Decision details

To approve the procurement strategy to undertake a single supplier negotiation for the provision of network services.

1.  That the procurement strategy outlined in the report, to undertake a single supplier negotiation with London Grid Limited (LGL) for the provision of network services be approved. This will include the wide area network (WAN) data connections, broadband connections, and the voice use-age service, for an estimated contract cost of £3,600,000 over the term of the contract. The annual contract cost is estimated at £720,000. The proposed cost will also include the upgraded wide area network data service connections, and the addition of new internet resilience.

2.  That it be noted that this is to be a five year contract to commence on the 1 April 2017 and to expire on the 31 March 2022. There is flexibility to remove some services within the term dependent upon progress with the shared service. The annual cost will reduce in line with the services removed.

3.  That it be noted that the contract costs are variable being based partly on telephone call charges, which will fluctuate with usage, and that future changes to requirements may influence the cost. Further that there will also be additional one-off costs from moves, adds and changes to the estates which have traditionally cost approximately £30,000 per annum.

4.  That it be noted that this contract is estimated to save the council £223,573 over the contract period equivalent to £44,714 per annum.

5.  That it be noted that in the event of any slippage in this award, that Virgin Media Business will provide the services as detailed in the report under the roll over arrangements until the Gateway 2 is implementable. If the Gateway 2 is approved then the service will be provided under the LGL arrangements from 1 April 2017.