715890474 Thermoteknix EC - UK5

Justification for Direct Award

The Authority intends to award the contract without prior competition in reliance upon:

Schedule 5, Paragraph 6 of the Procurement Act 2023 (Single Supplier: Technical Reasons) for support, maintenance, and repair services; and

Schedule 5, Paragraph 7 of the Procurement Act 2023 (Additional or Repeat Goods, Services or Works) for the procurement of additional TCOS systems and associated ancillaries.

A. Single Supplier for Technical Reasons (Schedule 5, Paragraph 6)

Thermoteknix Systems Ltd, as OEM and Design Authority, retains access to the technical data, software, design information, specialist tooling, engineering expertise and configuration knowledge necessary to support, maintain and repair the TCOS capability currently in service with the British Army.

The continued provision of support and maintenance services requires access to proprietary technical information, specialist knowledge and design understanding that are not available to alternative/third-party suppliers. The Authority requires continued support of the existing assured capability throughout its remaining service life. Any attempt to transfer support activities to an alternative supplier would require extensive technical investigation, verification, validation, safety assurance, and configuration management activities, resulting in unacceptable technical, safety and operational risk.

Accordingly, competition is absent for technical reasons and Thermoteknix Systems Ltd is considered the only supplier capable of providing support and maintenance for the existing assured capability to the required technical, safety and operational standards during its remaining service life. There are no reasonable alternatives.

B. Additional Goods (Schedule 5, Paragraph 7)

The contract also includes provision for the procurement of additional TCOS systems and associated ancillaries to support fleet management, growth towards the Total Fleet Requirement and operational requirements throughout the remaining life of the capability.

Whilst alternative solutions may exist within the wider market, those solutions would constitute different platforms to the assured capability currently in service. Procuring alternative equipment would require Defence to introduce separate training, assurance, maintenance, and support arrangements, creating disproportionate technical difficulties in operation and maintenance and increasing complexity and logistical burden.

Only Thermoteknix Systems Ltd is capable of supplying additional units that are the same in-service, assured solution to the existing assured capability and fully compatible with the established support, maintenance, and assurance arrangements. The direct award is therefore limited to the procurement of additional units of the same in-service capability currently operated by Army personnel.

The advertised contract value is the maximum estimated value of all potential orders that may be placed under the contract during its term. It does not represent a guaranteed level of expenditure. The Authority reserves the right not to place any orders under the contract and is not obliged to spend the full advertised value, or any value, during the lifetime of the contract.

Future Procurement Strategy

This direct award does not seek to establish a replacement capability or meet any future requirement beyond the current capability planned service life. Upon reaching the planned Out of Service Date, the Authority intends to reassess its future requirement and determine the appropriate procurement strategy, including competition where appropriate

Additional Information

Original contract competitively awarded under DSPCR.

Thermoteknix Systems Ltd is the Original Equipment Manufacturer and Design Authority.

Support activities require access to technical data, specialist knowledge and configuration control held by Thermoteknix Systems Ltd.

Additional systems are required to support growth towards the Total Fleet Requirement while maintaining fleet commonality.

Additional units must be the same as the assured capability currently in service.

The direct award is limited to sustaining the existing assured capability until its planned OSD.

The Cyber Risk Level associated with this project has been assessed as Level 1 Foundational. Risk Assessment Reference: RAR-TC4JQNC