Small Modular Reactor Report 2013

01/01/2013 - 31/12/2013

The SMR Report 2013 is a crucial up-to-date, independent and strategic insight into the SMR market globally.

The Magnox Procurement Plan

Magnox, responsible for the operation of ten of the UK’s first generation of nuclear power stations, subcontract over 60% of their annual budget into the supply chain, equivalent to over £400m - of which 20% finds its way to SMEs (Small and Medium Enterprises).

Provided by Dan Gould, Magnox Communications Manager

The nuclear industry is faced with the challenge of ensuring that the supply chain has enough capacity, capability and expertise in place to deliver the on-going requirements of the decommissioning and clean-up of the UK’s civil nuclear legacy.

Magnox, responsible for the operation of ten of the UK’s first generation of nuclear power stations, subcontract over 60% of their annual budget into the supply chain, equivalent to over £400m - of which 20% finds its way to SMEs (Small and Medium Enterprises).

In recent years, the industry has seen a move towards larger tier 2 framework contracts, meaning around 90% of spend is with 10% of the supply chain.

Nevertheless, neither Magnox nor the Nuclear Decommissioning Authority (NDA) which owns the sites, want this strategy to exclude tier three and tier four suppliers.

Many of these suppliers have developed in geographical areas close to the Magnox sites – increasing their expertise in key areas for the nuclear industry and leading to both localised centres of excellence and significant regional socio-economic benefit.

At the same time, Magnox has been leading the industry in supplier engagement, providing the supply chain with the right kind of information about forthcoming contracts at the right time.

With NDA’s encouragement, Magnox has taken the step of publicising all contracts >£50k which are planned or which have recently been awarded, in order to provide visibility to the tier three and four suppliers and ‘vertically align’ the supply chain. 

This includes contracts within existing frameworks, providing the opportunity for smaller local suppliers to approach larger Tier 2 suppliers for the opportunities to work on the Magnox programme.

The Magnox Procurement Plan, is available via the Magnox website and updated monthly.

At a series of events dubbed ’Meet the Buyer’, Magnox has paired larger framework suppliers with smaller members of the supply chain, looking to break into the nuclear decommissioning market.

As the sites progress through the decommissioning phase of their lifecycle, there is a greater requirement for more conventional services such as construction, demolition, building maintenance – in addition to the highly technical services usually associated with the nuclear industry.

There remain, however, specific requirements for working in the heavily nuclear environment – including working safely in a radiological controlled area and demonstrating the required approach to safety and security.

Ron Gorham, the NDA’s Head of Supply Chain Optimisation and SME Champion, said: “We depend on a healthy, vibrant supply chain to provide us with technical support and innovative solutions to some difficult challenges.

“Magnox has been at the forefront, alongside the NDA and other Site Licence Companies, in encouraging the development of smaller businesses, whose specialist expertise can make a critical difference to achieving real decommissioning progress.

NDA now has an SME Action Plan that we expect all of our SLCs to consider, including measurement of SME spend and the ‘SME friendliness’ of procurement strategies.”

Case Studies:

Mon Maintenance Services

Mon Maintenance Services (MMS) was established in September 2009, following the closure of Anglesey Aluminium - where all 4 directors worked as a maintenance shift. Andrew Samuel, Stephen Evans, Wayne Allman and Andrew Williams all invested a portion of their redundancy forming MMS, who offer mechanical, electrical and Fabrication services to all sectors including Nuclear and have been involved at Trawsfynydd site since June 2010.

Since MMS was established the company have worked hard to position themselves within the nuclear industry.  In the first year, setting up accredited quality and health and safety systems, required for work in the nuclear sector.

MMS are employee members of the National Skills academy Nuclear and are training one apprentice through funding received from NSAN, MMS being the first company in Wales to have been awarded this funding. In June 2012 MMS were also awarded certification in the Investing in people Standard and IIP leadership and Management Model.

MMS won the Regional Daily Post Business accelerator award in 2011, were finalists in the National Management and Leadership Awards in the category of Change Management in 2012 and MMS proudly received an NDA Supply Chain Award 2012.

Magnox have supported MMS in many ways over the past 3.5 years. Through the supply chain events organised by Magnox, MMS have gained excellent contacts, exposure and an insight into what is required from an SME wishing to supply into the nuclear sector.

Andrew Samuel, MMS Managing Director, said: “We would not have driven ourselves or invested time and money into our Quality, Health and Safety or Environmental systems without the demand placed on us by Magnox and their suppliers, standards which have not only made us stand out to our peers and from our competitors but have given us the tools to successfully apply and gain contracts in other sectors.”

Arvia

Arvia Technology Ltd - formed in 2007 as a ‘spin out’ company from the University of Manchester - has managed the introduction of a novel technology into this industry through a collaborative approach with Magnox Ltd.

Arvia’s unique technology, the organic destruction cell (ODC), removes and destroys toxic and non-biodegradable organic contaminants from a wide range of aqueous effluents using adsorption coupled with electrochemical regeneration. Originally developed for the treatment of industrial waste effluents, the technology caught the attention of Magnox who were looking for a treatment solution for radioactively contaminated oils that were stored at its decommissioning sites.

Magnox provided a commercial and industrial environment for Arvia to prove the technology could be effective in the nuclear decommissioning environment, with a demonstration unit at Trawsfynydd Site.

In 2012, Magnox signed a design contract with Arvia covering the design of the industrial scale rig that will deliver destruction of 2000 litres of contaminated oil.

Mike Lodge, Arvia’s Chief Commercial Officer, said: “Magnox has helped Arvia develop the business fundamentals, and have been supportive in many areas. There has been a willingness and a degree of flexibility and practicality about their approach on a number of key issues such as accreditation and cash flow – which have been important in allowing us to develop a foothold in the industry.

“When we started working with Magnox, that was our first piece of work in the nuclear industry. Now around 95% or our business is in the nuclear sector.” 

Small Modular Reactor Report 2013

01/01/2013 - 31/12/2013

The SMR Report 2013 is a crucial up-to-date, independent and strategic insight into the SMR market globally.