Public procurement notice: Contract Award Notice
Published: 2017-01-20
Buyer: Ministry of Defence, Land Equipment, Other
Country: UK
Region: Gloucestershire, Wiltshire and Bristol/Bath area
Contract type: Services
Procedure: Negotiated procedure
CPV classification: 35412000: Armoured fighting vehicles
Estimated value: 38186000 GBP
Award criteria: As stated within the Invitation to Negotiate

Technical requirements: As stated within the Invitation to Negotiate
Armoured combat vehicles. For the avoidance of doubt, this Contract Notice and Dynamic Pre-Qualification Questionnaire (DPQQ) are being released in advance of a formal approval of available funding to initiate a competition. This approach is intended to accelerate the subsequent release of an Invitation to Negotiate (ITN) to the pre-selected field of bidders once approval to proceed to competition has been confirmed. For planning purposes only the Authority is assuming that formal approval will be achieved in late January 2016.
The UK Ministry of Defence (MOD) Armoured Vehicles Programmes (The Authority) has a possible future requirement to deliver a Challenger 2 Life Extension Project (CR2 LEP). The user requires the CR2 Main Battle Tank (MBT) Out of Service Date to be extended from 2025 to 2035, in order to continue to provide precision direct fire manoeuvre capability across a broad spectrum of operations. CR2 LEP seeks to address obsolescence issues to maintain main battle tank capability until 2035. This is a Category A Military Project (up to £700M inclusive of VAT, including initial logistic support).
Subject to internal approvals, the Authority intends to conduct a Competitive Negotiated Competition under the Defence Security and Public Contracts Regulations 2011 with the intention of inviting a minimum of three tenderers. From these tenders the Authority intends to utilise Most Economically Advantageous Tender (MEAT) principles to down select to two Prime Contractors, with each being invited to independently undertake a 2 year Assessment Phase (AP) under contracts not to exceed the Authority's total AP budget of 42 000 000 GBP inclusive of UK VAT. The ultimate aim of the competition will be to award a Demonstration, Manufacture and In-service Support (DMI) contract to the bidder which at the conclusion of the AP provides the most economically advantageous tender for the DMI contract.
During the AP the Authority will negotiate with the AP contractors under the Competitive Negotiated Procedure to refine their specific DMI proposals which will be evaluated at the conclusion of the AP. The Authority will then select a winner who, subject to a Main Gate investment decision, will deliver their proposed DMI solution in accordance with the terms included in the ITN and resolved during the AP. The ultimately successful DMI contractor will be required to formally undertake the role of Design Authority (DA) for the whole Platform. The timing for establishing formal DA status would be co-incident with the successful achievement of Critical Design Review during the D&M Phase.
Industry should note that the Invitation To Negotiate (ITN) will require the AP contractors to consider support options for any new to service items in conjunction with the Authority's primary Support provider (Babcock DSG Ltd), which is the existing provider of support to the Platform (and its common based platform variants) via existing Inventory and Repair Contracts. AP bidders will be expected to demonstrate a willingness and capability to work with Babcock DSG Ltd.
The Authority further advises that it will require bidders to include, as part of their response to the invitation to be considered for the award of an AP contract, non-binding indicative costs, showing certain estimated material costs which will form part of the price to be included in the D&M contract on a cost per vehicle basis (excluding VAT). This information will be used to inform the Not To Exceed cost model negotiations which will ultimately be set out as prices on a cost per vehicle basis in the subsequent DMI contract. Therefore bidders should be prepared to include assumptions, exceptions or limitations relating to D&M Material Costs.
The Authority further advises that it is likely that the negotiations during the AP leading towards the award of the DMI contract will require the two AP Contractors to provide prices (on a cost per vehicle basis) as above for banded option quantities, plus or minus the 227 quantity of MBTs, to take account of any changes to the Fleet size as a consequence of the 2015 Strategic Defence and Security Review. An additional option may be sought to supply and/or embody the selected solution into a fleet of up to 38 MBTs operated by an overseas Government.
The Authority further advises that the CR2 MBT will have a minimum gross vehicle weight of 62.5 tonnes but, up to 12 vehicles could weigh up to 65 tonnes, and a further 22 could weigh up to 75 tonnes if certain items were to remain embodied on these particular vehicles. This weight will be an important consideration in respect of storage during the AP and the subsequent DM phase of the project.
Industry will be aware of the recently published Prior Information Notice regarding a possible future requirement to deliver an interim solution to maintain or replace the Challenger 2 Thermal Imaging (TI) System until an enduring solution is provided by CR2 LEP. This is early concept activity to inform Business Case options which, subject to approvals, may result in a separate contract to deliver an interim solution. Details of any interim solution will not be known at the time of award of the AP contracts as the contract for the interim solution will not be awarded until after the AP contracts have been awarded. However such details will be made known to the AP contractors.
This Contract Notice includes a Dynamic Pre-Qualification Questionnaire (DPQQ). Parties who are accredited to BS EN ISO 9001 standard (or equivalent) and which have an interest in Priming the requirement shall complete and save a DPQQ by the designated closing date of 17:00 UK time on the 14.1.2016. This Contract Notice and DPQQ are not seeking responses in respect of potential sub-contract opportunities.
Suppliers interested in working with the Ministry of Defence should register on the MOD Supplier Information Database (SID) Register, available at www.contracts.mod.uk. The MOD SID is a database of active and potential suppliers available to all MOD and UK Defence procurement personnel, and is the main supplier database of MOD Procurement organisations. Please note: the registration and publication of a company profile on the MOD SID does not mean or imply that the supplier has in any way been vetted or approved by the MOD. Suppliers wishing to compete for advertised MOD contracts must respond to any specific call for competition by submitting a separate expression of interest in accordance with the instructions of the purchasing organisation.
From 2 April 2014 the Government is introducing its new Government Security Classifications Policy (GSC) to replace the current Government Protective Marking Scheme. A key aspect of this is the reduction in the number of security classifications used. All suppliers to the Department are encouraged to make themselves aware of the changes as it may impact on this Requirement. The link below to the Gov.uk website provides information on the new GSC.
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.
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 GO Reference: GO-2017118-DCB-9412249.


Number of bids: 6