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Sellafield Ltd selects preferred delivery partner for potential £1.1 billion contract

Sellafield Ltd selects preferred delivery partner for potential £1.1 billion contract

Sellafield Ltd has selected Morgan Sindall and Arup in joint venture as its preferred delivery partner for a potential £1.1 billion contract to provide a range of essential infrastructure asset services to the Sellafield site.

The Infrastructure Strategic Alliance (ISA) is designed to augment the current Sellafield Ltd capability with the best the supply chain has to offer to help the company deliver its mission quicker and more efficiently whilst offering better value to the taxpayer.

The contract with Morgan Sindall and Arup, expected to be signed later in the year, will run for an initial five year period but could be extended for a further 10 years.

Working in close partnership with Sellafield Ltd, the organisations will deliver a programme management and project delivery service for all infrastructure assets, primarily targeted at utility assets such as:

• Steam generation and on-site distribution;
• Electricity generation and on-site distribution;
• Water supply to site and on-site distribution;
• Compressed air generation and distribution;
• Bulk chemical storage and distribution;
• Civil infrastructure supporting pipes and cables;
• Drainage network and sewerage treatment plant;
• Roads, bridges and car parks;
• General building facilities such as canteens and laundry.

However, the scope of work will also include non-utility assets such as:

• Analytical services facilities;
• Transport systems including road and rail;
• Flask maintenance plant;
• and Emergency Management Systems.

The ISA is the second in a series of long-term contracts that will be let by Sellafield Ltd under a new acquisition strategy introduced by parent body Nuclear Management Partners.

Through the strategy, Sellafield Ltd will establish true alliance-style contracts with its suppliers as it undertakes the important task of cleaning up and decommissioning Europe’s most complex nuclear site.

The expectation is that by working collaboratively with major partners, Sellafield Ltd will be able to deliver greater quality more efficiently – while assuring industry leading safety performance.

The ISA arrangement is also intended to deliver significant benefits to the West Cumbrian community through such projects as an apprenticeship scheme to develop local talent and will offer opportunities for the local supply chain.

Morgan Sindall and Arup have a long and proven history of effective partnership working, which will be critical to providing the unparalleled levels of service they aim to deliver at Sellafield.

Morgan Sindall is currently working in joint venture on a £136 million construction contract to upgrade a section of the M62 to alleviate traffic congestion, and continues to work with National Grid on the £320 million West Midlands Gas Alliance to replace 2,800 kilometres of ageing gas mains. The company is also working in joint venture on East London’s Lee Tunnel, the capital’s deepest ever tunnel. Undertaken for Thames Water, it is a four mile tunnelling project set for completion in 2015.

Arup has been involved with industry leading alliances in collaboration with other partners to deliver infrastructure and utilities projects at St Pancras International Station, Heathrow, M6 Toll Road and the Forth Replacement Crossing.

Both firms are keen to bring best practice from other utilities and infrastructure programmes, with an emphasis on innovation in scheduling and technical processes.

Nuclear Management Partners’ Deputy Managing Director for Sellafield Ltd, George Beveridge, said: “We have set ourselves a number of challenging targets through our performance plan.

“Long term, collaborative alliances with supply chain partners represent best industry practice and it’s important that we seize that opportunity to unlock expertise and innovation and safely deliver our work programme quicker and more cost effectively.

“We’re confident that in Morgan Sindall and Arup, we have found a partner with a proven track record that will help us ensure that our infrastructure assets receive the best possible care.

“In addition, I am pleased to see that the partners have expressed a desire to work with our local supply chain to maximise opportunities through the ISA.”

Paul Smith, Chief Executive of Morgan Sindall Group plc, added: "We are delighted to have been selected as preferred Delivery Partner for the Sellafield ISA.

“This is both highly important and very exciting, and enables us to utilise many of our key strengths including mobilising and managing extensive teams, creating innovative solutions and delivering projects both safely and sustainably. It also allows us to employ the breadth of our considerable experience.

“Our appointment is central to our commitment to the wider Cumbria region.”

Jim Johnson, Arup Director, said: “This is a tremendous win for the team, but now the hard work really starts. This partnership will require everyone to pull together to ensure we deliver cost-effective, high quality work with absolutely zero compromise on safety.

“The good news is that we have a really good team in place, as well as many trusted and dependable local partners and contractors we can rely on throughout the supply chain. On that basis, I believe we are in an excellent position to deliver this ambitious programme successfully.”

Sean Balmer, Commercial Director for the site’s owner, the Nuclear Decommissioning Authority, commented: "Selection of the preferred partner represents a significant step forward in the NDA’s mission to deliver the safe, secure and cost-effective clean-up of the Sellafield site.

“The long term nature of this alliance introduces stability and predictability into the way work is carried out at Sellafield and provides a solid framework around which we can help build a stable and secure local supply chain, bringing significant benefits to the wider Cumbrian economy.

“Working collaboratively with partner organisations to harness the best skills and expertise available to accelerate the decommissioning of Sellafield is a key part of the NDA’s strategy.

“Both of these companies bring with them an impressive history of innovation in infrastructure management, which will help provide the expertise needed to ensure the long term care of a range of infrastructure assets at Sellafield that underpin our work on the site.”

ENDS:

Notes to News Editors:

1, For further information, contact the Sellafield Ltd media team on 019467 85842/85848 or 86227.

2, Sellafield Ltd is the company responsible for safely delivering decommissioning, reprocessing, nuclear waste management and fuel manufacturing activities on behalf of the site’s owner, the Nuclear Decommissioning Authority.
www.sellafieldsites.com

3, Nuclear Management Partners (NMP) is the Parent Body Organisation for Sellafield Ltd and brings together the global nuclear experience of American company URS, British company AMEC and French company Areva to deliver the safe acceleration of hazard and risk reduction across Sellafield Ltd. As the Parent Body Organisation for Sellafield Ltd, the NMP consortium is managing and operating the Sellafield site in West Cumbria, Capenhurst in Cheshire and the engineering design capability based at Risley in Warrington.

4, Morgan Sindall Group plc is a leading UK construction and regeneration group with revenue of over £2 billion and which operates through five divisions of construction and infrastructure, affordable housing, fit out, urban regeneration and investments.
www.morgansindall.com

5, Arup is the creative force at the heart of many of the world’s most prominent projects in the built environment and across industry. From more than 90 offices worldwide well over 10,000 Arup planners, designers, engineers and consultants deliver innovative projects across the world.
www.arup.com