NDA cost escalation tables, UK (Deadline 15 July 2009)

24 June 2009


Nuclear Decommissioning Authority, Herdus House Westlakes Science & Technology Park, Attn: Mr Chris Jennings, UK-Moor Row CA24 3HU. Tel. +44 1925802056. E-mail: procurement.eoi@nda.gov.uk.

Total quantity or scope:

The Nuclear Decommissioning Authority (NDA) is a Non Departmental Public Body (NDPB) with a responsibility for the UK's civil nuclear legacy. The NDA are decommissioning a number of civil public sector nuclear sites safely, securely, and cost effectively, whilst protecting the environment. The NDA spends circa 2.8 billion GBP each financial year across the SLCs unders its remit. The NDA is currently going through the process of competing its sites. Contracts awarded will be multi-year contracts which will bring about a number of issues in connection with inflation and inflation forecasting.

Cost escalation tables are required to be completed within the Life Time Plan (LTP) documents submitted to the NDA annually. The LTP shows the scope, schedule and cost to decommission the NDA owned sites until the defined end state for that site. LTP’s typically cover a period of 120 years due to the nature of the reactor decommissioning work involved. An important consideration within the overall plans is therefore when the work takes place and therefore the likely cost of that work when it takes place. One element of quality in the LTP is to ensure that the cost information has a specified base date. LTPs are required at constant ‘September’ money values. For example the LTP 08 is at September 08 constant money values. In addition to this both discounted and escalate tables are required.

During 2008/09 the Nuclear Decommissioning Authority under took a study of inflation across all NDA spend including; by Site by Site Licence Company (SLC) with the facility to role up to NDA level (NDA spend for Little and Mid NDA to be included in the study) leading to the development of a basket of indices, weighted according to work being undertaken at each site/SLC used as a specific decommissioning Index. From this study the NDA have a basket of indices and a facility to role up to NDA level and produce a specific decommissioning index.

The outputs from the study undertaken in 2008/9 are:

— Model of inflation by Site by SLC,

— Report on use of model in baseline management and multi year contracts,

— Proposal on how the model should be taken forward.

These outputs will be available to the chosen contractor on award of contract.

The NDA are now looking for a suitably qualified entity to take the outputs of this initial project forward.

The NDA envisage that this will involve some key work streams:

— Critique proposals already in place for taking the project forward,

— Develop further the model that is currently in place,

— Develop model for use with other NDA expenditure,

— Propose most practical and cost effective way of taking the project forward to ensure the model is kept up to date and is effective, ensuring history, current and forecast data is available as per the requirements of the NDA. The NDA expects a high degree of confidence to exist within the model and for the model to be robust and defendable if subjected to challenge,

— Publication of quarterly inflation forecast bulletins taking into consideration national and NDA inflationary issues,

— Work with the NDA and its SLCs to enable quarterly collection of data required to keep the model up to date. (It will be the responsibility of the chosen tender to liaise with SLCs on data submission/issues/concerns),

— Continuously improve model, identifying and providing solutions to any issues that occur.

Expression of Interest documents must be received by the due date to be considererd for the tender process. Two copies of your EOI are required (One Hard copy together with one electronic copy).

No further information with regard to this opportunity will be issued at this time by the NDA.

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