Consultation outcome

Mid/East Devon and West Somerset (Lot 6) Public Review Closure Notice

Updated 29 August 2023

New procurement to extend coverage of gigabit-capable broadband across the Mid/East Devon and West Somerset (Lot 6) regions.

Please note as of August 2023, the name of Lot 6 has formally changed from ‘Devon and Somerset’ to ‘Mid/East Devon and West Somerset’.

1. Introduction

The government’s ambition is to deliver nationwide gigabit-capable broadband as soon as possible. We recognise that there is a need for government intervention in the parts of the country that are not commercially viable; this is why the government has committed £5 billion for the hardest to reach parts of the country, ensuring that all areas of the UK can benefit. This will be spent through a package of coordinated and mutually supportive interventions, collectively known as Project Gigabit.

We wish to work collaboratively with industry to maximise efficiency, minimise market distortion and achieve our objectives within a tight time frame. To do this, we first identified the areas that were not commercially viable through the Open Market Review (OMR) and Public Review (PR) stages. This allowed us to understand from suppliers if there were any current or planned investment over the next three years in broadband infrastructure (Next Generation Access broadband, ultrafast and gigabit-capable) in the identified geography. For this Lot, the identified geography lay within the Devon and Somerset region.

The flowchart below shows the order of stages, from OMR to procurement.

1. OMR

2. Public Review

3. Determine intervention areas for procurement

4. Procurement

Through these stages, BDUK classifies premises as eligible/ineligible for subsidy on the basis of their existing or planned qualifying broadband infrastructure. Details on the classification system of White, Grey, Black and Under Review and methodology can be found in section 3.2 BDUK Classifications and methodology for this PR.

Premises categorised as White by BDUK during OMRs and PRs (ie eligible for subsidy) are grouped into Intervention Areas (IAs). IAs list those premises that will be targeted for subsidy in any potential procurement to follow this PR. To be clear, not all eligible premises may have been targeted for subsidy. The finalised IA will be issued to the market at the Invitation to Tender (ITT) stage of procurement so that suppliers can bid for subsidy to support delivery to this IA.

Further information on the OMR/PR process and how we reach our conclusions can be found in the Subsidy Control Guidance document.

2. Outcome of the preceding Open Market Review

Preceding the current PR stage, BDUK conducted a National Rolling OMR (NR OMR) from 3 May to 14 June 2022 which encompassed Devon and Somerset (Lot 6). This NR OMR requested information from suppliers regarding current and planned broadband infrastructure within the next three years.

All meaningful responses to the NR OMR were considered and where necessary used to determine eligible premises. Suppliers who responded to the NR OMR were informed of the classifications applied to the existing and planned infrastructure relevant to their submission.

The key findings of the NR OMR are presented in the postcode-level map showing eligible premises identified through the NR OMR for Devon and Somerset, and a list of eligible postcodes can be found on our website.

3. Outcome of the Public Review

3.1 Background

The PR for Devon and Somerset (Lot 6) ran from 4 October to 4 November 2022. During the PR, BDUK invited stakeholders (including broadband infrastructure operators, internet service providers, the public and businesses) to provide feedback regarding which areas were made up of eligible premises.

Furthermore, BDUK carried out market engagement to seek feedback from suppliers on IA and Lot design, the procurement type (A - local supplier, B - regional supplier or C - cross-regional supplier) and also the capacity of the market to bid for a potential procurement.

The PR stage aimed to validate the outcome of the preceding May 2022 NR OMR to ensure that it correctly represented the information provided by suppliers over the course of the May 2022 NR OMR in respect of Devon and Somerset.

Suppliers who missed contributing to the preceding NR OMR, had no definitive plans and/or evidence base on which to substantiate claims at that earlier stage, or had subsequently updated their plans had a final opportunity to notify BDUK before final determinations were made on premises eligibility. All meaningful responses were carefully considered and where necessary utilised to determine eligible premises. BDUK also sought feedback from Connecting Devon and Somerset (CDS). The finalised postcode-level map showing eligible premises is shown in Annex A of this PR Closure Notice. See postcode-level map.

A finalised list of postcodes showing White, Grey, Black and Under Review PR outcome has been published. A list of eligible (White/Under Review) premises is also available to suppliers upon request.

The proposed IA shown in Annex B has been submitted to BDUK’s National Competence Centre and obtained approval to proceed. The finalised IA will be available to bidders at the forthcoming ITT stage.

Changes to the Lot area

Please note, Lot areas are not fully aligned to Local Authority Boundaries. Specific Lot Boundaries (and IAs) may flex during the OMR, PR and Pre-Procurement Market Engagement (PPME) processes to enable an optimum procurement to be put to the market.

