Connecting Devon and Somerset

Transcription

1 Connecting Devon and Somerset The biggest Digital Infrastructure build opportunity for rural communities in England Superfast Extension Programme Phase 2 19 th July 2016

2 Welcome & Introductions Paula Hewitt Somerset County Council The biggest Digital Infrastructure build opportunity for rural communities in England

3 Today s Agenda Welcome and Introductions Local Political Perspective The National Broadband Scheme 2016 Matt Agar The Opportunity- Our Requirements & Your Response Community Perspective Al Sutter Community Perspective - John Klinker Networking & Coffee Break Lots & Coverage Finance Next Steps Panel Q&A and Closing Remarks Close

4 Councillor David Hall Somerset County Council Importance of Reliable Broadband for communities and growth The biggest Digital Infrastructure build opportunity for rural communities in England

5 Reliable Broadband and the rural/ urban divide Access for all Competing in global economy Delivery of services to the home Encouraging innovation Focus on rural areas with lowest speeds

6 Councillor Andrew Leadbetter Devon County Council Positive impact of Broadband The biggest Digital Infrastructure build opportunity for rural communities in England

7 Superfast broadband is rapidly becoming an absolute necessity Positive Impact of Broadband Supporting Business in a global economy Driving growth High take up due to demand

8 Matt Agar BDUK National Broadband Scheme 2016 The biggest Digital Infrastructure build opportunity for rural communities in England

9 BDUK New Procurement Pipeline, State Aid Requirements, Further BDUK Support Devon & Somerset Phase 2 Bidder Day Matt Agar, Broadband Delivery UK 19 July

10 BDUK New Procurement Pipeline Delivering Superfast Broadband Objectives Superfast broadband coverage available to 90% of UK homes and businesses and on track to achieve 95% by Dec Access to Universal 2Mbps standard broadband now in place. New Local Body procurements to rollout to additional areas 10

11 Typical Procurement Scope Wholesale Contract Model Scope: to deploy an NGA solution targeted at NGA white areas and offer wholesale broadband products and infrastructure services Areas that do not, or will not, receive speeds of at least 30Mbps mapped through a public consultation process Funding BDUK EU funding Local Body Contrac t Prime/ Consortia Contrac t Retail Service Providers Local funding Subs Subs Subs Consumers 11

12 Typical Procurement Scope Potential Delivery Models There are four main funding models that a Local Body could choose to apply to BDUK procurements: Model Gap funding model Concession to build, operate and transfer Joint Venture Public Sector owned infrastructure Description The Supplier receives a subsidy for the minimum amount necessary to deliver the project whilst making an acceptable rate of return. The network is retained by the supplier. The subsidy is subject to claw-back mechanisms. Government contracts with a Supplier to finance, build and operate the infrastructure. Ownership of the network at the end of the contract reverts to the Local Body. The Local Body and a Supplier form a Joint Venture to design, build and operate the network. Both parties own equity in the entity and split the risks and rewards of ownership. The Local Body funds and owns the wholesale network. They may decide to contract suppliers to design, build and operate the network or do this internally. 12

13 Typical Procurement Scope Gap Funding Model Government goal to minimise gap, delivering maximum premises with minimum public funding NPV of Future Profits Gap (Public Funding) Capex Build Cost Public Funding given to supplier to build the network, up to the level needed to close the gap 13

14 BDUK New Procurement Pipeline, State Aid Requirements, Further BDUK Support Devon & Somerset Phase 2 Bidder Day Matt Agar, Broadband Delivery UK 19 July

15 BDUK New Procurement Pipeline Delivering Superfast Broadband Objectives Superfast broadband coverage available to 90% of UK homes and businesses and on track to achieve 95% by Dec Access to Universal 2Mbps standard broadband now in place. New Local Body procurements to rollout to additional areas 15

16 Typical Procurement Scope Wholesale Contract Model Scope: to deploy an NGA solution targeted at NGA white areas and offer wholesale broadband products and infrastructure services Areas that do not, or will not, receive speeds of at least 30Mbps mapped through a public consultation process Funding BDUK EU funding Local Body Contrac t Prime/ Consortia Contrac t Retail Service Providers Local funding Subs Subs Subs Consumers 16

