Sellafield Decommissioning Delivery Partnership

Sellafield Decommissioning Delivery Partnership

The subject of the DDP agreement is the accelerated reduction of hazard and risk at nuclear facilities with intolerable risks to public health and the environment.

United Kingdom-Seascale: Demolition, site preparation and clearance work

2014/S 125-221890

Contract notice

Works

Directive 2004/18/EC

Section I: Contracting authority

I.1)Name, addresses and contact point(s)

Sellafield Ltd
Sellafield, Cumbria
Contact point(s): Commercial
For the attention of: Rob Harries-Harris
CA201PG Seascale
UNITED KINGDOM
Telephone: +44 1946785170
E-mail: rob.harries-harries@sellafieldsites.com

Internet address(es):

General address of the contracting authority: http://www.sellafieldsites.com

Further information can be obtained from: The above mentioned contact point(s)

Specifications and additional documents (including documents for competitive dialogue and a dynamic purchasing system) can be obtained from: The above mentioned contact point(s)

Tenders or requests to participate must be sent to: The above mentioned contact point(s)

I.2)Type of the contracting authority

Body governed by public law

I.3)Main activity

Other: Nuclear Decommissioning

I.4)Contract award on behalf of other contracting authorities

The contracting authority is purchasing on behalf of other contracting authorities: no

Section II: Object of the contract

II.1)Description

II.1.1)Title attributed to the contract by the contracting authority:

CTM6714 – PP144462 – Decommissioning Delivery Partnership.

II.1.2)Type of contract and location of works, place of delivery or of performance

Works
Execution
Main site or location of works, place of delivery or of performance: Sellafield.

NUTS code UKD11

II.1.3)Information about a public contract, a framework agreement or a dynamic purchasing system (DPS)

The notice involves the establishment of a framework agreement

II.1.4)Information on framework agreement

Framework agreement with several operators
maximum number of participants to the framework agreement envisaged: 10

Duration of the framework agreement

Duration in years: 10
Justification for a framework agreement, the duration of which exceeds four years: It is Sellafield Ltd’s intention that the framework agreements to be let pursuant to this procurement should be for a 10 year term. The justification, amounting to exceptional circumstances, for exceeding the prescribed maximum 4 year duration under Regulation 19(10) of the Public Contracts Regulations 2006 is set out below.
SL will review performance under the framework agreements at the end of the mobilisation period (at the end of year 3). In the event that performance under any or all of the frameworks does not align with SL’s expectations then SL may choose to re-tender the DDP scope or part of it via OJEU. In that event the frameworks so affected will expire at the end of the initial 5 year term.
The subject of the DDP agreement is the accelerated reduction of hazard and risk at nuclear facilities with intolerable risks to public health and the environment.
Significant investments by several operators will be required in a number of areas.
SL also reserve the right to appoint reserve framework providers (as detailed Section VI.3 and Paragraph 4.13 of the PQQ) as operational framework providers in the event of insufficient capacity within the operational frameworks.
These include:
1.During the mobilisation phase,(up to 3 years to complete) contractors will be expected to work collaboratively with SL and other parts of the supply chain to analyse DDP programme demand and identify key resource constraints such as long lead-time plant and equipment together with early identification of shortages of critical people and skills. This analysis is expected to take 18-24 months to complete.
2.Once critical skill shortages have been identified, recruitment, training and development will commence. This will involve many new recruits to the nuclear industry, as well as existing employees. Recruitment of suitably qualified and experienced people is expected to present significant challenges. Recruitment of unqualified people will therefore be necessary followed by a period of training and on-job experience. Due to the intolerable consequences of poor workmanship associated with the nuclear environment, Sellafield requires exceptionally high standards of craftsmanship far in excess of that obtained through a normal 1-4 year apprenticeship. Resource acquisition is expected to take up to 4 years.
3.The precise scope of work is unpredictable and proven solutions cannot usually be defined and quantified. Instead, solutions are expected to come from iterative learning and the need to pool knowledge and expertise. This requires a partnering approach to the relationship between Sellafield, the DDP operators and the wider supply chain. Such relationships need to be based on stable, long term relationships, the establishment of which will demand significant time and investment, as well as adaptations to corporate policies and procedures in all parties to the agreement.
Therefore a minimum duration of ten years is necessary to:
— Mobilise (up to 3 years)
— establish a high-performing team (up to 4 years);
— generate the transformation and innovations necessary to meet the objectives of DDP; and
— allow SL and operators to obtain benefits from those investments.
A period of 4 years would be uneconomic for tenderers to make the required investment and would allow insufficient time to provide meaningful delivery on key, risk reduction projects. Indeed a period of any less than 10 years is unlikely to provide meaningful impact upon the accelerated reduction of hazard and risk programme for the reasons stated above.
This conclusion is strongly supported by research, carried out by Sellafield Limited in 2013, which asked circa 150 potential DDP suppliers “what is the optimum duration [for DDP]?” An agreement duration of at least 10 years was, by a factor of two, the most frequent response from the supply chain. Further questions established overwhelmingly that the supply chain considers this is justified for the reasons above.

