CABINET 15 TH NOVEMBER, 2011

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1 I CABINET 15 TH NOVEMBER, 2011 JOINT REPORT OF THE CHIEF EXECUTIVE, DIRECTOR OF CORPORATE RESOURCES AND THE DIRECTOR OF THE CHILDREN AND YOUNG PEOPLES SERVICE PARTICIPATION IN THE EAST MIDLANDS PUBLIC SERVICE NETWORK AND THE PROVISION OF BROADBAND SERVICES FOR SCHOOLS Purpose of Report PART A 1. To consider the Council s participation in the East Midlands Public Service Network (empsn). Recommendations 2. The Cabinet is recommended to agree that:- i. the County Council supports the development of the East Midlands Public Service Network (empsn), and notes that empsn services will be made available to schools within the County; and ii. in view of the risks associated with the take-up of services by schools, the County Council makes no commitment at this time to the migration of its corporate network to empsn, but will consider this option when its managed network services contract is re-procured. Reasons for Recommendations 3. The contract for the provision of broadband connectivity and related services to Leicestershire schools is due to expire in October The empsn will ensure the availability of a range of services for schools from that date. 4. The County Council s corporate managed network service contract does not expire until August The level of corporate network savings which can be delivered through empsn is critically dependant upon the take-up by schools. 1

2 5. In light of the uncertainty about such take-up, it is not felt appropriate to make a firm commitment to migration of the corporate network empsn at such an early stage. The County Council does however intend to give serious consideration to empsn for the delivery of its corporate network requirements when the current managed service network contract comes to an end. Timetable for Decisions (including Scrutiny) 6. Supplier contracts for the delivery of empsn managed services are due to be signed by the end of November. For reasons given elsewhere in this report, it is important that the Council takes a decision regarding its commitment by that time. Policy Framework and Previous Decisions 7. Cabinet agreed in 2000 to the County Council becoming a partner in the East Midlands Broadband Consortium (EMBC) for the delivery of broadband services to schools. It was further agreed by Cabinet in May 2006 that the Council become a shareholder in a company limited by guarantee, East Midlands Broadband Consortium Procurement Limited. Decisions regarding the withdrawal from the consortium of Nottinghamshire County Council were taken by Cabinet in September In February 2007 Cabinet agreed the procurement of an amalgamated ICT managed services contract, the largest element being the provision of corporate data network services. 9. On 8 th March 2011 Cabinet approved the participation of the County Council in the empsn procurement process and to seeking government funding for the delivery of super-fast broadband to urban and rural communities. Legal Implications 10. The County Solicitor has provided professional advice throughout the procurement process. Resources Implications 11. Significant savings in corporate network revenue costs will need to be found to meet the targets in the Medium Term Financial Strategy. empsn will be considered as an option when the current managed services contract is reprocured, with a view to delivering those savings. 12. The County Council will not be responsible for the costs related to the provision by empsn of services to schools. 2

3 Circulation under the Local Issues Alert Procedure 13. None. Officers to Contact Andy Roberts, ICT Design and Commissioning Manager, Corporate Resources Department Tel: ; Lesley Hagger, Assistant Director of Strategic Initiatives, Children and Young People s Service Tel: ; lesley.hagger@leics.gov.uk Matthew Kempson, Rural Partnerships Manager, Chief Executive s Department Tel: ; matthew.kempson@leics.gov.uk 3

4 PART B Background 14. The County Council has benefited from a corporate data network since Currently covering around 260 sites and serving over 6000 users, this provides support for both data and voice telephony services and is provided as a managed service by Logicalis Limited. The contract for these services is due to expire in August Separate arrangements exist for Leicestershire schools, with 283 utilising services provided by EMBC. EMBC manages on behalf of the eight partner authorities a managed service contract with Synetrix Limited. That contract is due to expire in October Given the imminent expiry of the current contract, and the likely timescales for migration of educational establishments to new arrangements, the EMBC partner authorities were keen to establish new contracts for the provision of services needed by schools by the end of With two separate communications networks covering the Leicestershire area there is clearly scope for rationalisation and the potential to generate significant savings. Broadening the approach to include other public sector bodies in the area will provide the opportunity for further savings and also facilitate the development of shared services between such organisations. 17. Nationally there is strong Government support for the development of a Public Service Network - the Cabinet Office has been leading the development of PSN standards to ensure interoperability and maximise engagement with telecommunications suppliers. A number of sub-regional PSNs are already in place (for example in Kent and Hampshire) and others are being developed. 18. Rather than restrict the PSN implementation to Leicester and Leicestershire it was agreed by Cabinet in March 2011 to explore the development of a regional approach. The Cabinet Office has been very supportive and has been actively involved in the preparatory work for the East Midlands PSN. empsn Procurement Outcome and Implementation Options 19. The empsn procurement process has now identified a preferred supplier for provision of the core network infrastructure across the East Midlands. The proposal from KCOM Group plc has the potential to reduce the County Council s corporate network costs by around 30% but only if a high level of take-up by schools can be maintained. 4

