Government updates PSN framework and lowers cost estimate by £1bn

Government procurement service Buying Solutions has released a second version of its pan-government framework agreement for public sector network (PSN) services, but has reduced the estimated value of the contract by up to £1bn.

The original public tender for telecommunications services for use by public sector bodies was released in mid-August with an estimated value of £500,000 to £3bn. The latest tender released by Buying Solutions now states that the value of the contract is now up to £2bn.

A Buying Solutions spokesperson confirmed that it is the same tender notice, and the same framework, but that it has been "re-jigged".

The government's vision for the PSN is to create a network of networks built to common standards enabling the delivery of public services from any place by any provider, with the hope of creating a competitive marketplace and reducing the cost of services.

Public bodies that intend to use the PSN include central government departments, NHS bodies, local authorities and charities.

Framework suppliers will be expected to offer communication, conferencing, contact centre, mobile voice and data, LAN, gateway and unified services. These will either be provided directly by the suppliers or through sub-contractors, across the whole of the UK, or on a more localised basis.

The framework also requires suppliers to offer design, implementation, testing, integration and development services. This includes compatibility and transition planning for legacy systems.

The agreement will have an initial term of two years, but will include the option to extend for two more terms, each of which will be up to one year in length.