NDA to double contracting budget for SMEs

THE Nuclear Decommissioning Authority (NDA) is to double its sub-contracting budget available to small and medium-sized businesses to £300m.

It said it was part of a government push to increase the amount the public sector spends with smaller firms and to ensure those based near big infrastructure projects benefit from them.

The NDA, which is based in west Cumbria, owns Sellafield and is responsible for the clean-up of 19 nuclear sites across the UK.

It currently spends around 11% of its sub-contracting budget with small and medium-sized enterprises (SMEs) but it wants this to rise to 20% by 2015.

NDA chief executive John Clarke said: “We are all fully committed to ensuring that the £1.6bn we spend in the supply chain every year delivers as much value as possible to the UK economy and provides benefits for communities through supporting local companies.
 
“It will be a challenge for us to raise the SME proportion from the current 11% figure to hit or exceed the 20% target but one we’re determined to meet.”

The plan, which has been approved by the Cabinet Office, builds on initiatives already under way across the NDA’s estate to boost SMEs.

Half of the NDA’s total annual budget of £3bn is currently spent by its site licence companies like Sellafield Ltd in the supply chain.

Ron Gorham, the NDA’s head of supply chain optimisation, added: “Together with our site licence companies, we have already been working over the last few years to create improved opportunities for smaller businesses and this challenging but realistic target is part of those measures. The plan is to exceed the target in subsequent years and continue with the initiatives now being implemented.”