Public procurement notice: Contract Notice
Published: 2016-10-27
Buyer: Ministry of Defence, Ships, Commercially Supported Shipping (CSS) Team
Country: UK
Region: Bristol, City of
Contract type: Services
Procedure: Negotiated procedure
CPV classification: 50241000
Estimated value: 940000000 GBP
Submission deadline: 2016-11-29
Award criteria: The most economic tender

Technical requirements: Commercially Supported Shipping (CSS) Future In-Service Support (FISS) — Through Life Support Requirement.
The contract will be for ten (10) years, with a value for money exercise commencing at the three and a half (3.5) year point. The Authority will have the option, at its sole discretion, to break the contract at the five (5) year point if it believes value for money is not being achieved.
Years one (1) to five (5) will be firm price i.e. not subject to variation, and years six (6) to ten (10) will be fixed price, subject to the price index / indices stated in the contract. The justification for the proposed framework duration is that RFA and OSV vessels require a refit period every five (5) years, and a ten (10) year framework will allow for two (2) refit periods within one contractual agreement which will provide benefits to both the successful bidder and Authority through learning for experience. Planning a refit period requires eighteen (18) months, and a seven (7) year contract period would risk interruption to the planning or delivery of a second refit period. Certification is required at a docking every five (5) years so a ten (10) year framework would afford full certification twice preventing the risk of uncertified and therefore unusable vessels in the fleet. This is therefore deemed as exceptional circumstances.
Repair and maintenance services of ships. The Commercially Supported Shipping (CSS) Team manages the In-Service support of a diverse range of platforms which includes the Royal Fleet Auxiliary (RFA) flotilla and the Royal Navy (RN) Hydrographic and Patrol (H&P) including Survey Ships. The majority of contracts which support these platforms will expire in 2018. This advert relates specifically to the RFA and HMS Scott (Ocean Survey Vessel) requirements currently supported under long-term through-life-support contracts.
The 14 (fourteen) vessels in scope (thirteen (13) RFA and one (1) OSV) have been split into three (3) Lots, to best utilise learning from experience, whilst ensuring competition and value for money is achieved. The successful bidder(s) must support all requirements within their allocated Lot(s) over the ten (10) year framework agreement duration. In order to preserve competition or ensure reliability of supply although tenderers will be able to submit bids for all three (3) lots, the maximum number they can be awarded is two (2).
Auxiliary Oiler Tankers (RFA Wave Knight And Wave Ruler), Auxiliary Fleet Support Helicopter Vessels (RFA Fort Austin And Fort Rosalie), Auxiliary Oiler Replenishment Vessel (RFA Fort Victoria).
Worldwide engineering support; rectification of Operational Defects; and the planning, management and implementation of maintenance periods. Maintenance periods may include, but not be limited to: Refit Periods; Docking Periods; Contractor Support Periods; Annual Certification Periods; and Assisted Maintenance Periods.
Landing Ship Dock Auxiliary Vessels (RFA Lyme Bay, Mounts Bay, And Cardigan Bay), Primary Casualty Receiving Ship (RFA ARGUS), Ocean Survey Vessel (HMS Scott).
Worldwide engineering support; rectification of Operational Defects; and the planning, management and implementation of maintenance periods. Maintenance periods may include, but not be limited to: Refit Periods; Docking Periods; Contractor Support Periods; Annual Certification Periods; and Assisted Maintenance Periods.
Military Afloat Reach and Sustainability Tankers (RFA Tidespring, Tiderace, Tidesurge, And Tideforce).
Worldwide engineering support; rectification of Operational Defects; and the planning, management and implementation of maintenance periods. Maintenance periods may include, but not be limited to: Refit Periods; Docking Periods; Contractor Support Periods; Annual Certification Periods; and Assisted Maintenance Periods.
The in-service support packages available are: RFA Wave Knight, RFA Wave Ruler, RFA Fort Austin, RFA Fort Rosalie, RFA Fort Victoria (Lot 1) — Estimated value 320 000 000 GBP over ten (10) year contract duration; RFA Lyme Bay, RFA Mounts Bay, RFA Cardigan BaY, RFA Argus, Hms Scott (Lot 2) — Estimated value 275 000 000 GBP over ten (10) year contract duration; and / or RFA Tidespring, RFA Tiderace, RFA Tidesurge, RFA Tideforce (Lot 3) — Estimated value £345M over ten (10) year contract duration, which will include but not be limited to: worldwide engineering support; rectification of Operational Defects; and the planning, management and implementation of maintenance periods. Maintenance periods may include, but not be limited to: Refit Periods; Docking Periods; Contractor Support Periods; Annual Certification Periods; and Assisted Maintenance Periods.
— The successful bidder will also be required to provide design, planning, implementation and technical services for the various update, upgrade and / or modification packages along with the global supply and transport of spares.
A joint team (the Authority and the successful bidder) will be co-located at the successful bidder's premises and work collaboratively with other CSS support. It is envisioned that there will be one (1) joint support team per Lot.
The contract will be for ten (10) years, with a value for money exercise commencing at the three and a half (3.5) year point. The Authority will have the option, at its sole discretion, to break the contract at the five (5) year point if it believes value for money is not being achieved.

Eligibility requirements: (a) Appropriate statements from the economic operator's bankers or where appropriate, evidence of relevant professional risk indemnity insurance Two (2) years audited accounts (if available) or equivalent information, which will be sought through Pre-Qualification Questionnaire.
The estimated average annual contract value is 320 000 000 GBP (Lot 1), 275 000 000 GBP (Lot 2), and 345 000 000 GBP (Lot 3). If the estimated average annual contract value for the Lot(s) a potential supplier is planning to bid for is greater than 40 % of the its turnover, the Authority reserves the right to exclude them from being selected to tender. For the purposes of the 40 % calculation, if the potential supplier intends to bid for more than two (2) Lots the value will be the combination of Lots 1 and 3. The Authority reserves the right to exclude the supplier from being selected to tender except where the supplier provides, to the satisfaction of the Authority, evidence showing it has sufficient economic and financial capability, e.g. such evidence may include: (1) Any additional information proving it has sufficient economic and financial resources to deliver the requirement; and (2) State whether the supplier is willing to provide the Authority with an indemnity, guarantee or bank bond. A financial assessment will be undertaken on the supplier's financial status. An overall pass / fail judgement will be made after considering areas such as turnover, profit, net assets, liquidity, gearing and capacity. This assessment will include the Parent company where applicable. An independent financial assessment obtained from a reputable credit rating organisation will be utilised as part of this process.
See Pre-Qualification Questionnaire and Guidance document.