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Terminating the Magnox contract

In September 2014, the Nuclear Decommissioning Authority (NDA) awarded the 14-year contract to manage the decommissioning of two nuclear research sites and 10 Magnox sites to Cavendish Fluor Partnership (CFP). In July 2016, the High Court ruled that the NDA had wrongly decided the outcome of the procurement process. In October 2017 we reported that the failed Magnox contract had cost the taxpayer over £122 million by the time it was announced it was to be terminated.

In 2018, the Committee of Public Accounts (the Committee) published a critical report and recommended that the NDA improve:

  • its understanding of the state of the sites;
  • its ability to monitor work carried out on them; and
  • the capability and expertise of its executive team.

This report follows up on our previous work by assessing the NDA’s progress in these areas and its performance in managing the re-negotiated contract using the contractual levers it had available. We are assessing performance against contract targets and considering the effectiveness of NDA oversight.