Sellafield Ltd

01002607

Hinton House

Warrington

WA3 6GR

UK

Contact person: Tim Smith

Telephone: +44 1925833433

E-mail: Tim.z.smith@sellafieldsites.com

Main address: https://www.gov.uk/government/case-studies/shared-services-alliance-ssa-for-nuclear-decommissioning-estate

Address of the buyer profile: https://sharedsystems.eu-supply.com/ctm/Company/CompanyInformation/Index/3510

Body governed by public law

Other activity:  Nuclear Decommissioning

Programme and Project Partners (PPP Project) Lot 3 - Final Tender

Reference number:  10018

Sellafield Ltd (‘SL’) has brought together four partners (‘Lot Partners’) to collaborate with one another and with SL to deliver the portfolio of Major Projects SL is expected to deliver under its Site Licence obligations over the next 20 years. In delivering this portfolio of Major Projects, SL will use the expertise of these Lot Partners to help improve the outcomes of Major Projects (e.g. delivery to time, to budget), to help develop its internal delivery capabilities (e.g. design and engineering capability) and to bring about Site-Wide Project Delivery Improvements.
The award of this contract is made with reference to the original contract notice 2017/S 085-165725 and relates to the award of a contract for the Lot 3 Civils Construction Partner. Details of the associated contracts for Lot 1, 2 and 4 of the PPP Partnership are set out under separate contract award notices.

Main site or place of performance:  

SL has engaged a Civils Construction Partner with considerable construction management expertise in a regulated industry to contribute to Major Projects solutions and to manage and deliver the construction of Major Projects. In the early years these will be predominantly Major Projects with a civil and structural works bias but this focus may change over time. It is anticipated that the Lot 3 Civils Construction Partner will be the lead Construction Partner for the SRP project, whilst the Lot 4 Process Construction Partner will be the lead Construction Partner for the SCP Project. For the construction element of the other Major Projects, SL anticipates that approximately 50% will be led by the Lot 3 Partner. This proportion and the methodologies for the allocation of the construction elements of Major Projects was further developed in the ITN and post award as part of the comprehensive procurement plan for the PPP Partnership.
The Lot 3 & Lot 4 Partners will work collaboratively together (and with the other Partners) to develop an integrated supply chain as part of the procurement plan for the PPP Partnership to deliver the portfolio of Major Projects.
The scope of Lot 3 comprises Major Projects and Site-Wide Project Delivery Improvements. These two elements are explained in more detail below.
Major Projects
Services in support of the delivery of these Major Projects individually and at a programme level will include but not be limited to:
— Managing the procurement and delivery of all services, materials and equipment required to deliver the construction programme including the provision, integration, quality management and oversight of supply chain arrangements, which shall also incorporate the use of existing SL supply chain arrangements (such as category management contracts) for the construction supply chain;
— Managing the construction of Major Projects including:
— construction phase planning and associated logistics;
— on site construction, installation and commissioning including the management, inspection and quality assurance of these activities;
— Supporting SL in its capacity as Intelligent Customer in the active commissioning of Major Projects;
— Supporting the Lot 1 Partner in defining the delivery strategy for the Major Projects, including an overall acquisition strategy, cost estimates and delivery schedule development for the potential full portfolio of Major Projects, and resource and capability planning;
— Support to the Lot 1 and 2 Partners throughout the project lifecycle in regard to constructability reviews, value engineering and value management, to ensure the integration of construction consideration and expertise into all phases of a Major Project;
— Supporting the PPP Partnership in developing and improving its construction arrangements through provision of expertise in construction methodology and benchmarking, including design to support construction's phased delivery and appropriate modularisation; and
— Supporting the Lot 1 and Lot 2 Partners in engaging with SL's EPO and programmes to develop the portfolio of future Major Projects, deliver studies and develop the forward schedule of Major Projects.
As with the other Lot Partners, the Civils Construction Partner will be required to work with the other PPP Partners (i.e. the Lot Partners and SL) to develop an aligned delivery culture for the PPP Partnership. SL will also make available people from within its organisation to work within the PPP Partnership (as the "5th Partner") to support the Lot Partners in the delivery of their respective services and works (see MOI).
Site-Wide Project Delivery Improvements
Site-Wide Project Delivery Improvements will include but not be limited to (alongside the Lot 4 Partner): leading business improvements such as lean construction techniques, access services, logistics etc; and the provision of construction management professionals to support SL on non-Major Projects.

