Defence Online

Type of document: Contract Notice
Country: United Kingdom
Publication Ref: (2024/S 000-019377/EN)
Nature of contract: Service contract
Procedure: Negotiated without a call for competition
Type of bid required: Not applicable

Voluntary ex ante transparency notice
Services

Section I: Contracting authority
I.1) Name and addresses
Official name: Ministry of Defence
Postal address: Defence Equipment and Support, Abbey Wood
Town: Bristol
Postal code: BS34 8JH
Country: United Kingdom
Email: rebecca.colbourne100@mod.gov.uk
Internet address(es):
Main address:

I.4) Type of the contracting authority
Ministry or any other national or federal authority, including their regional or local sub-divisions
I.5) Main activity
Defence

Section II: Object
II.1) Scope of the procurement
II.1.1) Title: In Service Support for Combat Management Systems, Shared Infrastructure and Networks

Reference number: 705563450
II.1.2) Main CPV code: 72700000
II.1.3) Type of contract Services
II.1.4) Short Description:
Maritime Combat Systems (MCS) Surface Ships Combat Systems Group (SSCSG) Real-time Combat system Open Data Enablers (RECODE) In-Service Support (ISS)
Background
The Surface Ships Combat Systems Group Delivery Team which is part of the United Kingdom Ministry of Defence is intending to place a contract with BAE Systems Surface Ships Ltd (BAES) for In-Service Support of Combat Management Systems (CMS), BAES Shared Infrastructure (SI) & Networks for Royal Navy platforms, Land-Based Test Sites & training sites as well as the installation of SI Version 3 on Type 45 Destroyers. The platforms in scope include Type 23 Frigates, T45, Queen Elizabeth Class Aircraft Carrier, Landing Platform Dock, Royal Fleet Auxiliary, Type 26 Frigates & support for the hosting infrastructure on the Type 31 Frigates to enable the hosting of the Maritime Electronic Warfare Systems Integrated Capability (MEWSIC).
A CMS is a multi-layered system, comprising of component parts, products & individual equipment which all work together to provide situational awareness & lethality to the operator. The CMS covers: CMS Software & Hardware, and Hosting Infrastructure through SI & Combat System Networks. CMS equipment is made up of a series of discrete sub-systems, fully integrated together to provide the interface from which Operators can achieve a platform’s Decide & Enable capabilities. Integration & configuration management is performed at the system level to ensure interoperability across the respective sub-systems.
Duration of Contract & Cost
The total duration of the contract will be 10 (ten) years consisting of an initial 8 (eight) year period, with a 2 (two) year option to extend the duration. The contract shall have a total estimated value of £480m (four hundred and eighty million pounds sterling) exclusive of VAT.
Please note, this notice supersedes notice reference: 2022/S 000-033287 –
II.1.6) Information about lots
The contract is divided into lots: no
II.1.7) Total value of the procurement(excluding VAT)
Value:480000000
Currency:GBP
II.2) Description
II.2.3) Place of performance
Nuts code: Main site or place of performance:Broad Oak

II.2.4) Description of the procurement
Justification
In accordance with regulation 4 of The Defence and Security Public Contracts (Amendment) (EU Exit) Regulations 2019 (SI 2019/697) this procurement falls to be regulated under the provisions of the Defence and Security Public Contracts Regulations 2011 as amended (in particular by SI 2019/697 and SI 2020/1450). Prior publication of a contract notice in the Official Journal of the European Union is no longer appropriate. It is considered that the award of the contract without prior publication of a contract notice in the UK e-notification service is lawful in accordance with Regulation 16(1)(a)(ii) of the Defence & Security Public Contract Regulations 2011 due to technical reasons.
BAES are the Design Authority of the CMS, BAES SI & Networks and is the only supplier with the appropriate level of system design & configuration knowledge to meet the requirement and the CMS operates using proprietary software which the Authority does not have the right to share with a third party. Therefore, use of any third-party support supplier would increase the complexity of sub-system alignment and integration, increase the difficulty of assigning responsibility for identification and rectification of equipment failures, and present an unacceptably high risk of compromised safety management. BAES is the only operator that has the technical expertise and know-how of the CMS, BAES SI & Networks to carry out obsolescence management and modifications to ensure uninterrupted equipment availability, interoperability and underwrite such modifications from a safety perspective.
It is for the reasons listed above that BAES is the only operator able to perform and meet the technical requirements of the contract.