17 Typical Procurement Scope Potential Delivery Models There are four main funding models that a Local Body could choose to apply to BDUK procurements: Model Gap funding model Concession to build, operate and transfer Joint Venture Public Sector owned infrastructure Description The Supplier receives a subsidy for the minimum amount necessary to deliver the project whilst making an acceptable rate of return. The network is retained by the supplier. The subsidy is subject to claw-back mechanisms. Government contracts with a Supplier to finance, build and operate the infrastructure. Ownership of the network at the end of the contract reverts to the Local Body. The Local Body and a Supplier form a Joint Venture to design, build and operate the network. Both parties own equity in the entity and split the risks and rewards of ownership. The Local Body funds and owns the wholesale network. They may decide to contract suppliers to design, build and operate the network or do this internally. 17

18 Typical Procurement Scope Gap Funding Model Government goal to minimise gap, delivering maximum premises with minimum public funding NPV of Future Profits Gap (Public Funding) Capex Build Cost Public Funding given to supplier to build the network, up to the level needed to close the gap 18

19 Typical Procurement Scope Typical Risk allocation Risks primarily owned by supplier Network design risk Technology selection, supply and integration risk Planning and implementation risks Cost outturn risk Service delivery risk Take-up risk State Aid repayment of clawback State Aid repayment of illegal aid Risks primarily owned by local body Securing sufficient funding to meet objectives Identifying target priority areas Designing project to attract suppliers Political and practical consequences State Aid ensuring project compliance Supplier s Investment Supplier s Running Costs BDUK Funding European + Local Project Funding Commercial Sustainability = Consumer Revenue (driven by take-up) 19

20 State Aid Requirements The National Broadband Scheme (2016) State aid is the use of public resources which distorts competition and affects trade between Member States, e.g. grants, loans, benefits in kind Projects must comply with the Commission s 2013 Broadband guidelines which outline their policy on applying State aid rules to broadband projects In May 2016, the UK secured an umbrella scheme from the EC Decision sets out the criteria for compatible projects under a scheme BDUK s National Competence Centre assures individual projects for compliance 20

21 State Aid Requirements How procurements must be run Local Bodies must justify their choice of project delivery model and their design of the procurement process Immediate procurements will only be on open access basis Products can be used for any commercial and public telecommunications purpose (i.e. including backhaul) Procurements must be technologically neutral and select the Most Economically Advantageous Tender Local Bodies must use preset selection and award evaluation criteria Bidders who own or control infrastructure within the intervention area must enable other bidders to re-use it within their bids. 21

22 State Aid Requirements Existing Infrastructure Code of Conduct Bidders will need to sign up to a code of conduct about sharing information during the bid process Bidders will need to make their passive infrastructure available consistent with the requirements of the Civil Infrastructure Directive Regulated products also will be available. Code of Conducts outlines the how and when information about that infrastructure will be shared between bidders. Draft on BDUK website for comment 22

23 State Aid Requirements Scope of what s required Must target the NGA white areas with NGA qualifying technologies E.g. FTTP, HFC (docsis 3), FTTC, and Fixed Wireless Access (configured appropriately) Infrastructure must be capable of delivering access speeds over 30Mbps and a step-change in capability including at least a doubling of speeds Wholesale access to the passive and active network must be made available to third parties Applies to new and existing infrastructure used in the intervention area New infrastructure must enable additional capacity to be made available for future demand (where technically and legally feasible) Prices based on those available in more competitive areas Access must be provided for at least 7 years after implementation is complete (indefinitely for passive assets) Clawback mechanism to recover excess subsidy over life of the contract 23

24 State Aid Requirements Wholesale Access Required forms of wholesale access: Passive access via dark fibre, duct, pole and other new physical assets e.g masts Physical access to cabinets including power provision Copper loop unbundling e,g. LLU or SLU Mast access via mast space including power provision Antenna sharing Active access e.g. bitstream and for backhaul Other forms of access requested (subject to reasonable demand test) Wholesale access products and pricing: Prices must be consistent with UK or European benchmarks of other competitive offerings or based upon non-discriminatory cost allocation Bidders will need to submit wholesale product descriptions, pricing and benchmark information as part of the bids for BDUK assurance Vertically integrated suppliers must not discriminate against other retail providers Product reference offers must be available 6 months before offering service 24

