'There has never been a realistic plan' for UK's £11B Emergency Services Network
into Motorola's role in the project as it held a vital contract for ESN and owns Airwave. In October last year the markets watchdog proposed a price cap on the US company. Earlier this year, the CMA's consultation process argued Motorola would make excess profits of £1.3 billion on Airwave over a decade.
To prevent the CMA from forcing it to sell Airwave, Motorola walked away from its £400 million contract for ESN in November 2021. The Home Office is currently going through procurement to replace Motorola on Lot 2 of the contract and expects to appoint a new supplier in 2024. The Home Office has yet to produce a new business case for the project.
Hillier said:"ESN raises wider issues on the approach to public procurement. The Home Office told our inquiry that it admits the commercial approach taken with ESN is suboptimal, but will be pursuing it regardless. New risks will be created if it now rushes procurement or delivery as it searches for a replacement main contractor. The risks of outsourcing services must be better managed, as the Government is still accountable for value for money when it does so.
The PAC recommended that the Home Office appoints an Independent Assurance Panel to oversee progress on ESN. The new business case should identify how money saved by the CMA charge control can help meet emergency service's transition costs. MPs gave the government department until the end of the year to produce an outline plan for the main building blocks of ESN so elements can be tested in the real world before it produces a new business case in the first quarter of 2024.
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