Ministry of Defence, Procurement Executive, CB/SCSS1a, Cedar 3a, MoD Abbey Wood #103, P.O. Box 702, BRISTOL, BS12 7DU, UNITED KINGDOM

18 -- SKYNET 5 PFI PROGRAMME DUE 070797 POC Mr. D.J. Orpwood, 01144 117 91 33274 Private Finance Initiative (PFI) Design Study for the Provision of a Satellite Communication Service for the UK Ministry of Defence (SKYNET 5 PFI Programme). SUMMARY OF REQUIREMENTS. Subject to the granting of formal approvals the MoD plans to replace its SKYNET 4 military satellite communications system including the update and enhancement of ground equipment. The ISD is 2005. The MoD wishes to conduct a competitive two year programme of work to determine implementation options. MoD wishes to examine three ways of meeting their requirement, namely: (a) International Project Definition (PD) collaborative programme between UK/Ge/Fr for the supply and delivery in orbit of satellites and the updating and enhancement of associated ground equipment. (b) National PD programme for the supply and delivery of in orbit satellites and the updating and enhancement of associated ground equipment. (c) Provision of a Military Communications service including and the updating and enhancement of associated ground equipment through a Private Finance Initiative (PFI) arrangement. This announcement deals with the proposed invitation to tender for the PFI based service solution. The ITT for PFI work will be issued in parallel with those for the collaborative and National programmes referred to above. Following the completion a number of prime contractors may be appointed to carry out competitive design studies for a PFI solution. The studies will be largely funded by industry and will be conducted in parallel with either the trilateral or national PD studies. The selection of the approach to be taken forward into implementation will be made following evaluation of the results of the PFI Design and PD phases. Activities to be performed as part of these studies shall include, but will not be limited to: (a) Producing detailed satellite and ground system designs to meet the MoD Service Specification; (b) Producing detailed development plans, and migration plans from the current system to a service provided system; (c) Identifyingpotential third-party revenue; (d) Financing arrangements for implementing the PFI; (e) Identification of pricing structures for the provision of a service; (f) Preparation of a suitable draft service contract; In order to achieve the 2005 ISD the MoD is currently seeking approval to follow the following programme timeline: late July 1997 invite tenders; late September 1997 receive bids; early 1998 contract let for Design Studies; end 1999 completion of Design Studies; end 2000 contract let for the implementation phase; 2005 In Service Date for the first satellite. Any firm wishing to tender for the prime contractor role should convey its interest to the issuing branch by 9 July 1997 explaining why they are competent. A further announcement will be made when tenders are invited and at that time prospective sub-contractors will be invited to register interest direct to the prime contractors. (0163)

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