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Officer Key Decision - Friday 23rd August 2024

August 23, 2024 Officer Key Decision View on council website

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“Why award ITS the £942,000 fibre contract?”

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The Officer Key Decision meeting scheduled for Friday 23 August 2024 was set to discuss a significant fibre upgrade project for the borough. The primary focus was on the approval to award a contract for this project, which aims to enhance internet connectivity across Newham.

Fibre Upgrade Project: Approval to Award Contract

The meeting's agenda included a discussion regarding the approval to award a contract for the Fibre Upgrade Project. This project is intended to install additional dark fibre across the borough, with the aim of improving internet speed and connectivity, particularly in areas that are currently underserved.

The report pack indicated that the decision maker, Paul Kitson, Corporate Director of Inclusive Economy & Housing, was recommended to agree to award a capital works contract valued at £942,000 to ITS Technology Group (ITS). This contract would cover the provision and installation of ducting, gigabit-capable managed services, and infrastructure services for the dark fibre network.

The project is being funded through a combination of grants: £800,000 from the Strategic Investment Pot (SIP) and £222,000 from the Department for Levelling Up, Housing & Communities (DLUHC), facilitated by the Greater London Authority (GLA). An additional £80,000 from the SIP funding has been allocated for project management and administration costs.

The report highlighted several benefits of the fibre upgrade. These include enabling economic development by improving connectivity in key growth areas such as Canning Town and Silvertown, and providing free fibre to over 50 public buildings in Newham for 35 years, which is expected to lower revenue spend and facilitate public service delivery. Furthermore, the project aims to improve internet access for residents by lowering the cost for internet service providers and mobile operators to deliver next-generation services, thereby driving social inclusion and economic growth.

The report also noted that the chosen sites for the upgrade were selected based on the potential for significant improvement in public sector delivery and the motivation for the commercial sector to invest in development zones and address areas of digital exclusion. The aim is to establish widespread availability of open fibre services across Newham, offering greater choice of high-speed broadband connections and leveraging commercial investment.

The proposed timeline for the project indicated that ITS would begin work in September 2024, with a project duration of 12 months, including mobilisation, implementation, and handover phases, concluding in September 2025.

The report also outlined the legal basis for the decision, referencing Section 111 of the Local Government Act 1972 and the Council's general power of competence under Section 1 of the Localism Act 2011. It was stated that the contract value was below the applicable public procurement threshold, but the contract would adhere to the Council's Contract Standing Orders. The procurement route via the London Borough of Bexley (LBB) Framework was detailed, with ITS's bid evaluated as providing value for money.

The report also touched upon the Public Sector Equality Duty (PSED) under Section 149 of the Equality Act 2010, requiring due regard to the need to eliminate discrimination, advance equality of opportunity, and foster good relations between those with and without protected characteristics.

An alternative option considered and rejected was not to procure and award the contract, which would have resulted in the Council foregoing all funding and returning the DLUHC contribution.

The report mentioned that Newham was part of the SIP-funded digital programme of Local London, which involved workshops and meetings with participating boroughs to align priorities and procurement approaches. Consultation was also held with the GLA and the telecommunications industry. No formal consultation was deemed necessary for this contract award decision.

The meeting documents also included an appendix with a map showing the locations where the fibre upgrades would be situated.

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Meeting Documents

Agenda

Agenda frontsheet 23rd-Aug-2024 Officer Key Decision

Reports Pack

Public reports pack 23rd-Aug-2024 Officer Key Decision

Additional Documents

15th August 2024 - Fibre Project Procurement Decision - Officer Decision Record v7.2
Decisions 23rd-Aug-2024 Officer Key Decision
Appendix 1 - Map showing fibre upgrade locations