Public procurement notice: Contract Award Notice
Published: 2018-07-21
Buyer: Welsh Ministers
Country: UK
Contract type: Services
Procedure: Contract award without prior publication
CPV classification: 50413200 | 63731000 | 63732000 | 63733000 | 71311240
Estimated value: 40700000 GBP
Award criteria: The most economic tender

Technical requirements: Welsh Ministers and Cardiff International Airport Limited (each, in relation to their respective activity, operating as a utility under the Utilities Contracts Regulations 2016) have entered into a joint venture pursuant to regulation 30 of the Utilities Contracts Regulations 2016, for the purposes of activities falling within Reg 13 (exploitation of a geographical area for the provision of airports). The purpose of the joint venture is to coordinate the operation of Cardiff International Airport and St Athan Airfield with the aim of realising synergies and efficiencies and growing their business at both sites. Pursuant to Reg.30, the members of the joint venture have awarded a contract to CIAL for the provision of airfield operating services at St Athan, including assistance with transition to CAA regulation, air traffic control (by 2020), fire control, fuelling, security, ground approach radar services, maintenance, and other related services.
Welsh Ministers and CIAL wish to achieve synergies and efficiencies between operations at Cardiff International Airport and St Athan Airfield (which are geographically very close — c.5 nm). This includes opportunities for operational integration, shared services and resources, joint air traffic control and business development which are unique to the 2 sites given their proximity. They have therefore entered into a joint venture under Reg. 30 of the Utilities Contracts Regulations 2016. Under that joint venture, the parties have awarded a contract to CIAL for the operation of St Athan Airfield as permitted by Reg. 30. This includes transition of St Athan from a military airfield to a civilian aerospace business park operating under CAA rules and (from 2020) provision of air traffic control services by CIAL. The joint venture includes opportunities for shared revenue from future growth and the enablement of shared services and efficiencies.
Under Regulation 30 of the Utilities Contracts Regulations 2016, the 2016 Regulations do not apply to a contract awarded by a joint venture formed exclusively by a number of utilities for the purpose of carrying.
Out activities within the meaning of regulations 9 to 15, to one of those utilities. Both Welsh Ministers (in respect of St Athan) and CIAL (in respect of Cardiff Airport) are utilities carrying out an activity under Reg 13 (exploitation of geographical area for the provision of airports). They are thus entitled to form a joint venture and to award a contract pursuant to that joint venture to one of the utilities forming part of the joint venture, without opening the contract up to competition under the Regulations.
Further or in the alternative, the services can only be provided by one particular economic operator (CIAL) for the following reasons:
3. only CIAL can provide the services in such a way as to achieve operational efficiencies by reducing duplication and sharing services at the two sites; and
4. only CIAL is able to jointly develop future business opportunities with Welsh Ministers that will benefit both sites.
Further or in the further alternative, the benefits which Welsh Ministers seek to realise at St Athan can only be realised by achieving operational integration and coordination with Cardiff International Airport. CIAL has exclusive rights over Cardiff International Airport.
Joint Venture with Cardiff International Airport Limited and contract for airfield operating services


Winner: Cardiff International Airport Limited
Award value: 40700000
Number of bids: 1