Defence Online

Type of document: Contract Notice
Country: United Kingdom

UK-Bristol: Engines and engine parts for warships.

Preliminary Questions
This notice is published by:
Directive 2009/81/EC

Section I: Contracting authority/entity

I.1) Name and addresses
MOD
MoD, Abbey Wood, Birch 3B # 3329, Bristol, BS34 8JH, United Kingdom
Tel. +44 1179132548, Email: graham.frost100@mod.uk
Contact: Birch 3B # 3329
Main Address:
NUTS Code: UKG33

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 – Engines and engine parts for warships.

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 (excluding VAT)
Value: 157,000,000
Currency: GBP

II.2) Description

II.2.2) Additional CPV codes:
Not provided

II.2.3) Place of performance:
UKG33 Coventry

II.2.4) Description of the procurement:
Not provided

II.2.5) Award criteria
(Directive 2009/81/EC)

Lowest Price

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:
Not provided

Section IV: Procedure

IV.1) Description

IV.1.1) Type of procedure: Negotiated procedure without publication of a contract notice (in accordance with Article 28 of Directive 2009/81/EC)

IV.1.3) Information about framework agreement
The procurement involves the establishment of a framework agreement: No

IV.1.8) Information about the Government Procurement Agreement (GPA)
The procurement is covered by the Government Procurement Agreement:Yes

IV.2)Administrative Information

IV.2.1) Previous publication concerning this procedure:
Notice number in OJ S: Not provided

Section V: Award Of Contract/Concession

Award of Contract/Concession No: 1
Contract No: MSS/20502 Lot Number: Not Provided Title: Spey In-Service Support

V.2) Award of contract/concession

V.2.1) Date of contract award decision: 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/concessionaire, No. 1:
Rolls-Royce Power Engineering PLC, Rolls-Royce
Whittle House, PO BOX 3, Filton, Bristol, BS34 7QE, United Kingdom
Tel. +44 1179748564, Email: steve.anstey@rolls-royce.com
NUTS Code: UKG33
The contractor/concessionaire will be an SME: Yes

V.2.4) Information on value of the contract/lot/concession:
Initial estimated total value of the contract: 188,400,000
Total value of the contract/lot/concession 157,000,000
Currency: GBP

V.2.5) Information about subcontracting:
The contract is likely to be subcontracted: Yes
Value or proportion of the contract likely to be sub-contracted to third parties
Value excluding VAT: 110,000,000
Currency: GBP
Proportion: 70.0 %
Short description of the value/proportion of the contract to be sub-contracted:
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

(Only in the case of a notice covered by Directive 2009/81/EC)
All or certain subcontracts will be awarded through a competitive procedure (see Title III of Directive 2009/81/EC): No

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.

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
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, United Kingdom
Tel. +44 3067939904, Email: graham.frost100@mod.uk

V1.4.2) Body responsible for mediation procedures:
Not Provided .

VI.4.3) Review procedure
Not Provided

VI.4.4) Service from which information about the review procedure may be obtained
Not Provided

VI.5) Date of dispatch of this notice: 19/06/2017

Annex D3 – Defence and Security
Justification for the award of the contract without prior publication of a call for competition in the Official Journal of the European Union
Directive 2009/81/EC

1. Justification for the choice of the negotiated procedure without publication of a call for competition in accordance with Article 28 of Directive 2009/81/EC

No tenders or no suitable tenders/requests to participate in response to: restricted procedure

The contract concerns research and development services other than those referred to in Article 13 of Directive 2009/81/EC: No

The products involved are manufactured purely for the purpose of research, experiment, study or development under the conditions stated in the directive: No

All tenders submitted in reply to a restricted procedure, negotiated procedure with prior publication of a contract notice or competitive dialogue were irregular or unacceptable. Only those tenderers were included in the negotiations which have satisfied the qualitative selection criteria: No

The works, supplies or services can be provided only by a particular economic operator for the following reason:

The periods for the restricted procedure and the negotiated procedure with prior publication of a contract notice are incompatible with the urgency resulting from a crisis: No

Extreme urgency brought about by events unforeseeable for the contracting authority and in accordance with the strict conditions stated in the directive: No

Additional deliveries by the original supplier ordered under the strict conditions stated in the directive: No

New works/services, constituting a repetition of existing works/services and ordered in accordance with the strict conditions stated in the directive: No

Purchase of supplies or services on particularly advantageous terms: Not Provided

Contract related to the provision of air and maritime transport services for the armed forces of a Member State deployed or to be deployed abroad, under the strict conditions stated in the directive: No

3. Explanation

Please explain in a clear and comprehensive manner why the award of the contract without prior publication in the Official Journal of the European Union is
lawful, by stating the relevant facts and, as appropriate, the conclusions of law in accordance with the directive: (500 words maximum)
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.