BT takes NHS Scotland to court

BT has taken NHS Scotland to court over its tendering process after losing a bid for a £110m framework contract to provide the Scottish Wide Area Network.

The programme is due to deliver a single public services network for all services in Scotland, which NHS Scotland estimates will save taxpayers £300,000 a month, starting in April this year.

BT was bidding against Cable & Wireless working with Virgin Media Business and a collaboration between Capita and Updata for the six year contract, but claims the tender process was “flawed.”

In December last year, after NHS Scotland announced it had selected, but not formally announced, a preferred bidder, BT served a summons on the organisation to re-run the procurement process, or the company would seek £20m in damages.

A spokesman for NHS National Services Scotland said that the process had been fair.

“NSS is the procuring agent on behalf of a consortium of public sector bodies and has managed a fair, robust and thorough procurement process resulting in the selection of a preferred bidder,” he said.

A BT spokesperson said the company was “disappointed” by NHS Scotland’s decision.

“Particularly since the existing N3 national communications network operating across the NHS in Scotland has delivered significant benefits over many years,” said the spokesperson.

“We believe our proposal offered excellent value and minimal risk to Scottish tax payers. We can confirm that proceedings have commenced with a view to the procurement being re-run and hope that this matter will be resolved shortly.”

The court case began this week in the Court of Session in Edinburgh.

“Until this legal action is lifted or resolved, NSS cannot award the contract to the preferred bidder. NSS has commenced the legal proceedings required to lift the current action,” said the NHS Scotland spokesman.

The SWAN framework procurement was published in the Official Journal of the European Union in October 2012.

“By creating an IT platform that is open to all the Scottish public sector, the Scottish Wide Area Network will create savings that can be reinvested in essential public services,” said the NHS spokesman.

“It will create common standards and easier integration between public sector bodies. The contract is worth approximately £110 million initially; with the potential to rise substantially as more public bodies make use of the contract.”

The first phase of the programme will deliver services to NHS Scotland, Education Scotland, and two consortiums: Pathfinder North and Pathfinder South, which consists of local councils in the north and south of Scotland.

The court case continues on Friday 24 January.