Contract award notice
Results of the procurement procedure
Section I: Contracting
entity
I.1) Name and addresses
Welsh Ministers
Cathays Park
Cardiff
CF10 3NQ
UK
Contact person: John Karseras, Head of Aviation
Telephone: +44 3000615608
E-mail: john.karseras@gov.wales
NUTS: UKL
Internet address(es)
Main address: https://gov.wales/?lang=en
I.4) Type of the contracting authority
Ministry or any other national or federal authority, including their regional or local subdivisions
I.5) Main activity
General public services
Section II: Object
II.1) Scope of the procurement
II.1.1) Title
Joint Venture with Cardiff Airport including airfield operating services
II.1.2) Main CPV code
63731000
II.1.3) Type of contract
Services
II.1.4) Short description
Welsh Ministers and Cardiff International Airport Limited (each, in relation to their respective activity, operating as a utility under the Utilities Contracts Regulations 2016) have entered into a joint venture pursuant to regulation 30 of the Utilities Contracts Regulations 2016, for the purposes of activities falling within Reg 13 (exploitation of a geographical area for the provision of airports). The purpose of the joint venture is to coordinate the operation of Cardiff International Airport and St Athan Airfield with the aim of realising synergies and efficiencies and growing their business at both sites. Pursuant to Reg.30, the members of the joint venture have awarded a contract to CIAL for the provision of airfield operating services at St Athan, including assistance with transition to CAA regulation, air traffic control (by 2020), fire control, fuelling, security, ground approach radar services, maintenance, and other related services.
II.1.6) Information about lots
This contract is divided into lots:
No
II.1.7) Total value of the procurement
Value excluding VAT:
40 700 000.00
GBP
II.2) Description
II.2.2) Additional CPV code(s)
71311240
75251110
50413200
79993000
63733000
63732000
79710000
75112000
79900000
79400000
II.2.3) Place of performance
NUTS code:
UKL22
Main site or place of performance:
St Athan Airfield and Cardiff International Airport.
II.2.4) Description of the procurement
Welsh Ministers and CIAL wish to achieve synergies and efficiencies between operations at Cardiff International Airport and St Athan Airfield (which are geographically very close — c.5 nm). This includes opportunities for operational integration, shared services and resources, joint air traffic control and business development which are unique to the 2 sites given their proximity. They have therefore entered into a joint venture under Reg. 30 of the Utilities Contracts Regulations 2016. Under that joint venture, the parties have awarded a contract to CIAL for the operation of St Athan Airfield as permitted by Reg. 30. This includes transition of St Athan from a military airfield to a civilian aerospace business park operating under CAA rules and (from 2020) provision of air traffic control services by CIAL. The joint venture includes opportunities for shared revenue from future growth and the enablement of shared services and efficiencies.
II.2.5) Award criteria
Quality criterion: Ability to provide the services
/ Weighting: 50
Cost criterion: Affordability
/ Weighting: 50
II.2.11) Information about options
Options:
Yes
Description of options:
The joint venture is for an initial period of 10 years and may then be renewed by agreement.
II.2.13) Information about European Union funds
The procurement is related to a project and/or programme financed by European Union funds:
No
Section IV: Procedure
IV.1) Description
IV.1.1) Type of procedure
Award of a contract without prior publication of a call for competition
Justification for selected award procedure:
The procurement falls outside the scope of application of the Directive
Explanation
Under Regulation 30 of the Utilities Contracts Regulations 2016, the 2016 Regulations do not apply to a contract awarded by a joint venture formed exclusively by a number of utilities for the purpose of carrying.
Out activities within the meaning of regulations 9 to 15, to one of those utilities. Both Welsh Ministers (in respect of St Athan) and CIAL (in respect of Cardiff Airport) are utilities carrying out an activity under Reg 13 (exploitation of geographical area for the provision of airports). They are thus entitled to form a joint venture and to award a contract pursuant to that joint venture to one of the utilities forming part of the joint venture, without opening the contract up to competition under the Regulations.
Further or in the alternative, the services can only be provided by one particular economic operator (CIAL) for the following reasons:
1. only CIAL can provide ground approach radar services for both St Athan and Cardiff Airport;
2. only CIAL is able to achieve operational integration between the two sites;
3. only CIAL can provide the services in such a way as to achieve operational efficiencies by reducing duplication and sharing services at the two sites; and
4. only CIAL is able to jointly develop future business opportunities with Welsh Ministers that will benefit both sites.
Further or in the further alternative, the benefits which Welsh Ministers seek to realise at St Athan can only be realised by achieving operational integration and coordination with Cardiff International Airport. CIAL has exclusive rights over Cardiff International Airport.
IV.1.8) Information about Government Procurement Agreement (GPA)
The procurement is covered by the Government Procurement Agreement:
Yes
Section V: Award of contract
Title: Joint Venture with Cardiff International Airport Limited and contract for airfield operating services
A contract/lot is awarded:
Yes
V.2 Award of contract
V.2.1) Date of conclusion of the contract
12/07/2018
V.2.2) Information about tenders
Number of tenders received: 1
The contract has been awarded to a group of economic operators:
No
V.2.3) Name and address of the contractor
Cardiff International Airport Limited
Cardiff Airport, Vale of Glamorgan
Cardiff
CF62 3BD
UK
NUTS: UKL22
The contractor is an SME:
No
V.2.4) Information on value of the contract/lot (excluding VAT)
Initial estimated total value of the contract/lot:
Total value of the contract/lot:
: 40 700 000.00
GBP
V.2.5) Information about subcontracting
Section VI: Complementary information
VI.4) Procedures for review
VI.4.1) Review body
High Court of England and Wales
London
UK
VI.5) Date of dispatch of this notice
19/07/2018