Value for Money
Progress report: Terminating the Magnox contract
Published 1 October 2020
6 recommendations
Department for Business, Energy & Industrial Strategy
Business and industryCommercial and financial managementEducation, training and skillsFinancial sustainabilityFurther and higher educationRegulation
nao.org.uk
This report examines the Nuclear Decommissioning Authority’s management of the renegotiated contract in place with Cavendish Fluor Partnership.
Recommendations (6)
Source: NAO Recommendations Tracker
Nuclear Decommissioning Authority
Rec 1
Accepted
Implemented
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.
Nuclear Decommissioning Authority
Rec 2
Accepted
Implemented
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;
Nuclear Decommissioning Authority
Rec 3
Accepted
Implemented
c) ensure that its subsidiaries have the capability to design and manage complex contracts; and
Nuclear Decommissioning Authority
Rec 4
Accepted
Implemented
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.
Nuclear Decommissioning Authority
Rec 5
Accepted
Implemented
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
Nuclear Decommissioning Authority
Rec 6
Accepted
Implemented
f) through increased knowledge and experience, work to reduce uncertainty around the cost of future decommissioning work.