Contract award notice
Results of the procurement procedure
Section I: Contracting
entity
I.1) Name and addresses
Ministry of Defence, ISTAR, ISTAR Business Management Team
MOD Abbey Wood, #1041, Yew 0A
Bristol
BS34 8JH
UK
Contact person: John Orzel
Telephone: +44 3067982556
E-mail: john.orzel100@mod.gov.uk
NUTS: UKK1
Internet address(es)
Main address: https://des.mod.uk
I.2) Joint procurement
The contract is awarded by a central purchasing body
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
Defence
Section II: Object
II.1) Scope of the procurement
II.1.1) Title
Supply of Zephyr Plus Ventilators in Support of the Rapid Manufacture Ventilator Systems (RMVS) Program
Reference number: ISTAR/010
II.1.2) Main CPV code
33157000
II.1.3) Type of contract
Supplies
II.1.4) Short description
The contract has been awarded for the supply of Zephyr Plus Pandemic Ventilators in support of UK Covid-19 response using the negotiated procedure without prior publication of a contract notice pursuant to regulation 32(2)(c) of the Public Contracts Regulations 2015 (Article 32(2)(c) of Directive 2014/24/EU) for reasons of extreme urgency.
II.1.6) Information about lots
This contract is divided into lots:
No
II.1.7) Total value of the procurement
Value excluding VAT:
30 000 000.00
GBP
II.2) Description
II.2.3) Place of performance
NUTS code:
UKK1
Main site or place of performance:
Gloucestershire, Wiltshire and Bristol/Bath area.
II.2.4) Description of the procurement
The Secretary of State for Defence has placed a 1-year single-supplier contract with Babcock International, of 33 Wigmore Street, London, W1U 1QX on behalf of Her Majesty’s Government (HMG) for the production of Zephyr Plus Pandemic Ventilator. In response to the Covid-19 pandemic, the UK has identified the need to rapidly increase the number of mechanical ventilators in the NHS. The contract forms part of this ‘Rapidly Manufactured Ventilator System (RMVS) programme’ coordinated by Cabinet Office on behalf of the UK government to rapidly expand capacity to meet the identified need for ventilators. The RMVS is required to be qualified for use within the National Health Service (NHS) by the Medicines and Healthcare products Regulatory Agency (MHRA) and undergo rigorous testing and trials to achieve the required certification and enable usage in hospitals. Babcock has the necessary ability and current production lines to be able to fulfil the requirement of manufacturing the RMVS.
II.2.5) Award criteria
Quality criterion: Quality
/ Weighting: 100
Price
/ Weighting:
0
II.2.11) Information about options
Options:
No
II.2.13) Information about European Union funds
The procurement is related to a project and/or programme financed by European Union funds:
No
II.2.14) Additional information
N/A.
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:
Extreme urgency brought about by events unforeseeable for the contracting authority and in accordance with the strict conditions stated in the Directive
Explanation
1.1) The Covid-19 outbreak is a Public Health Emergency of International Concern as declared by the World Health Organisation on 30 January 2020. The WHO Director General characterised Covid-19 as a pandemic on 11 March 2020.
1.2) The use of ventilator equipment is critical in treating patients with Covid-19 to take over the body's breathing process when the disease has caused the lungs to fail and allow the patient time to fight off the infection and recover.
1.3) In March the NHS across the UK had access to approximately 8 000 ventilators. Modelling based the trajectory of other European countries had forecasted the need for significant and extremely rapid increase in the UK ventilator capacity. The Prime Minister set the ambition on 16 March 2020 for industry to manufacture as many new ventilators as possible, recognising that Coronavirus is the biggest threat this country had seen for decades and that we faced a moment of national emergency. Significant quantities of extra ventilators would be required to treat seriously ill patients during the first wave of infections. Similar shortfalls in ventilator stocks were identified globally. Pressure to increase manufacturing capacity of ventilators was immense, requiring novel designs and new supply chains to be rapidly created to meet that demand. In these circumstances a procurement following the usual timescales under the PCR 2015, including accelerated options, was impossible. Ventilator manufacturers and supply chains were under immediate and unprecedented global pressure to provide products. A delay in engaging with the market by running a usual procurement process ran the risk of failing to acquire the necessary stock of ventilator equipment and presenting a significant risk to life.
