Voluntary ex ante transparency notice
Directive 2009/81/EC
Section I: Contracting
authority
I.1) Name and addresses
MOD
Abbey Wood, Birch 3B # 3329
Bristol
BS34 8JH
UK
Contact person: Birch 3B # 3329
Telephone: +44 1179132548
E-mail: graham.frost100@mod.uk
NUTS: UKG33
Internet address(es)
Main address: https://www.gov.uk/government/organisations/ministry-of-defence
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
Future In-Service Support of Spey Marine Gas Turbines SM1A and SM1C.
Reference number: UKG33
II.1.2) Main CPV code
35521100
II.1.3) Type of contract
Services
II.1.4) Short description
Engines and engine parts for warships. In service support — provision of spares, repairs, overhaul and modification of Spey Marine Gas Turbine Engines fitted in RN, RNLN and BN Warships.
II.1.6) Information about lots
This contract is divided into lots:
No
II.1.7) Total value of the procurement
Value excluding VAT:
157 000 000.00
GBP
II.2) Description
II.2.3) Place of performance
NUTS code:
UKG33
Main site or place of performance:
Coventry.
II.2.4) Description of the procurement
Engines and engine parts for warships. In service support — provision of spares, repairs, overhaul and modification of Spey Marine Gas Turbine Engines fitted in RN, RNLN and BN Warships.
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
Section IV: Procedure
IV.1) Description
IV.1.1) Type of procedure
Negotiated procedure without publication of a contract notice
Justification for selected award procedure:
No tenders or no suitable tenders/requests to participate in response to restricted procedure
Explanation:
The Spey Gas Turbine team, part of the UK Ministry of Defence, intends to award a contract to Rolls-Royce Power Engineering for the supply of SM1As and SM1Cs Engines and engine parts for warships. The contract will consist of the provision of spares, repairs, overhaul and modification of Spey Marine Gas Turbine Engines fitted in RN, RNLN and BN Warships. The estimated contract value is £157,000,000.
It is considered that this contract can be placed using the negotiated procedure without prior publication as permitted by article 28(1) (e) of Directive 2009/81/EC (regulation 16(1)(a)(ii) of the UK Defence and Security Public Contracts Regulations 2011) for technical reasons. Technical documentation necessary to provide qualified support to the turbines is proprietary to Rolls-Royce Power Engineering and would not be available to any new contractor.
There are also significant safety issues with the maintenance and support of the gas turbines such that any new support proposals from a contractor would be required to undergo a not inconsiderable period of testing to ensure that their operation continues to be underpinned by a robust safety case. This development and testing period would take around 3 years and cost several million pounds. This is in the context of a contract with a 10 year duration after which (or sooner) the turbines will become obsolete and will require no further maintenance or support. Given that the MoD has a requirement for these services in the near term, there is only one economic operator which can meet the MoD's requirement.
IV.1.8) Information about Government Procurement Agreement (GPA)
The procurement is covered by the Government Procurement Agreement:
Yes
Section V: Award of contract/concession
Contract No: MSS/20502
Title: Spey In-Service Support
V.2 Award of contract/concession
V.2.1) Date of conclusion of the contract/concession
02/06/2017
V.2.2) Information about tenders
The contract has been awarded to a group of economic operators:
No
V.2.3) Name and address of the contractor
Rolls-Royce Power Engineering PLC
Rolls-Royce
Whittle House, PO BOX 3, Filton
Bristol
BS34 7QE
UK
Telephone: +44 1179748564
E-mail: steve.anstey@rolls-royce.com
NUTS: UKG33
The contractor is an SME:
Yes
V.2.4) Information on value of the concession and main financing terms (excluding VAT)
Initial estimated total value of the contract/lot/concession: 188 400 000.00 GBP
Total value of the concession/lot:
157 000 000.00
GBP
V.2.5) Information about subcontracting
The contract/concession is likely to be subcontracted
Value or proportion likely to be subcontracted to third parties
Value excluding VAT: 110 000 000.00 GBP
Proportion: 70 %
Short description of the part of the contract to be subcontracted:
Engines and engine parts for warships. In service support — provision of spares, repairs, overhaul and modification of Spey Marine Gas Turbine Engines fitted in RN, RNLN and BN Warships.
Section VI: Complementary information
VI.3) Additional information
The Authority reserves the right to amend any condition related to security of information to reflect any changes in national law or government policy. If any contract documents are accompanied by instructions on safeguarding classified information (e.g. a Security Aspects Letter), the Authority reserves the right to amend the terms of these instructions to reflect any changes in national law or government policy, whether in respect of the applicable protective marking scheme, specific protective markings given, the aspects to which any protective marking applies, or otherwise. The link below to the Gov.uk website provides information on the Government Security Classification.
https://www.gov.uk/government/publications/government-security-classifications
Advertising Regime OJEU:- This contract opportunity is published in the Official Journal of the European Union (OJEU), the MoD Defence Contracts Bulletin and www.contracts.mod.uk GO Reference: GO-2017619-DCB-10452666.
VI.4) Procedures for review
VI.4.1) Review body
Ministry of Defence, Ships, Maritime Platform Systems (MPS)
Birch 3b # 3329, Abbey Wood
Bristol
BS34 8JH
UK
Telephone: +44 3067939904
E-mail: graham.frost100@mod.uk
VI.5) Date of dispatch of this notice
19/06/2017