25 Further BDUK Support Online support for suppliers Information available at BDUK New Procurement Pipeline webpage: This site will become a central reference point for all upcoming BDUK procurements and associated supporting guidance such as: Code of Conduct for bidders to share existing infrastructure State Aid guidance Terms and Conditions template documents Invitation to Tender template documents Timetables of upcoming and live procurements 25

26 Further BDUK Support One to one supplier sessions BDUK will be making timeslots available for one to one sessions with suppliers to assist with specific queries on the New Procurement Pipeline, e.g: Creating reference supplier solutions Preparing for a NGA technical assessment Wholesale products and pricing Project financial models Implementation plan and milestone payments Contract terms and conditions Supplier capacity to bid for multiple contracts BDUK welcomes further ongoing engagement with suppliers that would like to consult with BDUK on their upcoming commercial rollout plans and intentions to participate in BDUK procurements Suppliers interested in booking a one to one session with BDUK should stateaidforbroadband@culture.gov.uk stating suitable times to meet and the topics they would like to discuss. 26

27 Typical Procurement Scope Typical Risk allocation Risks primarily owned by supplier Network design risk Technology selection, supply and integration risk Planning and implementation risks Cost outturn risk Service delivery risk Take-up risk State Aid repayment of clawback State Aid repayment of illegal aid Risks primarily owned by local body Securing sufficient funding to meet objectives Identifying target priority areas Designing project to attract suppliers Political and practical consequences State Aid ensuring project compliance Supplier s Investment Supplier s Running Costs BDUK Funding European + Local Project Funding Commercial Sustainability = Consumer Revenue (driven by take-up) 27

28 State Aid Requirements The National Broadband Scheme (2016) State aid is the use of public resources which distorts competition and affects trade between Member States, e.g. grants, loans, benefits in kind Projects must comply with the Commission s 2013 Broadband guidelines which outline their policy on applying State aid rules to broadband projects In May 2016, the UK secured an umbrella scheme from the EC Decision sets out the criteria for compatible projects under a scheme BDUK s National Competence Centre assures individual projects for compliance 28

29 State Aid Requirements How procurements must be run Local Bodies must justify their choice of project delivery model and their design of the procurement process Immediate procurements will only be on open access basis Products can be used for any commercial and public telecommunications purpose (i.e. including backhaul) Procurements must be technologically neutral and select the Most Economically Advantageous Tender Local Bodies must use preset selection and award evaluation criteria Bidders who own or control infrastructure within the intervention area must enable other bidders to re-use it within their bids. 29

30 State Aid Requirements Existing Infrastructure Code of Conduct Bidders will need to sign up to a code of conduct about sharing information during the bid process Bidders will need to make their passive infrastructure available consistent with the requirements of the Civil Infrastructure Directive Regulated products also will be available. Code of Conducts outlines the how and when information about that infrastructure will be shared between bidders. Draft on BDUK website for comment 30

31 State Aid Requirements Scope of what s required Must target the NGA white areas with NGA qualifying technologies E.g. FTTP, HFC (docsis 3), FTTC, and Fixed Wireless Access (configured appropriately) Infrastructure must be capable of delivering access speeds over 30Mbps and a step-change in capability including at least a doubling of speeds Wholesale access to the passive and active network must be made available to third parties Applies to new and existing infrastructure used in the intervention area New infrastructure must enable additional capacity to be made available for future demand (where technically and legally feasible) Prices based on those available in more competitive areas Access must be provided for at least 7 years after implementation is complete (indefinitely for passive assets) Clawback mechanism to recover excess subsidy over life of the contract 31

