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Contract Award Notice

Programme and Project Partners (PPP Project) Lot 4 — Final Tender

  • First published: 03 June 2019
  • Last modified: 03 June 2019
  • Version: N/A
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To record your interest or obtain additional information or documents please find instructions within the Full Notice Text. (NOTE: Contract Award Notices and Prior Information Notices do not normally require a response)

Contents

Summary

OCID:
Published by:
Sellafield Ltd
Authority ID:
AA0035
Publication date:
03 June 2019
Deadline date:
-
Notice type:
Contract Award Notice
Has documents:
No
Has SPD:
No
Has Carbon Reduction Plan:
N/A

Abstract

SL has engaged a Process Construction Partner with considerable construction management expertise in a regulated industry to contribute to major projects solutions and to manage and deliver the construction of major projects. In the early years these will be predominantly major projects with a process plant bias but this focus may change over time.

As regards the initial major projects, the Lot 4 Process Construction Partner will be the lead Construction Partner for the SCP project, whilst the Lot 3 Civils Construction Partner will be the lead Construction Partner for the SRP Project. For the construction element of the other major projects, SL anticipated that approximately 50 % will be led by the Lot 4 Partner. This proportion and the methodologies for the allocation of the construction elements of major projects were further developed in the ITN and post award as part of the comprehensive procurement plan for the PPP Partnership.

The Lot 4 and Lot 3 Partners will work collaboratively together (and with the other PPP Partners) to develop an integrated supply chain as part of the procurement plan for the PPP Partnership to deliver the portfolio of major projects.

The scope of Lot 4 comprises major projects and site-wide project delivery improvements.

Major projects:

Services in support of the delivery of these major projects individually and at a programme level will include but not be limited to:

— managing the procurement and delivery of all services, materials and equipment required to deliver the construction programme including the provision, integration, quality management and oversight of supply chain arrangements, also incorporating the use of existing SL supply chain arrangements (such as category management contracts) for the construction supply chain,

— managing the construction of major projects including:

— construction phase planning and associated logistics,

— on site construction, installation and commissioning including the management, inspection and quality assurance of these activities,

— supporting SL in its capacity as Intelligent customer in the commissioning of major projects,

— supporting the Lot 1 Partner in defining the delivery strategy for the major projects, including an overall acquisition strategy, cost estimates and delivery schedule development for the potential full portfolio of major projects, resource and capability planning,

— support to the Lot 1 and 2 Partners throughout the project lifecycle in regard to constructability reviews, value engineering and value management, to ensure the integration of construction consideration and expertise into all phases of a major project,

— supporting the PPP Partnership in developing and improving its construction arrangements through provision of expertise in construction methodology and benchmarking including design to support construction's phased delivery and appropriate modularisation, and

— supporting the Lot 1 and Lot 2 Partners in engaging with SL's EPO and programmes to develop the future major projects, deliver studies and develop the forward schedule of major projects.

As with the other Lot Partners, the Process Construction Partner will be required to work with the other PPP Partners (i.e. the Lot Partners and Sellafield Ltd) to develop an aligned delivery culture for the PPP Partnership. SL will also make available people from within its organisation to work within the PPP Partnership (as the ‘5th Partner’) to support the Lot Partners in the delivery of their respective services and works (see MOI).

Site-Wide Project Delivery Improvements:

Site-Wide Project Delivery Improvements will include but not be limited to (alongside the Lot 3 Partner): leading business improvements such as lean construction techniques, access services, logistics etc; and the provision of construction management professionals to support SL on non-major projects.

Full notice text

Contract award notice

Results of the procurement procedure

Section I: Contracting entity

I.1) Name and addresses

Sellafield Ltd

01002607

Hinton House

Warrington

WA3 6GR

UK

Contact person: Tim Smith

Telephone: +44 1925833433

E-mail: Tim.z.smith@sellafieldsites.com

NUTS: UK

Internet address(es)

Main address: https://www.gov.uk/government/case-studies/shared-services-alliance-ssa-for-nuclear-decommissioning-estate

Address of the buyer profile: https://sharedsystems.eu-supply.com/ctm/Company/CompanyInformation/Index/3510

