Amentum’s joint venture was selected by United Kingdom-based Sellafield for a contract worth up to $2.78 billion (£2.1 billion) to be a “preferred supplier” for an asset care program.
A preferred supplier agreement is a legal contract between a vendor and company that essentially selects the vendor as the company’s primary choice for a selected service and is typically structured as a framework agreement.
The formal award for the asset care and asset creation program framework agreement will occur after final negotiations of the contract are completed, Amentum said in its Wednesday press release. The initial duration of the contract is expected to be nine years, with a possible extension of six years, the company said.
Under the Projects and Asset Care Execution (PACE) program contract, the joint venture would assist in the management of Sellafield’s spent fuel and waste retrieval through “providing full lifecycle capabilities.” Amentum said responsibilities under the program would include engineering and design, removal and asset care and installation and plant modifications.
According to the release, Lot 1 of PACE would be completed by Amentum and Mitie Plc, which are in a joint venture named OneAxloM. The venture will be additionally supported by additional suppliers Assystem and Mott MacDonald.
“Sellafield Ltd has selected us and our trusted suppliers because of our record of excellent delivery performance, collaborative behaviors and constant innovation and improvement, driven by application of technologies such as digital visualization and advanced robotics,” Amentum CEO John Heller said in the release.
“PACE provides a significant, long-term growth opportunity for Amentum at Sellafield, building on our existing capability and relationships while also enabling us to deliver a broader, integrated full lifecycle scope on higher value projects across engineering and asset care,” Heller added.
Amentum and Sellafield deepened their extensive work history with each other in this latest agreement. An Amentum-led consortium managed and operated Sellafield’s nuclear site in West Cambria, England from 2008 to 2016. Last year, Sellafield awarded Amentum a $1.9 billion contract for decommissioning work at the Sellafield nuclear site.