Request for Firm & Fixed Proposal from potential suppliers for supply of system and services for a Very Short Range Air Defense System for the Danish Army

Terma A/S hereby invite manufacturers of Very Short-Range Air Defense (VSHORAD) radars to provide their most attractive Firm Fixed Price (FFP) proposal for radars for a VSHORAD program in Denmark as described below.

VSHORAD 1200Px

The Danish Defence Aquisition and Logistics Organization (DALO) intends to procure and maintain a Very Short-Range Air Defense (“VSHORAD”) capability for the Danish Army.

DALO has chosen to exempt procurement of this VSHORAD program from a normal tender process, with reference to article 346 of the Treaty of the European Union and award a contract regarding the capabilities directly to Terma A/S (“Terma”) as published in the “Tenders Electronic Daily” (Notice #522327-2022) on 23 September 2022. A contract was signed between DALO and Terma on 19 January 2023.

In the first phase of the program, one (1) VSHORAD radar is required. Delivery of up to three (3) additional radars will be planned at a later stage in the program. An additional four (4) radar systems on top of this are considered as an option.

The relevant details regarding project schedule etc. will be part of the complete Request for Proposal (RFP) package.

Security aspects

As the technical requirements for the VSHORAD radar are classified as “RESTRICTED”, all potential bidders must be able to comply with rules and regulations for handling and processing classified material at this level.

This also means that all potential bidders must be certified by the Danish Defence Intelligence Service (“DDIS”) and/or via the respective bidder’s national security agency, to be certified for handling and processing classified material at ”RESTRICTED” level.

Potential bidders that request to receive the full RFP package must contact Terma using the e-mail address iamd-terma@terma.com, whereafter a Terma representative will confirm receipt of the request to participate, provide a survey to the potential bidders in order to be able to initiate the certification process, and reach out to DDIS in order to initiate the certification process as described above.

Besides the above, it is also a prerequisite that the supplier can be approved in general as a supplier to Terma. This includes that (1) the supplier’s quality management system is acceptable to Terma, (2) that the supplier’s codes of conduct, including those for CSR, protection of the environment, human rights etc., are acceptable to Terma. In order for Terma to make this evaluation, the supplier must fill out the following documents and send them to the above e-mail address as soon as possible and no later than 18-8-2023:

  • CSR self-assessment (doc no. 1738561-FA), please fill out and return
  • Conflict Mineral Reporting (doc no. 1738561-FB), please fill out and return
  • Supplier Approval Questionnaire (doc no. 356607-FJ), please fill out and return

If a supplier cannot be initially approved in general as a supplier to Terma after Terma has reviewed the submitted above documents, the supplier needs to establish a credible and realistic plan for becoming compliant and approved no later than at the time of submittal of its bid under this procurement. This plan must be submitted to Terma without any undue delay. If a supplier is not approved in general as a supplier to Terma at the deadline for submittal of bids, this can lead to disqualification from the tender process.

Once the certification and approval process is complete for all potential bidders, Terma will reach out to the approved potential bidders and coordinate the release of the full RFP package with a notice of no less than 3 (three) working days. The full RFP package must be picked up physically at Terma’s facilities in Lystrup, Aarhus, by an approved and identified representative of the bidding company, and subsequently handled by the bidders in accordance with all applicable rules and regulations.

All questions and communication with Terma regarding the classified elements of the RFP package must be conducted in accordance with the applicable rules and regulations. Violations can result in disqualification from the tender process.

Timeline

The following timeline applies to this tender process:

  • Potential bidders must submit a request to receive the full RFP package no later than by 30 June 2023 at 16:00, Danish local time, using the above-mentioned e-mail address.
  • DDIS will either approve or reject the potential bidders. The duration of this step is unknown.
  • The full RFP package will be released no later than 10 (ten) working days after a decision has been made regarding all potential bidders by DDIS and Terma. Detailed information regarding the release will be made available to all approved potential bidders no later than 3 (three) working days prior to the release.
  • Potential bidders must return the completed documents pertaining to CSR, Conflict Minerals, and Supplier Approval as soon as possible, however no later than 18 August 2023 at 16:00, Danish local time.
  • Terma will evaluate if the suppliers can be approved as suppliers in general to Terma based on the completed and returned documents. The duration of this step is conducted in parallel with the above step and is expected to take 7 (seven) working days.
  • Potential bidders can ask questions and receive answers after release of the RFP package. Details regarding this will be included in the RFP package.
  • Potential bidders must submit full FFP proposals no later than 6 (six) weeks after release of the RFP package. Detailed information about this will be included in the RFP package.
  • The winning proposal will be announced after Terma has evaluated the incoming proposals and conducted any necessary negotiations.

Questions

All questions must be submitted to iamd-terma@terma.com. All questions must observe rules and regulations regarding classified information at the appropriate level.

All questions and answers will be made publicly available, anonymized, to all potential bidders.

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