Inventory Management Strategy for Defence Equipment and Support

Inventory Management Strategy for Defence Equipment and Support

Business and management consultancy and related services. In 2012 DE&S instigated a project to define a strategy to create a transformation in the way defence manages it’s inventory.

UK-Glasgow: Business and management consultancy and related services

2013/S 092-156972

Contract notice


Directive 2004/18/EC

Section I: Contracting authority

I.1)Name, addresses and contact point(s)

DE&S Commercial, DE&S
Level 2 Kentigern House, 65 Brown Street
For the attention of: B Dignon
G2 8EX Glasgow
Telephone: +44 1412242711
Fax: +44 1412242669

Further information can be obtained from: The above mentioned contact point(s)

Specifications and additional documents (including documents for competitive dialogue and a dynamic purchasing system) can be obtained from: The above mentioned contact point(s)

Tenders or requests to participate must be sent to: The above mentioned contact point(s)

I.2)Type of the contracting authority

Ministry or any other national or federal authority, including their regional or local sub-divisions
I.3)Main activity

I.4)Contract award on behalf of other contracting authorities

The contracting authority is purchasing on behalf of other contracting authorities: no

Section II: Object of the contract

II.1.1)Title attributed to the contract by the contracting authority:

CTLBC/2221 – Inventory Management Transformation Phase 3.
II.1.2)Type of contract and location of works, place of delivery or of performance

Service category No 11: Management consulting services [6] and related services
NUTS code UKK11

II.1.3)Information about a public contract, a framework agreement or a dynamic purchasing system (DPS)

The notice involves the establishment of a framework agreement
II.1.4)Information on framework agreement

Framework agreement with a single operator
Duration of the framework agreement

Duration in months: 18

II.1.5)Short description of the contract or purchase(s)

Business and management consultancy and related services. In 2012 DE&S instigated a project to define a strategy to create a transformation in the way defence manages it’s inventory. The Inventory Management Strategy (IMS) was produced during the Summer of 2012 and signed off by the DE&S board. In November initial implementation of the strategy began as the Inventory Management Transformation project, and is scheduled to run until the end of June 2013. These phases known as Ph1 and Ph2 were both conducted with technical support provided by specialist external providers. External technical support for the next stage (Ph3) of the transformation, which will run from July 2013 to June 2015, is also required.
The project has a remit to deliver change across all aspects of the DE&S inventory processes. This includes the entire end to end planning process, building a detailed picture, both current and planned future state, and then developing plans for what quantities of what products are best stored at which echelon within the supply chain. and how surplus items are disposed of most effectively. The project also has reach and influence into a wider range of activities within DE&S including financial processes, IT system developments, data management, organisation design and commercial processes.
The project has already delivered a high degree of success in reducing the amount the organisation spends on inventory and is in the process of extending its focus to tackle the inventory stockpiles and structural change that is required to create business processes, behaviours, systems and capabilities to ensure that success is properly embedded in the organisation. The changes delivered will underpin the future vision which will be capable of operating in both the current environment and the future environment that may develop as a result of the potential outsourcing of Logistics Commodities and Support activities (under the LCS(T) project) and the creation of the future DE&S operating model under the Material Strategy whether this be a GoCo or a DE&S+ model.
This competition is to select a Specialist Contractor for the period July 2013 to June 2015. The contract is to provide for a maximum volume of man day support across a range of technical disciplines including but not limited to, supply chain, procurement, accounting, data management and information systems. In addition to technical support, DE&S will also utilise MOD employees (both civilian and military) and industry SMEs within the project team and the technical support provider will be expected to work seamlessly with these other resources.
The technical support provider will be selected on an 80/20 basis between demonstrable technical capability and their commercial proposition.
The Authority stresses that there is no guarantee of any award of Contract and this particular requirement remains subject to the Department’s internal technical and financial approvals process.
The Authority intends to invite a minimum of 5 + maximum of 6 Companies by way of PQQ and Tender exercise.
In the event no Contract is placed prospective suppliers will not be entitled to any bid cost reimbursement as the decision to be involved in the Competition is entirely at the prospective bidders own risk. The decision on whether to place a Contract is subject to the Authority’s internal approval process.
II.1.6)Common procurement vocabulary (CPV)


II.1.7)Information about Government Procurement Agreement (GPA)

