Scope
Reference
714928467
Description
The Royal Navy, part of the UK Ministry of Defence, intends to award a 1 + 1 year contract with a value of £13,267,000 to Serco for the Air Engineering Support and Airfield Services (AESAS).
As a covered procurement, this procurement falls to be regulated under the provisions of the Procurement Act 2023.
In the circumstances, the authority may award this public contract directly in accordance with section 41 of the Procurement Act 2023. The applicable direct award justification is that set out in paragraph 7 of Schedule 5 of the Act.
This justification applies because the AESAS contract concerns the supply of services by the existing supplier which are intended as an extension to existing services in circumstances where:
a change in supplier would result in the contracting authority receiving services that are different from, or incompatible with, the existing services. Namely, a different supplier would lack Serco's (i) deeply embedded operational expertise and established relationships at Yeovilton and Culdrose, and (ii) suitably trained and experienced staff.
And
b. the difference or incompatibility would result in disproportionate technical difficulties in operation and/or maintenance. In particular, the difference in service provided by a different supplier would result in:
i. unacceptable risks to performance and safety resulting from the need to rebuild critical trust and operational knowledge;
ii. the contracting authority needing to invest additional resources in order to retrain staff, modify existing systems, and/or purchase additional equipment;
iii. a risk to the continued readiness and support to MCT aircraft, which is critical to national defence;
iv. significant adjustments to the Contractor's Quality Management System, resulting in operational inefficiencies and increased costs;
v. disruption to coordination and maintenance of ground support and equipment provision at RNAS Yeovilton; and
vi. increase in lead times in returning airframes to flying operations at RNAS Culdrose and reduction in overall numbers of available aircraft in the forward fleet.
Contract 1
Supplier
Contract value
- £13,267,000 excluding VAT
- £15,920,400 including VAT
Above the relevant threshold
Earliest date the contract will be signed
28 November 2025
Contract dates (estimated)
- 1 April 2026 to 31 March 2027
- Possible extension to 31 March 2028
- 2 years
Description of possible extension:
The contract will include the option to extend by up to one year after the initial end date of 31/03/2027. This requirement is intending to be fuldilled by a larger contract on its expiration. The option for extension is intded to be untilised should that larger contract not be be ready.
Main procurement category
Services
Options
The right to additional purchases while the contract is valid.
The contract will include the option to extend by up to one year after the initial end date of 31/03/2027. This requirement is intending to be fuldilled by a larger contract on its expiration. The option for extension is intded to be untilised should that larger contract not be be ready.
CPV classifications
- 50212000 - Repair and maintenance services of helicopters
Other information
Conflicts assessment prepared/revised
Yes
Procedure
Procedure type
Direct award
Direct award justification
- Single supplier - technical reasons
- Defence and security - air or maritime transport services
- Defence and security - qualifying defence contract new award rather than modification
The Royal Navy, part of the UK Ministry of Defence, intends to award a 1 + 1 year contract with a value of £13,267,000 to Serco for the Air Engineering Support and Airfield Services (AESAS).
As a covered procurement, this procurement falls to be regulated under the provisions of the Procurement Act 2023.
In the circumstances, the authority may award this public contract directly in accordance with section 41 of the Procurement Act 2023. The applicable direct award justification is that set out in paragraph 7 of Schedule 5 of the Act.
This justification applies because the AESAS contract concerns the supply of services by the existing supplier which are intended as an extension to existing services in circumstances where:
a change in supplier would result in the contracting authority receiving services that are different from, or incompatible with, the existing services. Namely, a different supplier would lack Serco's (i) deeply embedded operational expertise and established relationships at Yeovilton and Culdrose, and (ii) suitably trained and experienced staff.
And
b. the difference or incompatibility would result in disproportionate technical difficulties in operation and/or maintenance. In particular, the difference in service provided by a different supplier would result in:
i. unacceptable risks to performance and safety resulting from the need to rebuild critical trust and operational knowledge;
ii. the contracting authority needing to invest additional resources in order to retrain staff, modify existing systems, and/or purchase additional equipment;
iii. a risk to the continued readiness and support to MCT aircraft, which is critical to national defence;
iv. significant adjustments to the Contractor's Quality Management System, resulting in operational inefficiencies and increased costs;
v. disruption to coordination and maintenance of ground support and equipment provision at RNAS Yeovilton; and
vi. increase in lead times in returning airframes to flying operations at RNAS Culdrose and reduction in overall numbers of available aircraft in the forward fleet.
Supplier
SERCO LIMITED
- Companies House: 00242246
Serco House, 16 Bartley Wood Business Park
Bartley Way Hook
RG27 9UY
United Kingdom
Email: generalenquiries@serco.com
Region: UKJ37 - North Hampshire
Small or medium-sized enterprise (SME): No
Voluntary, community or social enterprise (VCSE): No
Contract 1
Contracting authority
Ministry of Defence
- Public Procurement Organisation Number: PHVX-4316-ZVGZ
Navy Commercial, NCHQ, Whale Island
Portsmouth
PO2 8BY
United Kingdom
Email: eliot.murton100@mod.gov.uk
Website: https://www.gov.uk/government/organisations/ministry-of-defence
Region: UKJ31 - Portsmouth
Organisation type: Public authority - central government