Spectrum Licensing System · UK public procurement notice

Ofcom intend to enter into a five-year agreement with LS Telcom AG with the option to extend the term by a further one five-year period. The agreement is being entered into on a single source basis in accordance with paragraph 6 of Schedule 5 to the Procurement Act 2023 as competition is absent for technical reasons to deliver maintenance and operational development services for Ofcom’s spectrum licensing system which is licensed by LS Telcom AG (the “System”).

A direct award to LS Telcom AG is appropriate as they are the only firm that can realistically provide the services, and competition is absent for technical reasons as follows:

• A significant portion of the services, those related to maintenance, involve making change to software code that is owned by and proprietary to LS Telecom and therefore cannot reasonably be performed by other suppliers.
• Similar constraints apply to development services – no other supplier is licensed to use and develop the System. Therefore, if development services are not secured from LS Telecom an alternative spectrum management system would be required.
• The nature of the services required are highly specialised.
• With respect to development of new licence types and in particular those that are not tied to the existing LS Telcom implementation, Ofcom remains open to alternative development options. A number of simpler licences have been implemented in alternative licencing systems.

Moving to a new system would require a major new programme with sizable operational and financial risk. Such a programme would take many months to articulate and years to implement which is not practicable as the System requires regular updating in response to regulatory changes. The cost and time taken to undertake a change in Ofcom’s spectrum licensing system would not offer value for money and would far exceed the cost of continuing with the System, which is working effectively.

For these reasons and because the System is not capable of being licensed / sub-licensed to other suppliers, paragraph 5 of Schedule 5 of the Procurement Act 2023 (single supplier: exclusive rights) also applies.