Notice

5G Innovation Regions competition: clarification questions with responses (updated 11 August 2023)

Updated 16 November 2023

Eligibility

1. Are successful bid areas eligible to overlap with neighbouring regions? In terms of communication/sharing learnings.

Projects are encouraged to look for opportunities to collaborate with other ecosystem participants, on topics of shared interest. Projects should consider plans for delivery of collaboration activities, including scope, timeline, representation, funding, reporting and the expected outputs of the collaboration activities

Projects will also be encouraged to plan, support and deliver communications activities to ensure the benefits of their work and learnings are demonstrated and shared as widely as possible with the ecosystem. Such activities could lead to the production of tangible outputs such as published reports, events and workshops.

Collaboration and dissemination work will be supported by the UK Telecoms Innovation Network (UKTIN).

2. Is it possible for Tier 1 local authorities to apply? (added 11 August 2023)

Yes, all UK local authorities are eligible to apply. DSIT encourages applications from multiple local authorities working together to form ‘regional’ bids. There should be a lead local authority to which DSIT will award funding.

3. Are Parish and Town councils eligible to apply? (added 11 August 2023)

Parish and Town councils are not eligible to apply - we recommend discussing with your relevant Local Authority about participating via potential collaboration opportunities.

4. Will the 5GIR competition be applicable to all regions of the UK - Is this competition applicable to NI, Wales and Scotland as well as England? (added 11 August 2023)

Yes, local authorities across Northern Ireland, Wales and Scotland as well as England are eligible to apply. Our ambition is that 5G Innovation Regions are spread across all UK nations.

5. Does a Combined Authority constitute a region?

Yes - DSIT encourages applications from multiple local authorities, which would be in contiguous environments, adhering to existing or proposed local governance structures and regional boundaries. This could include combined authority areas (Mayoral or County), or City and Growth Deal areas. (Proposals could include separate locations within the overall regional area.)

6. Does smart communities applications extend to Smart Cities/Places and the use of IoT as part of the 5GIR?

Yes.

7. Can Universities be a partner under this programme? (added 11 August 2023)

Due to the funding framework approach being taken, DSIT does not expect bids from consortia as part of the application. However, we would expect to see evidence that the lead applicant (local authority) has the necessary relationships in place (or plans to put them in place in a timely manner) with those public and private sector organisations required to deliver their objectives; this could include research institutions if relevant to the proposed sector or use case priorities.

We recommend discussing with the relevant lead applicant (Local authority) about participating via potential collaboration opportunities.

Briefing materials

8. Where can I find the content from the briefing event? (added 11 August 2023)

The presentation slides and session recording are available on the UKTIN website.

Guidance on making your application

9. Is there any scope for project extension?

No - DSIT does not currently have any plans to extend 5GIR project timeline - All DSIT grant funded activities must be completed by 31 March 2025. Non-grant funded activities can continue beyond this date.

10.Given the difference in rollout across the UK, is the availability of a current 5G network expected at project commencement or could this be funded through the competition? (updated 11 August 2023)

5G Innovation Regions are not designed directly to fund network deployment, but rather to bring together, at scale, multiple use cases and partners within a region to stimulate adoption and investment.

Any deployment of network infrastructure should be limited to that which is necessary for adoption activities that require it, specific to that region’s chosen activities, and this should ideally be funded through commercial (private sector) investment. DSIT funding should not be used directly to fund network infrastructure focused on improving (or extending existing) wireless coverage.

11. Is there an expectation for engaged local authorities to be an end user of the 5G-enabled services? (updated 11 August 2023)

It is expected that each 5G Innovation Region will tailor their scope, activities and expenditure based on local requirements and opportunity sectors to support the strategic programme objectives; this could include the adoption of wireless connectivity services by public authorities to support public services or public sector activities.

12. Will you be expecting a specific methodology for co-creation to be outlined in any bid? (updated 11 August 2023)

Due to the funding framework approach being taken, DSIT does not expect bids from consortia (other than groups of local authorities forming a bid). However, it would expect to see evidence that the bidding entity has the necessary relationships in place (or plans to put them in place in a timely manner) with those public and private sector organisations they intend to work with to deliver their objectives.

