Scope
Description
The Secretary of State for Defence (the Authority), through the Sonar and Maritime Sensors (SaMS) Project Team within Defence Equipment & Support (DE&S), intends to place a 6-year contract, with an estimated total value, £8.7M (incl VAT) with Lockheed Martin UK (LMUK) for the In-Service Support of the current Sonar 2054 Inboard Replacement (IR) system fitted within the Royal Navy Submarine Fleet.
The support activities will include but not be limited to: a) programme and contract management b) provision of Post Design Services c) management of equipment obsolescence which may include technology refresh activity d) provision of on-site engineering and testing e) provision of spares including shipping and fitting f) provision and management of equipment repair activities g) provision of disposal services h) other support related activities requiring site visits, i) additional ad-hoc tasking.
Contract 1
Supplier
Contract value
- £8,300,000 excluding VAT
- £8,700,000 including VAT
Above the relevant threshold
Earliest date the contract will be signed
31 March 2026
Contract dates (estimated)
- 1 April 2026 to 31 March 2032
- 6 years
Main procurement category
Services
CPV classifications
- 50660000 - Repair and maintenance services of military electronic systems
- 38113000 - Sonars
Other information
Description of risks to contract performance
Advances in technology or possible component obsolescence/failure during the life of the contract could leave the equipment in its current form unable to perform to the operational level required and jeopardise the satisfactory performance of the contract. A mitigation to this risk would be the introduction of a Technology Refresh to the S2054IR to maintain the safe operation of the equipment within the lifetime of this contract. This may require a contract modification in accordance with Schedule 8 Paragraph 10, or Paragraph 5 and Paragraph 6(b)(ii) of the Procurement Act 2023.
Conflicts assessment prepared/revised
Yes
Procedure
Procedure type
Direct award
Special regime
Defence and security
Direct award justification
- Single supplier - technical reasons
- Defence and security - qualifying defence contract new award rather than modification
It is considered that the direct award of the contract is lawful pursuant to Section 41 and paragraph 6 of Schedule 5 of the Procurement Act 2023 for single suppliers - technical reasons. The proposed In-Service Support is a continuation of the existing support provided by LMUK under the current contract.
LMUK, are the Original Equipment Manufacturer (OEM) for S2054IR, and the only economic operator that has access to the LMUK designs, drawings and technical data which is necessary to fulfil the requirement. LMUK designed, developed and installed the Sonar 2054IR system across all the UK Ministry of Defence's platforms and shore installations and has supported the system since its installation & holds the necessary specialist technical knowhow to fulfil the requirement. S2054IR is essential to the safety of the V class platforms at sea and it is not considered that another provider could meet the required level of support without access to the referenced technical data and know-how, introducing an unacceptable level of technical, safety and security risk to MOD capability.
Supplier
Lockheed Martin UK Ltd
- Companies House: 02372738
Building 7000 Langstone Park, Langstone Road
Havant
PO9 1SW
United Kingdom
Email: Jenn.Tulk@lmco.r.mil.uk
Region: UKJ35 - South Hampshire
Small or medium-sized enterprise (SME): No
Voluntary, community or social enterprise (VCSE): No
Contract 1
Contracting authority
Defence Equipment and Support
- Public Procurement Organisation Number: PVRL-5831-GLMM
MOD Abbey Wood
Bristol
BS34 8JH
United Kingdom
Email: margaret.thorne404@mod.gov.uk
Website: https://www.gov.uk/government/organisations/defence-equipment-and-support
Region: UKK12 - Bath and North East Somerset, North Somerset and South Gloucestershire
Organisation type: Public authority - central government