The UK Nuclear Decommissioning Authority suffered from “optimism bias” that skewed procurement policy and led to failures when awarding the Magnox decommissioning contract, according to an inquiry. The contract to decommission the ageing Magnox sites was originally intended to last 14 years, but ended when unsuccessful firms launched legal challenges. Steve Holliday, a former CEO of National Grid, was asked in 2017 by then business secretary Greg Clark to begin an enquiry into the contract to clean up 12 UK nuclear sites, which ended up costing the taxpayer £122m. Tender documentation was criticised for being “unnecessarily complex”, containing 700 scoring requirements, many of which required extensive responses – leading to high risk of human error. Throughout the procurement process the NDA’s approach was “indicative of a reluctance to entertain bad news”, which led it to underestimate the possibility of legal challenge.
Supply Management 22nd March 2021 read more »