Section one: Contracting authority
one.1) Name and addresses
Sellafield Limited
Calder Bridge
Seascale
CA20 1PG
Contact
Justin Beattie
justin.beattie@sellafieldsites.com
Telephone
+44 1946772993
Country
United Kingdom
Region code
UKD11 - West Cumbria
National registration number
1002607
Internet address(es)
Main address
https://www.gov.uk/government/organisations/sellafield-ltd
Buyer's address
https://www.gov.uk/government/organisations/sellafield-ltd
one.4) Type of the contracting authority
Body governed by public law
one.5) Main activity
Other activity
Nuclear
Section two: Object
two.1) Scope of the procurement
two.1.1) Title
Provision of Operating, Maintenance and Management Support Services
two.1.2) Main CPV code
- 65410000 - Operation of a power plant
two.1.3) Type of contract
Services
two.1.4) Short description
Provision of Operating, Maintenance and Management Support Services
two.1.6) Information about lots
This contract is divided into lots: No
two.1.7) Total value of the procurement (excluding VAT)
Value excluding VAT: £23,356,377
two.2) Description
two.2.2) Additional CPV code(s)
- 31124000 - Steam-turbine generator and related apparatus
- 42112100 - Steam turbines
- 42112300 - Gas turbines
- 42113100 - Parts of steam turbines
- 42162000 - Steam-generating boilers
- 42163000 - Steam generators
two.2.3) Place of performance
NUTS codes
- UKD11 - West Cumbria
Main site or place of performance
Sellafield
two.2.4) Description of the procurement
Provision of Operating, Maintenance and Management Support Services
two.2.5) Award criteria
Price
two.2.11) Information about options
Options: No
two.2.13) Information about European Union Funds
The procurement is related to a project and/or programme financed by European Union funds: No
Section four. Procedure
four.1) Description
four.1.1) Type of procedure
Award of a contract without prior publication of a call for competition in the cases listed below
- The procurement falls outside the scope of application of the regulations
Explanation:
The Combined Heat and Power Plant (CHP) situated at Fellside focusses on the safety critical function of providing steam to Sellafield site. CHP is an ageing fragile facility near the end of its design life. In or around August 2015 Sellafield undertook a review of current and future site steam requirements, concluding that future steam delivery for site operations would be via two Steam Generation Plants (SGP). Work on the construction of the SGP commenced in July 2015 and were due to be operational by 2021. SGP Project suffered delays resulting in the Operational Date for the SGP being revised to March 2023. CHP operations are required by SL until replacement or renewal of these facilities following which CHP will be wound down in preparation for decommissioning and demolition. The strategy from CHP to boiler only operations necessitated an extension of the contractual arrangements with the current CHP ops and maintenance provider until the SGP became operational.
This contract award represents the enactment of the optional one year extension to the contract announced in award notice 2021-482650 published on 31st August 2023. In the original notice Sellafield Ltd stated that as a result of the delays in the SGP a new contract with the existing operations and maintenance provider PX Limited had been entered into to safely ensure continued operations of CHP which, given the age of the facility requires ongoing significant care, repair and maintenance.
This contract includes undertaking key activities for plant upgrades to comply with Industrial Emissions Directive (2010/75/EU), and provision of care and maintenance of aged and obsolete equipment. It was intended that PX heavily involved in key transitional activities leading to full operations. It was determined that in the circumstances competition to deliver the services was absent for technical reasons and that, pursuant Regulation 32(2)(b)(II) of the Public Contracts Regulations 2015, Sellafield may award a contract to PX using the negotiated procedure without prior publication of a contract notice in the Find a Tender Service . In particular, based upon assessment of the market ,Sellafield considered that there was no practical alternative to continuing to engage PX to deliver steam and provide care, repair and maintenance services whilst migrating to a new system. Given, in particular, that PX is the only organisation with detailed understanding of CHP and Sellafield’s specific technical and operational requirements necessary to ensure safe and effective provision of services. Engaging a substitute provider during a transitional period would have carried very significant operational risks for Sellafield. Since awarding this contract Sellafield Ltd has had a further change in it steam strategy and has terminated the SGP Project. Sellafield intends to bring to the market the opportunity to operate and maintain the CHP.
four.1.8) Information about the Government Procurement Agreement (GPA)
The procurement is covered by the Government Procurement Agreement: Yes
Section five. Award of contract
A contract/lot is awarded: Yes
five.2) Award of contract
five.2.1) Date of conclusion of the contract
22 February 2023
five.2.2) Information about tenders
Number of tenders received: 1
The contract has been awarded to a group of economic operators: No
five.2.3) Name and address of the contractor
px Limited
PX House, Westpoint Road
Stockton on Tees
TS17 6BF
Telephone
+44 1642623000
Country
United Kingdom
NUTS code
- UKD3 - Greater Manchester
National registration number
04373756
The contractor is an SME
No
five.2.4) Information on value of contract/lot (excluding VAT)
Initial estimated total value of the contract/lot: £23,356,377
Total value of the contract/lot: £23,356,377
Section six. Complementary information
six.4) Procedures for review
six.4.1) Review body
Sellafield Limited
Calder Bridge
Seascale
CA20 1PG
Country
United Kingdom