UK Cancels $7.7 Billion Nuclear Decommissioning Contract, Will Rebid Work
Disputed 2014 contract was subject of legal challenge
The U.K. Nuclear Decommissioning Authority will cancel a 14-year contract worth about $7.7 billion awarded in 2014 and pay over $122 million compensation to the U.S.-based consortium that failed to win the contract. The government has launched an investigation into the whole procurement process for the decommissioning of 12 Magnox commercial and research plants.
Salt Lake City-based Energy Solutions Inc. will receive around $107 million compensation and its joint venture partner Bechtel Inc., San Francisco, is to get approximately $15.7 million. At the same time, NDA has ended its defense against a legal challenge launched by the two firms against the initial contract award in September 2014 to the Cavendish Fluor Partnership (CFP).
According to the NDA, the award was considered flawed because the real scope of work turned out to be significantly different from that on which the original contract was based. The termination implies no criticism of CFP or its work, says Energy Secretary Greg Clark. CFP is a joint venture of Cavendish Nuclear, a subsidiary of Charlotte, N.C.-based Babcock International Group plc., and Irving, Texas-based Fluor Inc.
NDA says it will rebid the decommissioning work. The existing contract will remain in place until 2019.
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