Since the PR closed on 4 November 2022, there have been changes made to the proposed Lot Boundary Area. These changes are consistent with the revised Lot Boundary Area shown in this document in Annex B which includes the IA referred to as Mid/East Devon and West Somerset (Lot 6), a type A local supplier contract.

Please note, along with changes to the Lot Boundary, as of August 2023, the name of Lot 6 has formally changed from ‘Devon and Somerset’ to ‘Mid/East Devon and West Somerset’.

To be clear, the changes made during the PR to the Mid/East Devon and West Somerset (Lot 6) Lot Boundary Area are as follows:

• The Lot Boundary Area for Mid/East Devon and West Somerset (Lot 6), now includes all or part of the District Council areas of Mid Devon, East Devon, Exeter, North Devon, South Somerset, Somerset West and Taunton, and Sedgemoor exclusively.

• The District Council areas of South Hams, Teignbridge, Torridge, West Devon and Mendip were removed from the Mid/East Devon and West Somerset (Lot 6) Lot Boundary Area as it was shown on the map at the start of the PR launch.

Following the PRs undertaken for Devon and Somerset (Lot 6), Dorset (Lot 14) and Cornwall and the Isles of Scilly (Lot 32) in November 2022, BDUK went out to the market to share a view of Devon and Somerset (Lot 6), Dorset (Lot 14) and Cornwall and the Isles of Scilly (Lot 32) IAs in January 2023.

As part of the market engagement for tenders within the Gigabit Infrastructure Subsidy scheme, BDUK engaged suppliers in a Soft Market Testing (SMT) exercise for all of these South West Lots simultaneously to obtain market feedback on Devon and Somerset (Lot 6), Dorset (Lot 14) and Cornwall and the Isles of Scilly (Lot 32).

During the SMT exercise, BDUK received positive indications of interest in a combined type B regional supplier contract which spanned across both the Dorset (Lot 14) and Devon and Somerset (Lot 6) areas, along with a single standalone type A local supplier contract located solely in Devon and Somerset (Lot 6).

During the months from February to July 2023, BDUK proceeded to conduct further market engagement with several PPME exercises completed consulting on numerous procurement options. These included:

• A combined type B regional supplier contract which spanned across Dorset and South Somerset.

• Two standalone type A local supplier contracts located in Mid Devon and South West Devon.

• A single type B regional supplier contract located in Devon and North Somerset.

As a result of the findings from these exercises, BDUK initially decided to progress with a single type B regional supplier contract which will cover premises located across both Dorset and South Somerset referred to as (Lot 14.02). This Dorset and South Somerset (Lot 14.02) procurement was successfully launched via BDUK’s procurement portal Atamis on 30 May 2023.

Please note as of May 2023, the name of Lot 14 was formally changed from ‘Dorset’ to ‘Dorset and South Somerset’.

The PR for Dorset (Lot 14) was carried out in parallel with this PR for Devon and Somerset (Lot 6) and details on the outcome of this exercise can be found in the Dorset and South Somerset (Lot 14) PR Closure Notice published 31 May 2023.

Furthermore, BDUK has now also decided to progress with a single standalone type A local supplier contract referred to as Mid/East Devon and West Somerset (Lot 6). To summarise, the reasoning for the changes highlighted above and the decision to proceed with a single standalone type A local supplier contract for Mid/East Devon and West Somerset (Lot 6) was due to limited interest in our other proposed IAs referenced above relating to:

• A single standalone type A local supplier contract located in South West Devon.

• A single type B regional supplier contract located in Devon and North Somerset.

This approach is in line with our wider strategy of focussing on smaller procurements where no market interest is indicated. The IA for Mid/East Devon and West Somerset (Lot 6) is now a single standalone local supplier contract covering premises in the constituency areas of Mid Devon, Exeter and parts of North Devon and South Somerset.

Prior to this, in June 2023, parts of West and North Devon not included within the Mid/East Devon and West Somerset (Lot 6) standalone type A local supplier contract referenced above, were identified for potential inclusion in the initial call-off exercise for the cross-regional supplier framework (type C) contract referred to as West and North Devon (Lot 6C). Further details on this can be found in the Type C Post PR Closure Notice published 28 June 2023.

The cross-regional supplier framework (type C) procurement was successfully launched via BDUK’s procurement portal Atamis on 27 July 2023.

3.2 BDUK Classifications and methodology for this PR

During the PR, BDUK categorised premises as Gigabit White, Grey, Black or Under Review.

