Defence Online

Type of document: Contract Notice
Country: United Kingdom
Publication Ref: (2022/S 000-020140/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
Town: Bristol
Postal code: BS34 8QW
Country: United Kingdom
Contact Person: Nathaniel Dewfall
Email: nathaniel.dewfall100@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: CHC/648 Support, Repairs & Spares of the Electro-Optic Sensor Turret (EOST)
II.1.2) Main CPV code: 50212000
II.1.3) Type of contract Services
II.1.4) Short Description:
The Secretary of State for Defence (the ‘Authority’) intends to enter into a contract with Leonardo UK Ltd (Leonardo) for the delivery of continual support to the UK Chinook fleet’s existing Electro Optical Sensor Turret (EOST) system. The proposed contract term is 6 years (4 + 2) with an approximate total contract value of £6-7M.
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 (as required by the relevant legislation) is lawful in accordance with regulation 16(1)(a)(ii) of the DSPCR 2011 due to technical reasons as set out below
Leonardo UK Ltd, previously Leonardo MW Ltd, Selex ES Ltd, DRS Technologies UK Ltd, are the Titan 385ES Turret Original Equipment Manufacturer (OEM) and appointed Design Organisation (DO). The support to the EOST system is required to allow for asset-recycling, repairs and replacements to the Authority’s current stock.
Leonardo holds all the technical data for the Titan Turret system which includes a multitude of aspects including but not limited to design specifications, technical documents, qualification data, design models, both mechanical and electrical, system software design, manufacturing drawings, wiring schematics, circuit diagrams, methods folders, machining models etc and test specifications. The Leonardo technical data is not available via the public domain.
Leonardo has designed and manufactured a wide range of special to type tooling and test equipment required to support the Titan Turret System including PCB test sets, sub-assembly test sets, optical test facilities, bespoke test software, test jigs and manufacturing / repair tooling and jigs.
Leonardo has the trained and experienced personnel with the continuity of knowledge of the Titan Turret System throughout the design, development, production and support phases of the product’s lifecycle. The level of knowledge required to adequately support the equipment simply does not exist outside of the company.
As the EOST is mounted on an aircraft, airworthiness requirements must be met. Leonardo are the only economic operator who hold the relevant Design Accreditation Organisation Scheme (DAOS) and Maintenance Accreditation Organisation Scheme (MAOS) approvals under the Military Aviation Authority (MAA) Regularity Articles (RAs) required to undertake the work to be contracted.
Finally, as supplier to multiple fleets across the world, Leonardo are uniquely positioned to provide the Authority with safety service bulletins, including necessary modifications which ensure the continuous operation of the Authority’s EOST and the subsequent safety of the Armed Forces.
II.1.6) Information about lots
The contract is divided into lots: no
II.1.7) Total value of the procurement(excluding VAT)
Value:7000000.00
Currency:GBP
II.2) Description
II.2.2)Additional CPV code(s)
Main CPV code: 34730000
Main CPV code: 34731700
Main CPV code: 34741000

II.2.3) Place of performance
Nuts code:
II.2.4) Description of the procurement
The Secretary of State for Defence (the ‘Authority’) intends to enter into a contract with Leonardo UK Ltd (Leonardo) for the delivery of continual support to the UK Chinook fleet’s existing Electro Optical Sensor Turret (EOST) system. The proposed contract term is 6 years (4 + 2) with an approximate total contract value of £6-7M.
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 (as required by the relevant legislation) is lawful in accordance with regulation 16(1)(a)(ii) of the DSPCR 2011 due to technical reasons as set out below
Leonardo UK Ltd, previously Leonardo MW Ltd, Selex ES Ltd, DRS Technologies UK Ltd, are the Titan 385ES Turret Original Equipment Manufacturer (OEM) and appointed Design Organisation (DO). The support to the EOST system is required to allow for asset-recycling, repairs and replacements to the Authority’s current stock.
Leonardo holds all the technical data for the Titan Turret system which includes a multitude of aspects including but not limited to design specifications, technical documents, qualification data, design models, both mechanical and electrical, system software design, manufacturing drawings, wiring schematics, circuit diagrams, methods folders, machining models etc and test specifications. The Leonardo technical data is not available via the public domain.
Leonardo has designed and manufactured a wide range of special to type tooling and test equipment required to support the Titan Turret System including PCB test sets, sub-assembly test sets, optical test facilities, bespoke test software, test jigs and manufacturing / repair tooling and jigs.
Leonardo has the trained and experienced personnel with the continuity of knowledge of the Titan Turret System throughout the design, development, production and support phases of the product’s lifecycle. The level of knowledge required to adequately support the equipment simply does not exist outside of the company.
As the EOST is mounted on an aircraft, airworthiness requirements must be met. Leonardo are the only economic operator who hold the relevant Design Accreditation Organisation Scheme (DAOS) and Maintenance Accreditation Organisation Scheme (MAOS) approvals under the Military Aviation Authority (MAA) Regularity Articles (RAs) required to undertake the work to be contracted.
Finally, as supplier to multiple fleets across the world, Leonardo are uniquely positioned to provide the Authority with safety service bulletins, including necessary modifications which ensure the continuous operation of the Authority’s EOST and the subsequent safety of the Armed Forces.