I.4) Type of the contracting authority

Body governed by public law

I.5) Main activity

Other: Nuclear Decommissioning

Section II: Object

II.1) Scope of the procurement

II.1.1) Title

Programme and Project Partners (PPP Project) Lot 4 — Final Tender

Reference number: 10019

II.1.2) Main CPV code

71000000

 

II.1.3) Type of contract

Services

II.1.4) Short description

Sellafield Ltd (‘SL’) has brought together 4 partners (‘Lot Partners’) to collaborate with one another and with SL to deliver the portfolio of major projects SL is expected to deliver under its Site Licence obligations over the next 20 years. In delivering this portfolio of major projects, SL will use the expertise of these Lot Partners to help improve the outcomes of major projects (e.g. delivery to time, to budget), to help develop its internal delivery capabilities (e.g. design and engineering capability) and to bring about site-wide project delivery improvements.

The award of this contract is made with reference to the original contract notice 2017/S 085-165752 and relates to the award of a contract for the Lot 4 Process Construction Partner. Details of the associated contracts for Lot 1, 2 and 3 of the PPP Partnership are set out under separate contract award notices.

II.1.6) Information about lots

This contract is divided into lots: No

II.1.7) Total value of the procurement

Value excluding VAT: 1 500 000 000.00  GBP

II.2) Description

II.2.2) Additional CPV code(s)

45000000

45200000

45213250

45222100

45222110

66140000

71240000

71242000

71243000

71244000

71245000

71300000

71310000

71311000

71311100

71320000

71321000

71322000

71322100

71323000

71324000

71330000

71340000

71350000

71540000

71541000

72224000

79410000

79421000

79994000

II.2.3) Place of performance

NUTS code:

UK


Main site or place of performance:

Warrington.

II.2.4) Description of the procurement

SL has engaged a Process Construction Partner with considerable construction management expertise in a regulated industry to contribute to major projects solutions and to manage and deliver the construction of major projects. In the early years these will be predominantly major projects with a process plant bias but this focus may change over time.

As regards the initial major projects, the Lot 4 Process Construction Partner will be the lead Construction Partner for the SCP project, whilst the Lot 3 Civils Construction Partner will be the lead Construction Partner for the SRP Project. For the construction element of the other major projects, SL anticipated that approximately 50 % will be led by the Lot 4 Partner. This proportion and the methodologies for the allocation of the construction elements of major projects were further developed in the ITN and post award as part of the comprehensive procurement plan for the PPP Partnership.

The Lot 4 and Lot 3 Partners will work collaboratively together (and with the other PPP Partners) to develop an integrated supply chain as part of the procurement plan for the PPP Partnership to deliver the portfolio of major projects.

The scope of Lot 4 comprises major projects and site-wide project delivery improvements.

Major projects:

Services in support of the delivery of these major projects individually and at a programme level will include but not be limited to:

— managing the procurement and delivery of all services, materials and equipment required to deliver the construction programme including the provision, integration, quality management and oversight of supply chain arrangements, also incorporating the use of existing SL supply chain arrangements (such as category management contracts) for the construction supply chain,

— managing the construction of major projects including:

— construction phase planning and associated logistics,

— on site construction, installation and commissioning including the management, inspection and quality assurance of these activities,

— supporting SL in its capacity as Intelligent customer in the commissioning of major projects,

— supporting the Lot 1 Partner in defining the delivery strategy for the major projects, including an overall acquisition strategy, cost estimates and delivery schedule development for the potential full portfolio of major projects, resource and capability planning,

— support to the Lot 1 and 2 Partners throughout the project lifecycle in regard to constructability reviews, value engineering and value management, to ensure the integration of construction consideration and expertise into all phases of a major project,

— supporting the PPP Partnership in developing and improving its construction arrangements through provision of expertise in construction methodology and benchmarking including design to support construction's phased delivery and appropriate modularisation, and

— supporting the Lot 1 and Lot 2 Partners in engaging with SL's EPO and programmes to develop the future major projects, deliver studies and develop the forward schedule of major projects.

As with the other Lot Partners, the Process Construction Partner will be required to work with the other PPP Partners (i.e. the Lot Partners and Sellafield Ltd) to develop an aligned delivery culture for the PPP Partnership. SL will also make available people from within its organisation to work within the PPP Partnership (as the ‘5th Partner’) to support the Lot Partners in the delivery of their respective services and works (see MOI).

