Source · Select Committees · Public Accounts Committee
Recommendation 30
30
Accepted
Department aims to prevent EE ESN monopoly by ensuring standards and future competition.
Conclusion
We asked the Department how it would ensure EE did not obtain a monopoly position as Motorola had done with Airwave. The Department said that to avoid being locked into EE, it would ensure all suppliers complied with telecommunication standards. It said it wanted to return to an open market competition once Airwave was shut down and would study what measures it would need to take.97 One of the issues that led to the programme being reset in 2018 was the incompatible assumptions made by EE and Motorola about versions of telecommunications standards.98 The Independent Assurance Panel said that, as well as complying with standards, it was important that the various parts of ESN met emergency services’ needs, in order to avoid creating a service that worked but was seen as ‘clunky’ by those using it.99 94 C&AG’s Report, paras 1.19, 2.7, Figure 6 95 Q 106 (27 March 96 Q 106 (27 March) 97 Q 107 (27 March) 98 Progress delivering the Emergency Services network, Session 2017–2019, HC 2140, para 6 99 Q 57 (26 April) The Emergency Services Network 17
Government Response Summary
The government agrees and will implement an open-book contract with EE including a gain-share mechanism and allowing for reprocurement of all ESN suppliers in about two years post-completion. The programme will also adhere to international technical standards.
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.