1.4) The authority is satisfied the tests permitting use of the negotiated procedure without prior publication (Regulation 32(2)(c)) are met:
1.5 1) As far as is strictly necessary: the ventilator challenge was identified as strictly necessary to meet anticipated demand on the NHS during the first wave of cases in the UK.
1.6 2) There are genuine reasons for extreme urgency: it is responding to Covid-19 immediately because of public health risks presenting a genuine emergency.
1.7 3) The events that have led to the need for extreme urgency were unforeseeable: the Commission itself confirmed: ‘The current Coronavirus crisis presents an extreme and unforeseeable urgency — precisely for such a situation our European rules enable public buyers to buy within a matter of days, even hours, if necessary.’ (Commissioner Breton, Internal Market, 1 April 2020).
1.8 4) It is impossible to comply with the usual timescales in the PCR: there was no time to run an accelerated procurement under the open, restricted or competitive procedures with negotiation that would allow it to secure delivery of products, particularly in light of the corresponding delays to timelines associated with securing increased manufacturing capacity and component supply within the required timescales.
5) The situation is not attributable to the contracting authority: it has not done anything to cause or contribute to the need for extreme urgency.
IV.1.8) Information about Government Procurement Agreement (GPA)
The procurement is covered by the Government Procurement Agreement:
No
Section V: Award of contract
Contract No: ISTAR/010
A contract/lot is awarded:
Yes
V.2 Award of contract
V.2.1) Date of conclusion of the contract
10/04/2020
V.2.2) Information about tenders
Number of tenders received: 1
Number of tenders received from SMEs: 0
Number of tenders received from tenderers from EU Member States: 0
Number of tenders received from tenderers from non-EU Member States: 0
Number of tenders received by electronic means: 1
The contract has been awarded to a group of economic operators:
No
V.2.3) Name and address of the contractor
Babcock Integrated Technology Ltd
06717269
33 Wigmore Street
London
W1U 1QX
UK
Telephone: +44 2073555300
E-mail: Chris.Cowley@babcockinternational.com
NUTS: UK
Internet address(es)
URL: www.babcockinternational.com
The contractor is an SME:
No
V.2.4) Information on value of the contract/lot (excluding VAT)
Total value of the contract/lot:
: 30 000 000.00
GBP
V.2.5) Information about subcontracting
Section V: Award of contract
A contract/lot is awarded:
Yes
V.2 Award of contract
V.2.1) Date of conclusion of the contract
10/04/2020
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
Babcock Integrated Technology Ltd
06717269
33 Wigmore Street
London
W1U 1QX
UK
Telephone: +44 2073555300
E-mail: Chris.Cowley@babcockinternational.com
NUTS: UK
Internet address(es)
URL: www.babcockinternational.com
The contractor is an SME:
No
V.2.4) Information on value of the contract/lot (excluding VAT)
Total value of the contract/lot:
: 30 000.00
GBP
V.2.5) Information about subcontracting
Section VI: Complementary information
VI.3) Additional information
Due to the measures put in place by HMG and the adherence to these measures by the British/English Public, the need for ventilators has decreased and the NHS has the supply/capacity of ventilators to ensure seriously ill patients have would have access to the treatment and care needed to assist recovery from the disease. As a result the decision has been made to terminate this contract with a total procurement value of the procurement to include the contracted pre-production setup and advanced component purchases and reasonable wind-down costs.
Go reference: GO-202073-DCB-16794116
VI.4) Procedures for review
VI.4.1) Review body
Ministry of Defence, ISTAR, ISTAR Business Management Team
MOD Abbey Wood, #1041, YEW 0A
Bristol
BS34 8JH
UK
Telephone: +44 3067982556
E-mail: john.orzel100@mod.gov.uk
Internet address(es)
URL: https://des.mod.uk
VI.4.2) Body responsible for mediation procedures
Ministry of Defence, ISTAR, ISTAR Business Management Team
MOD Abbey Wood, #1041, YEW 0A
Bristol
BS34 8JH
UK
Telephone: +44 3067982556
E-mail: john.orzel100@mod.gov.uk
Internet address(es)
URL: https://des.mod.uk
VI.4.4) Service from which information about the review procedure may be obtained
Ministry of Defence, ISTAR, ISTAR Business Management Team
MOD Abbey Wood, #1042, YEW 0A
Bristol
BS34 8JH
UK
Telephone: +44 3067982556
E-mail: john.orzel100@mod.gov.uk
Internet address(es)
URL: https://des.mod.uk
VI.5) Date of dispatch of this notice
03/07/2020