Awarded contract

<£10m

  • Ministry of Defence

F15: Voluntary ex ante transparency notice

Notice reference: 2024/S 000-001597

Published 17 January 2024, 12:14pm



Section one: Contracting authority/entity

one.1) Name and addresses

Ministry of Defence

FIR 3C NH4 #4316, MoD Abbeywood South, BS34 8JH

Bristol

BS34 8JH

Contact

Grant Jenkins

Email

grant.jenkins122@mod.gov.uk

Country

United Kingdom

NUTS code

UK - United Kingdom

Internet address(es)

Main address

https://des.mod.uk/

one.4) Type of the contracting authority

Ministry or any other national or federal authority

one.5) Main activity

Defence


Section two: Object

two.1) Scope of the procurement

two.1.1) Title

<£10m

two.1.2) Main CPV code

  • 35512400 - Unmanned underwater vehicles

two.1.3) Type of contract

Supplies

two.1.4) Short description

<£10M

two.1.6) Information about lots

This contract is divided into lots: No

two.1.7) Total value of the procurement (excluding VAT)

Value excluding VAT: £10,000,000

two.2) Description

two.2.3) Place of performance

NUTS codes
  • UK - United Kingdom

two.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.

two.2.5) Award criteria

Price

two.2.11) Information about options

Options: No

two.2.13) Information about European Union Funds

The procurement is related to a project and/or programme financed by European Union funds: No


Section four. Procedure

four.1) Description

four.1.1) Type of procedure

Negotiated procedure without publication of a contract notice

  • The products involved are manufactured purely for the purpose of research, experiment, study or development
  • 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:

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.

four.1.8) Information about the Government Procurement Agreement (GPA)

The procurement is covered by the Government Procurement Agreement: Yes


Section five. Award of contract/concession

Contract No

706857450

Title

Underwater Mobile Acoustic Targets

A contract/lot is awarded: Yes

five.2) Award of contract/concession

five.2.1) Date of conclusion of the contract

17 January 2024

five.2.2) Information about tenders

The contract has been awarded to a group of economic operators: No

five.2.3) Name and address of the contractor/concessionaire

QinetiQ Limited

Portsmouth

Country

United Kingdom

NUTS code
  • UK - United Kingdom
The contractor/concessionaire is an SME

No

five.2.4) Information on value of contract/lot/concession (excluding VAT)

Total value of the contract/lot/concession: £10,000,000

five.2.5) Information about subcontracting

The contract/lot/concession is likely to be subcontracted


Section six. Complementary information

six.4) Procedures for review

six.4.1) Review body

Defence Equipment & Support

FIR 3C NH4 #4316, MoD Abbeywood South

Bristol

BS34 8JH

Country

United Kingdom