PIN 4 Provision of Operation, Maintenance & Management of CHPP & Boiler Park

Description

The publication of this Prior Information Notice (PIN), issue of a briefing paper, draft Tender Safety Assessment (TSA), draft Terms and Conditions and follow up market engagement one to one sessions is to inform the market on two of the key documents that will form part of the upcoming tender, specifically the TSA - requirements that the chosen Contractor will be required to meet, and the framework Terms and Conditions. Building on previous market engagement events for Sellafield Ltd.'s proposal for future contract opportunity for the Operation, Maintenance and Management (OM&M) for the Fellside Combined Heat and Power Plant (CHPP), and Boiler Park (BP), collectively known as the "Fellside Site". The aim is to facilitate discussions with the market regarding the Fellside OM&M arrangements. Sellafield Ltd is keen to introduce the upcoming contract opportunity and engage with suppliers with experience of similar operations. Sellafield Ltd would like to understand the market's position on the TSA and the Terms & Conditions and whether either of them represents a dis-incentive to participate in the competition in their current form. The Contract Opportunity is for an initial duration of six years with Sellafield Ltd having an option to extend for up to two further years. The estimated value of the maximum 8-year contract term is £128,000,000. Sellafield Ltd anticipates the competition commencing in early December 2023, when a contract notice will be published, and with service delivery expected to in mid-2025. 1. The issue of the Prior Information Notice on 20th October 2023. To access the briefing paper, draft Tender Safety Assessment (TSA) and draft Terms and Conditions suppliers should use the Atamis Procurement Portal Welcome (site.com) once there click View our Live Opportunities and search for C16727. Since 1993 the Fellside Combined Heat and Power Plant's (CHPP) primary role is the production of steam to the Sellafield site, the plant has a secondary role in the production of electricity to be exported to the National Grid. The CHPP is now an ageing fragile facility operating beyond its design life. The site comprises an existing Gas Turbine unit (GT1) and its associated ancillary equipment which have been in operation since 1993 and are expected to continue operating until 2030. The generation of steam is supplemented by 4 boilers in the Fellside Boiler Park. The boilers are expected to be operational until 2045. The duration of the agreement is six years with an option to extend for up to two years. The current expectation is that the agreement will start mid-2025 and operate to mid-2031 (six years) or mid 2033 (eight years). The scope of the agreement will include a period of combined Gas Turbine and Boiler operations up to 2030 and then boiler only to 2031. There is an opportunity that Gas Turbine and Boiler operations may be extended to 2032.