The LGfL Procurement

The LGfL procurement for infrastructure, and the resulting contract, is notable in a number of respects:

1. The cost of basic true broadband Internet connectivity (2Mbps) for schools has been driven down to about half of the prevailing market rate.
2. The cost of high bandwidth Internet connectivity (10Mbps / 100Mbps) for schools over fibre has been driven down to a fraction (about a tenth) of alternative services.
3. An agreed and predictable charge for connectivity has been achieved by agreeing an "average cost" with the supplier. This is exceptional in that BT will not provide firm cost statements without site survey, and significant "ancillary costs" are common. The school/LEA has the option to select an alternative route and pay additional associated costs in preference to the offered least-cost route. The certainty provided by LGfL pricing allows local authorities to plan with clarity.
4. LGfL applies no mark-up on its supplier prices, to member LEAs.
5. The LGfL contract with its suppliers provides for the network to be supplied as a managed service, so that the risk and costs of ownership rest with the supplier.
6. The LGfL Core network far exceeds in capacity the current or foreseeable future bandwidth needs of education in London, and is capable of supporting the demands of a more widely based "London Public Sector Network". Wider use of the network within the public sector, and possibly beyond, will serve to further develop the resilience of the network and ensure sustainability for education beyond the present funding window.
7. In January 2002 LGfL made the decision to use only fibre services to connect schools in order to ensure that the existing investment provided significant future proofing and would meet the long-term requirements of schools. Through effective negotiation, this decision was without additional financial cost, but did incur significant delays owing to the gestation period for fibre rollout.