Contractual Framework

The primary activity of the company has been to coordinate the regional procurement of broadband connectivity, in order to drive down the cost of broadband, particularly for schools, and to ensure coverage across the region. A successful OJEC procurement was launched in October 2000, which resulted in the letting of contracts in May and Sept 2001.

The LGfL Trust provides a secure, efficient and proven aggregation vehicle for broadband services. All of the 33 London Local authorities has let a contract to LGfL Trust, (the ?Network, Portal and Management Services Agreement?), which provides for an ?Initial Period? defined as 3 years which may be extended indefinitely by mutual agreement. Correspondingly, the LGfL Trust has let contracts to its suppliers, in matching terms.

The terms of these contracts and the constitutional arrangements for the LGfL Trust required substantial and extensive iterative consultations with the management and legal teams in each of the local authorities. The significance of the full and continued participation of all 33 member local authorities, and the corresponding positive impact upon the provision of broadband services, represents a substantial achievement by those authorities.

A single procurement on behalf of all London local authorities, has not only achieved significant value for money through regional procurement, it has also produced savings through the avoidance of 33 separate procurement exercises. We believe that the procurement already undertaken by LGfL Trust has adequately market tested, and in all other respects provided for the supply of broadband services to sites, which are under the aegis of the Learning and Skills Councils for London.