DESNZ UKNNL Framework · UK public procurement notice

Regulatory Justification

The award of this framework is justified under the following provision of the Procurement Act 2023:

• Paragraph 6 of Schedule 5–Technical Reasons

And further supported by:

• Paragraph 22 of Part 2 of Schedule 2–Research and Development Services
• Paragraph 2 of Schedule 5–Prototypes and Development

The following rationale demonstrates why the awarded Supplier, the United Kingdom National Nuclear Laboratory (“UKNNL”), is the only supplier that can meet the requirements of the framework and how the overarching framework’s requirements, as well as each of the service lines, are supported by the above justifications. As a framework, the nature of the services which may be commissioned through call-off contracts will vary. The justification for each call-off will compromise of some or all elements of the overarching direct award justification as set out in this notice.

Background

The Department for Energy Security and Net Zero (“DESNZ”) owns HM Government’s mission to make the UK a clean energy superpower by achieving clean power by 2030 and Net Zero by 2050. Nuclear Power is intended to play a critical role in achieving this mission through the provision of low carbon, baseload energy generation to a renewables-led power system in the UK. The UK is also a UN Permanent Five (P5) Nuclear Nation, which entails both domestic and international responsibilities for which DESNZ is the lead Department in delivering.

It is therefore critical that DESNZ is able to:

• Make effective, informed policy decisions
• Deliver an effective regulatory regime which supports the delivery of effective, safe and safeguarded nuclear energy generation in the UK and abroad;
• Collaborate with partners both international and domestic to ensure the UK promotes world-leading practices in the sector, supports effective international collaboration on nuclear matters and discharges its obligations as a nuclear state; and
• Work with the nuclear sector to enable the development of novel, innovative technologies.

Based on historic workload and future pipeline, there will be occasions where DESNZ does not have the specialist knowledge or capability in-house to deliver these responsibilities and will require highly specialist third party to enable the achievements of its objectives.

Overarching Framework Requirements

DESNZ requires support across three service lines which collectively constitute the scope of this framework:

• Research and Development
• Technical Managed Services–services critical to the functioning of the nuclear sector and/or DESNZ’s role; and
• Specialist Advisory Services–deep scientific, technical and/or engineering insight into complex matters in the nuclear sector for which DESNZ does not have the requisite capability, experience or insight.

State Control

Each of the above service lines require the supplier to ensure that:

• Resulting IP or knowledge assets remain in state control or should be distributed throughout the sector; and
• Research/advice must be market neutral and not seek commercial advantage.

It is therefore necessary that each of the service lines is delivered by a publicly owned supplier to satisfy the state-controlled IP and market neutrality requirements.

UKNNL are the only Government-owned and -operated organisation in the nuclear sector that can meet these conditions as well as the service line requirements of the framework.

Therefore, in line with Paragraph 6 of Schedule 5 of the Procurement Act 2023, UKNNL are the only supplier that can meet these requirements. A privately owned entity would have a fundamental character that is incompatible with the purpose of the requirement under the framework.

Service Line Requirements

• Research and Development

The undertaking of research and development projects into nationally significant capabilities and technologies relating to the production of Nuclear Energy.

Whilst the specific objectives of individual projects shall vary, it is anticipated that any research and development projects shall consist of one or more of the following:

• Research to acquire new scientific or technical knowledge without any particular application or use in view;
• Research directed mainly at the generating of scientific or technical knowledge for the purposes of a particular objective;
• Development which uses existing knowledge to initiate the manufacture of new materials or products, establish new processes, systems or services or to achieve a substantial improvement in existing materials, products, processes, systems or services; and
• The manufacture and testing of prototypes.

The subject matter of Research and Development call-offs are allowable exemptions for direct award under both Paragraph 22 of Part 2 of Schedule 2–Research and Development Services and Paragraph 2 of Schedule 5–Prototypes and Development.

