AWARD OUTCOME
What happened
The Home Office has published a contract update for its ISR Special Missions Aircraft Managed Service. Variation 003 continues the existing service for four months, from 1 December 2026 to 31 March 2027, on existing terms, with an additional value of £9,903,292 excluding VAT.
Published outcomeThe published contract record is active and explicitly records a contract signature date of 29 October 2024. The update is a modification to that contract, not a new supplier award.
Market significanceThe modification was attributed to continuity needs after a legal challenge to the replacement-service procurement suspended contract award and delayed mobilisation.
AWARDED SUPPLIERS AND LOTS
2 supplier records analysed
PAL Aerospace Ltd.
95% confidenceAward 098961-2026-Contract_15336-1 · Lots 1 · Not individually allocated GBP · Supplier named on active award
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Award supplier list names PAL Aerospace Ltd. (GB-FTS-187709).
PAL Aerospace Ltd
95% confidenceAward 098961-2026-Contract_15336-1 · Lots 1 · Not individually allocated GBP · Supplier named on active award
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Award supplier list names PAL Aerospace Ltd (GB-FTS-187710).
LIFECYCLE
Award or contract stage
Published notice status
98% confidenceAward and contract update published; record displayed as awarded
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Process display_status is "awarded"; notice type is "awardUpdate, contractUpdate"; published 20 October 2026.
Contract status
98% confidenceActive
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The award and contract records both have status "active".
Contract signature
98% confidence29 October 2024
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Contract dateSigned is 2024-10-29.
Modification
99% confidenceVariation 003: four-month continuation from 1 December 2026 to 31 March 2027
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Amendment description and rationale state this continuation period.
VALUES
Published values explained
Published contract value
98% confidence£68,908,242.15
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Contract value is GBP 68,908,242.15.
Variation 003 additional value
99% confidence£9,903,292 excluding VAT
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Variation 003 description states this additional value.
Variation 002 additional value
90% confidence£25,233,590.25; VAT treatment not stated
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The published amendment description identifies Variation 002 as an extension with this additional value.
Variation 001 value impact
98% confidenceNo cost implication
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The amendment description states Variation 001 had no cost implication.
TIMELINE
Procurement timeline
Contract signed
98% confidence29 October 2024
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Contract dateSigned is 2024-10-29.
Variation 003 service continuation begins
99% confidence1 December 2026
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Amendment description specifies this date.
Variation 003 service continuation ends
99% confidence31 March 2027
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Amendment description and contract period specify this date.
Update published
98% confidence20 October 2026
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Process published_at is 2026-10-20T12:32:46+01:00.
SCOPE
What was awarded
Service
99% confidenceStrategic Intelligence, Surveillance and Reconnaissance Special Missions Aircraft Managed Service
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Tender and contract titles; lot description.
Geographic delivery
98% confidenceUnited Kingdom
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Contract item delivery location is United Kingdom.
Primary classification
98% confidenceCPV 34711110 — Fixed-wing aircrafts
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Tender and contract item classification.
Additional classifications
98% confidenceCPV 34711300 — Piloted aircraft; CPV 35611600 — Maritime patrol aircrafts
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Contract item additional classifications.
Scope effect of Variation 003
98% confidenceNo change to the nature or scope of the service
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Lot description and amendment rationale state that the modification does not alter the overall nature or scope.
PROCEDURE
Procedure and competition
Replacement procurement context
94% confidenceReplacement-service award was suspended following a legal challenge, delaying planned mobilisation
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Amendment rationale.
Modification rationale
93% confidenceContinuity of the existing operational service due to unforeseen circumstances cited by the authority
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Amendment rationale describes the legal challenge, suspensive effect and delay as circumstances the authority could not reasonably have foreseen.
Competition information
99% confidenceInformation not supplied in the published notice
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No bid count, evaluation scores, tender procedure or award-decision date is provided in the supplied record.
CONTRACT TERMS
Published contract terms
Published contract period
97% confidence29 October 2024 to 31 March 2027
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Contract period startDate is 2024-10-29 and endDate is 2027-03-31.
Variation 003 terms
98% confidenceExisting contractual terms retained; no other changes to terms and conditions stated
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Amendment description.
Lot allocation
98% confidenceOne lot, Lot 1
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Award relatedLots lists 1 and the supplied lots data contains Lot 1.
COMMERCIAL VIEW
Commercial observations
Continuity exposure
92% confidenceThe four-month modification indicates the replacement service was not ready to mobilise on the planned timetable because of a legal challenge.
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Amendment rationale.
Commercial change
98% confidenceVariation 003 adds £9,903,292 excluding VAT while retaining existing contractual terms.
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Amendment description.
DATA QUALITY
Gaps and source limitations
Supplier duplication or name variation
99% confidenceThe active award names two supplier records that differ only by punctuation: “PAL Aerospace Ltd.” and “PAL Aerospace Ltd”. They are reported separately as supplied; the notice does not state whether they are duplicate records or separate legal entities.
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Award suppliers and supplied supplier records.
Period-date inconsistency
99% confidenceThe lot's embedded contractPeriod ends on 31 January 2026, whereas the amendment describes continuation from 1 December 2026 and the contract period ends on 31 March 2027. The source does not explain this inconsistency.
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Tender lot contractPeriod; amendment description; contract period.
Value allocation
99% confidenceThe published contract value and variation values are not allocated between the two listed supplier records or further broken down by lot.
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One contract value is supplied, with two supplier records on a single award and no supplier-level allocation.
SOURCE DATA LIMITATIONS
Information not supplied in the published notice
- The source lists two supplier records differing only by punctuation and does not clarify whether they are duplicate records or distinct legal entities.
- No supplier-level or lot-level allocation of the published contract value or variation values is supplied.
- The lot contractPeriod end date of 31 January 2026 conflicts with the stated 1 December 2026 to 31 March 2027 continuation and the contract-level end date of 31 March 2027.
- Information on procurement method, bids, evaluation, award decision date, pricing breakdown, extension options and replacement procurement outcome was not supplied in the published notice.
MARKET THEMES
Relevant award themes
Home OfficePAL AerospaceISR aircraftspecial missions aircraftmanaged servicecontract variationVariation 003
COMMON QUESTIONS
About this award
What does Variation 003 do?
It continues the existing ISR Special Missions Aircraft Managed Service for four months, from 1 December 2026 to 31 March 2027, on existing terms.
What is the additional value of Variation 003?
£9,903,292 excluding VAT.
Why was the contract modified?
The authority cites continuity needs after a legal challenge to the replacement-service procurement suspended award and delayed mobilisation.
Who is named as supplier?
The source lists PAL Aerospace Ltd. and PAL Aerospace Ltd as two records differing only by punctuation; it does not clarify whether these represent one or two legal entities.
ProcuraAxis award analysis supplements, but does not replace, the official award notice, contract data or procurement documents. “Awarded” does not by itself prove that a contract has been signed.