Mark Tami – 2014 Parliamentary Question to the Department for Energy and Climate Change

The below Parliamentary question was asked by Mark Tami on 2014-04-08.

To ask the Secretary of State for Energy and Climate Change, what the estimated value of the contract of Dounreay Site Restoration was at the time of the award in April 2012; what the estimated savings to the public purse were; what the estimated value of the contract is to date; and what the estimated savings to the public purse are to date.

Michael Fallon

The estimated Target Cost at the time of contract award in 2012 was approximately £1.5 billion in 2012/13 money values. It covered all of the scope in the Dounreay Lifetime Plan to bring the site to its Interim End State which was capable of definition at the time of tender; it excluded scope that was not capable of definition at the bid stage. The contract contained provisions for change control for new scope and also for indexation for inflation. The Target Cost at 31 March 2014 is £ 1.7bn. The estimated saving to the public purse arising from the Preferred Bidder’s target costs compared to the extant Lifetime Plan was, and remains, well in excess of £1 billion.