2016 Report details for project: Magnox and RSRL PBO Competition

Project name: Magnox and RSRL PBO Competition - there are 7 reports for this project: 2013, 2014, 2015, 2016, 2017, 2018, 2019
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Organisation: DECC (D11) - see all reports for this organisation
Report year: 2016 (data is from Sept 2015)
Category: Infrastructure - see all reports for this category
Description: The objective of the procurement (competition) is the delivery of a series of outputs largely based on the extant baselines of Magnox and Research Sites Restoration Ltd (RSRL) at 10% lower cost [currently defined as outcomes of the Magnox Optimised Decommissioning Plan and Optimised RSRL Baseline]. The performance obligations associated with delivery of this objective are embodied within a Client Specification which forms the basis of the Site Licence Company Agreement and Parent Body Agreement.
DCA (RAG): Amber/Green
DCA text: Following the application of competitive tension via the competition process and share transfer to a new Parent Body, a target cost incentivised contract arrangement is in place for delivery of the performance obligations in the contract over a period of 14 years, envisaged in two phases each of circa seven years. The target cost as bid is £2.4bn for phase 1 (nominally seven years) and £1.4bn for phase 2 (nominally seven years). Currently the project is focussed on "Consolidation" of the successful bidder’s commitments into the Site Licence Company's Lifetime Performance Plan. The Licence Agreement anticipates some change to the Target Cost during the Consolidation phase but the full extent of the change will only be known on completion of Consolidation which is forecast to be April 2016. A key enabler to achieving a lower cost for delivering the programme is the NDA's ability to put in place funding to match the programme established by the contractor in the updated Lifetime Performance Plan. Should the updated Plan prove unaffordable a further iteration may be required.
Start date: 2012-04-03
End date: 2028-09-01
Schedule text: The date for completing the current Consolidation Phase has been extended to accomodate addtional scope compared to the March 2013 postion which was the basis for the bid. However, this will not impact on the project end date.
Baseline: £674.00m
Forecast: £549.00m
Variance: -18.55%
Variance text: The Budget values reflect the estimated cost for Phase 1 work only under the previous Parent Body Organisation on a cost re-imbursable arrangement for Magnox. The forecast values reported here reflect the reduced Target Cost (price) for the same work under the new contract, now that the competition has been concluded and share transfer completed, with amendments for the new consolidation time frames.
Whole Life Cost: £3,860.00m
WLCost text: Whole life cost cover the Phase 1 costs only of decommissioning the ten Magnox and two RSRL sites and taking them into their Care and Maintenance states. They also cover the costs of processing and managing the resultant radioactive and non radioactive wastes arising from decommissioning activities for Phase 1 only. Finally the whole life cost addresses the establishment of a "Regionalised approach" to carry out surveillance and, if required, maintenance ops on the sites after they enter Care and Maintenance.
Notes1: Magnox & RSRL PBO Competition
Sourcefile: IPA_2016.csv

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