Find a TenderAwarded without competition
Published 2 Sept 2022, 10:25 BST

Official UK procurement notice

Prisoner Payphone Service · UK public procurement notice

Official notice

Authority: Ministry of Justice (Central government)

ServicesAward procedure without prior publication of a call for competition
Published estimate£116,900,000≈ £25m / year
Awarded 30 Aug 2022no call for competition
Awarded to British Telecommunications Plc
Contract term 4 yrs 9 moends 31 May 2027 · starts 1 Sept 2022

What is being bought

Published requirement description

This is a concession contract between the Secretary of State for Justice (MoJ) and British Telecommunications plc (BT), dated 30 August 2022, for the provision of telephone services to prisoners in prisons operated by MoJ through its executive agency, HM Prison and Probation Service (the Extension). The Extension updates, on similar terms, an existing contract procured under the Public Contracts Regulations 1993 (the Contract). The Extension will expire on 31 May 2026, with a further optional 12-month period during which BT will provide exit assistance. This is the minimum required duration to facilitate MOJ going to market for the procurement of, and smooth transition to, a next generation service solution. Under the Extension BT will provide substantially the same services on substantially the same terms as the Contract with additional investment from BT to provide necessary service improvements as described in section II.2.4.

CPV: IP telephone services · Mobile-telephone services · Pay phone provider services · Pre-paid phone card provider services · Short Message Service (SMS) services · Telecommunications services

The lotProcurement structure

single lot · no lot value published
Lot #1The Extension facilitates the procurement of, and smooth transition to, a next…Awarded 4 yrs 9 mo

The Extension facilitates the procurement of, and smooth transition to, a next generation prison telephone service solution, as well as providing for necessary service improvements. Provisions are included in the Extension around intellectual property, exit planning and asset transfer. During the term of the Extension, BT will complete the installation of an internet protocol-based service in all HMPPS prisons. This will replace the current ISDN-based service, which will become unavailable in 2025. BT will also make investments to improve the service provided to MoJ and prisoners, to better align the services with current technologies available to members of the public.

The Extension also introduces some amendments to ensure greater consistency with current Government commercial and procurement policies (e.g., freedom of information and transparency, compliance with tax obligations and modernised security requirements).

The Extension is permitted by virtue of the concession contract award procedure or the negotiated procedure (as applicable) without the publication of a concession or contract notice, as applicable, because the services can only be provided by BT. This is because competition is absent for technical reasons and/or the protection of exclusive rights, no reasonable alternative or substitute exists, and MoJ has not artificially narrowed the scope of the procedure, as more fully described in section IV.1.1 below.

Alternatively, MoJ considers that neither the Concession Contracts Regulations 2016 nor the Public Contracts Regulations 2015 apply to the Contract, the Extension is an amendment to the Contract, and MoJ has published this notice voluntarily in the interests of maximum transparency.

Alternatively, the Extension is a modification of the Contract and the modifications provided for by the Extension are not substantial and therefore permitted because:

(1) the modified Contract will be substantially of the same character as the Contract when it was originally let. BT will continue to provide telephone services to prisoners on a concession basis and will not provide additional services unrelated to telephony. BT will continue to provide telephone services to prisoners in each case subject to meeting MoJ's security requirements to prevent misuse;

(2) the modified Contract will require BT to make additional investment, change the contract management mechanisms, clarify the position concerning intellectual property rights, and make better provision for the transition of service from BT to any replacement supplier(s). The conditions would not - had they been part of the original contract award procedure - have attracted additional participants to the award procedure, seen the selection of different applicants to participate in the procurement, or seen the award of the Contract to a different organisation;

(3) the terms of the Extension require BT to make investment in the system used to provide the services within prisons;

(4) the extension does not extend the scope of the Contract, in that it continues to relate only to prisons operated by HMPPS. The duration of the proposed extension is up to 31 May 2026 (with an additional optional 12 month exit period) . This is not a considerable extension of scope compared to the duration of the Contract provided for in the original Contract, and/or compared to the existing duration of the Contract.

The value of the Extension in section V.2.4 is an estimate of the total amount that prisoners will pay to BT under the Extension and does not represent any sums that MoJ will pay to BT. The amount that BT will receive under the Extension depends on prisoner use of the system, which has significant uncertainties. The value in section IV.2.4 represents an estimate based on certain usage scenarios.

Contract period: 1 Sept 2022 – 31 May 2027 (4 yrs 9 mo)
Delivery: UK

Procedure terms & legal framework

From the official record
Procedure method
Award procedure without prior publication of a call for competition
Legal basis
CELEX · 32014L0023 Concession Contracts Regulations 2016 (Directive 2014/23/EU)
Procurement category
Services
Notice status
Awarded without competition
Procurement threshold
Unspecified in notice
Regulatory regime
Standard
Commercial structure
Stand-alone contract (no framework)
Competition type
Direct award (no call for competition)
GPA / WTO covered
Unspecified in notice
Recurring procurement
Unspecified in notice
First published
2 Sept 2022, 10:25 BST
Last source update
2 Sept 2022, 10:25 BST
Authority reference
con_13325
FTS notice number
2022/S 000-024585
Classification (CPV)
IP telephone servicesMobile-telephone servicesPay phone provider servicesPre-paid phone card provider servicesShort Message Service (SMS) servicesTelecommunications services
Delivery area
UK
Official registry OCID
ocds-h6vhtk-036527 Find a Tender

How it was run

Official notice
Submission deadline
—

Timeline

1 Sept 2022 → 2 Sept 2022 · 2 dates
  1. Contract starts
    1 Sept 2022, 00:00 BST
  2. Notice published
    2 Sept 2022, 10:25 BST

Commercial outcome & contract awards

Published awards, contracts and bid statistics, not a forecast
Awards 1
Awarded value £116,900,0001 contract exc. VAT
Bids received 1
Contracts signed 1latest 30 Aug 2022
Awarded toValueDateStatus
British Telecommunications Plc£116,900,000 †—Awarded

Contracts

Bid statistics published by the authority

BidsSMEVCSEValid bid range
1bids———

Contracting authority & participating public bodies

Ministry of Justice

Contracting authorityCentral GovernmentMinistry or any other national or federal authority, including their regional or local subdivisionsPublic order and safety 102 Petty France, London, UK, SW1H 9AJContact email, phone

Dispute resolution & review bodies

  • Ministry of Justice Commercial & Contract Management Directorate Compliance TeamReview body LondonContact email

Bidders & participating suppliers

1 commercial party on the notice

Official documents & specifications

Official links; attachments are not copied

No document links were published on the notice.