Subsidy control classifications are set out below:

• White - indicates premises with no gigabit network infrastructure and none is likely to be developed within 3 years^{[footnote 1]}

• Grey - indicates premises where a single qualifying gigabit infrastructure from a single supplier is available, or is to be deployed within the coming 3 years^{[footnote 1]}

• Black - indicates premises with two or more qualifying gigabit infrastructures from different suppliers being available, or will be deployed within the coming 3 years^{[footnote 1]}

• Under Review - indicates premises where suppliers have reported current or planned commercial broadband coverage, but where claimed current gigabit coverage has not been verified, or, in respect of planned build, where evaluators are confident that gigabit infrastructure will be delivered, but some risks to delivery remain, or there are some gaps in evidence

BDUK will only provide subsidy to target premises that have been designated as White. Premises which have been designated as Under Review may be included within the Deferred Scope of a procurement. Where this is the case, a further review will be undertaken to confirm whether they are Grey or White before they are released for build.

In accordance with the OMR and PR processes, supplier data submitted during the NR OMR and PR has been mapped using a methodology that protects commercially sensitive supplier data. To reflect this sensitivity, we will only release White and Under Review Unique Property Reference Numbers (UPRNs).

3.3 Summary of PR findings - premises eligibility

For presentational purposes only, postcode-level mapping has been used to present the map showing eligible premises (NB we will only subsidise build to premises which have been designated as White - postcodes are not used to determine IAs for subsidy).

For this purpose, postcodes have been classified as follows:

1. A postcode is White if any White premises are present.

2. A postcode is Under Review if any Under Review premises are present.

3. A postcode is Black if all premises in the postcode are classified Black.

4. A postcode is Grey if all premises are Grey, or a mixture of Grey and Black.

A postcode-level map summarising these premises classifications is provided in Annex A. Suppliers - please note that this map does not show which UPRNs have been determined as White and Under Review.

The outcome of the PR is summarised in terms of White, Grey, Black and Under Review postcodes and premises below:

Postcode Classification	Number of Postcodes	Number of Gigabit Black Premises	Number of Gigabit Grey Premises	Number of Gigabit Under Review Premises	Number of Gigabit White Premises
White	19,745	26,791	85,256	95,234	117,060
Under Review	20,494	26,280	117,544	181,842	0
Grey	27,567	87,995	350,369	0	0
Black	9,193	155,770	0	0	0
Total	76,999	296,836	553,169	277,076	117,060

3.4 Forthcoming procurement

During the PR stage for Devon and Somerset (Lot 6), BDUK sought responses from the market and other stakeholders to validate the Annex A Subsidy Control map (showing Gigabit White, Grey, Black and Under Review determinations).

BDUK also carried out market engagement to seek feedback from suppliers on IA and Lot design, the procurement type (A - local supplier, B - regional supplier or C - cross-regional supplier) and also the capacity of the market to bid for a potential procurement.

The total public funding investment has been based on the final number of premises requiring subsidy. BDUK will confirm a budget drawn from public funding for this area within the forthcoming tender documentation. Details of any restrictions on the use of public subsidy will be explained within the tender documentation.

Indicative funding allocated for this Mid/East Devon and West Somerset (Lot 6) procurement is as follows:

• Type A - Total of 6,308 UPRNs approximately £18,362,691

The procurement type selected for Mid/East Devon and West Somerset (Lot 6), following engagement with market and other stakeholders, is anticipated to be a single type A local supplier contract. A premises-level map detailing the proposed IA can be found in Annex B.

There is no Deferred Scope included within our local supplier contracts which only contain premises that are included in the Initial Scope, where the supplier should build as quickly as possible; local supplier contracts will never include Under Review premises in their Scope.

This procurement was designed utilising data from the PR conducted in Devon and Somerset mentioned above, supplemented with information derived from the January 2023 NR OMR undertaken by BDUK.

As of January 2022, BDUK has been asking suppliers delivering gigabit-capable infrastructure to submit national data returns on a 4-monthly basis (January, May and September) to provide detailed build plans at premises level. The purpose of the NR OMR is to ensure that BDUK has the most up to date information about suppliers’ existing and planned commercial build with supplier submissions being used to inform eligibility across Project Gigabit.

Following the completion of the evaluation process of responses received from suppliers to the January 2023 NR OMR, the subsequent subsidy control classification results were overlaid and used by BDUK in the design of this type A local supplier contract. Further information can be found within the January 2023 NR OMR Closure Notice published 14 June 2023.

BDUK is confident that integrating these NR OMR findings will ensure the best possible outcome for this IA, maximising both coverage and value for money accordingly. Our interventions will always flex to respond to both changes in the dynamic marketplace, and the appetite for our procurements. Further information on the NR OMR process can be found in the Subsidy Control Guidance document.

