Voluntary ex ante transparency notice
Directive 2009/81/EC
Section I: Contracting
authority
I.1) Name and addresses
Ministry of Defence, Combat Air, UK Military Flying Training System (UKMFTS) Project Team
MOD Abbeywood (North), #7001
Bristol
BS34 8JH
UK
Contact person: Ian Brace
Telephone: +44 3067980024
E-mail: Ian.Brace568@mod.gov.uk
NUTS: UK
Internet address(es)
Main address: https://www.gov.uk/government/organisations/defence-equipment-and-support
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
The Provision of In Service Support and Post Design Services for Hawk T Mk1/1a and Hawk T Mk2 Aircraft
II.1.2) Main CPV code
50211100
II.1.3) Type of contract
Services
II.1.4) Short description
Provision of in-service-support and post design services for Hawk T Mk1/1A and Hawk T Mk2 aircraft for period March 2020 to March 2033, with option to extend to March 2040.
II.1.6) Information about lots
This contract is divided into lots:
No
II.1.7) Total value of the procurement
Value excluding VAT:
1 600 000 000.00
GBP
II.2) Description
II.2.3) Place of performance
NUTS code:
UK
Main site or place of performance:
UNITED KINGDOM.
II.2.4) Description of the procurement
UKMFTS Delivery Team is seeking to replace 4 major single source contracts for in-service support of Hawk T Mk1/1a and Hawk T Mk2 training aircraft (all expiring in 2020), plus various smaller contracts providing support for the 2 aircraft types. T Mk1’s role is operational readiness training by the RAF, Royal Navy and in support of medical Aviation research. The Mk1a is the variant modified for the RAF Aerobatic Team (Red Arrows). The T Mk2’s role is as Fast Jet trainer for Typhoon and Lightning II pilots and are provided as Government Furnished Equipment into the UK Training Flying Services contract with ASCENT (Fast Jet Training provider). It is the MOD's intent to consolidate the future Hawk requirement for maintenance and support into a 13-year, single source contract with BAE SYSTEMS, aiding better holistic through-life management of the fleet, efficiencies across platforms via economies of scale and optimised stock holding and management.
II.2.11) Information about options
Options:
Yes
Description of options:
Option to extend contract from March 2033 to March 2040 to cover up to Hawk T Mk2 Out of Service (OSD) date.
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:
The works, supplies or services can be provided only by a particular economic operator for the following reason: absence of competition for technical reasons
Explanation:
Prior to the placement of the existing contracts there were 2 contracts in place for the in-service support for Hawk T1 aircraft (including engines) and Hawk T2 aircraft (including engines), covering the maintenance, repair, obsolescence management and post design services, etc. for both platforms. BAE Systems have been the prime contractor for over 40 years. Under Defence and Security Public Regulations (DSPCR) Regulation 16, the Hawk post design services and engines elements were identified as single source requirements, therefore a decision was taken to split the Hawk T1 and Hawk T2 contracts removing the single source elements to open-up the competition for the in-service support for Hawk T1 and Hawk T2 airframes. Both competitions failed:
(a) The Hawk T2 competition was run in April 2014, 2 companies were invited, Babcock Aerospace Ltd and BAE Systems, resulting in a single bid from BAE Systems;
(b) The Hawk T1 competition was run in February 2015, 4 companies, BAE Systems, QinetiQ, Serco and FBH were invited to tender and prior to the ITT return date 3 companies pulled out of the competition, due to the perceived risk of sourcing spares through BAE Systems.
Examination of the market shows that the market place has not changed, and there are no competitors to BAE Systems with the capability or experience to take on this contract for Hawk support. Consequently the contract is to be awarded without competition, in accordance with Regulation 16(1)(a)(ii) Defence and Security Public Contracts Regulations; Article 28(1)(e) Directive 2009/81/EC.
IV.1.8) Information about Government Procurement Agreement (GPA)
The procurement is covered by the Government Procurement Agreement:
No
Section V: Award of contract/concession
V.2 Award of contract/concession
V.2.1) Date of conclusion of the contract/concession
21/06/2019
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
BAE Systems (Operations) Ltd
Warwick House, PO Box 87, Farnborough Aerospace Centre
Farnborough
GU14 6YU
UK
NUTS: UK
The contractor is an SME:
No
V.2.4) Information on value of the concession and main financing terms (excluding VAT)
Total value of the concession/lot:
1 600 000 000.00
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: 640 000 000.00 GBP
Proportion: 40 %
Short description of the part of the contract to be subcontracted:
Rolls Royce engines (single source), Martin Baker ejector seats (single source) and commodity spares.
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-2019624-DCB-15024605
VI.4) Procedures for review
VI.4.1) Review body
Combat AirUK Military Flying Training System (UKMFTS) Project Team
MOD Abbey Wood (North), #7001
Bristol
BS34 8JH
UK
VI.5) Date of dispatch of this notice
24/06/2019