Spearfish Development Contract (SHDC)

The Ministry of Defence is considering placing a Single Source contract (the “Spearfish Development Contract” (SFDC)) with BAE Systems Limited for development work in support of the Spearfish torpedo. The contract would be awarded via Direct Award to BAE Systems, based on their being the Design Authority for the Spearfish system. The justification for Direct Award is based on Procurement Act 2023, Schedule 5 paragraphs 6a and 6b. This will be a Qualifying Defence Contract (QDC) under the Defence Reform Act 2014 and the Single Source Contract Regulations 2014 The proposed contract would commence April 2027 with a five year duration (i.e. to end March 2032), and an estimated value of £30M during that period. The contract would contain three one year options to extend, giving a maximum duration of eight years (5+1+1+1)(i.e. to March 2035).