- Id
- BLC0246
- Status
- complete
- Procurement Method
- direct
- Procurement Method Details
- Direct award
- Why this procedure was chosen
- This contract is being awarded under Section 41(1)(a) of the Procurement Act 2023, in reliance on the direct award justifications provided for in Paragraph 5 (intellectual property or exclusive rights) and Paragraph 6 (technical reasons) of Schedule 5 of the Procurement Act 2023. The contracting authority considers these direct award justifications apply for the following reasons:
• The CDUs (control display unit) are an intrinsic part of the services required. In reliance on Paragraph 5, the supplier owns and controls the proprietary rights associated with the CDU, and no other supplier holds those rights or is licensed to exercise them in a manner that would enable them to provide the services. In reliance on Paragraph 6, the supplier holds the technical knowledge to ensure the complete and efficient repair and replacement of the CDUs. The supplier is therefore the only supplier who can provide the required services.
• The current generation of radios are an intrinsic part of the services required. In reliance on Paragraph 5, the supplier controls the ultimate product solution, and no other supplier controls the required solution in a manner that would enable them to provide the services. In reliance on Paragraph 6, the supplier holds the technical knowledge to ensure the complete and efficient repair and replacement of the product. The supplier is therefore the only supplier who can provide the required services.
• The TSMs (TETRA Security Module) are an intrinsic part of the services required. In reliance on Paragraph 5, the supplier owns the proprietary rights regarding the incorporation of the TSM within the TCS (TETRA Air-to-Ground Communication System), and no other supplier holds those rights or is licensed to exercise them in a manner that would enable them to provide the services. In reliance on Paragraph 6, the supplier has the technical knowledge and processes in place to support the TSM services. The supplier is therefore the only supplier who can provide the required services.
• The software updates to the TSM, CDU and the current generation of radio solutions are an intrinsic part of the services. In reliance on Paragraphs 5 and 6, as the supplier controls the proprietary software that sits behind these solutions and holds the exclusive technical knowledge required to develop and deploy updates to it, they are the only supplier who can effectively and completely update the relevant software to ensure the proper functioning of the solutions with the Airwave network.
The contracting authority considers there are no reasonable alternatives to the services for the following reasons:
• The procurement of the new ESN solution and associated devices which will replace the Airwave network and associated devices is not within the control of the contracting authority, and this procurement has been subject to a number of delays. As a result, the contracting authority must continue to rely on the existing Airwave network and associated devices, and the services to support them, until such time as the new devices become available, and the contracting authority is able to start the process of transitioning to the new devices.
• The operational transition to the new ESN solution and associated devices is anticipated to commence in March 2027, and to be completed by December 2029. In 2025, the contracting authority undertook a market analysis exercise to understand potential alternatives available for the required solution. To summarise, the exercise found that the supplier is currently the only supplier who is able to provide the required services, and if the contracting authority were to commence a procurement process to appoint an alternative supplier and a viable alternative solution was identified, a significant lead time would be required for any such supplier to develop the capabilities, expertise and solutions required, and to obtain necessary certifications. As a consequence, the cost, disruption and resource required to run a competitive procurement process and manage a transition to an alternative supplier would be disproportionate given the limited and diminishing duration of the requirement prior to the ESN transition.
For these reasons, appointing an alternative supplier is not a reasonable alternative in the circumstances.