Magnox and our supply chain working together for a better future Following months of global change ur key priorities decommissioning goal. for example – which will and challenge brought by the remain business In August 2020 the bring major project and Oalignment, Nuclear Decommissioning programme delivery and Covid-19 pandemic, at Magnox maximising value Authority (NDA) site remediation. delivery and professional announced its intention we are creating our “new norm”. excellence. And, in these to change the strategy We want to work We are moving, in a phased and times of change, one for decommissioning the with you, the supply thing is constant – our Magnox reactor sites from chain, to develop a safe manner, to mobilise physical number one priority is blanket deferral to site- strategy which could decommissioning, working with health and safety. This specific strategies, taking include longer term is the core of everything into account the unique partnerships as well as trusted suppliers and contractors. we do and we expect features of each site. provide opportunities for our supply chain to small and medium-sized operate to equally high We want to hear from enterprises (SMEs). standards. As a result suppliers, large and of the pandemic we small, about how we Please get in touch have added safety and can work together to – contact details are security measures for deliver greater value and available in this booklet. staff and contractors, efficiency for the UK I look forward to working and introduced ‘reset’ taxpayer while maintaining with you. training for people the highest standards of returning to sites. safety and environmental Kind regards performance. We are Despite challenges interested in innovative brought by the pandemic, solutions – technology, Paul Winkle work has been continuing partnering arrangements Chief Operating Officer towards achieving our and delivery models, Magnox Limited The Magnox story
Magnox is a wholly owned subsidiary of the NDA, a non-departmental Government organisation, which is responsible for the decommissioning and remediation of 12 nuclear licensed sites.
hese include 10 site-specific strategies Magnox reactor sites are Magnox reactor follows a review at all intended to be developed T sites plus the Magnox reactor sites. before the end of 2022. Harwell and Winfrith Increased costs and a research sites. The better understanding Magnox reactor sites are of lifecycle risks have all now defueled and at resulted in the intention various stages in their to adopt site-specific decommissioning journey. decommissioning The Magnox mission strategies, best suited Berkeley Bradwell Dungeness A is currently estimated to each individual site. to cost approximately £20 billion and will take The new programme will decades to complete. start at Trawsfynydd Site, with the intent to bring The NDA’s announcement forward dismantling of the of its intention to change two reactors. Site-specific from blanket deferral to strategies for the other Chapelcross Sizewell A Hunterston A Projected spend within programmes
Magnox funding levels tend to be between approximately £450 and £550 million per annum and typically we spend around 60 per cent of this in the supply chain.
Our biggest spend area during the last three years Asset management spend has remained fairly has been in construction with particular focus on constant over the three years, but we do anticipate demolition, asbestos and civil enabling works. This some growth in this area as assets continue to age trend looks set to continue. and need more attention.
Professional services has remained constant over the period, with continued support on engineering design Engineering is another large spend area, with and scoping, as well programme management support focus on consumables to support engineering such as project managers and project controls resource. maintenance, as well as health physics and While we are planning a ‘make versus buy’ assessment in waste containers. this area, in the short term the spend levels are unlikely to change considerably. Asset management
The graph below indicates spend across asset Asset care Utilities, statutory Facilities Asbestos / Access and projects services and management – & Insulation management (AM) for the financial years 2019 inspections soft, hard, catering – plant and to 2028, a projected spend of £230 million. and security equipment £104.3 million £53.9 million £36.7 million £35.6 million
Asbestos Cleaning and AM sub category spend by year 2019-2028 (£k) Asset care projects Business rates characterisation catering and monitoring £60,000 £60,000 £55,378 £55,162 £52,745 Grounds £49,501 £50,000 £50,000 Carbon reduction £46,162 Maintenance maintenance and Access solutions £43,745 scheme £40,501 £40,976 pest control £40,000 £40,000 Security system Transport £34,344 Minor works Utility supplies £30,649 maintenance maintenance £30,000 £27,637 £30,000 £25,164 Periodic Site £23,840 Safety Review £20,000 £17,976 £20,000 (PSSR) Lifting Systems Buildings and civils Plant spares £11,344 Operations and maintenance £10,000 £10,000 £7,649 £4,637 Lifting Equipment £2,164 £840 Regulations(LOLER) £- £- 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Ground leases Non-active laundry Modular buildings Facilities Management: Soft / Hard / Catering / Security Asset Care & Projects Utilities, Statutory Services & Inspections Metrology Electrical services Asbestos / Access and Insulation: Projected Total for Continued Reactor Dismantlement Plant & Equip Grand Total Active laundry Asset management (cont.)
