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Progress report: Terminating the Magnox contract

Published: 1 Oct 2020 Recommendations: 6 Type: Value for Money NAO confirmed: 6 Department: Department for Business, Energy & Industrial Strategy

This report examines the Nuclear Decommissioning Authority’s management of the renegotiated contract in place with Cavendish Fluor Partnership.

Dept: Department for Business, Energy & Industrial Strategy Topics: Business and industryCommercial and financial managementEducation, training and skillsFinancial sustainabilityFurther and higher educationRegulation nao.org.uk →

Recommendations

6 items
6 accepted 6 implemented
Rec Recommendation Addressee Acceptance Implementation
1
With specific reference to the Magnox contract the NDA should: a) expedite its work to review the standard of quality assurance processes for asbestos and consider whether it should recoup fees from CFP.
Ref Page 10, paragraph 16, point a · Implemented Q3 2021-22
Nuclear Decommissioning Authority Accepted Implemented ✓ NAO
2
With input from the Government Commercial Function, the NDA should: b) explore with its subsidiaries what contractual levers can be included in future contracts to support the timely and effective management of underperformance;
Ref Page 10, paragraph 16, point b · Implemented Q4 2022-23
Nuclear Decommissioning Authority Accepted Implemented ✓ NAO
3
c) ensure that its subsidiaries have the capability to design and manage complex contracts; and
Ref Page 10, paragraph 16, point c · Implemented Q4 2022-23
Nuclear Decommissioning Authority Accepted Implemented ✓ NAO
4
d) ensure that its subsidiaries have the capacity to test, challenge and validate supplier information in a timely way, maintaining assurance as a primary activity in the management and oversight of the work at all times.
Ref Page 10, paragraph 16, point d · Implemented Q4 2022-23
Nuclear Decommissioning Authority Accepted Implemented ✓ NAO
5
The NDA should also: e) as a priority, increase its understanding of the condition of its sites and the volume and complexity of remaining decommissioning work; and
Ref Page 10, paragraph 16, point e · Implemented Q4 2022-23
Nuclear Decommissioning Authority Accepted Implemented ✓ NAO
6
f) through increased knowledge and experience, work to reduce uncertainty around the cost of future decommissioning work.
Ref Page 10, paragraph 16, point f · Implemented Q4 2022-23
Nuclear Decommissioning Authority Accepted Implemented ✓ NAO