Public procurement notice: Voluntary Ex Ante Transparency Notice
Published: 2019-07-23
Buyer: The Secretary of State for the Home Department
Country: UK
Contract type: Services
Procedure: Negotiated without a prior call for competition
CPV classification: 32000000 | 32523000 | 45232332 | 45314000 | 48200000
Estimated value: 681400000 GBP
Award criteria: The most economic tender

Technical requirements: In December 2015, following an OJEU advertisement (2014/S 077-133654), the home office concluded ‘the ESN Lot 3 Contract’ with EE Ltd (‘EE’), for the development and provision of a 4G network, as part of the emergency services network (‘ESN’) project. ESN will be used by organisations (including the emergency services) requiring a public safety communications solution (‘PSCS’). ESN will replace ‘Airwave’, which uses old technology and is costly. The new solution will provide ‘push to talk’ functionality and new data services.
The Lot 3 services will provide the network for the push-to-talk and data solution provided by ESN’s Lot 2 provider. The Lot 3 network will utilise a network provider’s existing mobile network, but also bespoke services, including special ‘coverage’ (e.g. in tunnels and remote locations) and specific services (e.g. priority over other network traffic, high availability, security protections and integration with the Lot 2 solution and end-user devices.
Under the existing ESN Lot 3 contract, the main services provided by EE (remaining the same following variation) comprise these key elements:
— contract period to be extended. Its original term is due to expire on 8.12.2021 (or, insofar as extension options in the original contract are exercised, on 8.12.2022). The variation will extend the term to Dec 2024 in order to provide a network capable of supporting the new technology throughout the period for ‘rollout’ of the ESN solution to end users (from approximately Sept 2020 to Dec 2022), and for a relatively short period thereafter to enable stabilisation of the ESN solution, and preparation for transition to any new provider,
— a new payment structure whereby EE will be paid for delivery of the network on the basis that it is materially completed; but any infrastructure which is not completed by the milestone date results in payment abatements,
— a new methodology which sets out the process and approach to identification of any ‘gaps’ in the network and EE’s obligation to fix gaps,
— the testing approach and timetable will be amended to be incremental rather than 'big bang' to align with the delivery of the ‘Kodiak’ push-to-talk application,
— the transition of users onto the EE network will be phased over a 27-month period commencing in Sept 2020,
— additional product and testing services to be provided by EE shall be paid for and ordered by the authority to support changes in the Lot 2 contract (eg Wave 7000 to Kodiak),
— joint commitment to build an engineering plan for evolving the ESN core network and IP Multimedia Subsystem (‘IMS’) (a new standardised and virtualised core network). EE is to have a unilateral right of termination in the event that the ESN programme does not move to an IMS-hosted core,
The value of the Lot 3 ESN contract when originally procured was 735 800 000 GBP (‘m’). Pursuant to other developments or changes in the contract over its lifetime, its current value, prior to the amendments described herein, was 675 600 000 GBP at the time of the heads of terms. Following the amendments described herein, its total value over the lifetime of the contract will be to 895 700 000 GBP, and its prospective value from the date of amendment will be 681 400 000 GBP.
The increase in value of 220 100 000 GBP from the 675 600 000 GBP figure to 895 700 000 GBP is made up of:
The need for these changes is because the ESN project is delayed. It is necessary to extend the Lot 3 contract, which would otherwise expire during (or at best very shortly after) the ESN rollout period (from Sept 2020 to Dec 2022); otherwise, there would be a change of network provider during the critical rollout period, or a high risk of a change of provider during the critical rollout period; or, at best, a change of provider during the important period of stabilisation immediately following rollout. Other changes reflect changes to the Lot 2 contract (‘incremental’ rollout will mean at least some users being provided with an ESN solution earlier than they would with a ‘big bang’ rollout; mitigating the delays; and Lot 3 will now need to accommodate the new ‘Kodiak' solution from Lot 2) and refinement of the home office’s requirements.
This is a modification of a contract via a new procurement procedure pursuant to paragraph 5 of Article 72 of Directive 2014/24/EU.
The new procurement procedure is the negotiated procedure without prior publication, under Article 32. Having taken specialist legal advice, the authority's view is that reliance on regulation 32 is justified because the services being procured under the modified contract can be provided only by EE because competition is absent for technical reasons.


Winner: EE Ltd
Award value: 681400000