Provision of Operating, Maintenance and Management Support Services

Concepts

• provision of operating, maintenance and management support services
• provision of operating
• power plant
• seascale
• maintenance
• management support services
• steam turbine generator
• steam turbines
• gas turbines
• steam generating boilers

Location

West Cumbria: Sellafield

Description

Provision of Operating, Maintenance and Management Support Services

Award Detail

Award Criteria

CPV Codes

• 65410000 - Operation of a power plant
• 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

Legal Justification

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.

Other Information

** PREVIEW NOTICE, please check Find a Tender for full details. **