0014_20190214 – HSCN Change Request – Commercial Addendum

by | Apr 3, 2019 | HSCN Change Control

Change Control Notice

 

Update 10th June 2019

 

The following changes we submitted for NHS-Digital’s consideration:-

 

Para

Original

Proposed

3.2.1.1

the Dun and Bradstreet Failure Score of:

the HSCN Supplier being notified of the Dun and Bradstreet Failure Score of:

3.2.1.6

any of the following

any of the following which the HSCN Supplier reasonably believes could directly impact on the continued performance and delivery of the HSCN Connectivity Services:

3.1.2.6 (d) following

in each case which the HSCN Authority reasonably believes (or would be likely reasonably to believe) could directly impact on the continued performance and delivery of the HSCN Connectivity Services

delete

4

To be re-worded to include Core network principles

File –0014_20190214 Compliance CR Form

 

Commercial Addendum v1.0

 

Details of the changes and the relevant documents are contained in the files above

 

014/20190214

 

Title – New CNSP Insolvency related obligations

 

Change to: HSCN Obligations Framework

 

Dialogue –

 

Introduce new Commercial Addendum (this includes details of changes required to the HSCN MST) – see document “Commercial Addendum v1.0” provided with this change request.

 

New entry (new obligation in version 4.4 of the Obligations Framework) in the HSCN OF to read as follows: “OPNSP 11, Commercial Addendum, The HSCN Supplier shall comply with the obligations set out in the HSCN Commercial Addendum”.

 

  • CNSPs required to monitor the financial health of itself and material sub-contractors (and where applicable guarantors).
  • CNSPs required to report the occurrence of a financial distress event to the HSCN Authority and to report on financial risk mitigation (under provisions similar to the standard GLS model contract).
  • Customers will be given the right to novate a contract where they have the right to terminate for material default, financial standing deterioration or insolvency – enacted via the HSCN Mandatory Standard Terms.
  • CNSPs obligated to provide appropriate support for the novation.

 

Reason for change – Introduces improved monitoring of the financial health of CNSPs and facilitates service continuity / minimises the risk of service disruption should a CNSP insolvency occur.

 

Status – Major revision – a material change. Responses to be returned by 23rd April 2019.

 

Comments. – 

  • In principle I have no issue with the change.  Section 4 of the Commercial Addendum which refers to amendments to the Mandatory Supplemental Terms is quite onerous, but probably necessary if any CNSP got themselves into such difficulty. 

  • We would expect any customer requirement for Financial Distress provisions to be an optional schedule in a service contract that can be considered in the context of the other rights and obligations of that service contract (as is the case for RM3825 call off orders), rather than provisions being added to the HSCN Obligations Framework in this way.

  • The monitoring and notification obligations of these distress provisions will increase the cost of delivery of all services irrespective of the need for the schedule in a particular contract, it will need to be costed into HSCN services accordingly. In addition, there are specific issues with the drafting of the schedule, for example, the trigger at clause 3.2.1.6(a) (the commencement of litigation on a service contract) may easily be triggered without any fault on the supplier’s part, the supplier will face the onerous consequences of that trigger despite the fact that ligation can be commenced in relation to alleged issues that have no basis in fact.  This is more frequently going to be an issue for larger suppliers that have a high number of retail as well as business customers.

  • The Consumer Contract novation obligations at section 4 place new exit obligations on suppliers that exceed those already agreed by suppliers in the RM3825 exit schedule.  Again this will increase the cost of delivering services and may lead to an obligation to provide information that is not available or would breach confidentiality commitments on shared service platforms.  Moreover, these provisions do not apply the ‘Core Network’ principles that were implemented in the RM3825 Exit schedule to address legitimate issues associated with the exit of these types of services.

  • While we do not consider it appropriate to implement these changes in this way,  we would welcome an opportunity to discuss the matter further with NHSD and Innopsis so that a revised approach can be explored, one that provides appropriate measures for NHSD but does not increase the cost of supply unnecessarily.

 

The following CN-SPs were consulted

  1. Convergence (Group Networks) Limited
  2. MLL Telecom Limited
  3. Redcentric Solutions Limited
  4. AdEPT Telecom PLC
  5. British Telecommunications PLC
  6. Piksel Limited (Carelink)
  7. Daisy Communications Limited
  8. Exponential-e Limited
  9. IT Professional Services Limited
  10. KCOM Group Public Limited Company
  11. CenturyLink Communications UK Limited
  12. Node 4 Limited
  13. NYNET Limited
  14. OCSL Managed Services Limited
  15. Updata Infrastructure (UK) Limited
  16. The Networking People (Northwest Ltd)
  17. Virgin Media Business Limited
  18. UKFast.net Limited
  19. Gamma Telecom
  20. GTT
  21. High Speed Office
  22. Intercity Technology Ltd
  23. IQVIA Solutions UK Ltd
  24. Logicalis
  25. Telefonica UK Limited
  26. Vodafone