32 State Aid Requirements Wholesale Access Required forms of wholesale access: Passive access via dark fibre, duct, pole and other new physical assets e.g masts Physical access to cabinets including power provision Copper loop unbundling e,g. LLU or SLU Mast access via mast space including power provision Antenna sharing Active access e.g. bitstream and for backhaul Other forms of access requested (subject to reasonable demand test) Wholesale access products and pricing: Prices must be consistent with UK or European benchmarks of other competitive offerings or based upon non-discriminatory cost allocation Bidders will need to submit wholesale product descriptions, pricing and benchmark information as part of the bids for BDUK assurance Vertically integrated suppliers must not discriminate against other retail providers Product reference offers must be available 6 months before offering service 32

33 Further BDUK Support Online support for suppliers Information available at BDUK New Procurement Pipeline webpage: This site will become a central reference point for all upcoming BDUK procurements and associated supporting guidance such as: Code of Conduct for bidders to share existing infrastructure State Aid guidance Terms and Conditions template documents Invitation to Tender template documents Timetables of upcoming and live procurements 33

34 Further BDUK Support One to one supplier sessions BDUK will be making timeslots available for one to one sessions with suppliers to assist with specific queries on the New Procurement Pipeline, e.g: Creating reference supplier solutions Preparing for a NGA technical assessment Wholesale products and pricing Project financial models Implementation plan and milestone payments Contract terms and conditions Supplier capacity to bid for multiple contracts BDUK welcomes further ongoing engagement with suppliers that would like to consult with BDUK on their upcoming commercial rollout plans and intentions to participate in BDUK procurements Suppliers interested in booking a one to one session with BDUK should stateaidforbroadband@culture.gov.uk stating suitable times to meet and the topics they would like to discuss. 34

35 Iain Perkins & Phil Roberts The Opportunity The biggest Digital Infrastructure build opportunity for rural communities in England

36 Electronic Tendering The biggest Digital Infrastructure build opportunity for rural communities in England

37 The Story to Date Moors Contract Awarded June 2015 No Framework Contract Awarded 12 months of Market Engagement Influence of Key Decisions Lots and Funding Requirements and Commercial Model Contract Terms and Timescales

38 Objectives Strategic Objectives Economic Growth Outcomes and Requirements Social Outcomes and Requirements Public Sector Transformation

39 Service Requirements The Opportunity Total CDS Programme Area premises 1,029,514 LOT 1 Upper CDS: This covers North Somerset, Bath & North East Somerset Administrative areas. LOT 2 -North Coast: This is the area of northern Somerset running from Weston-Super-Mare through to Exmoor, covering the Quantock Hills Area of Outstanding Natural Beauty. LOT 3-Eastern: This ranges from the Mendip Hills to the Wiltshire/Dorset Border and covers most of southern Somerset. LOT 4 -North Moor: This is north western Devon stretching between Exmoor, Dartmoor and the Cornish border. It includes Tamar Valley World Heritage Site and Area of Outstanding Natural Beauty and the north Devon Biosphere Reserve / Area of Outstanding Natural Beauty. LOT 5-Exmoor to Sea: This area covers the border area between Devon & Somerset running from Exmoor to Lyme Regis, including Exeter and the Area of Outstanding Natural Beauty areas of the Blackdown Hills and East Devon. LOT 6-South Moor: This area runs to the south of Dartmoor and includes Torbay, Plymouth and the South Devon Area of Outstanding Natural Beauty. The total Targeted NGA White premises in the Programme Area for this tender is

40 Funding NGA Broadband Funding Ultrafast Broadband Funding Total Funding Contingency LOT 1- Upper CDS LOT 2 North Coast LOT 3 Eastern LOT 4 North Moor 2,133, ,000 2,543, ,000 5,076, ,000 5,626, ,000 5,265, ,000 5,905, ,000 7,038, ,000 7,868, ,000 LOT 5 Exmoor to Sea 7,416, ,000 8,356, ,000 LOT 6 South Moor 5,004, ,000 5,634, ,000

41 The Objectives of the ITT As much NGA coverage as possible by the end of 2017 A Minimum of 95% NGA coverage for the whole of the Geographical Area Achieve 100% NGA Coverage by 2020 Delivery of the ultrafast requirement by end of 2017, as set out in the South West Regional Fund agreement Significant level of business connections achieved by the end of Prioritisation of Speed uplift in contract to meet NGA compliancy requirements Full Service Commencement 31 st December 2019