At this stage, DSIT does not expect local authorities to form commercial partnerships where doing so now may create complications for them to run open competitions as required locally to demonstrate value for money at a later stage or to meet public subsidy or procurement regulation

13. What role does DSIT expect government departments in the devolved governments to play? Or is this a direct agreement between DSIT and local regions?

DSIT has been working closely with the Devolved Governments and Territorial Offices on the implementation of 5G Innovation Regions programme and will continue to engage going forward.

14. Is there any indication at this stage of the outcomes and outputs that are expected and how they would be measured? Is there clarification on the desired timeline for benefits realisation of the investment and an understanding of the timeframe over which you would expect to see impact?

DSIT is constructing a set of benefit metrics that we expect applicants to report against. Projects will be provided during mobilisation with a template and structure for reporting, and will be allocated a DSIT benefits realisation lead who will provide support.

15. Is 5G innovation regions limited to 5G only, is there consideration for all advanced wireless/other connectivity considerations (Sat Comms)? (updated 11 August 2023)

5G Innovation Regions are encouraged to explore opportunities that utilise a diverse range of advanced wireless networks and technologies (e.g. heterogeneous environments integrating 5G with other networks such as 4G/LTE, Wi-Fi, satellite, Low-Power Wide Area Networks, IoT networks, fixed-wireless access and other existing technologies such as Extended Reality, Artificial Intelligence, Machine Learning algorithms or digital twins) tailored to their specific needs.

16. Are applicants eligible to include cross cutting themes and collaboration with Whitehall departments to increase the long-term benefit of the programme? E.g Net Zero by 2038/energy efficiency, withDfT/DIT collaboration.

Yes - Collaboration is the inter-working with other 5G Innovation Regions, relevant government projects, participation through other channels and the wider ecosystem, on topics of shared interest. The aim is that by combining the efforts and knowledge base, and producing tangible and useful outputs that can be shared and demonstrated, the collaboration activities will help to encourage the adoption of advanced communication technologies within the UK. DSIT and UKTIN will assist in supporting this collaboration.

DSIT expects applicants to demonstrate other funding sources that may be used as complementary to this programme.

17. Based on the EOI review, is there an intent to ration funding across different industry verticals? (Added 11 August 2023)

DSIT has no intention to ration funding across different industry verticals. However, as outlined in 5GIR applicant guidance, DSIT will apply a portfolio approach to ensure the programme has a diverse impact across the UK.

Activities

18. What suite of activities is of most strategic interest to DSIT?

DSIT encourages applications to focus activities around two-three key sectors that play on local strengths and opportunities.

DSIT is likely to give more weighting to proposals that include activities in the following sectors: public services, including “smart communities” applications and health & social care; rural industries, including agri-tech and food production; transport and logistics; advanced manufacturing; and creative industries.

Regions are not limited to funding activities in these sectors but, where applicants focus on other sectors, they should outline how these will contribute to increased local growth and innovation.

19. Is there scope within this project for the provision of up-skilling, training, or knowledge-sharing resources within local authorities or local education? (added 11 August 2023)

Yes, to the extent that it is relevant to the objectives of this programme. We have provided flexibility for a broad range of activities which can be based around a region’s local circumstances and opportunities. Applicants will need to set out and justify how prospective activities align with the key strategic programme objectives and capital funding criteria. The key strategic programme objectives we seek to deliver and possible activities are outlined in 5GIR applicant guidance.

20. Is this meant for infrastructure deployment projects or to build a supporting organisation that will support regional partners to deploy infrastructure? (added 11 August 2023)

The latter. We expect successful regions to carry out a range of activities which will help build the business case to attract commercial investment during and beyond the grant funding period, and to provide evidence to demonstrate the case for an ongoing 5G adoption initiative in the region.

It is expected that each 5G Innovation Region will tailor their scope, activities and expenditure based on local requirements. 5G Innovation Regions should leverage DSIT funding to run sector specific activities based around identifying and delivering regional projects with strategic value, aimed at validating the widespread adoption of 5G use cases and services in key economic sectors. Regions may choose to leverage existing assets and partnerships with service providers to achieve this - the deployment of additional network infrastructure is not necessary to this.