The total projected spend identified in the five-year investment plan is approximately £70.7 million. This covers financial years 2019-20 to 2022-23. Hinkley Point A
Investment plan budget by asset type 2019-2023 (£k) he largest now in the quiescent care The asset management spend allocated and maintenance phase. procurement and supply is at Hinkley chain will focus on £25,000 £25,000 T £23,488 Point A (£19.4 million), Primary categories for providing solutions in civils Chapelcross (£10.7 spend are external fabric, and building fabric services £20,000 £20,000 million) and Sizewell A asbestos, security and and access and insulation (£10.0 million). No spend drainage systems. These projects that cannot be £15,000 £15,000 £10,893 has been allocated to account for 62 per cent of delivered through the Bradwell as the site is all asset investment spend. new framework. £10,000 £10,000
£5,459
£4,564 £5,000 £4,257 £5,000 £3,805 £3,540 £2,400 £2,164 £2,132 £1,922 £1,801 £1,278 £1,143 £893 £643 £115 £75 £65 £38 £- £-
N/A
Asbestos Fire System Minor Works Process Plant External Fabric Internal Fabric Legacy Scaffold Spring Hangers Lifting Systems Security Systems Drainage Systems Electrical Systems Heating & Ventilation Water & GasFire Systems & Communication Rad & Env Monitoring
Control & Instrumentation Reactor & Primary CircuitsPortable Plant & Machinery
BRK BRK CHX DNA HAR HNA HPA MSO Source: Asset Management 5 Year OLD SZA TRW WIN WYL Grand Total Investment Plan Sizewell A Waste
Below is a chart illustrating the waste programme Moving forward, the waste team strategy is aligned to the following six areas: anticipated spend from the financial year 2020 to 2028.
t is split into sub- depending on waste of appropriately. The current programmes, the streams, with contracts intermediate level waste (ILW) I larger areas being in place for supply. framework is due to expire containers which are in 2021 and options are used to store waste. The second of the larger currently under consideration Magnox has several areas of spend is fuel element for a replacement to address Simpler repeat projects Learning from Multiple interfaces due types of container debris (FED), which has to the remaining workscope experience to greater use of the supply chain – tier three currently in use be recovered and disposed within the waste programme. and below
Future Spend by Sub-Programme – Breakdown of £485m
Waste Projects Programme Management
Tube Stores
ILW Waste Enablers
Miscellaneous Contaminated Items
Sludge, Sand, and IX Resin
Conditioning Plant Operations Higher Activity Waste & Lower Activity Waste Greater portfolio of Technical change in the Greater demand from FED
Sub-Programme containers – more conditioning of waste the supply chain for Containers suppliers through the introduction a multi-disciplined, £0 £50 £100 £150 £200 £250 £300 of encapsulation – multi-skilled workforce Committed Earmarked New Procurement £m more suppliers Decommissioning Spend within the programme between
Decommissioning is split into five areas – plant and now and 2028 structures, site restoration, ponds and reactors and reactor dismantling. 160,000
he site restoration facilities. The reactors decommissioning, 140,000 programme programme carries out asbestos removal manages land the safe and effective and enablers T Other 120,000 quality issues across decommissioning of framework (DARE). Waste sites, remediating where reactors with a focus Asset Management required. It also looks on Harwell and Winfrith. The ponds work is mostly 100,000 IT at what the end-state There is also an intention complete or into its Engineering for each site will be. The to bring forward the final stages. Focus for Construction - other plant and structures decommissioning the decommissioning 80,000 Construction - ground works land remediation programme is responsible of the two reactors programme is moving to Construction - electrical, control for bulk asbestos removal, at Trawsfynydd. The plant and structures, as and instrumentation 60,000 Construction - civils deplant and demolition, deplanting, demolition sites complete deplanting Construction - demolition safe-store preparations and asbestos (DD&A) and waste retrieval works. Construction - asbestos and site closure framework is likely The programme’s critical 40,000 Characterisation work (infrastructure to be extended for a dependency relies on Professional Services improvements). The further year to 2022 to the replacement of the ponds programme aims allow time to tender a DDA framework so the 20,000 to safely, economically replacement agreement. remaining asbestos and and compliantly reduce The new framework will demolition works can be 0 the hazard of fuel storage cover a slightly different done without disrupting 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 ponds and similar scope and will be called the programme timeline. Magnox principle and One NDA approach
