The Air Traffic Management Team (ATMT), part of the UK Ministry of Defence (MOD), intends to amend the existing Marshall/001 Contract (the ‘Contract’) in a way which shall materially change the duration and vary the pricing. This amendment shall be placed by Direct Award in accordance with the Procurement Act 2023 (the ‘Act’) to the existing contractor, Aquila Air Traffic Management Services Limited (the ‘Contractor’), to continue the design, procurement and installation of military air traffic management capability, which ensures military flying operations are conducted safely.

Procurement Act 2023

Direct award The Contractor was awarded the Contract following a competitive procurement in 2014 with service delivery contracted until 31st March 2037. However, this amendment shall result in the Contract concluding on 31st March 2032, which will enable MOD to recompete the service five years earlier than anticipated. It is considered that the amendment may be placed in accordance with the Direct Award criteria under Schedule 5, paragraph 20 to the Act. The Contractor has sought to renegotiate the contract price, citing external cost pressures that make current arrangements unsustainable. There is a material risk of a gap in service if the MOD does not engage in the negotiations, or recompetes the requirement. This is because no other supplier currently holds the necessary approvals to deliver the service and the time taken for an alternative supplier to obtain the required approvals will result in a gap in service. Any gap in service would compromise the operational capability and safety of military flying operations and it is therefore necessary for the contract to be awarded directly. Placing this amendment by direct award will maintain crucial defence capabilities whilst also ensuring that MOD can approach the market with this requirement sooner than originally anticipated.

Defence security