Source · Select Committees · Public Accounts Committee
Recommendation 20
20
In our report in January 2021, we found that the Department was still developing its...
Conclusion
In our report in January 2021, we found that the Department was still developing its £5 billion programme to subsidise roll-out to the hardest to reach 20% of the UK’s 31 million premises and could not tell us when it intends to deliver major milestones, such as the letting of contracts. We were increasingly concerned that those in rural areas may have to pay more and may reach gigabit broadband speeds late.64 At our evidence session, the Department confirmed that it does not intend to leave behind hard-to-reach areas, as rollout of Project Gigabit is based on the “Outside-In” procurement approach.65 This approach identifies non-commercial areas and builds to these premises in parallel with commercial building, ensuring that no areas are systematically left behind.66
Government Response
Not Addressed
HM Government
Not Addressed
3.10 BDUK’s overall programme strategy and design of its interventions, including the procurement approach, balances the need to be dynamic and responsive to the market’s plans while maintaining a minimum level of certainty that suppliers will build viable networks to uncommercial areas and consequently ensure appropriate value for money. 3.11 BDUK has implemented a robust process for surveying contract areas to understand suppliers’ commercial build plans and identify the premises requiring support from BDUK to access gigabit networks. This process provides BDUK with the information required to identify whether to intervene in an area, because there are no commercial plans to build gigabit infrastructure, or to defer programme activity in that area because they may be covered by suppliers’ commercial build plans. BDUK retains the option of including premises in later delivery phases of its Gigabit Infrastructure Subsidy contracts if intervention is required at a later date because suppliers’ commercial build plans change. 3.12 BDUK has streamlined its procurement process, while maintaining Public Contracting Regulations and Cabinet Office best practice. This includes establishing a Dynamic Purchasing System to pre-qualify bidders for its local supplier procurements and investing time in pre-procurement market engagement to assess the viability of proposed procurements and mitigate the risk of delays from failed procurements. 3.13 BDUK reviews its procurement approach following each round of procurements to measure their success and learn lessons to take into subsequent procurements. The first round of procurements are planned to be complete by December 2022.