- Id
- 715890481 Theon Sensors S.A. Enabling Contract EC - UK 5
- Status
- complete
- Procurement Method
- direct
- Procurement Method Details
- Direct award
- Why this procedure was chosen
- Justification for Direct Award
The Authority intends to award the contract without prior competition in accordance with Section 41 of the Procurement Act 2023, relying on:
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 SILLS LWIR Thermal Sight units and associated ancillaries.
Single Supplier for Technical Reasons (Schedule 5, Paragraph 6)
Theon Sensors S.A., as OEM and Design Authority, is the only supplier with access to the technical data, software, design information, specialist tooling engineering expertise and configuration knowledge necessary to support, maintain and repair the SILLS LWIR 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 is 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 use an alternative supplier would require significant assurance, certification and safety case activities, resulting in additional cost, delays, reduced equipment availability and increased operational risk.
Accordingly, due to an absence of competition for technical reasons, only Theon Sensors S.A. can supply the services, and there is no reasonable alternative to those services that would meet the Authority’s requirement for the support and maintenance of the existing assured capability during its remaining service life.
Additional Goods (Schedule 5, Paragraph 7)
The contract includes provision for the procurement of additional SILLS LWIR Thermal Sight units and associated ancillaries to support fleet management, growth towards the Total Fleet Requirement and operational requirements throughout the remaining life of the capability.
For technical reasons set out above, only Theon Sensors S.A. has access to the information necessary to supply 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. Whilst alternative solutions may exist within the wider market, those solutions would constitute platforms that are different from the bespoke assured capability currently in service. Procuring a different solution would require the Authority to concurrently operate separate training, assurance, maintenance and support arrangements for both the existing assured capability and the alternative solution. Procuring an alternative solution would therefore result in disproportionate technical difficulties in operation and maintenance, including increased complexity and logistical burden.
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.
9. Additional Information
• Original contract competitively awarded under DSPCR.
• Theon Sensors S.A. is the OEM and Design Authority.
• Support activities require access to technical data, specialist knowledge and configuration control held by Theon.
• Additional systems are required to support growth towards the Total Fleet Requirement while maintaining fleet commonality.
• Additional units must be the same, assured capability currently in service.
• The direct award is limited to sustaining the existing assured capability until its planned OSD, including through-life support and the procurement of additional units and associated ancillaries as required
The Cyber Risk Level associated with this project has been assessed as Level 1 Foundational. Risk Assessment Reference: RAR-PDNNK9N
- Published risks
- • Original contract competitively awarded under DSPCR.
• Theon Sensors S.A. is the OEM and Design Authority.
• Support activities require access to technical data, specialist knowledge and configuration control held by Theon.
• Additional systems are required to support growth towards the Total Fleet Requirement while maintaining fleet commonality.
• Additional units must be the same, assured capability currently in service.
• The direct award is limited to sustaining the existing assured capability until its planned OSD, including through-life support and the procurement of additional units and associated ancillaries as required
The Cyber Risk Level associated with this project has been assessed as Level 1 Foundational. Risk Assessment Reference: RAR-PDNNK9N