Section one: Contracting authority/entity
one.1) Name and addresses
London Grid for Learning Trust
9th Floor, 10 Exchange Square, Primrose Street
London
EC2A 2BR
Contact
Mr Terry Brewer
Telephone
+44 2082555555
Country
United Kingdom
NUTS code
UK - United Kingdom
Internet address(es)
Main address
Buyer's address
one.4) Type of the contracting authority
Body governed by public law
one.5) Main activity
Education
Section two: Object
two.1) Scope of the procurement
two.1.1) Title
Modification of TRUSTnet contract
Reference number
DN696853
two.1.2) Main CPV code
- 72000000 - IT services: consulting, software development, Internet and support
two.1.3) Type of contract
Services
two.1.4) Short description
This VEAT notice relates to the proposed modification of the TRUSTnet contract between London Grid for Learning Trust (LGfL) and Virgin Media Business Limited (VMB) pursuant to Regulation 72(1)(b) of the Public Contracts Regulations 2015.
LGfL proposes to extend the duration of the TRUSTnet contract for a period of 10 years from 2028 – 2038 in respect of the lease of dark fibre infrastructure procured under the original award for the balance of the useful life of that infrastructure. The modification will be limited to the lease and maintenance of the dark fibre cabling and will not include the additional services provided by VMB pursuant to the TRUSTnet contract.
LGfL awarded a contract to VMB in 2014 for the supply and management of transmission services, including (but not limited to) leased circuits, dark fibre, wide area Ethernet and xDSL with bandwidths of 10Mbit/s and above. The dark fibre infrastructure, leased as part of the contract has a useful economic life of 25 years, extending considerably beyond the end of the current contract term, which ends in 2028.
LGfL has concluded that it is necessary to modify the TRUSTnet contract to allow for the extended lease of the dark fibre infrastructure until 31 December 2038 because any alternative would be uneconomic and would cause significant disruption and inconvenience for users at a time when the users are already experiencing difficult cost pressures. LGfL has therefore determined that a limited modification of the TRUSTnet contract is necessary to protect the interests of the users.
two.1.6) Information about lots
This contract is divided into lots: No
two.1.7) Total value of the procurement (excluding VAT)
Value excluding VAT: £2,000,000
two.2) Description
two.2.2) Additional CPV code(s)
- 48219000 - Miscellaneous networking software package
- 64000000 - Postal and telecommunications services
two.2.3) Place of performance
NUTS codes
- UK - United Kingdom
two.2.4) Description of the procurement
1. LGfL was established in 2001 as a Regional Broadband Authority by the 32 London local authorities and the City of London Council. It was established as a not-for-profit company and a registered charity, and is a body governed by public law. Its purpose is to provide broadband connectivity, Information and Communications Technology and related services to schools in London, LGfL’s ‘customers’. It currently provides essential services to over 3,000 schools providing education to more than 1.2 million students each year.
2. LGfL awarded a contract to VMB on 25 March 2014 pursuant to Contract Award Notice No. 2013/S 245-427165 for:
a. transmission services, including (but not limited to) leased circuits, dark fibre, wide area Ethernet and xDSL leased circuits and wide area Ethernet services are typically required at bandwidths of 10Mbit/s and above;
b. management services of the Core national, regional and to the edge premises equipment; and
c. supply of telecommunication and telephone services.
3. The contract was awarded for a period of 14 years, subject to periodic contract reviews, and is due to expire on 24 March 2028. Services provided under the contract may continue for a further two years to facilitate transition to a replacement supplier. The dark fibre infrastructure supplied under the terms of the contract award has a useful economic life of 25 years.
4. The dark fibre network is owned by VMB and VMB is solely responsible for its maintenance and repair. It has become necessary for LGfL to extend the lease of the network until the end of its natural life, because a replacement supplier would have to lay new fibre cabling. This would result in material additional cost, leading to duplication of cost for LGfL by replacing fibre that is still operational as well as significant inconvenience and avoidable cost for LGfL’s schools and their students. In the latter instance, this would include disruptive works to lay new cabling within school buildings, playgrounds and/or playing fields. Furthermore, based on past experience of previous modernisation programmes, LGfL believes it is unlikely that network could be replaced within the existing transition period.
5. Therefore, LGfL has determined that a modification of the TRUSTnet contract to allow for a lease until 2038 is permitted under Reg 72(1)(b) both for economic and technical reasons (because an alternative contractor could not maintain VMB’s network and would need to install a replacement, which would be unaffordable and could not be completed within the transition period) and because an alternative would cause significant inconvenience and substantial cost duplication. The value of the extension does not exceed 50% of the value of the original contract.
6. The proposed modification will be limited to the lease of the dark fibre cabling, together with services for its repair and maintenance, for the remainder of its useful life until 31 December 2038.
7. The remainder of the services provided under the TRUSTnet contract, including managed services and monitoring overlay requirements, will be re-tendered separately in 2028.
8. The modification will enable LGfL to:
a. exploit the fibre cabling for the full duration of its useful life;
b. contract with alternative suppliers for the provision of overlay services over the dark fibre network;
c. separate procurements for the provision of managed services and the provision of network infrastructure, thereby increasing the scope for competition on a fair and equal basis; and
d. conduct a procurement for the replacement of the cabling under a timetable that will allow for the timely implementation of a replacement service.
9. LGfL has agreed the terms of a limited modification to the TRUSTnet contract but will voluntarily delay making that modification for a period of 30 days following the publication of this voluntary ex-ante transparency notice.
two.2.11) Information about options
Options: No
two.2.13) Information about European Union Funds
The procurement is related to a project and/or programme financed by European Union funds: No
Section four. Procedure
four.1) Description
four.1.1) Type of procedure
Negotiated without a prior call for competition
- Additional deliveries by the original supplier
- New works/services, constituting a repetition of existing works/services
Explanation:
Regulation 72(1)(b) of the The Public Contract Regulations 2015 applies
four.1.8) Information about the Government Procurement Agreement (GPA)
The procurement is covered by the Government Procurement Agreement: No
four.2) Administrative information
four.2.1) Previous publication concerning this procedure
Notice number: 2013/S 245-427165
Section five. Award of contract/concession
Contract No
DN696853
A contract/lot is awarded: Yes
five.2) Award of contract/concession
five.2.1) Date of conclusion of the contract
14 October 2023
five.2.2) Information about tenders
The contract has been awarded to a group of economic operators: Yes
five.2.3) Name and address of the contractor/concessionaire
Virgin Media Limited
500 Brook Drive
Reading
RG2 6UU
Country
United Kingdom
NUTS code
- UK - United Kingdom
Internet address
The contractor/concessionaire is an SME
No
five.2.3) Name and address of the contractor/concessionaire
Virgin Media Limited
500 Brook Drive
Reading
RG2 6UU
Country
United Kingdom
NUTS code
- UK - United Kingdom
Internet address
The contractor/concessionaire is an SME
No
five.2.4) Information on value of contract/lot/concession (excluding VAT)
Total value of the contract/lot/concession: £2,000,000
Section six. Complementary information
six.4) Procedures for review
six.4.1) Review body
Royal Courts of Justice
Strand
London
WC2A 2LL
Country
United Kingdom