II.2.5) Award criteria
II.2.11) Information about options
Options:yes
Description of options:
a. Option 1: Additional contract year duration from 1st April 2026 to 31st March 2027 in accordance with the delivery schedule provided that the Authority exercises such an option by no later than 31st March 2026.
b. Option 2: A further additional contract year duration from 1st April 2027 to 31st March 2028 in accordance with the delivery schedule provided that the Authority exercises such an option by no later than 31st March 2027.

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:
The Cyber Risk Profile for this requirement identified by the Cyber Risk Assessment is Very Low (RAR: 405413999 )

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: CHC/648
Title: ELECTRO OPTIC SENSOR TURRET (EOST) SYSTEM STATEMENT OF REQUIREMENT (SOR)

V.2) Award of contract/concession
V.2.1) Date of conclusion of the contract/concession award decision:2022-07-25
V.2.2) Information about tenders
V.2.3) Name and address of the contractor
Official name: Leonardo UK Ltd
Town: Basildon
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 informationVI.4) Procedures for review
VI.4.1) Review body
Official name: Ministry of Defence Bristol
Postal address: MOD Abbey Wood North
Town: Bristol
Postal code: BS34 8QW
Country: United Kingdom

VI.4.2) Body responsible for mediation procedures
Official name: Ministry of Defence Bristol
Postal address: MOD Abbey Wood North
Town: Bristol
Postal code: BS34 8QW
Country: United Kingdom

VI.5) Date of dispatch of this notice:
2022-07-25

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

No tenders or no suitable tenders/requests to participate in response to:
negotiated procedure with prior publication of a contract notice

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)

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:
The Secretary of State for Defence (the ‘Authority’) intends to enter into a contract with Leonardo UK Ltd (Leonardo) for the delivery of continual support to the UK Chinook fleet’s existing Electro Optical Sensor Turret (EOST) system. The proposed contract term is 6 years (4 + 2) with an approximate total contract value of £6-7M.
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 (as required by the relevant legislation) is lawful in accordance with regulation 16(1)(a)(ii) of the DSPCR 2011 due to technical reasons as set out below
Leonardo UK Ltd, previously Leonardo MW Ltd, Selex ES Ltd, DRS Technologies UK Ltd, are the Titan 385ES Turret Original Equipment Manufacturer (OEM) and appointed Design Organisation (DO). The support to the EOST system is required to allow for asset-recycling, repairs and replacements to the Authority’s current stock.
Leonardo holds all the technical data for the Titan Turret system which includes a multitude of aspects including but not limited to design specifications, technical documents, qualification data, design models, both mechanical and electrical, system software design, manufacturing drawings, wiring schematics, circuit diagrams, methods folders, machining models etc and test specifications. The Leonardo technical data is not available via the public domain.
Leonardo has designed and manufactured a wide range of special to type tooling and test equipment required to support the Titan Turret System including PCB test sets, sub-assembly test sets, optical test facilities, bespoke test software, test jigs and manufacturing / repair tooling and jigs.
Leonardo has the trained and experienced personnel with the continuity of knowledge of the Titan Turret System throughout the design, development, production and support phases of the product’s lifecycle. The level of knowledge required to adequately support the equipment simply does not exist outside of the company.
As the EOST is mounted on an aircraft, airworthiness requirements must be met. Leonardo are the only economic operator who hold the relevant Design Accreditation Organisation Scheme (DAOS) and Maintenance Accreditation Organisation Scheme (MAOS) approvals under the Military Aviation Authority (MAA) Regularity Articles (RAs) required to undertake the work to be contracted.
Finally, as supplier to multiple fleets across the world, Leonardo are uniquely positioned to provide the Authority with safety service bulletins, including necessary modifications which ensure the continuous operation of the Authority’s EOST and the subsequent safety of the Armed Forces.