The contract is covered by the Government Procurement Agreement (GPA): yes

This contract is divided into lots: no
II.1.9)Information about variants

Variants will be accepted: no
II.2)Quantity or scope of the contract
II.2.1)Total quantity or scope:
II.2.2)Information about options
II.2.3)Information about renewals
II.3)Duration of the contract or time limit for completion

Duration in months: 18 (from the award of the contract)

Section III: Legal, economic, financial and technical information

III.1)Conditions relating to the contract
III.1.1)Deposits and guarantees required:
III.1.2)Main financing conditions and payment arrangements and/or reference to the relevant provisions governing them:
III.1.3)Legal form to be taken by the group of economic operators to whom the contract is to be awarded:
III.1.4)Other particular conditions

The performance of the contract is subject to particular conditions: no
III.2)Conditions for participation
III.2.1)Personal situation of economic operators, including requirements relating to enrolment on professional or trade registers
III.2.2)Economic and financial ability
III.2.3)Technical capacity

Minimum level(s) of standards possibly required:
Interested Contractors must have experience of working with public sector defence customers on projects with fee values in excess of GBP 5m per annum.
Interested Contractors must have experience of working on large scale supply chain and inventory management projects in the public sector with fee values in excess of GBP 5m per annum.
Interested Contractors must be capable to deploy a team of in excess of 30 staff to operate in the UK MoD who are compliant with security requirements.
III.2.4)Information about reserved contracts
III.3)Conditions specific to services contracts
III.3.1)Information about a particular profession
III.3.2)Staff responsible for the execution of the service

Section IV: Procedure

IV.1)Type of procedure
IV.1.1)Type of procedure

Accelerated restricted
Justification for the choice of accelerated procedure: Normal timescales for the Restricted procedure are impracticable
IV.1.2)Limitations on the number of operators who will be invited to tender or to participate

Envisaged minimum number 5: and maximum number 6
Objective criteria for choosing the limited number of candidates: The Authority intends to invite a minimum of 5 and maximum of 6 as per PQQ selection criteria exercise.
IV.1.3)Reduction of the number of operators during the negotiation or dialogue
IV.2)Award criteria
IV.2.1)Award criteria

The most economically advantageous tender in terms of the criteria stated below

1. Technical. Weighting 80

2. Commercial. Weighting 20

IV.2.2)Information about electronic auction

An electronic auction will be used: no
IV.3)Administrative information
IV.3.1)File reference number attributed by the contracting authority:

IV.3.2)Previous publication(s) concerning the same contract

IV.3.3)Conditions for obtaining specifications and additional documents or descriptive document
IV.3.4)Time limit for receipt of tenders or requests to participate

IV.3.5)Date of dispatch of invitations to tender or to participate to selected candidates
IV.3.6)Language(s) in which tenders or requests to participate may be drawn up

IV.3.7)Minimum time frame during which the tenderer must maintain the tender
IV.3.8)Conditions for opening of tenders

Section VI: Complementary information

VI.1)Information about recurrence
VI.2)Information about European Union funds
VI.3)Additional information

Suppliers interested in working with the Ministry of Defence should register on the MOD Supplier Information Database (SID) Register, available at

The MOD SID is a database of active and potential suppliers available to all MOD and UK Defence procurement personnel, and is the main supplier database of MOD Procurement organisations. Please note: the registration and publication of a company profile on the MOD SID does not mean or imply that the supplier has in any way been vetted or approved by the MOD. Suppliers wishing to compete for advertised MOD contracts must respond to any specific call for competition by submitting a separate expression of interest in accordance with the instructions of the purchasing organisation.
Advertising Regime OJEU:- This contract opportunity is published in the Official Journal of the European Union (OJEU), the MoD Defence Contracts Bulletin and under the Accelerated Restricted procedure. GO Reference: GO-2013510-DCB-4795773

VI.4)Procedures for appeal
VI.4.1)Body responsible for appeal procedures

DE&S Commercial, DE&S
Level 2, Kentigern House, 65 Brown Street
G2 8EX Glasgow
Telephone: +44 1412242711

Body responsible for mediation procedures

DE&S Commercial, DE&S

VI.4.2)Lodging of appeals
VI.4.3)Service from which information about the lodging of appeals may be obtained

DE&S Commercial, DE&S

VI.5)Date of dispatch of this notice:10.5.2013