Section one: Contracting authority
one.1) Name and addresses
The Minister for the Cabinet Office acting through the Cabinet Office
1 Horse Guards Road
London
SW1A 2HQ
marketsandsuppliers@cabinetoffice.gov.uk
Telephone
+44 3150103503
Country
United Kingdom
NUTS code
UK - UNITED KINGDOM
Internet address(es)
Main address
https://www.gov.uk/government/organisations/cabinet-office
one.4) Type of the contracting authority
Ministry or any other national or federal authority
one.5) Main activity
Health
Section two: Object
two.1) Scope of the procurement
two.1.1) Title
Supply of Plant and associated Services
two.1.2) Main CPV code
- 33100000 - Medical equipments
two.1.3) Type of contract
Supplies
two.1.4) Short description
The Cabinet Office will contract with a supplier to procure plant machinery which can be utilised for the production of UK-compliant non-medical face coverings (and Type IIR medical-grade masks in extremis), which are required to support the national effort to combat Covid-19.
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: £1,639,650
two.2) Description
two.2.3) Place of performance
NUTS codes
- UK - UNITED KINGDOM
two.2.4) Description of the procurement
The Cabinet Office will contract with a supplier to procure plant machinery which can be utilised for the production of UK-compliant non-medical face coverings (and Type IIR medical-grade masks in extremis), which are required to support the national effort to combat Covid-19.
two.2.5) Award criteria
Price
two.2.11) Information about options
Options: Yes
Description of options
12 months from the installation and acceptance of all DCR machines purchased + 6 months extension option.
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
Award of a contract without prior publication of a call for competition in the cases listed below
- Extreme urgency brought about by events unforeseeable for the contracting authority
Explanation:
1. The COVID-19 outbreak is a Public Health Emergency of International Concern as declared by the World Health Organisation on 30 January 2020. The WHO Director-General characterised COVID-19 as a pandemic on 11 March 2020. As of 6 April 2020, scientific knowledge regarding the disease and its transmission is still emerging, however the WHO advises that COVID-19 transmission can occur via ‘infective respiratory droplets’ and wearing a mask represent one prevention measure that can limit the spread of viral diseases such as COVID-19.
2. In April 2020 the UK did not possess any face covering manufacturing capability and was reliant on securing supplies from overseas producers. Problems were experienced in obtaining reliable supplies of medical PPE-grade masks in a global market due to the disruption to the supply chain caused by the pandemic. There was a concern that insufficient volumes of non-medical masks would become available or, if available, they would be of inferior quality or charged at exorbitant prices. Analysis by Cabinet Office (CO) in late April 2020 highlighted that the average price of respirator masks was £3.14 (medical-grade) and Type IIR (medical-grade) was £0.67, whilst non-medical was £0.51 per unit. During a normal trading period the cost of a Type IIR mask would be approximately £0.05 per unit, sourced from China.
3. In April 2020 Cabinet Office (CO) considered it crucial in the public interest to source face covering production machinery in order to secure the UK’s domestic manufacturing capacity to:
a. produce medical grade masks immediately (if necessary);
b. create an immediate and reliable supply of high-quality non-medical face coverings at affordable prices for the domestic market; and
c. create national resilience to supply chain shocks within a global market.
This was because in April 2020 there was a considerable shortage of medical and non-medical PPE globally, there was real fear that items available would be impounded at boarders so domestic production was urgently required to mitigate the impact of COVID-19.
4. Accordingly, CO worked with the trade association for UK manufacturing to identify a supplier that was capable of providing machines which could make non-medical or medical-grade masks. Therefore the machines could be diverted to produce medical-grade masks for the NHS if necessary.
5. Therefore, an accelerated PCR procurement, was impossible. Any delay in engaging the market ran the risk of failing to secure production machinery (given the international demand for such equipment and the timelines involved in securing them). That would have caused knock-on delays to the production of face coverings in the required timeframe so undermining HMG efforts to mitigate Covid-19 risks in the UK.
6. Accordingly, CO purchased ten lines of production machines from Crossgates Press Limited t/a DCR Machines (DCR Machines).
7. CO is satisfied the tests permitting use of a direct award procedure (Regulation 32(2)(c)) are met (the explanation is set out in section VI.3 additional information):
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
Contract No
CO/FC/PLANT/DCR/05-2020
Title
Supply of Plant and associated Services
A contract/lot is awarded: Yes
five.2) Award of contract
five.2.1) Date of conclusion of the contract
20 July 2020
five.2.2) Information about tenders
Number of tenders received: 1
The contract has been awarded to a group of economic operators: No
five.2.3) Name and address of the contractor
Crossgates Press Limited t/a DCR Machines
56 Austhorpe Road, Crossgates
Leeds
LS15 8DX
Country
United Kingdom
NUTS code
- UK - UNITED KINGDOM
National registration number
07418266
The contractor is an SME
Yes
five.2.4) Information on value of contract/lot (excluding VAT)
Total value of the contract/lot: £1,639,650
Section six. Complementary information
six.3) Additional information
As part of this contract award notice the following can be accessed at:
https://www.contractsfinder.service.gov.uk/Notice/2ecda880-c198-48b0-b90e-ef6ba50d1b50
The text below is a continuation of paragraph 7 of Annex D1
a. There are genuine reasons for extreme urgency: CO has responded to Covid-19 immediately due to public health risks presenting a genuine emergency. The DCR Machines possess the capability to produce Type IIR face masks, which could be utilised by the NHS in extremis, therefore providing domestic resilience during the crisis.
b. The events that have led to the need for extreme urgency were unforeseeable: The European Commission (Commissioner Breton – April 2020) has confirmed that the coronavirus crisis presents an extreme and unforeseeable urgency.
c. It is impossible to comply with the usual timescales in the PCR: There was no time to run an accelerated procurement under the open, restricted or competitive procedures with negotiation that would allow CO to secure production machinery in the immediate term. That is particularly so in light of the likely delays to any procurement timeline – for example, drafting the technical documents required for the ITT stage – and the operational and commercial risks that would arise due to the delays.
d. The situation is not attributable to the Contracting Authority: It has not done anything to cause or contribute to the need for extreme urgency.
e. As far as is strictly necessary: The UK did not have suitable machinery available at the time the DCR Machines were purchased leaving the UK vulnerable should other countries have embargoed such machinery or medical and non-medical grade face coverings. A critical factor behind the selection of the DCR machines was they had the shortest lead time amongst available options, from point of purchase to delivery of the plant machinery in the UK.
six.4) Procedures for review
six.4.1) Review body
The Minister for the Cabinet Office acting through the Cabinet Office
1 Horse Guards Road
London
SW1A 2HQ
marketsandsuppliers@cabinetoffice.gov.uk
Telephone
+44 3450103503
Country
United Kingdom