Are local IT companies set to lose out?
Local IT companies look set to lose out under the Government’s Building Schools for the Future (BSF) programme as contract awards are dominated by construction firms and large, national ICT providers.
In the latest programme to create partnerships between local government and private companies (LEP), the Government has created the BSF programme. This scheme provides funding for new-build schools. The programme goes beyond building requirements and incorporates ICT facilities. For many small, local companies this could mean they miss out on future education projects. Even if they have education customers and a proven record of providing both value for money and innovative ideas for local schools.
The most recent contract awards include;
“Leicester City Council has today announced the appointment of the Miller Consortium as the preferred bidder for the city’s £235 million Building Schools for the Future (BSF) scheme. The Miller Consortium will build and provide building facilities and crucial ICT services. The companies forming the consortium are … and Centerprise International – who as the ICT provider will deliver £24.5 million of ICT infrastructure.” Leicester City Council press release, 4th September 2006.
“Manchester City Council has announced its preferred bidder for the contract for ICT support to the city’s Building Schools for the Future (BSF) Phase One programme. The City Council’s Public Private Partnerships Unit … recommended the appointment of Ramesys Limited – a leading educational technology specialists company in the UK – as its Information and Communications Technology (ICT) partner. Ramesys will now work alongside the City Council’s Design and Build partners, Balfour Beatty and Laing O’Rourke, on this £200 million BSF project, which will transform 17 schools across Manchester.” Manchester City Council Web site.
“Solihull Council selects BAM PPP as preferred bidder to deliver £74 million investment in secondary schools BAM PPP has been appointed Preferred Bidder for Solihull Council’s £74 million BSF project. This announcement builds on the agreement reached earlier in the year with RM for a £6million ICT contract which will transform the learning experience for Solihull’s pupils, covering smart whiteboards, a school management system, a ‘learning environment’ which is a workspace for students and teachers, as well as internet telephone (VoIP) service.” Solihull Metropolitan Borough Council press release, 2nd August 2006.
The ICT guidelines produced for LEPs does include a statement about using local suppliers. It does allow for a “Local Choice fund”. The intention is to allow schools to build, or continue, relationships with local suppliers. On closer inspection, this fund is fairly negligible. It caps the amount that can be spent with a local supplier at 10% of the total install cost and the example given for when this could be used is “…furniture and peripherals…”.
The Partnerships for Schools (PfS) organisation (another government quango?) has tried to play down the impact on local suppliers, but their own documentation makes it very clear that the relationship between building contractors and ICT providers is required and the aim is to cut costs.
“The advantages of the LEP model … ensures that the building programme has a greater impact on educational achievement, for example, by integrating ICT provision with building contracts. Furthermore, it delivers value for money…” BSF Public Launch Document, Feb 2004, DfES.
How wide will be the range of services included in remit of LEP? Will LEAs be looking basically for a building programme manager?
The core skills required of the LEP will be efficient and effective programme management and project delivery. This will require it to have construction services and ICT delivery capacity.” LEP FAQs from BSF official Web site.
The evidence from recent contract awards is clear: where cost is the main factor when making decisions, large companies win. This does not necessarily mean that these schools will get best value for money or the best ICT facilities for their pupils.
This is just another example of the Government creating procurement environments that favour large companies, in my opinion. There is no evidence that driving down costs adds anything to the educational experience of pupils. In fact many ICT experts within education believe that this drive to combine ICT with building projects and lower costs will, in fact, drive innovation out of ICT in schools.
“But because local authorities are being encouraged to run the procurement as a single project, IT innovation is suffering,” says Gary Clawson, chief executive of regional education group the North West Grid for Learning.
Technology suppliers are voicing similar concerns. In evidence to the Commons Education Committee recently, trade group Intellect said: “Unless changes are made there is a significant risk that only a limited number of suppliers will participate and schools will receive lowest common denominator IT.”
Small, local businesses often provide innovation, niche solutions or a first rate level of service to establish themselves in a competitive market. This skill set and experience is under threat as far as schools are concerned under the Government’s latest education initiative.
Further reading:
Official web site - www.bsf.gov.uk
Official doc - http://www.teachernet.gov.uk/docbank/index.cfm?id=3611
Official doc - http://www.teachernet.gov.uk/docbank/index.cfm?id=6094
Government schools ict strategy - http://www.teachernet.gov.uk/wholeschool/ictis/
Government ict general strategy - http://www.dfes.gov.uk/publications/e-strategy/
Official web site - http://www.p4s.org.uk/
Media story - http://www.computing.co.uk/computing/news/2160203/
Contract award - http://www.manchester.gov.uk/news/2006/aug/ictpart.htm
Head teacher views - http://elgg.net/mberry/weblog/124685.html
BT response to parliament - http://www.publications.parliament.uk/pa/cm200506
CBI response - http://www.cbi.org.uk/pdf/publicservicesmatters04.pdf
Happy reading!
Wayne

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