Site-Wide Project Delivery Improvements:

Site-Wide Project Delivery Improvements will include but not be limited to (alongside the Lot 3 Partner): leading business improvements such as lean construction techniques, access services, logistics etc; and the provision of construction management professionals to support SL on non-major projects.

II.2.5) Award criteria

Quality criterion: Quality / Weighting: 70 %

Cost criterion: Cost / Weighting: 30 %

II.2.11) Information about options

Options: No

II.2.13) Information about European Union funds

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

II.2.14) Additional information

See VI.3 ‘Additional Information’ re overall PPP Project value. Lot 4 estimated value is between: 1 000 000 000 GBP—1 500 000 000 GBP over the next 20 years which represent the proportional scope of services of the Lot 4 Partner in the delivery of the PPP Project.

Section IV: Procedure

IV.1) Description

IV.1.1) Type of procedure

Competitive procedure with negotiation

IV.1.8) Information about Government Procurement Agreement (GPA)

The procurement is covered by the Government Procurement Agreement: Yes

IV.2) Administrative information

IV.2.1) Previous publication concerning this procedure

Notice number in the OJ S:

2017/S 085-165752

Section V: Award of contract

Contract No: 1

Title: PPP Lot 4 — Final Tender

A contract/lot is awarded: Yes

V.2 Award of contract

V.2.1) Date of conclusion of the contract

01/05/2019

V.2.2) Information about tenders

Number of tenders received: 3

Number of tenders received by electronic means: 3

The contract has been awarded to a group of economic operators: No

V.2.3) Name and address of the contractor

Doosan Babcock

839354

Crawley Business Quarter

Crawley

RH10 9AD

UK

NUTS: UK

The contractor is an SME: No

V.2.4) Information on value of the contract/lot (excluding VAT)

Total value of the contract/lot: : 1 500 000 000.00  GBP

V.2.5) Information about subcontracting

Section VI: Complementary information

VI.3) Additional information

The award of this contract is made with reference to the original Contract Notice 2017/S 085-165725 and relates to the award of a contract for the Lot 4 Civils Construction Partner. Details of the associated contracts for Lot 1, 2 and 3 of the PPP Partnership are set out under separate contract award notices.

SL estimated the value of the PPP Project to be between 3 000 000 000 GBP and 4 500 000 000 GBP based on the current identified scope (see MOI). The 7 000 000 000 GBP estimated value in the Contract Notice recognised the challenge of estimating the total value of a project with such longevity. It included the estimated value of each of the 4 Lots. The estimated value of the Lot 4 contract represents the proportional scope of services that the Lot 4 Partner is expected to undertake in the delivery of the PPP Project based on the current identified scope. These estimates are based on SL experience over the last decade and beyond, it also recognised the potential for change/increase in the value range attached to the current identified scope. Such changes could, for example arise out of changes in: UK nuclear strategy; SL Site strategy; costs; changes in technologies; and the operation and development of the PPP Partnership. Any and all such change/increase in value will require SL internal approvals and be subject to detailed project definition, as appropriate, in line with SL's gated project approval process. The duration of the PPP Project is currently stated to be 20 years. This duration coincides with the delivery of the last major project as currently envisaged in the portfolio of the major projects under the PPP Project. SL does not intend that a major project will be approved for delivery under the PPP Project if it has not reached the Detailed Design Gate in SL's Gated Process (see the MOI) by the end of the contract term. However, SL has reserved the right at its sole discretion to extend the duration of the PPP Project to enable completion of any major projects the delivery of which would extend beyond the end of year 20 of the PPP Project. Each of the Lot Partners have been appointed to carry out a specific role in the partnership (see descriptions above). For the PPP Project, SL will have 2 different and distinct roles: first and foremost, its role as intelligent client and intelligent customer; secondly its employees will take on roles within the delivery teams as the fifth delivery partner. Together, the 4 Lot Partners and SL employees (as a fifth PPP Partner) constitute the PPP Partners/the PPP Partnership. Each of the Lot Partners appointed pursuant to the PPP procurement process have entered into 2 arrangements with SL:

