MCWP Test Loop Rig - Operation and Maintenance

{
  "id": "018402-2024",
  "tag": [
    "award",
    "contract"
  ],
  "date": "2024-06-14T09:33:11+01:00",
  "ocid": "ocds-h6vhtk-046fe7",
  "buyer": {
    "id": "GB-FTS-5483",
    "name": "Ministry of Defence"
  },
  "awards": [
    {
      "id": "018402-2024-1",
      "status": "active",
      "suppliers": [
        {
          "id": "GB-FTS-6557",
          "name": "Babcock International Group"
        }
      ],
      "relatedLots": [
        "1"
      ],
      "hasSubcontracting": true
    }
  ],
  "tender": {
    "id": "ocds-h6vhtk-046fe7",
    "lots": [
      {
        "id": "1",
        "options": {
          "description": "Contract Extension if required beyond 3 years"
        },
        "hasOptions": true,
        "description": "Operation, maintenance and storage of MCWP Test Loop Rig and other articles held",
        "awardCriteria": {
          "criteria": [
            {
              "name": "Lowest price",
              "type": "price"
            }
          ]
        }
      }
    ],
    "items": [
      {
        "id": "1",
        "relatedLot": "1",
        "deliveryAddresses": [
          {
            "region": "UKF21"
          }
        ]
      }
    ],
    "title": "MCWP Test Loop Rig - Operation and Maintenance",
    "status": "complete",
    "legalBasis": {
      "id": "32009L0081",
      "scheme": "CELEX"
    },
    "description": "The Platform Equipment Delivery Team (PEDT) part of the Ministry of Defence, intends to award a contract to Babcock Integrated Technology Limited (BITL) for the maintenance and operation of the MOD owned Test Loop Rig to be used as part of the certification and acceptance process for Main Circulating Water Pumps.\nThe MOD owns a single MCWP Test Loop Rig.  This rig is used to test all main circulating water pumps across the submarine fleet and every pump, whether newly manufactured or in the repair loop, must use the test loop rig prior to being declared serviceable.  The Test Rig has been maintained and operated as part of a complete support contract for the past 14 years: this support contract was awarded without the prior publication of a contract notice in accordance with regulation 16(1)(a)(ii) of the Defence and Security Public Contracts Regulations 2011 for technical reasons and has now expired.  It is the intention of the Authority to disaggregate elements of the support contract to allow a competition for the work to be held.   \nThe Authority has identified an enduring requirement for work that cannot be included in the competition – specifically, to maintain and operate the Test Loop Rig - to ensure that support to in-service submarines can be maintained. The Rig is a large and complex structure and is over 30 years old. The Authority will be investigating options and anticipate that the operation and maintenance contract will need to last approximately 3 years.\nThe security requirements for this contract limit the potential suppliers to UK companies with list X facilities.  In addition, all contractors must meet stringent quality requirements (Quality Assurance for Safety in Submarines (SSP25) for all 1st Level work on RN Submarines) - this also applies to maintenance equipment for 1st line components such as the MCWP - as such, the Test Rig must also meet these requirements.   \nOver the course of the preceding contract, the incumbent Support Partner made significant improvements to the Test Rig which increased efficiency but also added complexity: this would need to be understood by any new operator. Whilst MOD has access to operating manuals the Improvements made by BITL in the PROCESS, ELECTRONICS, SOFTWARE and CONSTRUCTION of the Rig means that it is not possible, at this time, to operate this equipment merely by reading the operating manuals.  Indeed, within BITL, only the specialist team at Whetstone are qualified and competent to operate the rig whilst maintaining Quality standards.  \nWithout access to this critical information and knowledge no supplier would be able to perform the contract and deliver the required support solution. The technical knowledge and experience required to update the operating manuals and associated data packs is currently held by SQEP at BITL.  None of the team operating the Test Loop rig would be eligible for TUPE considerations so it is unlikely that a new supplier could be found to bid for the management of the Test Loop Rig alone.    \nAny future contractor or MOD would require a specific training program to be provided by the incumbent Support Partner to ensure the requirements are met.  Moreover, the test site is the only known test-site that could meet the requirements – an alternative site would require appraisal to include ground surveys (to confirm that the terrain is suitable to house the test rig and concrete laid underneath i.e. is not subject to subsidence / future fracking sites) as well as a demonstrable ability to install, assemble, calibrate and operate the test rig to meet the exacting standards and requirements of the support contract.  This would require significant pre-contract investment that would not be palatable, or commercially viable, for an alternative contractor. Therefore, BITL and only BITL are capable of delivering this requirement.",
    "classification": {
      "id": "50800000",
      "scheme": "CPV",
      "description": "Miscellaneous repair and maintenance services"
    },
    "procurementMethod": "limited",