II.2.5) Award criteria
II.2.11) Information about options
Options:yes
Description of options:
Two years of options to extend the duration of the contract.

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:
This notice is not a request for expressions of interest so please do not apply to be invited to tender. This notice advises that the Authority has decided to negotiate a contract with the named supplier on a single source basis, and is published for reasons of transparency.

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/EU)
IV.1.8) Information about the Government Procurement Agreement(GPA)
The procurement is covered by the Government Procurement Agreement: no
IV.2) Administrative information

Section V: Award of contract/concession
Contract No: 705563450
Title: In Service Support for Combat Management Systems, Shared Infrastructure and Networks

V.2) Award of contract/concession
V.2.1) Date of conclusion of the contract/concession award decision:2024-06-25
V.2.2) Information about tenders
V.2.3) Name and address of the contractor
Official name: BAE Systems Surface Ships Limited
Postal address: Victory Point, Lyon Way, Frimley, Camberley
Town: Surrey
Postal code: GU16 7EX
Country: United Kingdom
Nuts code:
The contractor is an SME: no

V.2.4) Information on value of the contract/lot/concession(excluding VAT)
for framework agreements – total maximum value for this lot
for contracts based on framework agreements, if required – value of contract(s) for this lot not included in
previous contract award notices
V.2.5) Information about subcontracting
The contract/lot/concession is likely to be subcontracted
Value or proportion likely to be subcontracted to third parties

Section VI: Complementary information
VI.3) Additional information:
This notice is not a request for expressions of interest so please do not apply to be invited to tender. This notice advises that the Authority has decided to negotiate a contract with the named supplier on a single source basis and is published for reasons of transparency.
VI.4) Procedures for review
VI.4.1) Review body
Official name: Ministry of Defence
Postal address: Defence Equipment & Support, Abbey Wood
Town: Bristol
Postal code: BS34 8JH
Country: United Kingdom
E-mail: rebecca.colbourne100@mod.gov.uk

VI.5) Date of dispatch of this notice:
2024-06-25

Justification for the award of the contract without prior publication of a call for
competition in the Official Journal of the European Union
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/EU

The products involved are manufactured purely for the purpose of research, experiment,study or development under the conditions
stated in the directive(for services and supplies only)
The works, supplies or services can be provided only by a particular economic operator for the following reason:
absence of competition for technical reasons

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:
In accordance with regulation 4 of The Defence and Security Public Contracts (Amendment) (EU Exit) Regulations 2019 (SI 2019/697) this procurement falls to be regulated under the provisions of the Defence and Security Public Contracts Regulations 2011 as amended (in particular by SI 2019/697 and SI 2020/1450). Prior publication of a contract notice in the Official Journal of the European Union is no longer appropriate. It is considered that the award of the contract without prior publication of a contract notice in the UK e-notification service is lawful in accordance with Regulation 16(1)(a)(ii) of the Defence & Security Public Contract Regulations 2011 due to technical reasons.
BAES are the Design Authority of the CMS, BAES SI & Networks and is the only supplier with the appropriate level of system design & configuration knowledge to meet the requirement and the CMS operates using proprietary software which the Authority does not have the right to share with a third party. Therefore, use of any third-party support supplier would increase the complexity of sub-system alignment and integration, increase the difficulty of assigning responsibility for identification and rectification of equipment failures, and present an unacceptably high risk of compromised safety management. BAES is the only operator that has the technical expertise and know-how of the CMS, BAES SI & Networks to carry out obsolescence management and modifications to ensure uninterrupted equipment availability, interoperability and underwrite such modifications from a safety perspective.
It is for the reasons listed above that BAES is the only operator able to perform and meet the technical requirements of the contract.