Quality criterion  -  Name:  Quality  /  Weighting:  70%

Cost criterion  -  Name:  Cost  /  Weighting:  30%

See VI.3 ‘Additional Information’ re overall PPP Project value. Lot 3 Estimated Value is between: 1 000 000 000 GBP—1 500 000 000 GBP over the next 20 years which represent the proportional scope of services of the Lot 3 Partner in the delivery of the PPP Project.

Number of tenders received:  2

Morgan Sindall Construction and Infrastructure Ltd

04273754

Kent House,14-17 Market Place

London

W1W 8AJ

UK

Total value of the contract/lot:  1500000000.00  GBP

The award of this contract is made with reference to the original contract notice 2017/S 085-165725 and relates to the award of a contract for the Lot 3 Civils Construction Partner. Details of the associated contracts for Lot 1, 2 and 4 of the PPP Partnership are set out under separate contract award notices.
SL estimates the value of the PPP Project to be between 3 000 000 000 GBP and 4 500 000 000 GBP based on the current identified scope (see MOI). The 7 000 000 000 GBP estimated value in the Contract Notice recognised the challenge of estimating the total value of a project with such longevity. It includes the estimated value of each of the 4 Lots. The estimated value of the Lot 3 contract represents the proportional scope of services that the Lot 3 Partner is expected to undertake in the delivery of the PPP Project based on the current identified scope. These estimates are based on SL experience over the last decade and beyond, it also recognised the potential for change/increase in the value range attached to the current identified scope. Such changes could, for example arise out of changes in: UK nuclear strategy; SL Site strategy; costs; changes in technologies; and the operation and development of the PPP Partnership. Any and all such change/increase in value will require SL internal approvals and be subject to detailed project definition, as appropriate, in line with SL's gated project approval process. The duration of the PPP Project is currently stated to be 20 years. This duration coincides with the delivery of the last Major Project as currently envisaged in the portfolio of the Major Projects under the PPP Project. SL does not intend that a Major Project will be approved for delivery under the PPP Project if it has not reached the Detailed Design Gate in SL's Gated Process (see the MOI) by the end of the contract term. However, SL has reserved the right at its sole discretion to extend the duration of the PPP Project to enable completion of any Major Projects the delivery of which would extend beyond the end of year 20 of the PPP Project. Each of the Lot Partners have been appointed to carry out a specific role in the partnership (see descriptions above). For the PPP Project, SL will have two different and distinct roles: first and foremost, its role as Intelligent Client and Intelligent Customer; secondly its employees will take on roles within the delivery teams as the fifth delivery partner. Together, the 4 Lot Partners and SL employees (as a fifth PPP Partner) constitute the PPP Partners/the PPP Partnership. Each of the Lot Partners appointed pursuant to the PPP procurement process have entered into two arrangements with SL:(i) a contract specific to each Lot Partner under which the Lot Partner will be required to provide the relevant services; and (ii) an Aligned Incentive Agreement (‘AIA’) which is intended to motivate collaboration, aligned behaviours, etc. and to assist in delivering SL's longer term objectives for the PPP. Lot Partners are required to put in place subcontracting arrangements as necessary to deliver the PPP Project (the scope of which are included as part of this procurement process). Sub-contracting arrangements will not be subject to secondary competition via further EU contract notices. SL also has in place a range of existing site-wide framework agreements and contracts which may be utilised to fulfil those subcontracting requirements (see the MOI). Use of these existing arrangements will be for the PPP Partnership to determine together with SL and is expected to be most relevant for the Lot 3 and Lot 4 Partners. SL is committed to delivering improvements in social economics and requires the Lot Partners to actively contribute to the attainment of SL's social impact objectives (see MOI).

N/A

London

UK

Royal Courts of Justice

Strand

London

WC2A 2LL

UK

Internet address: http://www.justice.gov.uk

Precise information on deadline(s) for review procedures:
The minimum 10 calendar day standstill period from the date information on award of contract was communicated to tenderers has been observed, and has now lapsed. The requirements of the Public Contracts Regulations 2015 have been met. Any correspondence relating to this Contract Award Notice should be brought to the attention of Richard Lennard of SL at the address specified in Section I above.