Consultation outcome

Type C Post Public Review - Closure Notice updates March 2023

Updated 24 March 2023

1. Introduction

On 5 January 2023 Building Digital UK (BDUK) published a Prior Information Notice (PIN) reference number 2023/S 000-000266 informing  stakeholders of the intention to procure a supplier for a cross-regional framework contract (also known as type C) to award call-off contracts over the proposed four (4) year term of the framework.

The cross-regional framework will complement the existing type A local supplier contracts and the type B regional supplier contracts, ensuring BDUK’s commitment to deliver the roll out of gigabit-capable broadband across the UK.  BDUK will continue to work with the devolved administrations to identify the best way to deliver Project Gigabit in their areas.

The PIN set out that it is BDUK’s current intention that call-off contracts may be awarded by BDUK and may also potentially be awarded by one or more of the devolved administrations; this will in  any case be confirmed in the future should BDUK decide to issue a procurement. The cross-regional framework is intended to appoint a supplier for the Project Gigabit Programme whose role would be to target premises in respect of which:

• no or no appropriate market interest has been received through market engagement steps for proposed type A or type B procurement areas

• BDUK has not awarded a contract following a procurement for type A or type B areas

• type A or type B contracts that cover these premises fail to be delivered by the supplier and are descoped or terminated

• type C provides demonstrably better value for money or pace of build or coverage.

Call-Off contracts awarded under the cross-regional framework will subsidise the design, build and operation of gigabit-capable supplier networks providing long-term, sustainable availability of wholesale gigabit broadband services in the hardest to reach parts of the UK.

For more information see the full PIN and section 8.3 of the Detailed Overview of the Gigabit Infrastructure Subsidy Scheme

2. National Rolling Open Market Review

BDUK has now completed a mapping process for all areas in England and Wales through the Open Market Review (OMR) and Public Review (PR) process. BDUK also launched the National Rolling Open Market Review (NR OMR)  cycle with the first round commencing in January 2022.

The purpose of the NR OMR, which operates on a 4-monthly basis (January, May and September), is to ensure that BDUK has the most up to date information about suppliers’ existing and planned build over the subsequent 3-year period.

This will support better strategic planning and prioritisation of procurement Intervention Areas (IAs), streamline the OMR process and minimise the risk of BDUK intervening in an area where there are viable commercial build plans.

BDUK runs the formal OMR and PR process ahead of procurements to give all suppliers the opportunity to submit their commercial build plans and ensure as far as possible that we are not applying subsidy where viable commercial plans for gigabit-capable infrastructure exist. We also undertake soft market testing and Pre-Procurement Market Engagement (PPME) to test market appetite and further shape IA design for our public investment plans.

The supplier submissions we review as part of the NR OMR will also assist us with understanding current and future plans for broadband infrastructure (whether Next Generation Access, ultrafast or gigabit-capable).

3. Post Public Review updates

As set out above and within section 2.2 of BDUK’s Open Market Review (OMR) and Public Review (PR) subsidy control classification guidance we continue to process the data submitted to the NR OMR  in the same way as that submitted to previous local OMRs.  It is used to make a mapping categorisation of Unique Property Reference Numbers (UPRNs). This will generally be fed into a PR process for new areas. However, If BDUK receives new data for UPRNs which have been the subject of a previous PR determination, if it meets the evidential requirements, BDUK may use this data to update the previous areas by area PR determinations at our own discretion.

4. Geographic scope

BDUK will apply the outcome of the NR OMR process to develop the design of IAs for the dynamic purchasing system (type A) or regional supplier contract (type B) Project Gigabit procurements. We are now also assessing the IAs that may form the scope of the planned  cross-regional framework contract (type C), in particular for the initial call-off under the framework.

The first areas that have been identified for potential inclusion in the initial call-off comprise of premises in:

• Cornwall and Isles of Scilly (Lot 32C)

• Hertfordshire (Lot 26C)

• North West and Mid Wales (Lot 43C)

• North Wiltshire and South Gloucestershire (Lot 30C)

• Staffordshire (Lot 19C)

• West and Mid-Surrey (Lot 22C)

• West and North Devon (Lot 6C)

• West Berkshire (Lot 13C)

Please see full details of the September 2022 NR OMR outputs and the Welsh Government Public Review.   (A preceding OMR was undertaken in 2021).

5. Forthcoming procurement

Details of the initial call-off for the type C cross-regional framework will follow once PPME has taken place, with this Closure Notice being reuploaded onto GOV.UK. It is intended that once PPME has been completed and prior to the release of the Invitation to Tender for the framework (and initial call-off) , BDUK will publish the final target IAs for the initial call-off.

Please note:

BDUK reserves the right not to proceed to tender for these IAs, and the publication of this Closure Notice is not a commitment from BDUK to launch a procurement for the cross-regional framework contract.

6. Timescales

Please see our latest Project Gigabit Winter update for further details on Project Gigabit procurement timelines.

7. Annex A - map indicating locations of eligible premises

Please refer to the September 2022 NR OMR outputs specific to the Lots and regions referenced above.

Please refer to the Welsh Government’s PR outputs specific to the regions referenced above.

8.   Annex B - map of proposed Intervention Area (s)

A map (s) of the IAs will follow once the type C PPME exercise has concluded.

Please contact us at bduksuppliers@dcms.gov.uk if your question relates to the cross-regional framework.

If you have any questions, regarding the most recent NR OMR, which is ongoing, please refer to the January 2023 Request For Information GOV.UK page or email us at ukgigabit@bduk.zendesk.com.