Public procurement notice: Contract Award Notice
Published: 2017-04-27
Buyer: Highlands and Islands Enterprise
Country: UK
Region: UNITED KINGDOM
Contract type: Services
Procedure: Negotiated without a prior call for competition
CPV classification: 45314000 | 50330000 | 50331000 | 50332000 | 64200000
Estimated value: 755000 GBP
Award criteria: The most economic tender

Technical requirements: The Western Isles Connected Communities Broadband Network (CCBN), currently owned and operated by HIE, delivers wholesale broadband access to 5 public sector and 2 private sector customers. It delivers broadband services to both public and private sector providers, inc. residential customers, throughout the Western Isles. In order to support the continuing operation of the CCBN, HIE require a supplier to assume responsibility of field maintenance (proactive and reactive) and the installation and commissioning of CPE. The supplier will be responsible for the future installation, commissioning and decommissioning of equipment required to support the ongoing operation of the network as a result of the DSSB fibre enabled infrastructure roll-out (inc. reconfiguration of existing network equipment). HIE are formulating an exit strategy from the CCBN and the supplier will work with HIE in order to achieve this aim.
The scope of the services required to support the operation of the network can be summarised as follows:
These services will be required from May 2017 for an initial period of 1 year, unless terminated in accordance with the provisions of the Framework agreement, with HIE having the option to extend for a period or periods together not exceeding 2 calendar years following the Initial Term.
HIE may require the supplier to provide additional services. Any such modification shall be in terms of Regulation 72 of the Public Contracts (Scotland) Regulations 2015.
Under Directive 2014/24/EU of the European Parliament and of the Council, Article 32 2(b)(ii)- competition is absent for technical reasons.
HIE are bound by critical Service Level Agreements in relation to these services which includes public sector customers (e.g. Western Isles NHS and Police Scotland). These include, across all of the Western Isles, on site response times of max. 4 hours. In addition, access to a number of key local sites can only be undertaken when individuals with specialist skills are accompanied by the specialist mast/tower management company Wireless Infrastructure Company (WIC) and/or individuals have the necessary accreditations received from WIC. This accreditation is currently only held by 3 locally based individuals. Rigorous training and examination and high costs are associated with this accreditation (c6 months and 30 000 GBP for the min. 3 individuals required). The only supplier who both holds the required accreditation and can meet the 4 hour response time is Ontime IT and Comms Ltd. and no reasonable alternative or substitute exists. There is objectively only one economic operator that can perform the contract.
As the HIE Superfast Broadband project rolls out it is anticipated that demand for these services will diminish significantly. It is not foreseen it would be commercially viable for another supplier to put in place the on-island required services, systems and accreditations in order to respond to critical SLA response times. However, HIE intent to award this Framework on a 1+1+1 year basis to allow other potential suppliers, should they wish, to achieve this accreditation and make themselves known to HIE. It is therefore currently considered that the proposed award of contract to Ontime IT and Comms Ltd currently meets with the requirements of Regulation 33(1)(b)(ii) of the Public Contracts (Scotland) Regulations 2015.
The anticipated value for the initial 1 year period is 282 711 GBP. As some of the Services described will be ‘called off’ dependent on need, the initial period value and the values stated in II.1.7) and V.2.4) of this Notice (which relate to the total over the 3 year period) are estimates only.


Winner: OnTime IT & Comms Limited
Award value: 755000
Number of bids: 1