TRUSTnet Contract · UK public procurement notice

1. LGfL was established in 2001 as a Regional Broadband Authority by the 32 London local authorities and the City of London Council. It was established as a not-for-profit company and a registered charity, and is a body governed by public law. Its purpose is to provide broadband connectivity, Information and Communications Technology and related services to schools in London, LGfL’s ‘customers’. It currently provides essential services to over 3,000 schools providing education to more than 1.2 million students each year.
2. LGfL awarded a contract to VMB on 25 March 2014 pursuant to Contract Award Notice No. 2013/S 245-427165 for:

a. transmission services, including (but not limited to) leased circuits, dark fibre, wide area Ethernet and xDSL leased circuits and wide area Ethernet services are typically required at bandwidths of 10Mbit/s and above;

b. management services of the Core national, regional and to the edge premises equipment; and

c. supply of telecommunication and telephone services.

3. The contract was awarded for a period of 14 years, subject to periodic contract reviews, and is due to expire on 24 March 2028. Services provided under the contract may continue for a further two years to facilitate transition to a replacement supplier. The dark fibre infrastructure supplied under the terms of the contract award has a useful economic life of 25 years.
4. The dark fibre network is owned by VMB and VMB is solely responsible for its maintenance and repair. It has become necessary for LGfL to extend the lease of the network until the end of its natural life, because a replacement supplier would have to lay new fibre cabling. This would result in material additional cost, leading to duplication of cost for LGfL by replacing fibre that is still operational as well as significant inconvenience and avoidable cost for LGfL’s schools and their students. In the latter instance, this would include disruptive works to lay new cabling within school buildings, playgrounds and/or playing fields. Furthermore, based on past experience of previous modernisation programmes, LGfL believes it is unlikely that network could be replaced within the existing transition period.
5. LGfL has determined that a modification of the TRUSTnet contract to allow for a lease until 2038 is permitted under Reg 72(1)(b) both for economic and technical reasons (because an alternative contractor could not maintain VMB’s network and would need to install a replacement, which would be unaffordable and could not be completed within the transition period) and because an alternative would cause significant inconvenience and substantial cost duplication. The value of the extension does not exceed 50% of the value of the original contract.
6. The modification is limited to the lease of the dark fibre cabling, together with services for its repair and maintenance, for the remainder of its useful life until 31 December 2038.
7. The remainder of the services provided under the TRUSTnet contract, including managed services and monitoring overlay requirements, will be re-tendered separately in 2028.
8. The modification will enable LGfL to:

a. exploit the fibre cabling for the full duration of its useful life;

b. contract with alternative suppliers for the provision of overlay services using the dark fibre network;

c. separate procurements for the provision of managed services and the provision of network infrastructure, thereby increasing the scope for future competition on a fair and equal basis; and

d. conduct a procurement for the replacement of the cabling under a timetable that will allow for the timely implementation of a replacement service.