3.13 The NDA's full business case for the Magnox contract implied that consolidation was a significant exercise and could require up to £1 billion of changes to the contract baseline. However, the business case, approved by HM Treasury and the Department, did not include governance arrangements for the consolidation phase. Figure 13 on pages 40 and 41 summarises our understanding of the de facto governance arrangements of the NDA's consolidation process.
3.14 HM Treasury approved the contract award and share transfer to CFP in July 2014. This approval was subject to the NDA establishing an appropriate approval process for change controls through a Change Control Board (CCB) to supplement its existing change control review and approval processes. An MPA review in June 2014 also highlighted the need for adequate governance of change controls. The CCB's terms of reference were not approved until August 2015, a month before the contractual deadline for consolidation. The CCB did not meet until eight months into what was meant to be a 12-month process. During this time, the CPB received no updates on the progress of the consolidation process.10
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10 In August 2015, the CPB's terms of reference were changed, shifting its responsibilities from an approvals body to one charged with oversight and providing scrutiny and challenge.