Source · National Audit Office

Progress report: Terminating the Magnox contract

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

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

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

Recommendation 1

Addressee: Nuclear Decommissioning Authority · Source location: Page 10, paragraph 16, point a

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.

Response position: Accepted

Delivery: Implemented · Q3 2021-22 · Confirmed by NAO

Recommendation 2

Addressee: Nuclear Decommissioning Authority · Source location: Page 10, paragraph 16, point b

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;

Response position: Accepted

Delivery: Implemented · Q4 2022-23 · Confirmed by NAO

Recommendation 3

Addressee: Nuclear Decommissioning Authority · Source location: Page 10, paragraph 16, point c

c) ensure that its subsidiaries have the capability to design and manage complex contracts; and

Response position: Accepted

Delivery: Implemented · Q4 2022-23 · Confirmed by NAO

Recommendation 4

Addressee: Nuclear Decommissioning Authority · Source location: Page 10, paragraph 16, point d

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.

Response position: Accepted

Delivery: Implemented · Q4 2022-23 · Confirmed by NAO

Recommendation 5

Addressee: Nuclear Decommissioning Authority · Source location: Page 10, paragraph 16, point e

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

Response position: Accepted

Delivery: Implemented · Q4 2022-23 · Confirmed by NAO

Recommendation 6

Addressee: Nuclear Decommissioning Authority · Source location: Page 10, paragraph 16, point f

f) through increased knowledge and experience, work to reduce uncertainty around the cost of future decommissioning work.

Response position: Accepted

Delivery: Implemented · Q4 2022-23 · Confirmed by NAO