Public procurement notice: Contract Award Notice
Published: 2020-07-23
Buyer: The Minister for the Cabinet Office acting through the Cabinet Office
Country: UK
Contract type: Supplies
Procedure: Negotiated without a prior call for competition
CPV classification: 33100000
Estimated value: 1639650 GBP
Award criteria: Lowest price

Technical requirements: The Cabinet Office will contract with a supplier to procure plant machinery which can be utilised for the production of UK-compliant non-medical face coverings (and Type IIR medical-grade masks in extremis), which are required to support the national effort to combat Covid-19.
12 months from the installation and acceptance of all DCR machines purchased + 6 months extension option.
1) The Covid-19 outbreak is a Public Health Emergency of International Concern as declared by the World Health Organisation on 30 January 2020. The WHO Director-General characterised Covid-19 as a pandemic on 11 March 2020. As of 6 April 2020, scientific knowledge regarding the disease and its transmission is still emerging, however the WHO advises that Covid-19 transmission can occur via ‘infective respiratory droplets’ and wearing a mask represent one prevention measure that can limit the spread of viral diseases such as Covid-19.
2) In April 2020 the UK did not possess any face covering manufacturing capability and was reliant on securing supplies from overseas producers. Problems were experienced in obtaining reliable supplies of medical PPE-grade masks in a global market due to the disruption to the supply chain caused by the pandemic. There was a concern that insufficient volumes of non-medical masks would become available or, if available, they would be of inferior quality or charged at exorbitant prices. Analysis by Cabinet Office (CO) in late April 2020 highlighted that the average price of respirator masks was GBP 3.14 (medical-grade) and Type IIR (medical-grade) was GBP 0.67, whilst non-medical was GBP 0.51 per unit. During a normal trading period the cost of a Type IIR mask would be approximately GBP 0.05 per unit, sourced from China.
3) In April 2020 Cabinet Office (CO) considered it crucial in the public interest to source face covering production machinery in order to secure the UK’s domestic manufacturing capacity to:
(b) create an immediate and reliable supply of high-quality non-medical face coverings at affordable prices for the domestic market; and
This was because in April 2020 there was a considerable shortage of medical and non-medical PPE globally, there was real fear that items available would be impounded at boarders so domestic production was urgently required to mitigate the impact of Covid-19.
4) Accordingly, CO worked with the trade association for UK manufacturing to identify a supplier that was capable of providing machines which could make non-medical or medical-grade masks. Therefore the machines could be diverted to produce medical-grade masks for the NHS if necessary.
5) Therefore, an accelerated PCR procurement, was impossible. Any delay in engaging the market ran the risk of failing to secure production machinery (given the international demand for such equipment and the timelines involved in securing them). That would have caused knock-on delays to the production of face coverings in the required timeframe so undermining HMG efforts to mitigate Covid-19 risks in the UK.
6) Accordingly, CO purchased ten lines of production machines from Crossgates Press Limited t/a DCR Machines (DCR Machines).
7) CO is satisfied the tests permitting use of a direct award procedure (Regulation 32(2)(c)) are met (the explanation is set out in section VI.3) additional information).
(a) There are genuine reasons for extreme urgency: CO has responded to Covid-19 immediately due to public health risks presenting a genuine emergency. The DCR Machines possess the capability to produce Type IIR face masks, which could be utilised by the NHS in extremis, therefore providing domestic resilience during the crisis.
(b) The events that have led to the need for extreme urgency were unforeseeable: The European Commission (Commissioner Breton – April 2020) has confirmed that the Coronavirus crisis presents an extreme and unforeseeable urgency.
(c) It is impossible to comply with the usual timescales in the PCR: There was no time to run an accelerated procurement under the open, restricted or competitive procedures with negotiation that would allow CO to secure production machinery in the immediate term. That is particularly so in light of the likely delays to any procurement timeline – for example, drafting the technical documents required for the ITT stage – and the operational and commercial risks that would arise due to the delays.


Winner: Crossgates Press Ltd t/a DCR Machines
Award value: 1639650
Number of bids: 1