Estimated total value of purchases for the entire duration of the framework agreement

Estimated value excluding VAT:
Range: between 600 000 000 and 1 500 000 000 GBP

II.1.5)Short description of the contract or purchase(s)

Sellafield wishes to establish a new set of framework agreements for works across the Sellafield site for decommissioning and related support activities.

II.1.6)Common procurement vocabulary (CPV)

451110004511110098391000

II.1.7)Information about Government Procurement Agreement (GPA)

The contract is covered by the Government Procurement Agreement (GPA): no

II.1.8)Lots

This contract is divided into lots: yes
Tenders may be submitted for one or more lots

II.1.9)Information about variants

Variants will be accepted: no
II.2)Quantity or scope of the contract

II.2.1)Total quantity or scope:

See the memorandum of information (Appendix A3 of the PQQ) for more information.
Estimated value excluding VAT:
Range: between 600 000 000 and 1 500 000 000 GBP

II.2.2)Information about options

Options: no
II.2.3)Information about renewals

II.3)Duration of the contract or time limit for completion

Duration in months: 120 (from the award of the contract)

Information about lots

Lot No: 1 Lot title: Decommissioning Delivery Partnership

1)Short description

Lot 1 – envisaged up to 8 framework providers, of which 4 are “operational framework providers” and 4 are “reserve framework providers”
Please see Memorandum of Information (Appendix A3 of PQQ) for further information.

2)Common procurement vocabulary (CPV)

451110004511110098391000

3)Quantity or scope

Please see Memorandum of Information (Appendix A3 of PQQ) for further information.
Estimated value excluding VAT:
Range: between 250 000 000 and 700 000 000 GBP

4)Indication about different date for duration of contract or starting/completion

Duration in months: 120 (from the award of the contract)

5)Additional information about lots

Please see Memorandum of Information (Appendix A3 of PQQ) for further information.

Lot No: 2 Lot title: Decommissioning Delivery Partnership

1)Short description

Lot 2 – single supplier framework arrangement
Please see Memorandum of Information (Appendix A3 of PQQ) for further information.

2)Common procurement vocabulary (CPV)

451110004511110098391000

3)Quantity or scope

Please see Memorandum of Information (Appendix A3 of PQQ) for further information.
Estimated value excluding VAT:
Range: between 250 000 000 and 500 000 000 GBP

4)Indication about different date for duration of contract or starting/completion

Duration in months: 120 (from the award of the contract)

5)Additional information about lots

Please see Memorandum of Information (Appendix A3 of PQQ) for further information.

Lot No: 3 Lot title: Decommissioning Delivery Partnership

1)Short description

Lot 3 – single supplier framework arrangement
Please see Memorandum of Information (Appendix A3 of PQQ) for further information.

2)Common procurement vocabulary (CPV)

451110004511110098391000

3)Quantity or scope

Please see Memorandum of Information (Appendix A3 of PQQ) for further information.
Estimated value excluding VAT:
Range: between 250 000 000 and 500 000 000 GBP

4)Indication about different date for duration of contract or starting/completion

Duration in months: 120 (from the award of the contract)

5)Additional information about lots

Please see Memorandum of Information (Appendix A3 of PQQ) for further information.

Section III: Legal, economic, financial and technical information

III.1)Conditions relating to the contract

III.1.1)Deposits and guarantees required:

Parent company guarantees may be required at Sellafield Ltd’s discretion

III.1.2)Main financing conditions and payment arrangements and/or reference to the relevant provisions governing them:

Payment terms will be as stated in Sellafield’s tender documents.

III.1.3)Legal form to be taken by the group of economic operators to whom the contract is to be awarded:

No legal form is required, but in the event of a group of contractors submitting an acceptable offer, it will be necessary to provide an undertaking that each company or firm will be jointly and severally responsible for the due performance of the contract.

