Agenda item

To authorise the Commissioning Director: Communities and Infrastructure to award contracts for Stage 3 Lots 3c, 3d, 3e and 4 of the Fastershire Broadband Strategy 2015 – 2018 for the deployment of superfast broadband in Gloucestershire, (and Herefordshire), and to award contracts for delivery of Lots 3a and 3b. 

Please note: this report contains both exempt and non-exempt information.

If cabinet members wish to discuss the exempt information contained in the appendices to the published report, consideration must first be given to whether the public should be excluded from the meeting by passing the following resolution: -

In accordance with Regulation 4(2)(b) of the Local Authorities (Executive Arrangements) (Meetings and Access to Information) (England) Regulations 2012, the public to be excluded from the meeting for this item of business because it is likely that, if members of the public were present there would be disclosure to them of exempt information as defined in Paragraph 3 of Part 1 of Schedule 12 A to the Act, and the public interest in withholding the information outweighs the public interest in disclosing the information to the public.

Cllr Mark Hawthorne, Leader of Council, sought to authorise the Commissioning Director: Communities and Infrastructure to award the contracts for Stage 3 Lots 3c, 3d, 3e and 4 of the Fastershire Broadband Strategy 2015 – 2018, for the deployment of superfast broadband in Gloucestershire, (and Herefordshire), and to award the contracts for delivery of Lots 3a and 3b. 

Having considered all of the information, including known proposals and the reasons for the recommendations, Cabinet noted the report and, 

RESOLVED to: 

Authorise the Commissioning Director: Communities and Infrastructure, in consultation with the Leader of the Council and Director of Strategic Finance,  to:

(a)  Award a contract to the highest scoring supplier (namely “Gigaclear”) that was identified in a competitive procurement process carried out by Herefordshire Council, (in its role on the joint Gloucestershire County Council and Herefordshire Council Fastershire project), for the deployment of superfast broadband in Gloucestershire (and Herefordshire).  Such a contract shall require Gigaclear to (i) deliver fibre broadband infrastructure within the areas described in Lot 3c, (South Herefordshire & West Gloucestershire), Lot 3d, (North Gloucestershire), Lot 3e, (South Gloucestershire) and Lot 4, (North Herefordshire) and (ii) provide gap funding in respect thereof. The maximum value of such a contract, (for Lots 3c, 3d, 3e and 4), shall be £12.7m, (made up of £5.14m to be contributed by Gloucestershire County Council  and £7.56m to be contributed by Herefordshire Council).  Such a contract shall include an option to increase Herefordshire Council’s Lot 3c subsidy contribution by no more than £1.4m in accordance with the original published subsidy limit set out in the ITT.  Such an option may be exercised only if a delivery plan has been agreed by Gloucestershire County Council’s Commissioning Director.  The term of such contract shall expire seven years after the final infrastructure payment is made, (anticipated to be December 2019).  The said contract  shall not be entered into with Gigaclear until Herefordshire Council has provided its approval, therefore;

(b) Subject to the positive conclusion of BDUKs due diligence, to award a contract to the highest scoring supplier that was identified in a competitive procurement process carried out between September and November 2016 for the deployment of superfast broadband in Gloucestershire (and Herefordshire).  Such contract shall require the highest scoring supplier to i) deliver fibre broadband infrastructure within the areas described in Lot 3a (Cheltenham and Gloucester) and Lot 3b (Hereford).  The value of such contract shall be £910k (made up of £0.691m to be contributed by Gloucestershire County Council and £0.219m to be contributed by Herefordshire Council).  The term of such contract shall expire seven years after the final infrastructure payment (anticipated to be December 2019).   The said contract shall not be entered into with the highest scoring supplier until Herefordshire Council has provided its approval therefore; .

(c) Take all operational decisions in relation to (i) the approved £0.58m of uncommitted funds detailed as “Future Procurements and Contract Extensions” in the table below, (ii) further ERDF and EAFRD European Funding (subject to approval); and (iii) the possible reinvestment of any underspend from previous stages of the approved Fastershire Broadband Strategy.

Prior to the discussion, members were advised that, should Cabinet wish to discuss the contents of the exempt information at the meeting, consideration would need to be given as to whether the press and public should be excluded from the meeting in accordance with Regulation 4(2)(b) of the Local Authorities (Executive Arrangements) (Meetings and Access to Information) (England) Regulations 2012. Cabinet agreed to consider the item without reference to the exempt information.

Cllr Mark Hawthorne, Leader of Council, summarised the positive progress in bringing superfast broadband to Gloucestershire. This report sought to authorise the next phases of the work.

Having considered all of the information, including known proposals and the reasons for the recommendations, Cabinet noted the report and, 

RESOLVED to: 

Authorise the Commissioning Director: Communities and Infrastructure, in consultation with the Leader of the Council and Director of Strategic Finance,  to:

(a)  Award a contract to the highest scoring supplier (namely “Gigaclear”) that was identified in a competitive procurement process carried out by Herefordshire Council, (in its role on the joint Gloucestershire County Council and Herefordshire Council Fastershire project), for the deployment of superfast broadband in Gloucestershire (and Herefordshire).  Such a contract shall require Gigaclear to (i) deliver fibre broadband infrastructure within the areas described in Lot 3c, (South Herefordshire & West Gloucestershire), Lot 3d, (North Gloucestershire), Lot 3e, (South Gloucestershire) and Lot 4, (North Herefordshire) and (ii) provide gap funding in respect thereof. The maximum value of such a contract, (for Lots 3c, 3d, 3e and 4), shall be £12.7m, (made up of £5.14m to be contributed by Gloucestershire County Council  and £7.56m to be contributed by Herefordshire Council).  Such a contract shall include an option to increase Herefordshire Council’s Lot 3c subsidy contribution by no more than £1.4m in accordance with the original published subsidy limit set out in the ITT.  Such an option may be exercised only if a delivery plan has been agreed by Gloucestershire County Council’s Commissioning Director.  The term of such contract shall expire seven years after the final infrastructure payment is made, (anticipated to be December 2019).  The said contract  shall not be entered into with Gigaclear until Herefordshire Council has provided its approval, therefore;

(b) Subject to the positive conclusion of BDUKs due diligence, to award a contract to the highest scoring supplier that was identified in a competitive procurement process carried out between September and November 2016 for the deployment of superfast broadband in Gloucestershire (and Herefordshire).  Such contract shall require the highest scoring supplier to i) deliver fibre broadband infrastructure within the areas described in Lot 3a (Cheltenham and Gloucester) and Lot 3b (Hereford).  The value of such contract shall be £910k (made up of £0.691m to be contributed by Gloucestershire County Council and £0.219m to be contributed by Herefordshire Council).  The term of such contract shall expire seven years after the final infrastructure payment (anticipated to be December 2019).   The said contract shall not be entered into with the highest scoring supplier until Herefordshire Council has provided its approval therefore; .

(c) Take all operational decisions in relation to (i) the approved £0.58m of uncommitted funds detailed as “Future Procurements and Contract Extensions” in the table below, (ii) further ERDF and EAFRD European Funding (subject to approval); and (iii) the possible reinvestment of any underspend from previous stages of the approved Fastershire Broadband Strategy.

Prior to the discussion, members were advised that, should Cabinet wish to discuss the contents of the exempt information included in the Appendix for this item, consideration would need to be given as to whether the press and public should be excluded from the meeting in accordance with Regulation 4(2)(b) of the Local Authorities (Executive Arrangements) (Meetings and Access to Information) (England) Regulations 2012.

Cabinet agreed to consider the item without reference to the exempt information.