Public procurement notice: Voluntary Ex Ante Transparency Notice
Published: 2019-06-26
Buyer: Ministry of Defence, Combat Air, UK Military Flying Training System (UKMFTS) Project Team
Country: UK
Contract type: Services
Procedure: Negotiated without a prior call for competition
CPV classification: 50211100: Aircraft maintenance services
Estimated value: 1600000000 GBP

Technical requirements: The Provision of In Service Support and Post Design Services for Hawk T Mk1/1a and Hawk T Mk2 Aircraft
Provision of in-service-support and post design services for Hawk T Mk1/1A and Hawk T Mk2 aircraft for period March 2020 to March 2033, with option to extend to March 2040.
UKMFTS Delivery Team is seeking to replace 4 major single source contracts for in-service support of Hawk T Mk1/1a and Hawk T Mk2 training aircraft (all expiring in 2020), plus various smaller contracts providing support for the 2 aircraft types. T Mk1’s role is operational readiness training by the RAF, Royal Navy and in support of medical Aviation research. The Mk1a is the variant modified for the RAF Aerobatic Team (Red Arrows). The T Mk2’s role is as Fast Jet trainer for Typhoon and Lightning II pilots and are provided as Government Furnished Equipment into the UK Training Flying Services contract with ASCENT (Fast Jet Training provider). It is the MOD's intent to consolidate the future Hawk requirement for maintenance and support into a 13-year, single source contract with BAE SYSTEMS, aiding better holistic through-life management of the fleet, efficiencies across platforms via economies of scale and optimised stock holding and management.
Option to extend contract from March 2033 to March 2040 to cover up to Hawk T Mk2 Out of Service (OSD) date.
Prior to the placement of the existing contracts there were 2 contracts in place for the in-service support for Hawk T1 aircraft (including engines) and Hawk T2 aircraft (including engines), covering the maintenance, repair, obsolescence management and post design services, etc. for both platforms. BAE Systems have been the prime contractor for over 40 years. Under Defence and Security Public Regulations (DSPCR) Regulation 16, the Hawk post design services and engines elements were identified as single source requirements, therefore a decision was taken to split the Hawk T1 and Hawk T2 contracts removing the single source elements to open-up the competition for the in-service support for Hawk T1 and Hawk T2 airframes. Both competitions failed:
(a) The Hawk T2 competition was run in April 2014, 2 companies were invited, Babcock Aerospace Ltd and BAE Systems, resulting in a single bid from BAE Systems;
(b) The Hawk T1 competition was run in February 2015, 4 companies, BAE Systems, QinetiQ, Serco and FBH were invited to tender and prior to the ITT return date 3 companies pulled out of the competition, due to the perceived risk of sourcing spares through BAE Systems.
Examination of the market shows that the market place has not changed, and there are no competitors to BAE Systems with the capability or experience to take on this contract for Hawk support. Consequently the contract is to be awarded without competition, in accordance with Regulation 16(1)(a)(ii) Defence and Security Public Contracts Regulations; Article 28(1)(e) Directive 2009/81/EC.
Rolls Royce engines (single source), Martin Baker ejector seats (single source) and commodity spares.
The Authority reserves the right to amend any condition related to security of information to reflect any changes in national law or government policy. If any contract documents are accompanied by instructions on safeguarding classified information (e.g. a Security Aspects Letter), the Authority reserves the right to amend the terms of these instructions to reflect any changes in national law or government policy, whether in respect of the applicable protective marking scheme, specific protective markings given, the aspects to which any protective marking applies, or otherwise. The link below to the Gov.uk website provides information on the Government Security Classification.
Advertising Regime OJEU: This contract opportunity is published in the Official Journal of the European Union (OJEU), the MoD Defence Contracts Bulletin and www.contracts.mod.uk


Winner: BAE Systems (Operations) Ltd
Award value: 1600000000