Source · Select Committees · Public Accounts Committee
Recommendation 29
29
Accepted
Department prefers diverse ESN networks but considers introducing new suppliers too complex currently.
Conclusion
We asked whether it would have been better to have a consortium of suppliers providing the main network infrastructure, rather than just EE.95 The Department agreed that it would prefer to be able to take advantage of a range of networks, but it felt that introducing other suppliers now would increase complexity.96
Government Response Summary
The government agrees with the committee's point on supplier diversity and commits to structuring the new EE contract with open book and gain share mechanisms, and enabling reprocurement of all ESN suppliers around two years post-programme completion to allow for future commercial competition.
Government Response
Accepted
HM Government
Accepted
6.1 The government agrees with the Committee’s recommendation. Target implementation date: December 2023 6.2 Home Office commercial officials and Cabinet Commercial Services have reviewed the non-binding heads of terms, and independent economists and commercial lawyers have critiqued these reviews to ensure to the greatest extent possible that a contract based upon these terms represents value for money. 6.3 The new contract with telecommunications company EE will be awarded on an open book basis with a gain share mechanism built in. This will give us visibility over their costs and gross profit margin, with any savings made through, for example, greater efficiency, being shared between EE and the Home Office. 6.4 The new contract will be structured to allow for the Home Office to reprocure all ESN suppliers around 2 years after programme completion. 6.5 The entire programme is being delivered in line with international technical standards. This will enable commercial competition for the supply of all elements at regular intervals.