42 Ultrafast The South West Regional Fund CDS secured additional BDUK funding of 4m to Deliver Ultrafast Broadband wholesale services using appropriate technologies, Provide access to fast, secure broadband infrastructure, which represents good value for money. Suppliers will need to demonstrate they can provide: Ultrafast wholesale broadband infrastructure able to reach a minimum of 4,000 premises by December This is an additional requirement to the delivery of as much superfast coverage by Provision for promotion and support/ training to encourage business take-up of Ultrafast Broadband and improved digital skills Supplier contribution required. Consider areas where strong evidence of home working, out commuting e.g. market towns,key business locations and sectors

43 Our Requirements & Your Response The biggest Digital Infrastructure build opportunity for rural communities in England

44 Tenderers answers to the Award Criteria questions will be evaluated in accordance with the Evaluation Strategy to determine the quality of your bid. These questions will be scored and will contribute to the overall score for the Tender. Answers should be succinct, concise and self contained without referring to additional documents or other supporting statements (unless specifically requested) and should contain sufficient information to demonstrate what and how you intend to deliver the Services subject of this Invitation to tender

45 B3.1 The Bidder MUST provide a written explanation of its Speed and Coverage Template modelling, the model proposed in response to question E.1 of this Appendix 2 which MUST include: B3.1.1 The methods and approaches the Bidder has used to model their solution coverage and speed performance, for both Upload and Download speeds this should include reference to the following granular of speed performance to specifically address the requirement to achieve step change in speed performance.

46 Level One Criteria Level Two Criteria Level Three Criteria Award Criteria Question Ref: Scoring Approach 1. Value & Price cont Solution coverage at NGA speeds Bidders will be assessed on whether their coverage forecast is consistent with their Solution Design and Implementation Plans, as well as providing the required step change. Implementing Bodies may also choose to set priority areas to be covered (e.g. a business park). Bidders will be assessed on the extent of NGA coverage to target premises in the intervention area at 30Mbps and higher speeds Coverage (uplift) B3 B3.1 B B B9.4 B B B B B10.2 B10.3 E.1 E.1.1 Calculated score using Speed and Coverage Template followed by Risk Based Scoring of B.3.1 resulting in a potential adjustment to the Speed and Coverage Template score (see Part 1 Appendix 2) - Baseline Capabilities Extract from Evaluation Strategy Part 1 Appendix 2 Each Bidder s response to B.3 Part 2 Appendix 1 will be used to evaluate reservations that exist in the modelling that the Bidder has used when completing the Speed and Coverage Spreadsheet, based on this a deduction of between 0 to 4 points will be taken from the score which has been derived by the Speed and Coverage Spreadsheet. 0 points meaning where there are no reservations and 4 marks where there are major reservations.

47 B.8 Implementation Planning B.8.1 Building on the Supplier Solution, the Bidder MUST describe its implementation approach including: Describe how its processes will refine the model survey assumptions,into Planned structure output and the correlation between Build costs and Planning output costs. B.8.2 Describe how the financial control process manages cost variation during the build phase and how any Departures From Estimate ( DFE s) are controlled and authorised

48 Level One Criteria Level Two Criteria Level Three Criteria Award Criteria Question Ref: Scoring Approach 2. Quality 2.2 Solution design quality [Baseline Capability] The Bidder adequately describes its Solution, including the service management processes for the support of the Solution and has adequate design principles including considering reuse of infrastructure, mitigating environmental impacts and minimising single points of failure). Each of the underlying infrastructures in the Bidder s solution also meets baseline standards for jitter, latency, committed information rate, and service levels for installation and fix (as set out in tender documents). [Maximum Capability] In addition to the baseline capability, each of the underlying infrastructures in the Bidder s Solution significantly exceed baseline standards for jitter, latency, committed information rate, and service levels for installation and fix. The Bidder provides evidence and reasonable confidence that an upgrade path is achievable in the future (e.g. to ultrafast speeds or higher), and is designed to facilitate access and extension to the network to reduce the barriers to incremental coverage (up to 100% coverage of speeds of at least 30 Mbps) in the area (either from the selected supplier or from other access seekers) Design, Plan and Cost Production Process B1.1 B B B B B B B B B B2.1 B2.2 B B B B B2.3 B2.4 B5.1 B8.1 B8.2 B8.3 B8.4 B8.5 B B B B Risk Based Scoring (see Part 1 Appendix 2) including assessment of Solution Compliance Matrix. - Baseline Capabilities