III.1.4)Other particular conditions

The performance of the contract is subject to particular conditions: yes
Description of particular conditions: Tenderers will be required to provide information as requested via Sellafield Ltd’s CTM system or via the nominated Sellafield Ltd representative, details of which are set out in the future contract notice. These details will be a mandatory requirement for being eligible to participate in the tender.
III.2)Conditions for participation

III.2.1)Personal situation of economic operators, including requirements relating to enrolment on professional or trade registers

Information and formalities necessary for evaluating if the requirements are met: Information and formalities necessary for evaluating if requirements are met: Tenderers will be required to provide information as requested via Sellafield Ltd’s CTM system or via the nominated Sellafield Ltd representative, details of which are set out at section I.1 of this notice. These details are a mandatory requirement for being eligible to participate in the tender.

III.2.2)Economic and financial ability

Information and formalities necessary for evaluating if the requirements are met: Sellafield Ltd will not award frameworks where:
— Total net worth of supplier (plus parent) is less than the commercial impact of the assessed risk;
— Projected annualised value of the contracts to be placed under the framework is more than 50% of annual turnover;
— The supplier is generally held to be reliant upon SL business (in excess of 50% of annual turnover).
In the event of a group of contractors submitting an acceptable offer, and where undertakings provided that each company or firm will be jointly and severally responsible for the due performance of the contract, the above criteria will be used for in the aggregate, however SL reserves the right to require further undertakings where commercial or performance risk is reasonably assessed as “amber” or higher under the SL risk management process.

III.2.3)Technical capacity

Information and formalities necessary for evaluating if the requirements are met:
Information and formalities necessary for evaluating if requirements are met: Tenderers will be required to provide information as requested via Sellafield Ltd’s CTM system or via the nominated Sellafield Ltd representative, details of which are set out at section I.1 of this notice. These details are a mandatory requirement for being eligible to participate in the tender.
III.2.4)Information about reserved contracts
III.3)Conditions specific to services contracts

III.3.1)Information about a particular profession

Execution of the service is reserved to a particular profession: no
III.3.2)Staff responsible for the execution of the service

Section IV: Procedure

IV.1)Type of procedure

IV.1.1)Type of procedure

Restricted

IV.1.2)Limitations on the number of operators who will be invited to tender or to participate

Envisaged number of operators: 10
Objective criteria for choosing the limited number of candidates: Envisaged number of operators 10 –
— Lot 1 eight framework providers;
— Lot 2 one framework provider; and
— Lot 3 one framework provider.
In respect of those to be invited to tender, subject to Paragraph 4.9 of the PQQ:
Lot 1 – twelve (12) Candidates will be invited to tender
Lot 2 – five (5) Candidates will be invited to tender
Lot 3 – five (5)Candidates will be invited to tender
IV.1.3)Reduction of the number of operators during the negotiation or dialogue
IV.2)Award criteria

IV.2.1)Award criteria

The most economically advantageous tender in terms of the criteria stated in the specifications, in the invitation to tender or to negotiate or in the descriptive document

IV.2.2)Information about electronic auction

An electronic auction will be used: no
IV.3)Administrative information

IV.3.1)File reference number attributed by the contracting authority:

CTM4462 Decomissioning Delivery Partnership

IV.3.2)Previous publication(s) concerning the same contract

no

IV.3.3)Conditions for obtaining specifications and additional documents or descriptive document

Payable documents: no

IV.3.4)Time limit for receipt of tenders or requests to participate

18.8.2014 – 12:00
IV.3.5)Date of dispatch of invitations to tender or to participate to selected candidates

IV.3.6)Language(s) in which tenders or requests to participate may be drawn up

English.
IV.3.7)Minimum time frame during which the tenderer must maintain the tender
IV.3.8)Conditions for opening of tenders

Section VI: Complementary information

VI.1)Information about recurrence

This is a recurrent procurement: no

VI.2)Information about European Union funds

The contract is related to a project and/or programme financed by European Union funds: no

