance of mission-critical skills and socio-economic compliance.

The PBO must have access to a reservoir of talent, with extensive experience and technical skills, which can be deployed flexibly to optimise the SLC’s performance in meeting its obligations under the SLCA. The NDA’s preferred contracting approach is to enter into a target cost contract arrangement. However the NDA reserves an option to revert to a reimbursable contractual arrangement in the event that, in the opinion of the NDA a target cost arrangement is not sustainable. Fee, which is paid to the SLC, will be directly determined by performance. Net fee will be paid to the PBO by the SLC as dividend. The duration of the contract will be consistent with the successful Participant’s proposals to deliver the Interim End State at Dounreay.

The client specification, which will define the NDA’s output and performance requirements, (including, but not limited to achievement of the Interim End State at Dounreay), will be included in the ITPD issued to those Participants who pre-qualify.

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