• Technical Managed Services

Ownership and delivery of self-contained, end-to-end projects and/or programmes consisting of work packages including:

• Project management;
• Defining issues;
• Developing methodologies;
• Setting success criteria;
• Capturing processes and rationale;
• Undertaking research and managing experiments;
• Management of risk;
• Analysis of results; and
• Capturing outcomes and recommendations.

These managed services will be required in circumstances where:

• The level of technical and/or scientific expertise is beyond that held within DESNZ;
• access to and the maintenance of specialist assets, facilities or capabilities is required (such as those that require the operator to hold nuclear licences as provided by the Office for Nuclear Regulation); and/or
• DESNZ determines that it is inappropriate for either DESNZ itself or a private organisation to deliver a service due to inherent sensitivities, complexities or market impact considerations inherent in the service being delivered.

This may include Post-Irradiation Examination (“PIE”). PIE requires the capability and assets to enable the handling of highly irradiated materials. PIE is a critical service to the operation of UK domestic nuclear reactors and the functioning of the UK nuclear sector. DESNZ does not have the capability to deliver the service, nor would it be appropriate for it to do so. There is no competitive domestic market for PIE; UKNNL are the only organisation with the capability and ONR licence to deliver the service, doing so on commercial terms but in a market agnostic manner. It would be technically impossible for any other commercial entity to acquire the same licensing and develop and build the required facilities and specialist assets within any operationally relevant timeframe. The award of a contract to UKNNL through this framework to deliver PIE as a technical managed service on DESNZ’s behalf to third parties would therefore meet the conditions of Paragraph 6 of Schedule 5 of the Procurement Act 2023.

• Specialist Advisory Services

These services shall consist of the provision of advice, guidance, thought leadership and consultancy to DESNZ specifically relating to specialist technical and scientific nuclear matters that align with UKNNL’s uniquely specialist technical, engineering and scientific capabilities in the nuclear sector, including:

• The nuclear fuel cycle;
• Radionuclide applications;
• Plutonium science;
• Advanced reactor technologies; and
• Nuclear waste management, decommissioning and disposal

The services shall be one-off, or a series of connected, deliverables that feed into and inform DESNZ owned projects and workstreams. In delivering these services, UKNNL may be working alongside and/or integrated into DESNZ project teams or outside of DESNZ’s organisation across HMG.

These services will require the supplier to have end-to-end nuclear fuel cycle expertise as well as areas of highly niche and specialised expertise including the understanding complex Uranic Materials, Wastes and Residues.

Complex Uranic Materials, Wastes and Residues

The UK owns a stockpile of plutonium that is a legacy of the operation of older Magnox reactors. This stockpile is held in Sellafield, where the vast majority of nuclear waste is held in the UK.

Advisory services regarding this topic will require deep knowledge of the characterisation, process development and treatment of complex uranic wastes and residues, including materials containing mixed uranium enrichments. Such advice can therefore only be provided by a supplier with access to active laboratory facilities, nuclear materials expertise, radiochemistry capability, fuel cycle knowledge and process engineering capability.

UKNNL operates a laboratory at the Sellafield site where it undertakes both analysis of the plutonium stockpile and research into how waste can be handled more effectively/safely. Given the sensitivity regarding the proliferation risks when it comes to handling plutonium, only UKNNL have the permission to handle plutonium in this manner. This gives them unique capability and knowledge of the waste, all of which sits within state ownership. It would be technically impossible for any other commercial entity to secure the relevant permissions and subsequently undertake the development and construction of the specialist facilities required within any operationally relevant timeframe. A contract to UKNNL to provide advisory services to DESNZ on this matter would therefore meet the requirements of Paragraph 6 of Schedule 5 of the Procurement Act 2023.

Framework limitations

The framework is limited to the research and development, technical managed services and specialist advisory services relating to nuclear power generation described in this notice. It does not cover general consultancy that can be supplied through the wider market. DESNZ will use the framework only where the relevant requirement falls within the technical reasons supporting this direct award; other requirements will be procured separately.