    "mainProcurementCategory": "services",
    "procurementMethodDetails": "Negotiated without publication of a contract notice",
    "procurementMethodRationale": "The Platform Equipment Delivery Team (PEDT) part of the Ministry of Defence, intends to award a contract to Babcock Integrated Technology Limited (BITL) for the maintenance and operation of the MOD owned Test Loop Rig to be used as part of the certification and acceptance process for Main Circulating Water Pumps. The contract has an estimated total value of £3,000,000 over a duration of 3 years.\nIn accordance with regulation 4 of The Defence and Security Public Contracts (Amendment) (EU Exit) Regulations 2019 (SI 2019/697) this contract falls to be regulated under the provisions of the Defence and Security Public Contracts Regulations 2011 as amended (in particular by SI 2019/697 and SI 2020/1450). Prior publication of a contract notice in the Official Journal of the European Union is no longer appropriate. It is considered that this contract can be awarded without prior publication of a contract notice in the UK e-notification service in accordance with regulation 16(1)(a)(ii) of the Defence and Security Public Contracts Regulations 2011 for technical reasons. \nThis is because: \na.\tBITL alone possesses the specific technological expertise and knowledge, tools and access to and expertise in the operation of specialist test equipment to carry out and  complete final testing of new pumps delivered to MOD ownership. \nb.\tIn particular, the Contractor has exclusive access to the only existing test rig equipment required to conduct testing and re-calibration of the repaired, refurbished and modified MCWP systems to ensure safety requirements are met. \nc.\tContracting for the requirement with a third party would require the re-positioning installation, assembly and extensive calibration of the test rig equipment, together with support and training from the Contractor therefore losing operational capability for a period of time.\nd.\tThe Authority will be reducing its dependence on the Test Rig by 2027 – it is considered that no other economic operator would countenance the financial outlay required to prepare the location or achieve the necessary SQEP for a contract length of 24-36 months. \ne.\tAs the Rig is located on a Cavendish/Babcock owned site, access to and from the Rig is solely and exclusively controlled by the Contractor. Commercial sensitivity prevents Babcock allowing competitors to the site and it is not possible to separate the Test Rig from non-PEDT work.  \nf.\tBITL alone possesses the specific technological expertise and knowledge, tools and access to and expertise in the operation of specialist test equipment. \ng.\tBITL has exclusive access rights to the equipment.",
    "procurementMethodRationaleClassifications": [
      {
        "id": "D_MANUF_FOR_RESEARCH",
        "scheme": "TED_PT_AWARD_CONTRACT_WITHOUT_CALL",
        "description": "The products involved are manufactured purely for the purpose of research, experiment, study or development under the conditions stated in the directive"
      },
      {
        "id": "D_TECHNICAL",
        "scheme": "TED_PT_AWARD_CONTRACT_WITHOUT_CALL",
        "description": "The works, supplies or services can be provided only by a particular economic operator due to absence of competition for technical reasons"
      }
    ]
  },
  "parties": [
    {
      "id": "GB-FTS-5483",
      "name": "Ministry of Defence",
      "roles": [
        "buyer"
      ],
      "address": {
        "region": "UKK11",
        "locality": "Bristol",
        "countryName": "United Kingdom"
      },
      "details": {
        "url": "https://www.gov.uk/government/organisations/ministry-of-defence",
        "classifications": [
          {
            "id": "MINISTRY",
            "scheme": "TED_CA_TYPE",
            "description": "Ministry or any other national or federal authority, including their regional or local subdivisions"
          },
          {
            "id": "02",
            "scheme": "COFOG",
            "description": "Defence"
          }
        ]
      },
      "identifier": {
        "legalName": "Ministry of Defence"
      },
      "contactPoint": {
        "email": "Mark.Marshall120@mod.gov.uk"
      }
    },
    {
      "id": "GB-FTS-6557",
      "name": "Babcock International Group",
      "roles": [
        "supplier"
      ],
      "address": {
        "region": "UKK11",
        "locality": "Bristol",
        "countryName": "United Kingdom"
      },
      "details": {
        "scale": "large"
      },
      "identifier": {
        "legalName": "Babcock International Group"
      }
    },
    {
      "id": "GB-FTS-15028",
      "name": "Platform Equipment Delivery Team",
      "roles": [
        "reviewBody"
      ],
      "address": {
        "locality": "Bristol",
        "countryName": "United Kingdom"
      },
      "identifier": {
        "legalName": "Platform Equipment Delivery Team"
      }
    }
  ],
  "language": "en",
  "contracts": [
    {
      "id": "018402-2024-1",
      "value": {
        "amount": 3000000,
        "currency": "GBP"
      },
      "status": "active",
      "awardID": "018402-2024-1",
      "dateSigned": "2024-06-14T00:00:00+01:00"
    }
  ],
  "description": "The Authority intends to compete a new repair and availability requirement for the provision of support to in-service MCWP which is more extensive in scope in the near future.",
  "initiationType": "tender"
}