49 Data Room Highways Information Major Works Major Infrastructure Works Conservation Areas Connecting Devon and Somerset Supporting Documentation Future Land Development/Usage Across CDS Geography GIS Boundary Files Community Groups and Contacts

50 Community Build & Involvement During the term of the Contract, the Solution must enable the provision of Local Community Projects (whether residential and/or business communities). Local Community Projects would be incorporated using the Change Control Procedure as and when the requirement arises. As at the date of this ITT there are no Local Community Projects identified. CDS requires Bidders to commit to deliver at least one pilot Community hub per LOT. Bidders MUST describe in the ITT Response Template how they would engage with local communities looking to procure such an enhanced solution. CDS wishes to ensure that the following provisions are made within the Supplier contract(s): Community solutions scope for CDS pump priming and private leverage, including supplier Options for Self dig, Wi-Fi mesh, point of presence and other options put forward by suppliers Interactive and Informed community engagement

51 Community Perspective Al Sutter Broadband for Rural Crediton

52 Broadband for Rural Crediton Witheridge Crediton Tiverto n c premises within B4RC core area (Sandford-Creedy Ward) c. 30% passed by FTTC and minor FTTP. Almost all are well below NGA speeds. Postcodes/premises are missing from current ITT documents.

53 Broadband for Rural Crediton B4RC is a community action group for better broadband in rural mid- Devon. We believe our concerns and needs reflect the wider community and would encourage all to make contact with other groups or local councils. Our Key Issues A future-proof solution which can be easily extended and improved For everyone; not dividing communities by technology or access. Symmetrical Capability for superfast speeds. Reliability/Resilience Fair pricing Communication with, and involvement of, the community. There is considerable interest and goodwill within our community and we believe cooperation (way-leaves, access) would be forthcoming if the entire community would benefit.

54 Community Perspective John Klinker Badgworthand Biddisham

55 London/home based company director; web based meetings online shopping London/home based graphic designer; ing large files; social media, education, online shopping, Skype Multinational pharmaceutical business employee: web based meetings, VPN, Why do rural residents need superfast broadband? International medical communication business (home based); web based meetings, , social media; online shopping, Skype IT Service Delivery Manager (home based); Data Security Consultant (home based), web based meetings, social media, online shopping Church Lane, Badgworth Business analyst (home based); education (deputy head), social media; online shopping Water consultancy: , web based meetings; education (headmistress), social media; online shopping Small business units: , web commerce International large business; education, social media; online shopping

56 Broadband survey Badgworth & Biddisham residents (n=85) 98% use the internet: 60% for both personal & business purposes 89% are dissatisfied or very dissatisfied with the speed of their internet service 81% are dissatisfied or very dissatisfied with the reliability of their internet service 98% of respondents would sign up for superfast broadband if available -BT only look for a 20% uptake

57 Networking & Coffee Break

58 Ken Singleton & Phil Roberts Lots & Coverage

59

60 Target White Premises Indicative Only SCTs contain the definitive data

61 Target White and Under Review Premises Indicative Only SCTs contain the definitive data

62 CDS Phase 1 Locations Indicative Only SCTs contain the definitive data

63 Lot Name Total Premises in Lot Area Target NGA White Premises Under Review NGA White Premises LOT 1 - Upper CDS 185,806 7,940 20,613 LOT 2 - North Coast 136,267 10,758 6,492 LOT 3 - Eastern 102,410 12,449 6,766 LOT 4 - North Moor 105,659 16,075 4,800 LOT 5 - Exm2sea 180,541 18,267 12,389 LOT 6 - South Moor 295,580 12,086 25,282

