Defence Online

Type of document: Contract Notice
Country: United Kingdom
Publication Ref: (2024/S 000-001597/EN)
Nature of contract: Supply contract
Procedure: Negotiated without a call for competition
Type of bid required: Not applicable

Voluntary ex ante transparency notice
Supplies

Section I: Contracting authority
I.1) Name and addresses
Official name: Ministry of Defence
Postal address: FIR 3C NH4 #4316, MoD Abbeywood South, BS34 8JH
Town: Bristol
Postal code: BS34 8JH
Country: United Kingdom
Contact Person: Grant Jenkins
Email: grant.jenkins122@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: <£10m
II.1.2) Main CPV code: 35512400
II.1.3) Type of contract Supplies
II.1.4) Short Description:
<£10M
II.1.6) Information about lots
The contract is divided into lots: no
II.1.7) Total value of the procurement(excluding VAT)
Value:10000000.00
Currency:GBP
II.2) Description
II.2.3) Place of performance
Nuts code:
II.2.4) Description of the procurement
Contract for the maintenance, servicing and deployment of Underwater Mobile Acoustic Targets (UMAT) at MoD British Underwater Test Evaluation Centre (BUTEC), Scotland.

II.2.5) Award criteria
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(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: yes
IV.2) Administrative information

Section V: Award of contract/concession
Contract No: 706857450
Title: Underwater Mobile Acoustic Targets

V.2) Award of contract/concession
V.2.1) Date of conclusion of the contract/concession award decision:2024-01-17
V.2.2) Information about tenders
V.2.3) Name and address of the contractor
Official name: QinetiQ Limited
Town: Portsmouth
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: Defence Equipment & Support
Postal address: FIR 3C NH4 #4316, MoD Abbeywood South
Town: Bristol
Postal code: BS34 8JH
Country: United Kingdom

VI.5) Date of dispatch of this notice:
2024-01-17

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:
The Secretary of State for Defence intends to enter into a contract with QinetiQ Limited for the for deployment, maintenance and support of the Underwater Mobile Acoustic Targets (UMAT) programme. The UMAT is an underwater target used by submarine crews during Spearfish Heavyweight Torpedo certification firings at MoD British Underwater Test Evaluation Centre (BUTEC), Scotland. In accordance with regulation 4 of the Defence and Security Public Contracts (Amendment) (EU Exit) Regulations 2019 (SI 2019/697) this procurement is 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) (“DSPCR 2011”).
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)(d)(i)(aa) of the DSPCR 2011because the incumbent prime contractor and subcontractor undertaking the mandated upgrade programme of the UMAT are the only economic operators with the approved licencing and technical capability to upgrade the existing UMAT to maintain the Spearfish Firing Certification, based on the fact that their upgrade design programme is the only design approved and licenced by the US Department of Defence, the providers of the UMAT. The subcontractor will only maintain a contracting relationship with the current prime, and the shared ownership of the upgrade design makes too difficult to compete this requirement.
Any change of contractor from QinetiQ would require a full reset of the upgrade programme creating a significant capability gap of up to 24 months, as any new contractor would require design approval for required upgrades, and ITAR certification from the United States Department of Defence. The upgrade requirement was an unknown requirement prior to the award of the current incumbent contract, this additional work was unforeseen. It is necessary to fulfil a strategic capability and it cannot for technical or economic reasons be carried out separately from the original contract without major inconvenience to the contracting authority or the Royal Navy.
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. This is because the design, created and owned between QinetiQ and Emeritus Solutions, is the only technical upgrade solution that has been given formal approval by the US DoD to upgrade their UMATs. Any alternative upgrade design programme would require review, approval, and certification from the US DoD and would also require ITAR licencing approval. This could incur a capability gap of up to 24 months. UMAT is mandatory in the submarine crew Spearfish certification firing process, which is a strategic national capability for maintaining Spearfish aboard the Continuous At Sea Deterrent (CASD). Therefore for technical reasons only QinetiQ can provide the technical solution necessary to maintain this critical strategic capability.