The application guidance gives a broad range of potential activities that regions may carry out.

21. Do regions need previous experience of undertaking 5G innovation activities, for example 5GTT, or a certain Technology Readiness level to apply? (added 11 August 2023)

DSIT welcomes all bids that fulfil eligibility criteria and programme objectives.

This programme aims to develop digital ecosystems that build on a local area’s sector expertise and capability, and unlock opportunities through stimulating investment in and stimulating the adoption of innovative wireless technologies.

Each applicant bid will be assessed on its own merits - against applicant criteria outlined in the guidance.

Including provisional information

22. How detailed does the “detailed project plan” need to be? (added 11 August 2023)

DSIT expects applicants to produce a high-level project plan that addresses all criteria in applicant questions.

Please refer to DSIT 5GIR applicant guidance for further information.

23. Initial cost plans are highly likely to be inaccurate. What provision will be made for change control? (added 11 August 2023)

DSIT recognises there are some uncertainties when estimating financial profiling. Therefore, we encourage applicants to make a conservative best guess estimate for bid submission; ensuring financial information is as accurate as possible.

If your bid is successful, DSIT would expect ongoing dialogue with the lead applicant, to review any potential financial reprofiling; and the possible implications this may have over the life of the project. We expect local authorities to use the Cash Flow profile document as a central tool when re-forecasting costs as part of the quarterly reporting and governance responsibilities.

24. ​​Can you highlight the sectoral preferences you referred to in the briefing session on 01 August? (added 11 August 2023)

5G Innovation Regions should target key sectors with high potential for local economic growth and productivity gains. These will vary by area, but should include: public services (including “smart communities” applications, health and social care); rural industries (including agri-tech and food production); transport and logistics; advanced manufacturing; and creative industries. DSIT encourages applications to focus activities around two-three key sectors that play on local strengths and opportunities.

Regions are not limited to funding activities in these sectors but, where applicants focus on other sectors, they should outline how these will contribute to increased local growth and innovation.

25. Should applicants include indirect costs as part of the amount of grant that they are requesting? (added 11 August 2023)

Yes, any indirect costs should be included in that Cash Flow profile document.

26. Are successful applications reliant on having a Technology Partner in place to work with already? (added 11 August 2023)

No. DSIT expects successful projects to set out proposals for their approach to engaging with both telecoms providers and sectors in their local economy.

27. Are successful Local Authorities expected to know the demand for their chosen sectors at project start in November? Or is there time to develop this over the programme? (added 11 August 2023)

In bid applications, we will be looking for places to have an understanding of the sectors in their areas that they think would benefit from adoption of advanced wireless connectivity. However, a key purpose of the 5GIR funding will be to identify and develop demand, and work with local partners to identify strategic sectoral projects and use cases and to develop a regional ecosystem.

28. Will bid evaluations take into account relative socio-economic value at the local level? (added 11 August 2023)

Yes, this has been incorporated into application questions. DSIT will apply a portfolio approach to ensure the programme has a diverse impact across the UK

29. At assessment, will you award points to bids according to the size of match funding? (added 11 August 2023)

DSIT will not be mandating any level of match funding from local authorities, but proposals may include other sources of funding (both other public funding and potential private funding), and this should be reflected in proposals in the potential of greater aspirations for delivery.

The approach proposed by local authorities should be made clear within applications for funding, in response to Question B3.

Finding suppliers

30. Local authority procurement processes once successful may take a considerable time if potential suppliers are not pre-registered. What advice does DSIT have? (added 11 August 2023)

DSIT encourages applicants to explore collaboration opportunities with potential partners and service providers at the earliest opportunity.

Applicants should focus on the aspect of deliverability, ensuring delivery plans are realistic, building in contingency planning.

31. Are there any networking events, websites etc to allow potential partners to connect to bidders? (added 11 August 2023)

There are a range of resources available for those looking to connect to local authorities and industry suppliers:

• Register for the UKTIN specialist supplier service here.
• Find the UKTIN supplier directory here.

