Crane Power Packs and Valve Blocks for CRARRV

The Land Combat Vehicles 1 Team, part of the Ministry of Defence (Authority), intends to award a contract to ATLAS Cranes UK Ltd (‘ATLAS’) for the provision of CRARRV Crane power packs, motors and hydraulic control value blocks as replacement/spare parts (Parts) for the Challenger Armoured Repair and Recovery Vehicles (CRARRV). The contract will be for a term of 4 years and has an estimated value of £8,253,456 (inclusive of VAT).

It is considered that this contract can be awarded under Section 41 of the Procurement Act 2023 because the direct award justification specified in paragraph 7 of Schedule 5 (additional or repeat goods, services or works) applies.

This is because ATLAS is the Original Equipment Manufacturer (OEM) and the Authority’s appointed Design Authority (DA) of the CRARRV Crane Power Packs and Crane Hydraulic Control Valve Blocks. ATLAS has supplied Parts to the Authority since the CRARRV came into service in 1990. Only the OEM and DA is able to provide the Parts, which are manufactured bespoke. A change in supplier would result in the Authority receiving Parts that are incompatible with existing goods. CRARRV cannot function without compatible Parts, therefore any incompatibility would result in disproportionate technical difficulties in operation and maintenance.