Magnox Inquiry: terms of reference
Published 27 March 2017
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Independent inquiry into the award of the Magnox decommissioning contract by the Nuclear Decommissioning Authority (NDA) and its subsequent termination.
Terms of reference
The Inquiry shall investigate the procurement process from its inception through contract award, the management of the contract by NDA to the point at which the NDA decided to terminate the contract and the litigation that followed the contract award, focusing in particular on:
- the course of events that led to the flaws in the contract award identified by the court
- the course of events that led subsequently to the decision to terminate the contract
- the handling of the challenge and subsequent litigation brought against NDA arising out of the procurement and the subsequent resolution of the proceedings
- the actions throughout of the NDA board and officers, including its subsidiary organisations, and the actions throughout of officials and Ministers in the various government departments associated with the procurement process
- the structure of governance and relationship between the NDA and government departments and whether that contributed in any way to the problems encountered
- the extent to which the various internal and external assurance processes employed during procurement were effective
- any other matters it considers relevant and important
The Inquiry shall set out lessons to be learned, including about appropriate structures for governance and assurance of future complex, high-risk procurements, and make any recommendations it sees fit, including as to any disciplinary investigations or proceedings that may, in its view, be appropriate as a result of its findings.
The Inquiry will be led by Steve Holliday, Non-Executive Director at the Department for Environment, Food and Rural Affairs, and former CEO of National Grid Plc. He will draw on others as appropriate, including external advisers he may, by agreement with the Secretary of State appoint.
The Inquiry shall report to the Secretary of State for Business, Energy and Industrial Strategy and to the Cabinet Secretary. It should be completed as soon as possible.