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Programme Delivery Model

Broadband Delivery Programme

  • Wholesale products / prices / terms and sustainability of the business model;

  • Retail service providers (likely or committed) / products / prices / terms and sustainability of the business model;

  • Approach at driving maximum take-up from residential consumers and businesses;

  • Level of public sector investment subsidy and potential for its claw-back;

  • Level of confidence in solution implementation and the long-term commercial sustainability of the service; and

  • Support for broader objectives, e.g. role of SMEs, environmental sustainability, skills development and economic growth.

    • 13.5

      Procurement options

      • 13.5.1

        Local bodies will need a degree of control over their suppliers to ensure achievement of the Broadband Delivery Programme‟s and their own objectives. Given this level of control, the use of public sector funding would be deemed a procurement of services, rather than a grant agreement funding activity towards a broad objective, and therefore EU regulated public procurement procedures must be followed. This is likely to involve the advertising of a procurement in the Official Journal of the European Union (OJEU).

      • 13.5.2

        The various different procurement routes for a locally led delivery model for broadband services are summarised as:

    • 1)

      Multiple OJEU procurements: Each local body issues its own OJEU notice or notices for the requirements referred to in paragraph 2, predominantly using the Competitive Dialogue process. BDUK will takes steps to ensure that the procurement processes are as efficient, in terms of time and cost, as possible through guidance, examples of documentation, and model commercial terms;

    • 2)

      Frameworks: BDUK centrally negotiates a framework contract(s) that include a panel of suppliers, with details of outline solutions for different geographical types of areas, and indicative pricing. Local bodies would call-off from these through the use of a mini- competition, i.e. the local body would be the contracting authority responsible for managing the local delivery of services by suppliers.; and

    • 3)

      Overarching bi-lateral contracts with key suppliers, negotiated centrally by BDUK: This option may be adopted where there is evidence of insufficient competition in the market place. These contracts may include requirements for sub-contracting or ring- fencing of certain services to be awarded to other suppliers through a competitive process. This approach will require the cooperation of Ofcom and the European Commission to ensure that this route minimises market place distortion and is conducted within constraints of procurement and State Aid regulations.

      • 13.5.3

        BDUK‟s procurement strategy is set out as follows:

        • Initial projects (including the Superfast Broadband Pilots) will be procured by local bodies using individual OJEU notices. The documentation used in the earliest projects will be available as examples for other projects;

        • BDUK will prepare for the development of framework contract(s) which local bodies can utilise for subsequent projects based on the investment gap funded model. Local bodies proposing different commercial models, including where a procurement for broadband services is combined with a procurement for public sector enterprise network services, will be expected to undertake their own separate procurements. BDUK will expect that local bodies in England using the investment gap funded model will generally wish to procure through a BDUK framework. It is likely to be a more efficient method of procurement for both local bodies and suppliers, and will be consistent with BDUK‟s 51

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