Mid/East Devon and West Somerset’s (Lot 6) forthcoming procurement will be carried out in accordance with the Public Contracts Regulations 2015 (PCR2015). BDUK procurement approaches are designed to address the scale of the individual procurements. Mid/East Devon and West Somerset’s (Lot 6) procurement will be conducted in a transparent and non-discriminatory manner.

The Authority, BDUK, reserves the right to amend or withdraw the procedure for the competitive sourcing process at any time. Any amendments will be done in line with the Procurement Regulations.

Suppliers acknowledge and accept that by issuing this document (PR Closure Notice) BDUK shall not be bound to progress or conclude any related procurement activity.

Under no circumstances shall the Authority incur any liability in respect of the information contained in this Closure Notice or any supporting documentation.

Timescales

The following table summarises the indicative timescales for this Mid/East Devon and West Somerset (Lot 6) procurement:

Activity	Date
Procurement start date (ITT Launch)	September 2023
Estimated contract award date	January to March 2024

See Project Gigabit procurement timelines for more information.

3.5 Summary of PR findings

• There are 117,060 White premises (out of 1,244,141) where the market does not intend to build, indicating there is a strong commitment from active suppliers in Devon and Somerset to reach a large proportion of premises in the county.

• The IA was designed to address areas outside of where we expect the commercial sector to build to, prioritising footprints where there is an appetite for BDUK to go further, faster.

• We contacted all known national and local suppliers to ask them to respond to the NR OMR and PR. This included working closely with CDS to ensure active and prospective suppliers were aware of the NR OMR and PR and could feed in their responses.

4. Conclusion

A key output for the NR OMR/PR for Devon and Somerset (Lot 6) is the map showing premises that are eligible for subsidy. Annex A sets out this map at postcode level.

From this map, BDUK developed the IA which was proposed to the market during the PPME phase. Annex B sets out the draft IA map at UPRN level.

This identifies the areas where premises are eligible for subsidy. A full list of White and Under Review UPRNs is available on request to suppliers via ukgigabit@BDUK.Zendesk.com.

Suppliers and other interested stakeholders (including businesses) wishing to submit final comments as a result of the changes made to the Lot Boundary as described in this PR Closure Notice update for Mid/East Devon and West Somerset (Lot 6) are encouraged to send in feedback via bduksuppliers@dcms.gov.uk with the subject ‘Lot 6 - PR Closure Notice Update’.

Comments should be received no later than 29 September 2023.

5. Annex A – Map indicating locations of eligible premises

The postcode level map below indicates areas where those premises eligible for subsidy are located ie White areas. These eligible premises may be included within the IA.

Black, Grey and Blue (Under Review) areas indicate where those premises ineligible for subsidy are located.

Devon and Somerset (Lot 6) Postcode level map (showing subsidy control classifications at a postcode level)

6. Annex B – Map of Proposed Intervention Area

The map below highlights the IA that was approved following completion of the PPME exercise.

Mid/East Devon and West Somerset (Lot 6) Type A Intervention Area Map

Please see section 3 above for information on BDUK’s findings, contextualising how eligible premises were included in the proposed IA.

The above premises-level map indicates eligible premises that form the proposed type A procurement.

All of the premises that are targeted for subsidy (a total of 6,308 premises) are highlighted in orange and are referred to as the Initial Scope.

This map is accompanied by a list of UPRNs that fall within the IA, clearly demarcating which premises are within the Initial Scope which suppliers can request via Atamis once the procurement has launched. If you are unable to access Atamis, please contact the Supplier Mailbox bduksuppliers@dcms.gov.uk.

Additional Notes

The proposed IA above covers parts of Mid/East Devon and West Somerset (Lot 6) that were not included in the earlier type B regional supplier contract which will cover premises located across both Dorset and South Somerset referred to as (Lot 14.02). Further details on this can be found in the Dorset and South Somerset (Lot 14) PR Closure Notice published 31 May 2023.

This Dorset and South Somerset (Lot 14.02) procurement was successfully launched via BDUK’s procurement portal Atamis on 30 May 2023.

In addition, the proposed IA above covers parts of Mid/East Devon and West Somerset (Lot 6) that were not identified for potential inclusion in the initial-call off exercise for the cross-regional supplier framework (type C) contract referred to as West and North Devon (Lot 6C). Further details on this can be found in the Type C Post PR Closure Notice published 28 June 2023.

The cross-regional supplier framework (type C) procurement was successfully launched via BDUK’s procurement portal Atamis on 27 July 2023.

1. There may be occasions where credible plans extend beyond a 3-year period, in that case, these may be taken into account. ↩ ↩² ↩³