64 Lot 1 Upper CDS Indicative Only SCTs contain the definitive data Total Premises 185,806 Target Premises 7,540

65 Lot 2 North Coast Indicative Only SCTs contain the definitive data Total Premises 136,267 Target Premises 10,758

66 Lot 3 Eastern Indicative Only SCTs contain the definitive data Total Premises 102,410 Target Premises 12,449

67 Lot 4 North Moor Indicative Only SCTs contain the definitive data Total Premises 105,659 Target Premises 16,075

68 Lot 5 Exmoor to Sea Indicative Only SCTs contain the definitive data Total Premises 180,541 Target Premises 18,267

69 Lot 6 South Moor Indicative Only SCTs contain the definitive data Total Premises 295,380 Target Premises 12,086

70 SCT Scoring Mechanism Each category multiplied by 1.5 if the premise is not residential Category 1 Category 2 Category 3 Category 4 Category 5

71 Example of SCT Scoring Mechanism

72 Martin Gerrish Finance

73

74 Financial Completing the Model (1) Guidance Part 4 of the ITT and the Model Overview tab in the Financial Model itself. If required, CDS will hold a guidance session on financial requirements including completion of the Model. Start building your Model from the 3 Cost Books with the individual components in your solution. Ensure that the components are meaningful to your technical solution and fully costed. Need to provide clarity between capital and operational expenditure, and also between NGA build expenditure and In Life costs. No inflation, no VAT. CDS will pay on actual costs incurred.

75 Financial Completing the Model (2) Be realistic about the take-up rates, both in terms of achievable levels and speed of sign-up. Be clear about the sources and timing of funding required We cannot make payments in advance of need. Your submission needs to reflect that this is a gap funded model. The Model should direct you to demonstrate the need for public subsidy. The MPT tab will help you check. Check that the model flows through to the Output tab, and that it is logical and consistent, and shows what you need from CDS. CDS will accept additional commentary in relation to the Financial Model if that aids our understanding.

76 Financial Capital Expenditure Be clear that you understand what CDS can pay as capital expenditure:- Capital in nature (e.g. build and enhancement of assets, but not repairs and maintenance). Directly attributable to the infrastructure roll-out (e.g. equipment purchase, installation and pre-live testing including operational staff time, direct project management staff but not reporting or finance staff). Capable of capitalisation under the Local Authority CIPFA Code of Practice. We strongly encourage clarification questions on capital.

77 Financial Memoranda Please review the Checklist in Part 4 of the ITT carefully. CDS are looking for evidenceand assuranceon... Financial viability and sustainability of the proposal Financial standing of the bidder(s) Confirmed sources of funding for your investment Sensitivity analysis against the unforeseen Adequate insurance arrangements Key subcontractors and terms Underlying financial assumptions e.g. cost of capital When payments are expected from CDS If it helps our understanding, CDS would prefer more information rather than less!

78 Financial Other Points Please review the cost categories in Schedule 5.1 Appendices carefully especially Excluded Expenditure. Check that your solution will meet the funding restrictions in Part 2 ITT (timescale, location, supporting businesses). Open Book please ensure that you understand and can comply with the transparency and audit requirements in Schedule 1 (Definitions) and Schedule 5.1. You will see from the evaluation criteria that financial transparency is important to CDS. Be aware of the payment process in the contract and what you will need to provide to CDS. We need a direct read across from the Speed and Coverage Template to the Financial Model.

79 Iain Perkins Next Steps

80 Expression of Interest NOON 12 th AUGUST

81 Procurement Approach and Timescales 15 weeks from launch to Submission of Bids 6 weeks from Submission of Bids to Award of Contract Clarification questions as defined in ITT Part 1 Workshop Sessions Run by Devon Procurement Services single point of contact Iain Perkins

82 The biggest Digital Infrastructure build opportunityfor rural communities in England Connecting Devon and Somerset Todays Presentation Q&A Can be found at:

83 Don t leave your submission to the last moment

84 Questions & Answer Session