VI.3)Additional information

Tenderers must register their interest, obtain further information for this contract and submit their tender response via Sellafield Ltd’s CTM system which can be found at the following address

https://sharedsystems.eu-supply.com/login.asp?B=SELLAFIELD&target=&timeout=

Initial registration of your company is achieved by using the above site and then clicking on Company Registration.
For guidance on using/registering for CTM please access the training pages from Sellafield Ltd’s website which can be found at the following address

http://www.sellafieldsites.com/

Use of CTM is not a qualification criterion but is Sellafield Ltd’s preferred method for submissions. Further details can be obtained regarding this contract and/or CTM through the nominated Sellafield Ltd representative detailed in this notice.
Information on Framework Agreement:
Lot 1 – envisaged up to 8 framework providers, of which 4 are “operational framework providers” and 4 are “reserve framework providers” – see the attached Memorandum of Information (MoI) for further information.
Lot 2 – single supplier framework arrangement
Lot 3 – single supplier framework arrangement
Maximum number of participants to the framework envisaged 10
Within Lots 2 and 3, one (1) award will be made for Lot 2; and one (1) award for Lot 3. No candidate will be awarded both Lot 2 and Lot 3.
The justification for this is:
— to ensure there is sufficient available resource for each of Lots 2 and 3;
— to lessen the impact of non- or sub-standard performance of one contractor;
— not to be overly reliant upon particular contractors or consortia;
— to ensure maximum resource availability when relying upon providers from other Lots (see Paragraph 1.5.4 of the MoI);
— to avoid a position of dominance or unreasonable influence of one contractor or consortia within DDP.
There is no restriction on a candidate winning an award under Lot 1 and either Lot 2 or Lot 3.
Packages of work will typically be allocated within each Lot.
However Lots should not be seen as strictly limited to specific operational areas, although they will tend to be focused on those areas as outlined in the PQQ. It is envisaged that exceptionally framework providers within one Lot may be required to support the requirements of another Lot or that a framework provider has particular skills that are required in a Lot in which they are not an awarded framework provider. Further detail can be found in Paragraph 1.5.4 of the MoI and at para 4.13 within the PQQ document. Call-off award criteria (which will be fully detailed in the invitation to tender) shall include but not be limited to past performance and behaviours in delivering DDP.
Duration of the framework agreement
Duration in year(s) 10
Estimated total value of purchases for the entire duration of the framework agreement:
Estimates for the value of DDP base scope have been extrapolated from the values of existing arrangements and projected spend. Additional spend under DDP is likely to be generated by other SL operating units, including Calder. The base estimate for total spend under all DDP Lots is £800M.
Due to the assumptions underlying these calculations, as well as variable past CPI performance, significant uncertainty must be attached to this estimate. Based upon past experience and estimating as accurately as possible provides a probable variance of ±25% . This gives the maximum estimated base-scope spend under DDP as £1Bn and the minimum £600M.
The DDP scope is sufficiently broad to includes all elements of typical EPC projects carried out at Sellafield site. DDP scope therefore provides a viable alternative for EPC project delivery where the frameworks and the framework providers are suitably established and resourced to provide a suitable and robust delivery route for the EPC projects under consideration. The value of such EPC work, as well as other potentially emergent, albeit uncertain work within the DDP scope, may amount up to an additional £500M to be placed over the 10 year period across all Lots and which has been included within the OJEU Contract Notice, the total value of which has been set at £1.5Bn.
Interested parties should note that the likely scope of work under DDP remains valued at £1Bn, as described above. If any contingency is required over £1Bn, this will be approved on a case-by-case basis, up to the maximum stated sum of £1.5Bn.
The successful tenderer may be required to actively participate in the achievement of social and/ or economic policy objectives relating to recruitment, training, employment opportunities and supply-chain initiatives. Accordingly, selection criteria, award criteria and/or contract performance conditions may relate to these issues and further details can be found in the PQQ, MoI and ITT in that respect.

VI.4)Procedures for appeal

VI.4.1)Body responsible for appeal procedures

Sellafield Ltd
Banna Court, Ingwell Drive, Westlakes Science Park
CA24 3HW Moor Row, Cumbria
UNITED KINGDOM
E-mail: ro.harries-harris@sellafieldsites.com
Internet address: http://www.sellafieldsites.com

Body responsible for mediation procedures

London Court of International Arbitration
70 Fleet Street
EC4 1EU London
UNITED KINGDOM
E-mail: lcia@lcia.org
Telephone: +44 2079367007
Fax: +44 2079367008

VI.4.2)Lodging of appeals

Precise information on deadline(s) for lodging appeals: Precise information on deadline(s) for lodging appeals: The Deadline for lodging an appeal shall be in accordance with the provisions of regulation 32 of the Public Contracts Regulations 2006 (S.I 2006 No.5).

VI.4.3)Service from which information about the lodging of appeals may be obtained

As VI.4.1
UNITED KINGDOM

VI.5)Date of dispatch of this notice:

30.6.2014

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