II.1.5) Short description of the contract or purchase(s):
Joint Movement and Transportation Organization (JMTO) is planning to enter into a contract that meets the Danish Defence’s demand for Chartering of Vessels for the ARK Project (ARK) as secured access to strategic sealift for military and humanitarian purpose.
The Danish Defence has access to own capacities within all modalities, however the Danish Defence’s demand for transports during peak periods exceeds own transport capacities and therefore JMTO needs to acquire additional civilian Vessels.
The overall objective and purpose of this contract is to provide JMTO and hereby the Danish Defence with access to civilian RORO Vessels, able to operate worldwide, on terms where vessels are being chartered by JMTO and afterwards re-chartered in idle periods, subject however to an call back clause, to Vessel owner/operator in order to reduce costs but at the same time secure the access to Vessels.
The Danish Defence consists of a number of units, commands, staffs and authorities under the Ministry of Defence, each of which carries out specialized tasks as part of the Danish Defence’ overall purpose. The Danish Defence is a complex organization that handles many different tasks.
The Danish Defence has centralized the responsibility for transport services within one specific unit; the Joint Movement and Transportation Organization (JMTO). JMTO is responsible for planning, organizing and executing transport solutions for all units within the Danish Defence.
The units are for example the army, air force, navy, special forces, arctic command, home guard and emergency management agency. The size of the unit can vary from section’s consisting of 5-10 personnel and 1 vehicle up to a Battalion consisting of more than 1 000 personnel, 500 vehicles and 500 TEU.
The Danish Defence established the ARK Project in 2003 in order to ensure secured National access to strategic sealift. Since 2006 the ARK Project has been a bilateral cooperation between Denmark and Germany. The access to Strategic Sealift involves RORO‘s (Roll On, Roll Off) on time charter, some of those with equipped special ARK features, i. e. enhanced maneuverability, ability to load Dangerous Goods, sufficient capacity for heavy vehicles, crane capacity and side ramp in addition to stern ramp. In 2013 ARK became part of JMTO and therefore also contributing to the overall goal of JMTO; securing timely delivery of transport solutions for the units, their personnel and equipment.
The requirements related to transportation for the Danish Defence are constantly evolving due to the change in the context in which the Danish Defence operates. It is therefore expected that during the term of the contract there will be a development in the nature of the equipment to be moved and the places to be serviced due to the continuous change and development of the Danish Defence and the tasks to be solved. The Danish Defence also has high focus on the environment wherefore also the footprint of the vessels in this respect will be further treated during the tender procedure.
Denmark and Germany are members of the Movement Coordination Centre Eindhoven (MCCE), a multinational organization that coordinates and optimizes strategic transport on behalf of its 28 members (within EU and NATO). JMTO is an active participant offering transport to our allied nations through the MCCE and this service too shall be supported under this agreement.
The objective of this tender is to ensure access to sea lift capacities in terms of time chartering of suitable RORO capacities at various terms and various notice of readiness (varying from days to months). The RORO vessels required shall be supplied from one candidate/tenderer, cf. II.1.8 and the RORO vessels must during the term of the contract be registered under Danish flag. It is important that the candidate/tenderer demonstrates robustness by operating on his own account, e.g. as the Owner, sufficient additional vessel to maintain his daily business in case JMTO activates some or all of the contracted vessels.
JMTO ARK is responsible for transporting varying cargo in terms of items, size and shapes. Today the primary tasks envisioned by JMTO ARK is the transport of: military equipment and other commodities for sustainment of military operations, missions, training exercises, humanitarian disaster relief situations, routine transports and to be part of others tasks such as the use of sea based platforms for various tasks. Tasks might contain transport for both Danish and international Military as well as transport with civilian purposes and might take place in areas not normal for standard vessel transport.
Detailed information about the level of readiness as well as each single task both during planning and execution might be classified in accordance with the classified information nomenclature used in the Danish Defense, FKO BST 358-1. Therefore it will be required for the contractor to be able to handle, store and hand over classified information. See III.1.4) for further details.
The Vessels under this contract are considered very important to the Danish Defence and the ability to act fast at all circumstances all over the world; it is required that all the tasks with each Vessel are carried out in an highly professional manner by staff whom must be able to communicate fluently in English both written and spoken. The value of support provided by the supplier during planning and conduct of transports and operations is vital for JMTO, and will be handled during the tender process.
The geographical area of operation will primarily be within the European continent area but worldwide operations shall be possible for all Vessels.
This contract contains chartering of minimum 3, and maximum 7 RORO vessels, of which 6 must be registered under Danish flag during the charter. Size of the RORO is expected within the range of 1 900 lane meters and up to approx. 4 200 lane meters. Charter parties (contracts) will be created for each vessel and will be based on BIMCO Standard Charter Party Baltime 1939 (Revised 2001) with amendments and Rider Clauses made by JMTO. Demand for 6 of the vessels is that they are supplied with re-chartering mechanism at specific terms as standard requirement. The Danish Defence wants to charter the vessels and define periods of re-chartering. One vessel is expected to be offered as a dormant contract as alternative to Time chartering. A dormant contract in this respect is considered a calling right for an unnamed RORO Vessel within a specified size range. The chartering conditions will be detailed for this RORO carrying EU/NATO flag.
The tender documents will advise all specific information about the vessels and requirement about time of chartering and re-chartering. Tender documents will be released after pre-qualification. The candidate/tenderer must make bid for all 7 Vessels. However, JMTO reserves the right to sign up for less than all 7 Vessels (see details below) depending on the offers received. Contract will be signed off with only one candidate/tenderer and only for the number of vessels determined to be chartered/accepted by JMTO.
Below a short list of the vessels needed:
1) (Ship 5A): Delivery Q1 21 (January). Duration of 1 year. Expected size 2 600-3 500 LM
2) (Ship 2): Delivery Q4 20 (December). Duration of 5 years + optional additional 1 year (6 years). Expected size 1 800-2 500 LM.
3) (Ship 3): Delivery Q4 20 (December). Duration of 5 years + optional additional 1 year (6 years). Expected size 2 600-3 500 LM
Option 1 (Ship 5B) delivery Q1 22 (January). Duration 4 years + optional 1 year (can be vessel 5A). Expected size 2.600-3.500 LM
Option 2: (Ship 1): Delivery Q1 22 (January). Duration 5 years. Expected size 2 900-3 800 LM
Option 3: (Ship 4): Delivery Q1 22(January). Duration of 5 years. Expected size 2 900- 3 800 LM
Option 4: (Ship 6): Delivery Q1 22(January). Duration of 5 years. Expected size 2 600-4 000 LM
Option 5: (Ship 7): Delivery Q1 21 (January) Duration 5 years + optional 1 year (6 years). May be offered as dormant contract without re-chartering. Expected size 1.900-4.200 LM.
Ship 5A, Ship 2 and Ship 3 will be signed off as the main delivery by this contract if received offers allows so.
The additional vessel options 1 thru 5 (Ship 1, 4, 5B, 6 and 7) will be exercised one by one in connection with contract award and might be signed off as many as the buyer finds relevant for signing.
Tentative timeline for the tender process during 2020:
19 June 2020 deadline for submission for prequalification process
Week 26 Expected pre-qualification/selection of candidates and issuing of tender details
Week 32 Estimated deadline for first offer (INDO)
Week 35 Estimated deadline for final offer (BAFO)
Week 38 Expected date of award
Week 40 Expected earliest date for signing of contracts.