5 20. Lincolnshire County Council and Leicester City Council are expected to commit to the provision of their corporate network services via empsn from October 2012 with the Joint Academic Network, which links Higher Education and a number of Further Education institutions, also considering participation. KCOM has made a commitment to identify and encourage other public bodies in the East Midlands to join the network to deliver further savings in the future. 21. In addition there are framework contracts to complement the core network contract with KCOM which will allow multiple suppliers to provide value-added services such as hosting and web filtering along with connectivity to the core network. Such contracts will enable schools to tailor a package of services to meet their requirements. Benefits of empsn 22. Clearly the most significant benefit to accrue from participation would be a saving in corporate network costs through demand aggregation. The provision of a network connecting public sector agencies should also facilitate the further development of shared services and access to cloud services whether local, regional or national. Furthermore consistent and robust government-endorsed security standards will ensure the safe transit of data between member agencies. For these reasons the development of empsn is strongly supported. Services to Schools 23. Given the changing landscape for schools and the financial pressures resulting from the loss of grant funding related to ICT infrastructure and broadband services, schools will be looking to reduce the costs of broadband connectivity and related services whilst maintaining a safe and secure learning environment. 24. The County Council has engaged with schools during the last twelve months and completed a range of consultation activities designed to capture the views of schools about future connectivity and services. Schools were clear that their priority areas were cost, reliability, choice and flexibility. The empsn is designed to meet these needs. 25. There will be the opportunity for schools to make cost savings by enabling them to buy only what they need and want to use. Some schools will want a comprehensive package of connectivity and services which provide continuity from their existing provision along with minimal disruption during transition. Other schools may choose to buy just a connection to the regional network and then manage their own services. 5

6 26. Unlike the existing EMBC arrangement the new contract will be a direct relationship between schools and supplier(s). The County Council will not be making a commitment on behalf of schools, but will want to ensure that schools have a full understanding of the options available to enable Headteachers and Governors to make an informed choice about the best value solution for their school. KCOM have given a commitment to work with empsn to promote the benefits of the new network to schools. Community Broadband 27. Improving broadband connectivity in Leicestershire is a key strategic priority. The deployment of super-fast broadband will help to unlock the economic potential of Leicestershire s businesses, support community development, and drive the transformation of public services. The needs of businesses, high levels of home-working, opportunities to deliver services remotely (e.g. education, telemedicine, employment/training support services), and pockets of rural disadvantage mean that improvements to the broadband infrastructure are necessary to ensure that no community is left behind. 28. Procurement of empsn supports the County Council s ambition to deploy super-fast broadband. The procurement process was developed to ensure maximum opportunity to use the network where it presents a cost-effective and sustainable deployment solution. Shortlisted suppliers were asked to confirm their commitment to work with community broadband suppliers to identify local connectivity solutions using the empsn network. Suppliers were evaluated based on their responses. Opportunities to develop demonstration community broadband projects in Leicestershire which use empsn connectivity are currently being explored working directly with schools and community groups. If successful such projects would support the County Council s Big Society ambitions. Background Papers Joint Report of the Chief Executive, Director of Corporate Resources and Director of the Children and Young Peoples Service Procurement of a Public Service Network and Broadband Services to Schools Cabinet, 8th March 2011 Impact Assessments Equal Opportunities 29. The development of improved network connectivity and greater sharing of facilities is expected to reduce costs for all sections of the community. 6

7 Risk Assessment 30. The key risk for both the County Council and schools is that of take-up falling short of the planning assumptions on which prices are based. In particular schools are likely to favour shorter contracts, which means there is a real risk of schools choosing to leave empsn at some point during the seven year contract term. 31. Reduced take-up will increase the contribution to core network costs needed by those who remain. Consequently should the County Council s corporate network be migrated to empsn, maintaining the level of savings will be directly linked to the take-up of empsn services by other organisations, particularly schools. In the current climate this therefore represents a significant risk. 32. There are other significant risks to empsn, particularly in relation to the legal implications, which will need to be addressed should the Council decide to migrate its network to empsn at a later date. Comments of the County Solicitor 33. Legal Services have been consulted throughout this project and the main potential legal implications/risks are in relation to the use of an exemption to the E.U. Procurement Regulations (the Teckal exemption) and the transfer of staff under TUPE. These matters will need to be further considered should the County Council decide to migrate its corporate network to empsn. 7