The NDA approach to Contracting Sean Balmer Contract Manager Region 3 Nuclear Decommissioning Author

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The NDA approach to ContractingSean Balmer
Contract Manager Region 3 Nuclear Decommissioning
Authority
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The NDA

• Established by UK Government
• Operational since 1st April 2005
• Responsible for cleaning up the UK civil nuclear
  legacy
• Secure government funding
• Annual budget 2Bn Treasury/Revenue
• Current strength 135 and rising
• Based in West Cumbria, Westlakes
• 4 Regional offices covering 20 sites across the
  UK

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NDA Duties

• Statutory duties to
• Ensure legacy is dealt with safely, securely,
  with care for the environment in accordance with
  Government policy
• Promote competition Legal requirement EU PSPR
• Carrying out research related to decommissioning
• Ensure development of decommissioning skills
• Promote best practice and secure value for money
• Give support to the social and economic life of
  local communities

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NDA key drivers

• Safety and environmental performance
• Value for money solutions
• Effective use of the supply chain, monitored not
  controlled
• Learning from experience at home and overseas
• Full engagement with stakeholders

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The NDAs Mission

• To deliver a world class programme of safe,
• cost effective, accelerated and environmentally
  responsible decommissioning of the UK civil
  nuclear legacy, in an open and transparent manner
  and with due regard to the socio economic impact
  on our communities

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Overview the key documents

• Site Management and Operations Contract Cost
  reimbursable with incentive fee
• CT-03 (Cost principles and Procedures)
• CT-05 (Use of Performance Based Incentives)
• CT-14 (Project Validation Financial sanction)
• CT-15 (Subcontracting/Procurement Requirements)
• CT-16 (Customer Contracts) - Revenue
• Manage the Contract NOT the Contractor

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CT-15 (Subcontracting/Procurement Requirements)
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Key Concepts

• Encourages the highest standard of contracting at
  all levels of the supply chain
• Open and transparent processes Subject to FOI
  Challenge
• Appropriate checks and balances commensurate with
  expenditure
• Continuing preference for competition
• NDA has visibility of the entire supply chain
• NDA will Check the appropriateness of the
  Contracting utilised

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Impact on Tier 1 Contractors

• Subcontracting system which is consistent with
  the EU Procurement Rules Open and transparent
  no regional bias
• Formal Make/Buy process Opportunities under
  Buy
• Annual Procurement Plan Enables supply chain
  planning
• Controls the use of Affiliates Opens
  significant market 2 yrs
• Obligation to maintain a skilled workforce
• Implement the appropriate flowdowns
• Early engagement with no surprises !

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Why compete ?

• To meet NDAs Statutory duties including
• Promotion of competition
• Promotion of best practice and secure value for
  money
• To meet NDAs legal duties under the European
  Procurement Regulations

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Contract value triggers (Not PSPR)
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Non Competitive triggers (Not PSPR)
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Impact on Tier 2 and lower tiers

• Only new obligation is to accept the new
  flowdowns and to pass them down to your
  contractors.

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Flowdowns

• Flowdowns exist between the Tier 1 and their
  lower tiers
• There are 2 forms of flowdowns
• Mandatory
• Reasonable Endeavours
• The vast majority of flowdowns already exist in
  the normal TCs of the Tier 1s e.g. comply
  with applicable Law, Termination for
  convenience etc
• Contracts below 25k will not normally require
  any flowdowns

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Obligations on the NDA

• Utilise the highest standard of contracting
• Open and transparent processes
• Introduce and maximise competition
• Deliver best Value for Money for the taxpayer
• Act reasonably at all times
• Act predictably and consistently at all times
• Approve well conceived proposals

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Tier 1 Contract information

• BNG and UKAEA websites
• Procurement plan
• Contracting Officers from BNG and UKAEA
• Supply Chain Ombudsman
• If all else fails NDA Contract Managers
• Interested in Facts not anecdotes

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In conclusion

• NDA marks a major change for the UK nuclear
  industry
• We face many challenges
• Presents huge opportunities
• NDA contractors
• The supply chain
• Local communities
• Stakeholders
• We are getting to grips with our inheritance

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www.nda.gov.uk