Iceland - Air traffic control software package - Air Traffic Management System Procurement

Isavia ANS ehf. (the “Purchaser”) is a subsidiary of Isavia ohf. and is Iceland’s air navigation service provider. The Purchaser is certified by the Icelandic Transport Authority and delivers Air Navigation Services (“ANS”) within the Reykjavik Control Area (“CTA”) and the FAXI TMA. Through this procurement process (the “Procurement”), the Purchaser is seeking to appoint a contractor (the “Contractor”) to (i) implement an En Route (“ENR”) Air Traffic Management (“ATM”) system and provide associated support services for oceanic and continental coverage in the Reykjavik CTA and (ii) act as a co-development partner as part of a Local Development Centre (“LDC”) (the “Project”). During the Contract term the Purchaser may also require that a number of optional elements also be delivered by the Contractor (“Optional ATM Project Elements”) as described in more detail in the Project Information Memorandum (“PIM”) and those, together with the Project, make up the ATM Project. The Purchaser is certified by the Icelandic Transport Authority and delivers ANS within the Reykjavik CTA and the FAXI TMA. The Reykjavík CTA is an en-route domestic/continental and oceanic airspace within the International Civil Aviation Organisation (“ICAO”) NAT region. The Purchaser recognises the need to enhance its ATM and ANS through significant technological and strategic improvements to meet future traffic demands and to ensure it can continue its alignment with the NAT Vision and the ICAO’s Global Air Traffic Management Operational Concept. The Purchaser is seeking to upgrade its oceanic and en-route ATM system platforms by procuring a new ATM system (the “System”) that is a fully integrated platform that supports the safe and efficient delivery of oceanic and en-route services within the Purchaser’s area of responsibility. Accordingly, the Purchaser is seeking to appoint a Contractor to: i. provide the System and associated support services for oceanic and continental coverage in the Reykjavik CTA; and ii. act as a co-development partner as part of an LDC. The Contractor will be required to enter into an En-Route System Agreement with the Purchaser. It is envisaged that the LDC will either be addressed as part of the En-Route System Agreement or under a separate standalone LDC Contract with the Purchaser. The En-Route System Agreement and the LDC Contract (if applicable) are together referred to (in the singular) as the “Contract” for the purposes of the Procurement. The Purchaser requires the new System to be designed, built, implemented, commissioned and maintained with the capabilities and business outcomes set out in the procurement documents through the design, build, implementation and life cycle of the System. Given the bespoke needs of the Purchaser, having access to in-house development has afforded the Purchaser freedom and flexibility to develop tailored solutions and applications to deliver safe services to its customers. The Purchaser wants to retain this development capability but accepts that pressures of increasing traffic and the applications sought by the NAT region, ICAO and EASA for the future means partnering with established vendors is now preferred. Therefore, in addition to procuring an updated System, the Purchaser is seeking to establish an LDC. The role of the LDC will be to perform development activity of the System post implementation to develop future bespoke capability, and to maintain the Purchaser’s capability for making regular updates and changes to the System. The Purchaser currently intends that the detailed scope, timing of establishment and functions of the LDC will be discussed and developed during the dialogue phase of the Procurement. The En-Route System Agreement will cover: - The provision, implementation, integration and testing of the System so as to meet the specification. - The provision of training and other services during a deployment phase. - A 2 year warranty period following go-live of the System, covering both software support services and hardware maintenance services. The En-Route System Agreement is expected to commence on the contract award date and will continue during implementation of the System and for a two-year warranty period after the go-live date of the System. Thereafter the Purchaser will have the right to extend (at the Purchaser’s option) the software support services and/or the hardware maintenance services in each case up to a maximum period of 13 years post the initial two-year warranty period (meaning up to 15 years of support and maintenance in total). The extension rights shall be independent of each other (i.e. the Purchaser may elect to extend the software support services but not the hardware maintenance services, or vice versa). The intention is that the LDC will be maintained for the expected life of the System (up to 15 years post go-live of the System), subject to rights for the Purchaser to terminate the provision of the LDC for convenience on notice. During the Contract term the Purchaser may also require that a number of Optional ATM Project Elements also be delivered by the Contractor: - A new Polaris Approach platform is being delivered to the Purchaser under a separate project together with its subsidiary Tern Systems. The Purchaser may require the Contractor to deliver a new Approach platform at a later date. The exercise of this option is at the exclusive discretion of the Purchaser. - The Purchaser also may require the delivery of a data warehouse by the Contractor. Further information about the scope of the ATM Project, the detailed requirements and the role of the Contractor are set out in the PIM. Whilst, in the first instance the draft contract documents will be provided and discussed in English, the current intention is that the contract documents might be in Icelandic language at the time of signature, with the Icelandic language version taking precedence in the event of any conflict. The Purchaser has opted to run this Procurement as a competitive dialogue in light of the technical nature of the services and the very real benefits of engaging directly with bidders through the course of the Procurement process. The Purchaser will engage with bidders to gain insight into the proposed solutions and to ensure the Contract is awarded in accordance with best practice as defined by the market.