The appointment, through competition of a Parent Body Organisation to take ownership of the Magnox/RSRL SLCs. The appointed PBO will be required, through its ownership of the Site Licence Companies, to provide the expertise and leadership necessary to optimise value for money and performance to deliver the Nuclear Decommissioning Authority strategy for the sites, as articulated in the NDA’s client specification.


I.1)Name, addresses and contact point(s)

Nuclear Decommissioning Authority Herdus House, Westlakes Science and Technology Park, Moor Row, Cumbria For the attention of: Competition Manager CA24 3HU Moor Row UNITED KINGDOM

Telephone: +44 1925-802603


Fax: +44 1925-802003

Internet address(es):

General address of the contracting authority:

Address of the buyer profile:

Electronic access to information:


Title attributed to the contract by the contracting authority: Competition to appoint a Parent Body Organisation (PBO) for the Magnox Limited (Magnox) and Research Site Restoration Limited (RSRL) Site Licence Companies (SLC).

Total quantity or scope:

The appointment, through competition of a PBO to take ownership of the Magnox/RSRL SLCs. The successful bidder will take ownership of The Magnox/RSRL SLCs, 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 Magnox/RSRL SLCs. The PBA is distinct from the Site Licence Company Agreement (SLCA), (a direct contract between an SLC and the NDA) which defines the SLCs’ mission, strategy and objectives. The successful bidder will be required to cause the SLCs to enter into one or more SLCAs once it has acquired ownership of the SLCs’ shares through the award of the PBA. 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 sites, as articulated in the NDA’s client specification.

Bidders will be required to develop proposals to deliver the NDA’s requirements, most critically taking the sites to defined states on a Most Economically Advantageous Tender (MEAT) basis. These proposals must ensure continued safe, secure and environmentally responsible operations, and must also strike an optimum balance between total cost, hazard reduction, impact on the dates to meet the defined states, 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 SLCs performance in meeting its obligations under the SLCA(s). The NDA’s preferred contracting approach is to enter into a target cost contract arrangement. However the NDA reserves the flexibility to use a reimbursable contractual arrangement in the event that, in the opinion of the NDA, a target cost arrangement is not sustainable. The NDA funding limits for both SLCs over the first 7 year contract period (financial year 14-15 to 20-21) amount to £4.211 billion pounds. The period between financial year 21-22 and 27-28 assumes the current baselines for both SLCs and amounts to £1.907 billion pounds. The NDA reserves the right to decline to award a contract in the event that a bid exceed these levels. Fee, which is paid to the SLCs, will be directly determined by performance. Net fee will be paid to the PBO by the SLCs as dividend. NDA also reserves the right to pay fee directly to the Parent Body Organisation. The duration of the contract will be flexible, but approximately 14 years is seen as the maximum duration and it is anticipated that there will be break provisions exercisable by the NDA. The client specification, which will define the NDA’s output and performance requirements, (including, but not limited to achievement of the required States at the 12 sites), will be included in the Invitation to Participate in Dialogue issued to those Bidders who pre-qualify.

Duration of the contract or time limit for completion: Starting 1.7.2014. Completion 30.6.2028


Type of procedure: competitive dialogue

Limitations on the number of operators who will be invited to tender or to participate: Envisaged minimum number 2: and maximum number 6

Objective criteria for choosing the limited number of candidates: Bidders will be required to pass a number of minimum thresholds in order to be invited to participate in dialogue. Please see the pre-qualification documentation pack for further details. The NDA reserves the right to down-select bidders during the course of the dialogue phase. The process for down selection will be identified in the invitation to participate in dialogue.

Reduction of the number of operators during the negotiation or dialogue: Recourse to staged procedure to gradually reduce the number of solutions to be discussed or tenders to be negotiated yes


Award criteria: The most economically advantageous tender in terms of the criteria stated in the specifications, in the invitation to tender or to negotiate or in the descriptive document

Information about electronic auction: An electronic auction will be used: no

Previous publication(s) concerning the same contract: Prior information notice Notice number in the OJEU: 2012/S 079-129924 of 24.4.2012

Time limit for receipt of tenders or requests to participate: 31.8.2012 – 12:00

Date of dispatch of invitations to tender or to participate to selected candidates: 1.11.2012

Language(s) in which tenders or requests to participate may be drawn up: English.