Application process

Overall application process

32. What is the overall application process to submitting a bid?

The overall application process is as follows, for most organisations:

• Register on the Find a Grant website (if you haven’t already)
• Start a new application on the 5G Innovation Regions competition page
• Complete eligibility statement and due diligence checks
• Upload required documents
• Review your application - check all relevant details have been completed, and documents uploaded in the right formats
• Submit your application - confirmation will be emailed to your registered email address

Once your application is submitted you will not be able to retrieve, view or amend your application.

33. What supporting documents do I need to upload?

The lead applicant must complete and upload any prescribed templates, plus any allowed appendices or supporting information. (Please refer to DSIT 5GIR applicant guidance for full detailed requirements).

For this competition we have prescribed the following templates which are mandatory for completion:

• application form
• TEMPLATE 5GIR Cash Flow Profile

34. What if I’m in danger of missing the competition deadline, due to technical issues with ‘Find a Grant’ platform?

In a scenario where the platform isn’t working, we are able to accept offline submissions as a last resort; via the enquiries mailbox ([email protected]).

Bidders must ensure that all relevant documents and files are attached in the correct format. We will not accept amendments or additional files after the deadline; 23:59 10 September 2023.

35. Would DSIT consider extending the deadline for applications?

DSIT does not currently have any plans to extend the application deadline beyond 10 September 2023.

Find a Grant portal

36. On the ‘Find a Grant’ portal, can two individually registered accounts access and make changes to the same application?

Currently, the ‘Find a grant’ portal does not support collaboration, where two users can register and co-author the same application/submission.

37. Are we able to upload some documents into ‘Find a Grant’ platform ahead of making our full final bid submission - or do they all have to be uploaded at the same time and sent?

You are not required to complete the application form/upload documents in one session. The portal supports the facility to part complete an application - to be finished and submitted at a later time.

Once submitted, you will not be able to retrieve, make changes or view your application. Before submitting, we strongly encourage applicants to conduct a final review to ensure the correct details have been inputted into the relevant applicant sections; with any corresponding uploads in the correct document formatting requirements.

38. What if I’m having issues uploading required documents on ‘Find a Grant’ portal?

Please submit your application via the portal, and supplement this by emailing any documents you’re unable to upload to our mailbox; [email protected]. Any supplementary documentation will need to be received by the deadline; 23:59 pm, 10 September 2023.

Triage and assessment

39. How does the triage process work? (added 11 August 2023)

The two triage questions (A1 and B1) will be scored against the scoring range outlined in Section 5 of the Competition Guidance. Applicants scoring an average score below 4 will be deemed ineligible for funding and not evaluated further.

40. Will the names of those on the assessment panel be published? (added 11 August 2023)

No, the names of those who are on the assessment panel will not be published. The panel will be a mixture of civil servants and independent advisers to the department.

41. Will the summer holidays affect DSIT’s response time? (added 11 August 2023)

DSIT intends to complete the assessment of applications in September and notify successful applicants in October.

Grant Funding Agreement (GFA)/Memorandum of Understanding (MoU)

42. Can a single local authority sign the MOU or Grant Funding agreement on behalf of other authorities?

Yes - Successful lead applicants are expected to sign with DSIT a Memorandum of Understanding (MoU).

Please refer to DSIT 5GIR applicant guidance for further information.

43. Has DSIT prescribed a revenue and capital funding split, or are there provisions to allow flexibility?

For local authorities in England and Wales, funding will be paid by DSIT via a non-ring fenced capital grant under Section 31 of the Local Government Act 2003; for local authorities in Scotland and Northern Ireland, funding will be paid by DSIT via a capital grant under Section 8 of the Industrial Development Act 1982.

Please refer to DSIT 5GIR applicant guidance for further information.

44. Would the Section 31 be paid to the Lead authority and then distributed accordingly amongst other LAs or could the Section 31 be split to go to the constituent LAs?

DSIT expects funding to be paid to successful lead applicant. That local authority will then be responsible for overseeing the distribution of grant funding to any other local authorities within the region, and/or for the procurement of relevant goods or services from other organisations.