(i) a contract specific to each Lot Partner under which the Lot Partner will be required to provide the relevant services; and

(ii) an Aligned Incentive Agreement (‘AIA’) which is intended to motivate collaboration, aligned behaviours, etc., and to assist in delivering SL's longer term objectives for the PPP. Lot Partners are required to put in place subcontracting arrangements as necessary to deliver the PPP Project (the scope of which are included as part of this procurement process). Sub-contracting arrangements will not be subject to secondary competition via further EU contract notices. SL also has in place a range of existing site-wide Framework Agreements and contracts which may be utilised to fulfil those subcontracting requirements (see the MOI). Use of these existing arrangements will be for the PPP Partnership to determine together with SL and is expected to be most relevant for the Lot 3 and Lot 4 Partners. SL is committed to delivering improvements in social economics and requires the Lot Partners to actively contribute to the attainment of SL's social impact objectives (see MOI).

VI.4) Procedures for review

VI.4.1) Review body

N/a

London

UK

VI.4.2) Body responsible for mediation procedures

Royal Courts of Justice

Strand

London

WC2A 2LL

UK

Internet address(es)

URL: http://www.justice.gov.uk

VI.4.3) Review procedure

Precise information on deadline(s) for review procedures:

Precise information on deadline(s) for review procedures:

The minimum 10 calendar day standstill period from the date information on award of contract was communicated to tenderers has been observed, and has now lapsed. The requirements of the Public Contracts Regulations 2015 have been met. Any correspondence relating to this Contract Award Notice should be brought to the attention of Richard Lennard of SL at the address specified in Section I above.

VI.5) Date of dispatch of this notice

29/05/2019

Coding

Commodity categories

ID Title Parent category
71245000 Approval plans, working drawings and specifications Architectural, engineering and planning services
71000000 Architectural, construction, engineering and inspection services Construction and Real Estate
71240000 Architectural, engineering and planning services Architectural and related services
79410000 Business and management consultancy services Business and management consultancy and related services
71244000 Calculation of costs, monitoring of costs Architectural, engineering and planning services
71311000 Civil engineering consultancy services Consultative engineering and construction services
71311100 Civil engineering support services Civil engineering consultancy services
71540000 Construction management services Construction-related services
71541000 Construction project management services Construction management services
45000000 Construction work Construction and Real Estate
45213250 Construction work for industrial buildings Construction work for commercial buildings, warehouses and industrial buildings, buildings relating to transport
71310000 Consultative engineering and construction services Engineering services
79994000 Contract administration services Miscellaneous business-related services
71243000 Draft plans (systems and integration) Architectural, engineering and planning services
71320000 Engineering design services Engineering services
71321000 Engineering design services for mechanical and electrical installations for buildings Engineering design services
71322000 Engineering design services for the construction of civil engineering works Engineering design services
71300000 Engineering services Architectural, construction, engineering and inspection services
71323000 Engineering-design services for industrial process and production Engineering design services
71350000 Engineering-related scientific and technical services Engineering services
71340000 Integrated engineering services Engineering services
71330000 Miscellaneous engineering services Engineering services
66140000 Portfolio management services Banking and investment services
71242000 Project and design preparation, estimation of costs Architectural, engineering and planning services
72224000 Project management consultancy services Systems and technical consultancy services
79421000 Project-management services other than for construction work Management-related services
71324000 Quantity surveying services Engineering design services
71322100 Quantity surveying services for civil engineering works Engineering design services for the construction of civil engineering works
45222110 Waste disposal site construction work Construction work for engineering works except bridges, tunnels, shafts and subways
45222100 Waste-treatment plant construction work Construction work for engineering works except bridges, tunnels, shafts and subways
45200000 Works for complete or part construction and civil engineering work Construction work

Delivery locations

ID Description
100 UK - All

Alert region restrictions

The buyer has restricted the alert for this notice to suppliers based in the following regions.

ID Description
There are no alert restrictions for this notice.

About the buyer

Main contact:
Tim.z.smith@sellafieldsites.com
Admin contact:
N/a
Technical contact:
N/a
Other contact:
N/a

Further information

Date Details
No further information has been uploaded.

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