AXIOM – a joint venture consisting of AMEC, Assystem, Jacobs Engineering Group Inc and Mott MacDonald – and Progressive Alliance – a joint venture with Babcock and URS Corp, have been awarded a major contracts establishing a 15-year Design Services Alliance with Sellafield Limited. The deals are potentially worth up to £1.5 billion ($2.4 billion) over the 15 year period. Sellafield said the contracts are the beginning of an anticipated £9 billion ($14.4 billion) of work over the next two years.
The deals are the first true alliance style framework contracts with Sellafield, a move that is expected to bring certainty and security to the supply chain at all levels for both tier two and three and will allow long term investment in local infrastructure and resources, according to a Sellafield release.
Under the deal, these ventures will provide Sellafield design, engineering and safety case assessments to develop and refurbish its existing facilities and assist with the decommission of the company's site in West Cumbria.
Both ventures will work closely with Sellafield’s own staff and local suppliers.
"We are delighted to continue our collaborative working relationship with Sellafield," Jacobs Group Vice President Bob Irvin said. "We are well-established working with the local supply chain in West Cumbria, and this new agreement gives us further opportunity to share and leverage our collective knowledge and experience to assist Sellafield in delivering its project commitments."
AXIOM chairman Tom Jones shared the sentiment.
"Effective supply chain engagement through long-term collaborative alliances is key to Sellafield delivering and exceeding commitments made in our performance plan," he said. "These new contracts will bring stability and certainty to the supply chain and are excellent news for West Cumbria."
The economy in West Cumbria also is expected to flourish. A spokesman for Sellafield said while the company could not disclose how many jobs would be created, the contracts could help boost apprenticeship schemes in West Cumbria and Copeland, according the NW Evening Mail.
“Sellafield Ltd have kept to their commitment to work closely with myself and other stakeholders and have gone to great lengths to help us understand the benefits the DSA can bring to West Cumbria," Cumbria County Council’s cabinet member Tim Knowles said.