Contract termination

6  From May 2016 onwards, the NDA received legal advice on the risk of legal challenge created by the changes proposed to the contract since it was awarded in 2014. The volume of changes proposed to the contract left the contract vulnerable to legal challenge, and the NDA's proposed approach to concluding consolidation in June 2016 would have made it more difficult to defend any legal challenge on the grounds of material variation to the contract (paragraphs 2.11 and 2.12).

7  In March 2017, the Secretary of State announced the NDA's decision to terminate the contract with CFP nine years early. On 29 September 2017, the NDA, with approval from the Secretary of State, served a notice of termination to CFP effective from 1 September 2017, allowing for a 24 month notice period, ending 31 August 2019. The NDA is considering options for how the Magnox sites should be managed once the contract with CFP comes to an end. These include competing a new contract, or as with its Sellafield site, bringing the site licence company into the NDA's direct control (paragraphs 2.13 and 2.14).