Civil decommissioning market – an update

1. Civil decommissioning market – an update Presented by Ron Gorham Head of Supply Chain Development and Commercial Relationships

2. Agenda • Overview - Update since last event - Some important statistics • National solutions to national problems - Improvements to the procurement processes - Future developments • Quick review of the challenges around the sites

3. Update • SLCs now largely re-bundled and re-licensed in accordance with NDA strategy • Westinghouse and Magnox Electric Ltd in private sector ownership • Consultation on (2008/2011) business plan closed • Bids for Sellafield PBO competition due 7 April • 1st competition for the LLWR awarded yesterday

4. Nukem’s – presentation to 2006 Safespur event “Tier 2 Contractors’ Experience of Procurement in the NDA Market”

5. Perceived Trends in 2006 • Negative - scope of work poorly specified - clients generally risk adverse - complex pricing mechanisms - assess (and accept) significant risks in short timeframe • Positive - significant increase in work tendered (particularly at Magnox and Sellafield) - increase in the average tender value

6. This year the NDA will spend approximately £2.5bnJust under £1.3bn will enter the Supply Chain at Tier 2

7. 3 Year Trend Analysis

8. Supply Chain Spend

9. The SLC, the NDA and the Market • The SLCs work with the NDA to develop the Market • Each SLC publishes an Annual Site Procurement Plan • Each SLC has the same drivers to compete work as the NDA • Work is awarded into the Market by the SLC • The majority of money enters the Supply Chain • Movement towards ‘portfolio buying’ • The Market has a key role in influencing our policies and procedures

10. Supply Chain Development Initiatives • NDA Supply Chain Development team • National forums for aspiring PBOs, SLCs and Supply Chain and Tier 3/4 and SMEs • Increased harmonisation of flowdown conditions and improved standardisation of Generic Contractor Information • Shared Services initiative

11. Future Developments • Draft Supply Chain Development Strategy • Publication of Supply Chain statistics • Improved Supply Chain communications including greater visibility of work below Tier 2 • Improved Annual Site Procurement Plans • Opportunities for collaboration with other ‘Nuclear Clients’

12. Environmental Challenges: Radioactive Contaminated Land • Bradwell- effluent pipeline • Dounreay-waste disposal facilities, drains, radioactive particles • Hinkley Point A- cooling ponds • Hunterston A- cooling ponds, effluent pipeline • Low Level Waste Repository- waste disposal/storage facilities • Sellafield - separation area • Trawsfynydd-cooling ponds • Windscale- Pile 1 • Winfrith- waste management facilities, effluent pipeline But also…

13. Environmental Challenges: Non-radioactive Contaminated Land • Solventse.g. Capenhurst, Chapelcross, Dounreay, Harwell, Sellafield, Springfields, Winfrith, Wylfa • Hydrocarbonse.g. Hinkley Point A, Hunterston A, Sellafield, Springfields, Wylfa • Toxic metalse.g. Chapelcross, Springfields • Munitions/ explosive residues • Asbestos

14. Some key challenges • Potential for a complex mixture of radioactive and non-radioactive contaminants in ground and groundwater • Difficult to characterise ground (and detect leaks): - beneath existing facilities - in built-up areas - in operational areas • Laboratory analysis can be logistically difficult and expensive • Waste hierarchy (pressure on disposal facilities) • Large quantities of current and historical data • Impact of climate change (particularly coastal erosion and sea-level rise) relevant to many sites One size will not fit all!

15. Questions?