Our aim is to achieve value for money for the UK Maximise value delivery taxpayer while developing a resilient, diverse, ethical • Seek opportunities for value, recognising this could come from efficiencies, reduced hazard and social value as much as cash savings. and innovative supply chain. • Use larger frameworks where appropriate to harness skills of major supply chain partners, but recognising that smaller, specialist work packages may sit better with SMEs. Business alignment • Drive supplier relationship management for our more strategic contracts. • We shall collaborate across the NDA estate where value can be best • Ensure wider social issues are addressed such as sustainability, achieved, but will contract as a single entity where requirements are modern slavery and fraud prevention. Magnox specific. • Work with our local communities to develop a socio-economic agenda • Planning is key to helping the supply chain understand our business that works for all parties. and to maximise value opportunities. • Share contractual risk equitably. Professional Excellence • Ensure high standards of competence within the procurement function. • Adopt standard processes based on Government guidelines. • Share best practice and common processes across the NDA estate to make dealing with the NDA companies easier for the supply chain. • Improve our technology base to increase efficiency and make communication easier. • Magnox is an active partner in the NDA’s Project Victory, an NDA group-wide project to enhance our commercial IT systems capability (excluding Requisition to Pay). It will introduce an integrated suite of systems to manage the cradle to grave procurement and contract management, supply lifecycle of sourcing, market intelligence and supplier assurance. How we do business
Magnox does not operate a preferred supplier list and is governed by public contract regulations.
e use an the general principles monthly on our website, We operate a strict “no the report highlight our at any of our 12 sites, approach of non-discrimination, the detail contained purchase order, no pay” promptness in paying please contact our supply W based on the equal treatment and in the plan is subject policy. All invoices will need our suppliers and are team. The team can also value of the contract, transparency, to ensure to review to meet the a purchase order reference. expressed in percentage of answer questions about and whether an existing we provide value for needs of the business. Your procurement contact payments made within 30 working with Magnox. public sector framework money to the taxpayer. If you have questions should be able to supply this days and payments made can be used. Where regarding procurement if you do not already have it. in excess of 30 days. existing frameworks The Magnox Procurement opportunities and/or cannot be used, contract Plan details procurement contracts that have been We publish payment If your business has opportunities are opportunities at the awarded, please contact performance reports processes or engineering awarded through open Magnox sites over the the named point of on a six-monthly basis. technologies that could competition in line with next 12 months. Published contact in the plan. The figures included in support Magnox’s work
There are different ways to access contract opportunities with Magnox:
Framework contracts awarded by Crown Commercial Services (CCS): Magnox procures contracts through frameworks awarded by CCS or other procurement hubs which can be used by the wider public sector.
Complete Tender Management (CTM): Magnox and the other site licence companies within the NDA use CTM to advertise and manage all tendered opportunities. To use CTM you will need to register your company. Once registered on the system, you can use it to manage your tendering activities. Contact our supply chain team: [email protected] Lead team and their reports Supply Chain Managers
Head of Procurement and Supply Chain Nuclear and Operations Linda Sapsford Steve Watson [email protected] [email protected]
Head of Category Management Asset Management Michael Taylor Steve Lock and Paul Grant [email protected] [email protected] [email protected] Head of Procurement Policy and Process Anna Bourne Reactors [email protected] Jed Bonsor [email protected] Head of Procurement - Asset Management Waste Projects North Paul Walsh Ewan Davidson [email protected] [email protected]
Head of Procurement Delivery Waste Projects South (waste and decommissioning) Karen Maguire Steve Morris [email protected] [email protected] Plant and Structures North Alison Cowan [email protected]
Plant and Structures South Sarah Deeble [email protected]
Waste Operations Kevin Sheppard [email protected]