Losing bidder in competition for 拢7bn Magnox contract mounts legal challenge to the way contract race was run
One of the firms that lost out on a 拢7bn nuclear decommissioning contract has launched a legal challenge over the way the competition was run.
US company Energy Solutions, which held the previous contract to run the decommissioning of the UK鈥檚 Magnox nuclear sites, lost out in the race for the new 拢7bn nuclear clean-up contract, which was awarded last month to a consortium of Babcock subsidiary Cavendish Nuclear and Fluor Corporation.
The winning team set to run the Nuclear Decommissioning Authority (NDA) programme for 14 years from September this year.
The contract is one of the largest government contracts put out to tender and is one of the biggest single contracts in UK construction.
The decommissioning programme includes work across 12 of the UK鈥檚 25 nuclear sites, including old reactor sites at Hinkley, Sizewell and Dungeness.
The Babcock-led team beat off competition from three other bidding teams: CH2M Hill, Areva and Serco; Amec, Atkins and Rolls Royce; and Energy Solutions, which teamed up with Bechtel in a joint venture called Reactor Site Solutions
It is understood that Energy Solutions has now challenged the way the procurement was run, claiming in the Technology and Construction Court that the competition was not run in compliance with UK procurement regulations.
Energy Solutions had been teamed with Bechtel in its bid, in a joint venture called Reactor Site Solutions, but Bechtel is not participating in the legal challenge.
A spokesperson for Bechtel said: 鈥淲e are in different commercial circumstances, Bechtel has not joined Energy Solutions in their legal challenge.
鈥淏echtel stands fully behind the thorough and realistic tender from Reactor Site Solutions for Magnox/RSRL, and we respect Energy Solutions鈥� right to independently seek legal redress.鈥�
Energy Solutions declined to comment.
A spokesperson for the NDA said it 鈥渞emains confident that the competition process was carried out in a robust manner in compliance with EU guidelines鈥�.
Under the UK鈥檚 nuclear decommissioning programme the NDA, which has ultimate responsibility for the decommissioning of the UK鈥檚 legacy nuclear sites, lets contracts for private firms to run the programmes sites in order to bring in expertise.
Last autumn, it extended the contract to run its most complex site at Sellafield, held by URS, Areva and Amec, for five years despite criticism from MPs of the way the consortium had run the programme since it was first awarded the job in 2008.
There has been a series of overruns and cost hikes on projects at the site since 2008.
The Public Accounts Committee later said the decision to extend NMP鈥檚 contract was 鈥渜uestionable鈥�.
One of the bidders that lost out on a 拢7bn nuclear decommissioning contract has launched a legal challenge over the way the competition was run.
Incumbent bidder Energy Solutions lost out in a race for the 拢7bn contract to run the decommissioning of the UK鈥檚 Magnox nuclear sites last month.
It was beaten by a consortium of Babcock subsidiary Cavendish Nuclear and Fluor Corporation in the race, which was run by the Nuclear Decommissioning Authority (NDA).
The winning bidder is set to run the programme for 14 years from September this year.
黑洞社区 understands that Energy Solutions has now challenged the way the procurement was run.
It is claiming that the competition was not run in compliance with UK procurement regulations.
Energy Solutions had been teamed with Bechtel in its bid, in a joint venture called Reactor Site Solutions, but Bechtel is not participating in the legal challenge.
A spokesperson for Bechtel said: 鈥淲e are in different commercial circumstances, Bechtel has not joined EnergySolutions in their legal challenge. Bechtel stands fully behind the thorough and realistic tender from Reactor Site Solutions for Magnox/RSRL, and we respect EnergySolutions鈥� right to independently seek legal redress.鈥�
The NDA has been contacted for comment.
As well as the Reactor Site Solutions team, two other teams - one comprising CH2M Hill, Areva and Serco and the other including Amec, Atkins and Rolls Royce - were also in the running for the contract.
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