45. Will DSIT be issuing mandated procurement rules as part of funding MoU? Or can current local procurement contracts to procure services and reduce time and cost be used?

DSIT will not be mandating procurement rules. Procurement of relevant goods or services should be determined by  the successful lead applicant.

46. Which rules of UK Subsidy Control legislation (state aid) l will be followed in monitoring aid to industry for the purposes of this programme and how will the responsibility be discharged?

Details of subsidy compliance parameters have been outlined in DSIT 5GIR applicant competition guidance.

47. Are there any expectations around match funding?

DSIT will not be mandating any level of match funding from local authorities, but it is expected that proposals may include other sources of funding (both other public funding and potential private funding), and this would be reflected in proposals in the potential of greater aspirations for delivery.

48. What plans does DSIT have for circulating the MoU as part of the competition guidance? (added 11 August 2023)

DSIT intends to publish the draft MOU/ GFA on the competition page shortly, and will be taken forward with successful applicants.

Subsidy control and project funding

49. Can DSIT provide any advice on how Local Authorities should treat capital funding? Can this be used for labour costs/overheads? (added 11 August 2023)

As outlined in the applicant guidance, we ask that Local Authorities take their own view on what is capitalisable or otherwise under UK Generally Accepted Accounting Practice (UK GAAP), and according to their own accounting policies.

DSIT is not planning to publish its own capitalisation policy, however, details on the approach to capitalisation and R&D capitalisation under ESA10, have been published by HM Treasury, in the consolidated budgeting guidance for 2023/ 2024.

50. DSIT is taking a ‘no subsidy’ approach. Are Local Authorities then responsible for subsidy control arrangements? (added 11 August 2023)

Yes. Local Authorities granted funding under the programme are responsible for compliance with the UK Subsidy Control Act 2022 in how they use funding, including (but not limited to) any onward granting arrangements.

51. Can Local Authorities bid individually and then aggregate funding to make a regional bid? (added 11 August 2023)

It is not possible to combine funding allocation across successful bids. Therefore, applicant bids must stand and be deliverable on its own merit, and not include dependencies or be conditional on another bid being successful.

52. Are applicants required to adhere to any Grant funding thresholds?

Given our ambitions for the 5GIR programme, we are aiming to establish a diverse portfolio of 5G Innovation Regions across the UK. DSIT expects to make available grant funding of up to a maximum of £3.8 million to each successful region.

While we consider smaller grant amounts, we invite bids to justify how their bid amounts deliver the anticipated impact and appropriateness in their response.

53. What if we’re intending to submit a regional contiguous Innovation Region bid (including possibility of devolved Authorities). How do you see funding flowing across to these authorities from England? Is that up to the authority to resolve? (added 11 August 2023)

Due to the funding framework approach being taken for this competition - there should be one lead local authority to which DSIT will award funding; and therefore only under one route:

• for local authorities in England and Wales, funding will be paid by DSIT via a non-ring fenced capital grant under Section 31 of the Local Government Act 2003
• for local authorities in Scotland and Northern Ireland, funding will be paid by DSIT via a capital grant under Section 8 of the Industrial Development Act 1982

The lead local authority will then be responsible for overseeing the distribution of grant funding to any other local authorities within the region, and/or for the procurement of relevant goods or services from other organisations.

54. Will you pay quarterly in arrears? Or do you have the flexibility to pay up front given you are making these grants under s31 LGA? (added 11 August 2023)

Due to the funding framework approach being taken, DSITs intention is to pay upfront to enable mobilisation of successful projects and reduce administrative burden.

As outlined in the applicant guidance, successful projects will be required to comply with prescribed governance and assurance procedures - this includes, quarterly reporting provisions and an annual review at the end of year one.

55. Will grant recipients be required to return unused funds at March 2025 if they commit to funding remaining activity from other sources after that date? (added 11 August 2023)

All DSIT grant funded activities must be completed by 31 March 2025. Non-grant funded activities can continue beyond this date.

We would expect the unused resources to be returned to DSIT at the end of the period, unless there was any other agreement between DSIT and the successful project.