Programme Delivery Model
Broadband Delivery Programme
umbrella State Aid notification. The framework will be available for local bodies outside of England to use as well;
A framework contract for local bodies (or their suppliers) to call-off broadband services for a limited number of consumers for delivery by satellite technology will be developed and launched separately. The provision of broadband services for some consumers will not be economic even after a potential capital subsidy. In some instances, potentially up to 1-2% of the market, these consumers might be addressed by satellite solutions where the consumer will need to also support the customer premise equipment – though this will have a reasonable lifespan and may be upgradable; and
Should the BDUK assessment determine that a competitive market does not exist across much of the UK then BDUK will consult on an alternative approach involving over-arching bi-lateral contracts with key suppliers instead. This could be, for instance, if there are few tenders submitted for the early projects or the suppliers that bid for the early projects show one supplier has an unassailable advantage) and it is likely that a programme depending on competitive tension to achieve value would fail to offer benefit to the UK public sector or to bidding suppliers,
Where local bodies intend to procure local broadband services in combination with a procurement for a public sector enterprise network then it may consider combining the procurements under one OJEU, potentially with different lots. BDUK will work with the PSN Programme to develop guidance on issues to be considered when using this approach.
The role of Small and Medium Enterprises
In line with Cabinet Office strategy, and recognizing their existing role in providing broadband to customers in rural areas, BDUK is committed to ensuring that Small and Medium Enterprise (SMEs) are able to play a full role in the delivery of Broadband services at a local level.
BDUK wants to facilitate and maximise the opportunities for SMEs in several key parts the value chain:
Local civil engineering suppliers, providing teams used in the implementation of the networks;
Small, local ISPs specialising in serving a local customer base, retailing a wholesale network operator‟s products; and
Local network operators, perhaps operating an existing standard broadband network in the area with customers connected, that would not have the capacity or capability to prime a county-wide procurement.
BDUK are currently exploring with procurement lawyers the options for achieving these objectives through local procurements to ensure that these are in line with Government strategy and do not conflict with EU regulations. It is likely that BDUK will encourage local bodies to stress the need for suppliers to propose a diversified supply chain as part of their delivery solutions, and design the procurement process to help achieve this. For example, local bodies may require that opportunities are advertised on Government‟s Contract Finder portal.
Maintaining competitive outcomes from procurements
BDUK understands that the competiveness of a procurement process will depend on various aspects of how it is structured, and through consultation with the market, it is considering how to optimise the following key aspects to enable suppliers to bid cost effectively and competitively: