Notice

Open Networks Ecosystem competition: clarification questions with responses (updated 23 May 2023)

Updated 14 September 2023

Eligibility

Lead partner roles and responsibilities

1. Can a local authority be a lead partner in a consortium?

Yes, a local authority can lead a consortium. Your bid should provide a clear rationale for this.

2. Is there a limit to the number of consortiums a company can lead?

There is no limit on the number of DSIT grant funding projects individual organisations can be a part of.  However, all bids should be unique and will be assessed on their individual merits.  DSIT will also consider the Project’s ability to deliver and all project partners are advised to be mindful of how they will manage commitments, expertise and capacity across multiple consortia.

3. Could a Council or University lead a project if other consortium members are small businesses?

Yes, you should articulate the rationale in your application

4. Can a consortium have 2 lead partners?

No, each consortium can only have one lead partner.

5. Can a lead partner subcontract any of its ‘consortium administration’ activities (eg around reporting, grant administration etc)?

Yes, in some circumstances it would be allowable for a lead partner to contract out specific grant administration duties to a third party. These activities might include elements of reporting, monitoring, cross-consortium coordination, communication and grant administration. The lead partner would however remain accountable to DSIT for the successful completion of these tasks to the agreed standards.

Consortia seeking to subcontract administrative functions should set out clearly in their bids why this is necessary, and how these arrangements will be managed.

6. In the published documentation, it states that the Project/Consortia lead is responsible for distributing the funds to partners. Does this mean that the Project Lead will receive all grant funds for the project directly to their bank account (for onward distribution)?

Yes.

Eligibility and responsibilities of consortium members

7. Is there guidance available on the expected Consortium roles and responsibilities?

Guidance on the roles and responsibilities of Project Leads, Project Partners, Project Participants and Key Consortia Suppliers can be found in Open Networks Ecosystem Competition: Application Guidance, Section 3.2.

8. Would a bid be eligible if a consortium proposed to select a vendor once the project is mobilised?

It would be acceptable to select a vendor or vendors at the post-award stage, during the Project mobilisation process, once the project is mobilised.

9. Do applicants already need to be a part of an established UK consortium?

Applicants do not need to be a part of an already established UK consortium.

10. Is there a limit to the number of partners there can be in a consortium?

There is no limit to the number of partners there can be in a consortium; however, project partners are advised to be mindful of how they will manage a large consortium.

11. Is there a limit to the number of proposals an organisation can submit, under the Open Networks Ecosystem competition?

There isn’t a limit however, all bids should be unique and efforts may be better focused on a smaller number of high quality bids rather than a large number of bids that do not have the requisite time given to development.

12. Are non-UK registered businesses eligible to apply?

All consortium members need to be UK registered organisations. Companies outside of the UK, may take part as subcontractors or non-funded partners. We do not restrict bidding partners that have ‘parent’ companies operating outside of the UK.

Subcontracted organisations do not need to be based in the UK, however we would require evidence that the bulk of their activities would take place in the UK.

13. My organisation has been in operation for less than two years, and therefore unable to supply the required two years of latest accounts - would this make me ineligible to apply?

We will aim to take a pragmatic approach and consider proposals with circumstances such as this. We suggest submitting the application, with as much information available for the ‘Latest Accounts’, with a supplementary note outlining relevant status.

Successful applicants should then work with DSIT to finalise and formalise details before agreeing on the Grant Funding Agreement; by September/October.

14. Can applicants who are part of the FRANC project apply to the ONE competition in order to further their research and raise the TRL levels?

This would be dependent on how far the proposed research for the ONE competition strays from the original research being conducted as part of the FRANC project.

15.Would an organisation who is already participating in the FRANC projects be able to offer a PMO function to a consortia looking to participate in the ONE competition?

Yes, you would be eligible to offer PMO functions to a consortia participating in the ONE Competition.

16. Can a consortium partner who is a tier 1 local authority (eg a county council), sub contract to a tier 2 Local authority (eg a Borough council) - and what are the financial reporting requirements?

There are no restrictions on Local Authorities becoming Key Consortium Suppliers. Financial forecasting and change control are key elements in the grant funding process.  Successful Projects will be required to submit financial forecasts and amended financial forms as part of change control.

Eligibility of proposed work packages

17. Where can I find information on technology areas eligible for funding - what if our technology area isn’t included?

To see if you qualify, review the eligibility criteria in the competition guidance in section 3 and check to see if your consortia conforms to these rules.

We have taken a broad view of this space and want to see a wide selection of bids covering different technology and are very open to seeing bids covering areas we haven’t considered as long as a clear line can be drawn to the objectives.

18. Can we apply for the ONE Competition for additional project work?

Yes. Consortia and participants in projects funded by the Open Networks Research and Development Fund may apply to this competition, for new work - such as an additional project.

Applications will be considered by DSIT as per the arrangements set out in the competition guidance. Activities already funded or undertaken are not eligible for this new funding.

19. Are applicants still eligible to apply if they plan to build on government funded assets such as fibre?

Yes, projects can still apply if they are planning to build on government funded assets.

20. If one or more of the consortia organisations are acting in a role that might be critical to the delivery of the project, however the role itself may not be classed as “innovative” – e.g. performing a Program Management function, deployment and installation activities etc . Would that organisation within the consortia still be applicable for grant funding?

The consortium itself needs to assess its position against the subsidy control rules. We would not expect every funded activity to be innovative in its own right - but the totality of the project should demonstratively meet the ‘experimental development’ criteria.

21. Are bids below £1 million eligible for funding?

The minimum funding amount we’ve made available is £1 million - unfortunately, we wouldn’t expect to fund any bids falling below this value.

22. What vendors are currently considered ‘high-risk’?

The National Cyber Security Centre (NCSC) does not publish an exhaustive list of suppliers assessed as High-Risk Vendor (HRV).  However, the NCSC does provide guidance on HRVs, including a non-exhaustive list of criteria it applies when identifying vendors as HRVs.  This can be found in the NCSC guidance on high-risk vendor networks.

Briefing materials and finding consortium partners

23. Where and when can I find the content from the briefing event?

The presentations and pitches are available on the UKTIN website.

The Technical Guidance for Open RAN in high-demand density environments mentioned at the event is now available on GOV.UK.

24. Is the best way to find consortium partners at the 17th of April online pitching event or is there a method of posting our expertise for others to see?

For those looking for consortium partners, DSIT are currently hosting a ‘Find a consortium partner page on the gov.uk website.

Presentations from the 17 April pitching event can be found on the UK TIN website.

25. Do we need to pitch before we can be included in the ‘find a consortium partner’ page on GOV.UK?

You do not need to have pitched to be included on the ‘Find a Consortium Partner’ page of GOV.UK - just complete the online form - https://forms.gle/j5ehj5ZGbVtEuXkv6

Guidance on preparing your application

Including provisional information

26. We may struggle to get full internal sign-off for all the ONE Competition forms that DSIT needs, in time for the application deadline. Please can you clarify the minimum level of signoff that DSIT will accept.

DSIT understands that it may be a challenge for organisations to finalise all details of applications in time for the 23 May 2023 application deadline.

While DSIT would ideally prefer ‘complete’ proposals, we will accept proposals containing provisional information in some areas.

This provisional information supplied as part of funding bids could include:

• Supplier details: It is not essential to be able to finalise your consortium’s suppliers at this stage. You should however be clear in your proposal about the type of products or service you will need to procure and the time it will take to do this should be reflected in your project plan.
• Consortium members: you do not have to finalise consortium members at this stage for example if senior approval for their involvement is required
• Finance and commercial forms: while these should be realistic, figures can be best effort and subject to formal internal clearance.

Successful applicants will then work with DSIT to finalise and formalise project details when agreeing the  Grant Funding Agreement by September/October.

When considering providing provisional information you should mark it as such and be aware that:

• the lack of detail in specific areas may lead to bids being scored lower than they would be otherwise;
• substantial changes in scope or funding may lead to successful bids being rejected at Grant Funding Agreement stage.

If you have any specific questions please reach out to the ONP enquiries mailbox as soon as possible.

27. If all vendor/suppliers have yet to be selected (for example we have a short-list but not made a final decision),  could we still submit a proposal and include within our plan our approach to vendor/supplier selection during the project?

The consortium needs to be decided as part of the bid - subcontractors or equipment providers could be selected later as long as there is a clear explanation of how this is to be done (with emphasis on Value for Money). Money is granted ex ante, so we need a clear view of the spend in order to grant.

Collaboration

28. Collaboration with another bid naturally presents a factor of dependency - how would we navigate this?

Individual bids are welcome to highlight high-level potential opportunities for collaboration with sister projects - however, it would not be advisable for any bid to include dependencies on the success of other bids. DSIT will work with successful bidders to explore additional opportunities for alignment across the portfolio, as part of discussions around Grant Funding stage

29. In our bids, how should we best reflect potential areas of collaboration with other successful consortia? And once we know details of which other consortia are receiving funding, to what extent can we alter our implementation plans based on known areas of complementarity?

DSIT welcomes any consideration within bids about how individual consortia would work collaboratively across the ecosystem if their funding application is successful.

We suggest that this thinking is primarily brought out in your response to Question E1 of the application form. This question (which is not  scored as part of the application process) could be used to highlight points of complementarity between your bid and any other known or potential consortia bids. You may also want to make reference to collaboration and alignment with other funded bids in relevant parts of the application form (eg project planning, risks). However we would strongly advise not to introduce any hard dependencies on other bids being successful.

Once successful bids have been identified, DSIT will work with consortia to explore additional opportunities for alignment across the portfolio, as part of discussions around the Grant Funding (GFA)  stage. We will aim to take a pragmatic approach as part of these discussions - although projects must still deliver to the core objectives on which they were assessed, there will be room for discussion on how these objectives can best be achieved. For example, there is scope for variation of suppliers or consortium partners. Project scope is not fixed until GFA agreement, which we are expecting to take place in Sept/Oct 2023.

30. My bid potentially involves a Network Rail station - are there any special considerations?

Yes. Bids involving any of the 20 Network Rail managed stations should liaise with Network Rail to ensure their planned approach is aligned with the wider network strategy. This should include consideration of Network Rail’s live transaction to secure private sector investment in neutral host infrastructure in stations and along the rail corridor, with the objective of offering mobile connectivity.

Your responses to evaluated questions in sections A, B and C of the application form should highlight any relevant issues, and your plan to manage these.

National Rail is willing to engage with successful bidders to explore how relevant learnings from funded projects might be of benefit to the rail network.

Please email onp.enquiries@dcms.gov.uk if you would like a contact point at Network Rail with regard to the above.

Project structure

31. Could a proposal be acceptable if the funding requested is split over multiple phases (1,2,3 etc) gated by specific milestones, where the decision to proceed with each phase is dependent upon the successful completion of the previous phase?

Yes, this would be acceptable.

Assets left at project end

32. What are the expectations/requirements with regards to what is left operational and supporting services at the end of the project?

DSIT doesn’t continue to have an interest following the conclusion of the project, items can be deployed after the project completion subject to the correct treatment of the asset.

33. If something is left operational and providing services at the end of the project does this mean we cannot claim the full cost of that hardware/software/etc but just the pro-rata cost based upon the financial lifetime of the capability?

Yes, claimable costs are subject to adjustment based on capital depreciation and/or residual value.

Application Process

Overall application process and deadlines

34. What is the overall application process?

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 Open Networks Ecosystem competition page
• Complete eligibility statement and due diligence checks.
• Upload required documents  - see Q34 for a checklist of required documents and title formats. (Note: requirements are different for applicants applying via the JE-s System)
• 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.

35. What supporting documents do I need to upload? (Updated 19 May)

The following table sets out the documents you will need to upload, and the title format to use for each.

Form	Title format	Maximum number of attachments possible per section
Application form	YYYYMMDD - Application Form - ‘Project Name’	1
Project Commercial Form (*for each partner)	YYYYMMDD - Project Commercial Form - ‘Partner Name	8 (x1 for Lead partner, x7 for consortium partners) [a]
Two Years of Latest Accounts (for each partner)	YYYYMMDD - Two Years of Latest Accounts - ‘Partner Name’	8 (x1 for Lead partner, x7 for consortium partners) [a]
Project Plan	YYYYMMDD - Project Plan - ‘Partner Name’	1
Risk Register	YYYYMMDD - Risk Register - ‘Partner Name’	1
Intellectual Property Plan	YYYYMMDD - Intellectual Property Plan - ‘Partner Name’	1
Finance and Commercial roles table	YYYYMMDD - Finance and Commercial roles - ‘Partner Name’	8 (x1 for Lead partner, x7 for consortium partners) [a]
Work Package Cost Breakdown	YYYYMMDD - Work Package Cost Breakdown - ‘Partner Name	1
Spend Profile by Month	Spend Profile by Month - ‘Partner Name’	1
Letters of commitment/ support	YYYYMMDD - ‘Letter of commitment/ support ‘- ‘Partner Name’	8 (x1 for Lead partner, x7 for consortium partners) [a]

[a] Submission via email of additional attachments is allowable for this section - send these to onp.enquiries@dcms.gov.uk referencing the name of your project bid. All submissions must be received by 23:59 Tuesday 23 May.

36. 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 (onp.enquiries@dcms.gov.uk).

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 23 May.

37. Would DSIT consider extending the deadline for applications?

DSIT does not currently have any plans to extend the application deadline beyond 23 May 2023.

Application forms

38. Is the “programme participation agreement” document, an application submission requirement?

You do not need to return the signed Programme Participation agreements as part of the initial application but you will be expected to return them later signed as part of the GFA process over the summer if successful.

39. Other than the application form and commercial form does DSIT provide any other templates for its application forms? Should a project produce their own forms, are there any restrictions on file size, format or number of pages?

As outlined in the competition guidance, the Project Lead must submit the following mandatory documents in order to apply for the Open Networks Ecosystem Competition:

• Your Application Form, with all questions answered, within the word count, plus any allowed appendices.

You must also complete the Supplementary Information section, including:

• A Finance Summary table, and the Confirmation of Grant Agreement Terms table.
• Project Commercial Form (for each partner, including the Project Lead) covering all proposed costs. These should cover the full grant term. These documents are used to understand how you have estimated your costs - see Section 2.6.4 for information on eligible costs.
• Two Years of Latest Accounts (in .pdf format) for the Project Lead and each Consortium Partner.
• A Project Plan, as per the requirement in Question C1 of the application form.
• A Risk Register, as per the requirement in Question C3 of the application form.
• Intellectual Property Plan, as per the requirement in Question B3 of the application form.
• A table outlining the Finance and Commercial roles for all organisations looking to receive funding, as per the requirement in Question C4.
• A Work Package Cost Breakdown and Spend Profile by Month, as per the requirements in Question D1.

You must only use the application form and templates provided with the exception of documents which are required as annexes where no template is provided, but specific guidance is written into the question (such as the Delivery Plan, Risk Register and Intellectual Property Plan).

The application form and templates contain specific fields. It is important that you complete each field and submit a fully completed form. Incomplete forms may be considered ineligible and not sent for assessment.

Find a Grant portal

40. On the ‘Find a Grant’ portal, can two individually registered organisations 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.

41. 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? (Updated 19 May)

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.

42. What if I’m having issues uploading required documents on ‘Find a Grant’ portal? (Updated 19 May)

Please submit your application via the portal, and supplement this by emailing any documents you’re unable to upload to our mailbox; onp.enquiries@dcms.gov.uk. Any supplement documentation will need to be received by the deadline; 23:59 pm, 23 May

43. For research organisations applying via Je-s system - what “status” is required when supplying the PDF form? (Updated 19 May)

As stated in our Je-S guidance 3.2 you must provide a PDF copy of the Je-S output document, confirming a status of “with council”, to the lead partner of the consortium.

“Status” definitions can be found in Je-S Pre-Award tracker guidance also provides.

Triage and assessment

44. How does the triage process work?

The two triage questions (A1 and A2) will be scored against the scoring range outlined in Section 6 of the Competition Guidance. Applicants receiving a median score below 4 (Adequate Confidence) for either question will be deemed ineligible for funding and not progress to the next stage of assessment.

45.Will the names of those on the assessment panel be published?

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.

46. Will the summer holidays affect DSIT’s response time?

DSIT has plans in place in order to ensure there are adequate resources throughout the summer holiday period.

Grant Funding Agreement (GFA)

47. Are the terms of the Grant Funding Agreement negotiable?

No. As part of your bid, you should review the terms of the GFA and satisfy yourself that you are content to sign the agreement. However, if you have any questions on the terms of the GFA prior to submitting your bid, please submit clarification questions and we will respond.

48. Our project is at risk of not completing before our GFA ends. Can we change the GFA, to complete the ‘baseline’ project? (E.g. extend the GFA end date; increase total grant; delay grant; de-scope).

DSIT’s expectation is that you will complete your current project within the agreed time, cost and scope, to achieve the intended outcomes, as per the agreed GFA. Please seek to do this to the maximum extent possible.

Please refer to the DSIT change guidance for projects and discuss the situation with your DSIT portfolio manager.

Unless DSIT provides prior written approval, which can be withheld or conditioned at our absolute discretion, projects cannot ‘carry forward’ unused grant funding allocated from one financial year to the next.

49. Can we add to our existing project (scope, time and/or cost) through a change request to DSIT to change our current grant funding agreement (GFA)? Will the DSIT grant now be available after March 2024?

Yes, there is opportunity - depending on what you propose.

The new work would need to be a reasonable continuation of the original project (as defined in the original grant funding agreement); proportionate with respect to additional costs and time; with minimal consortia changes.

DSIT consideration of project requests is likely to take place towards the end date for the relevant projects’ existing GFAs.  DSIT will share information in due course about an opportunity to make changes through change control and the arrangements.

50. Can the GFA process be accelerated somehow (Updated 19 May)

We have recently published updated proposed changes to the ONE Competition Grant Funding Agreement. The proposed changes are in response to feedback from existing project stakeholders and are designed to simplify the grant funding process.

51. If we apply for the ONE Competition for a new project and are selected for funding, will we need to complete a further ‘round’ of set up, DSIT due diligence and a new grant funding agreement (GFA)?

Yes, this is DSIT’s assumption.

52. Are unfunded project participants required to sign the Grant funding agreement, and Collaboration Agreement -if so, are any additional documents required? (Updated 19 May)

Unfunded project participants should also be signatories to the Grant Funding Agreement and Collaborative Agreement.

Bidders should provide a description of the contributions in kind for each project participant - in section D1 ONE Competition Application Project Participants are not required to submit additional documentation at the grant funding competition stage.

53. Is there a legal obligation for all parties to stay in the project once the conditional award letter is given before GFA and CA are signed? (Updated 19 May)

There are no obligations on any of the Project Partners (including the Applicant / Recipient / Lead Partner) prior to the Conditional Offer Letter being signed.

The GFA only comes into force at the point when the Applicant signs to accept the Conditional Offer Letter. At that point the GFA is created, the Applicant becomes the Recipient under the GFA, and the terms of the GFA are binding solely between the Authority and the Recipient.

Once in force, the GFA does not directly impose any binding obligations on any Project Partner/ consortium member other than the Recipient, and does not oblige any of them to remain involved.

If a member of the consortium decides to withdraw after the GFA and Collaboration have been signed, then the Recipient must inform the Authority (see clause 5.5 of the GFA) and, if the Authority considers that this withdrawal is material (and the Authority has not given prior written agreement), such withdrawal may be considered a “Trigger Event” (see clause 23.2.10 of the GFA). The Authority may elect to enforce any of the remedies available to it under clause 23.1 in relation to a Trigger Event, but has to take the steps set out in clause 23.3 to attempt to resolve its concerns first.

Subject to the Minimum Requirements, the members of the consortium are free to agree the terms of the Collaboration Agreement between them, including the extent to which a Project Partner may withdraw from the Project and the terms and conditions which would apply to such a withdrawal.

54. It is recognised that the lead partner (Recipient) is responsible for administering the grant funding and overseeing the procurement activities of collaboration partners - to what extent is the lead partner responsible for the activities of a partner? (Updated 19 May)

By signing the Grant Agreement the Recipient is agreeing to be solely responsible for the delivery of the Project in accordance with the Grant Agreement and Applicable Law, regardless of which other parties are involved in the delivery of the Project.

Under the Grant Agreement the Recipient has an absolute obligation to ensure that the Project Partners only use the Grant Funding for the specified Purpose and in accordance with the Grant Agreement, which includes Project Partners complying with Applicable Laws.

The Recipient is, therefore, in breach of the Grant Agreement if a Project Partner acts in breach of Applicable Law or the Grant Agreement. The Grant Agreement is not a contract for services and the Authority is unlikely to suffer material damages as a result of a Recipient or Project Partner’s breach and, as such, there is no limitation of liability specified.

However, in the event of a breach the Authority would typically only seek to terminate the Grant Agreement and obtain repayment of the Grant Funding (as is required and enabled by Subsidy Control rules and the terms of the Grant Agreement), rather than pursuing a damages claim against the Recipient / Lead Partner (see clause 23 (Trigger Events)).

Project Partners are not party to the Grant Agreement, and the Authority is not a party to the Collaboration Agreement, meaning that Project Partners do not have any direct liability to the Authority under either agreement.

Whilst the Authority does have some third party rights to enforce the terms of the Collaboration Agreement against Project Partners (i.e. those terms which require Project Partners to meet certain obligations to the Authority), the Authority would instead typically seek to enforce its rights under the Grant Agreement against the Recipient / Lead Partner. This is because under the Grant Agreement the Recipient / Lead Partner agrees to be responsible for ensuring that the Grant Funding is used properly, and that the Project Partners are compliant with Applicable Law, etc.

If a Project Partner were to act illegally without the Recipient / Lead Partner’s involvement, then the Project Partner (and not the Recipient / Lead Partner) would be subject to potential criminal prosecution (regarding which the Authority would have no control), but the Recipient / Lead Partner would be in breach of the Grant Agreement for failing to procure the Project Partners compliance.

Subsidy Control, costs and project funding

General questions

55. Do the published subsidy rates apply to R&D entities or all participants?

The subsidy intensities listed are for all subsidy recipients. So in the case of both listed here - the appropriate subsidy would be 40%. Grants payments are made in arrears at the appropriate subsidy rate for costs incurred.

56. Can use of a venue count as capital usage in terms of benefits in kind?

No - The expectation is that this would be wrapped up in the 20% overheads expenditure category.

57. Are organisations measured by their UK entity only, or are Parent (Global) companies included?

Assessment is based on the size of the organisation receiving the funding. Under subsidy control rules ‘Parent’ companies would not be included.

58. Are there any options to increase the 60% funding?

No, subcontracts are paid at cost, but project partners are subject to the subsidy intensities laid out in the guidance.

59. In the presentation and guidance you use the terms ’Total eligible project costs’ and ’Total project costs’.  Are these the same?

Total project costs would be all costs incurred during the course of a Project. Total eligible project costs are all Project costs are only eligible if they are incurred and paid between the project start and end dates.  Claims may be subject to an independent audit.

Consortia funding

60. Can a consortium member be paid more grant than the lead partner?

Yes, a consortium member can be paid more than the lead partner.

61. Are there any restrictions on individual organisations taking part in multiple consortia? For example, would the £3 million maximum grant per organisation apply on a per project/consortia basis, or across the whole competition?

Funding allocation is restricted to a maximum of 70% of total eligible project costs to a single organisation. Additionally, no single organisation within the consortium can receive more than £3,000,000.

These restrictions apply per Project, so if an organisation were to be awarded more than one Project, then the restrictions would not apply.  In this case an organisation could potentially be awarded more than £3,000,000.

62. Can each partner in the consortium claim a different percentage level of grant funding contribution - based on their status or size etc? E.g. one partner claims 40% and the other 50%? (Updated 19 May)

Yes, it would be that individual consortium partners would claim different grant funding contribution levels, dependent on the partner’s relative role in the Project, size, organisational type etc. Further information can be found in 2.6.2 Subsidy Control, ONE Competition Guidance.

63. SME companies may have difficulty financing their 40%-50%  contribution - can a Lead Partner donate its funding, time, effort and materials towards part of the 40% - 50% contribution? (Updated 19 May)

There would be no issue with a Lead Partner supporting another partner in a grant funding project through a financial contribution.

Eligibility for funding

64. What is the Subsidy Control level for charities?

The level of subsidy a charity could receive is dependent on how they were acting within a consortium. A charity acting as a charitable organisation could be eligible to receive 100% subsidy. If it is acting as an economic actor, this would be based on the ratios set out for businesses dependent on their size.

65. In the context of subsidy control, how are small, medium and large companies defined? Is it measured on UK entities /  only, or are Parent (Global) companies included?

We use the definitions used as part of the Subsidy Control Act 2022, which come from the Companies Act 2006 - as follows:

To qualify as such it must satisfy at least 2 of the 3 conditions.

Small

• Turnover - Not more than £10.2 million
• Balance sheet total - Not more than £5.1 million
• Number of employees - Not more than 50

Medium

• Turnover - Not more than £36 million
• Balance sheet total - Not more than £18 million
• Number of employees - Not more than 250

Large: anything more than a medium

66. Are contracted Project Managers eligible for 60% funding?

A dedicated Project Manager is regarded as an essential part of this grant project work.  While this is confirmed post-award it would be highly likely that 60% of Project Manager costs would be acceptable.

67. Software owned by a project partner will be used as part of the project - is this usage eligible for funding? (Updated 19 May)

DSIT will need to be able to reliably/accurately measure costs directly attributed to projects. We will review the proposal and assess whether a % of the software cost is allowable OR whether this is a cost that should be covered by the 20% overhead allowance.

Eligible costs are intended to cover all activities directly associated with carrying out the project.  They should be:

• incurred directly as a result of the project or activity,
• limited to those strictly necessary for the project or activity, and
• for projects, limited to the time period of the project

(Research, Development and Innovation Streamlined Route Guidance, 6.11.)

68. Would third party supplier costs form part of the £3 million grant available for any single company?

The costs a consortium partner incurs procuring goods or services from suppliers is among the costs for which they can claim grant funding. So yes, it is the case that this contributes toward the total amount of grant funding any one partner can receive, which is capped at £3 million.

However, another partner(s) in the consortium could procure from the same supplier so you may want to consider if the work could be shared. You may also want to consider if the supplier could be a partner in the consortium, even if they are based overseas they can participate in a consortium if they have a UK Ltd subsidiary.

Commercial enterprises

69. The 60% subsidy rate is limiting for start-ups. Is this something that DSIT intends to address?

DSIT is bound by legislation which is agreed by BEIS, therefore the rates of subsidy are not negotiable.

70. Are there non-financial options for small businesses to meet the 40% funding commitment?

No, the subsidy intensity is fixed based on costs incurred

71. Can you confirm that if there is a grant limit of £3 million for any company, an SME seeking funding at 60% then the total project cost would be £5 million and if, the total grant for a single project is £10 million, the total project cost would be £16.6 million for an SME consortium?

If a small enterprise were to receive total grant funding of £3 million, which is the maximum limit for any one consortium partner, this would mean that they are spending a total of £5 million and being reimbursed at the rate of 60% for a small enterprise. A medium enterprise would only be reimbursed at 50%.

If a consortium were to request and receive £10 million total grant funding over the course of the project, the total project cost would only reach £16 million if all of the consortium members were small enterprises (not medium or large ones), as they would be being reimbursed at a rate of 60%. Any other combination of consortium partners, say involving medium or large enterprises, universities, local authorities, etc, would be different.

Local and regional authorities

72. What are the funding rules for public authorities such as County and District Councils?

Public authorities can receive grants of up to 100%

73. Does the 30% eligible costs limit apply to local authorities who are procuring private contractors to undertake work? (Updated 19 May)

Public Sector organisations can claim up to 30% of total eligible project costs -  including sub-contracting costs; providing they present a clear case of why it is not possible for the work to be conducted by a project partner.  The 30% limit on subcontractors is by Project, rather than individual partners.

Universities and research institutes

74.How significant a role can Universities/ RTO’s play in a bid? Other funding bodies such as Innovate UK cap funding at 30% of the total project size however, it’s unclear from the guidance whether that is also the case with DSIT? We are targeting a lower TRL project so would expect university research to play a bigger role, should this be allowed within the call?

No single organisation within a project consortium can receive more than £3,000,000, this would include universities and RTOs.

For research and public sector organisations there is a 30% threshold per project.  I.e. if one research or public sector organisation was involved in a single grant project then the maximum total eligible project costs is 30%.  If more than one research and public sector organisation is involved in a grant project, the threshold remains at 30% of total eligible project costs.

For private sector partners there are no other constraints on this size within a consortium, providing they meet the following consortia conditions:

• There must be a lead organisation that demonstrates that it can act as the accountable body, has the capability, and is able to manage the delivery of the project across the consortium with clear project governance and leadership.
• To be considered a consortium, at least two organisations must be requesting grant funding from DSIT.
• The consortium shows evidence of private sector partnership, including strong industry representation.
• The consortium should demonstrate that it can meet the funding requirements as outlined in the “Subsidy Control” section above.
• The consortium demonstrates committed support from individuals with decisionmaking and budgetary responsibility from each member organisation in subsidy award in this competition.  This would include universities and RTOs.

75. For all research and public sector organisations - is the total level of project participation set at a maximum of 30% of total eligible project costs per organisation or cumulatively?

The 30% threshold for research and public sector organisations is per project.  I.e. if one research or public sector organisation was involved in a single grant project then the maximum total eligible project costs is 30%.

If more than one research and public sector organisation is involved in a grant project, the threshold remains at 30% of total eligible project costs.

76. What subsidy rate should Universities assume will be applied? (Updated 19 May)

Within the 30% funding per project cost threshold - subsidy levels for universities may be up to 100%, dependent on the type, size and status of the applying organisation:

• Where Universities are acting as a Research Knowledge-Dissemination Organisation i.e not acting as an ‘enterprise’ (doing non-economic activity) they can apply for up to 100% DSIT funding.
• Where Universities are also acting as an enterprise for the purposes and this is limited, then DSIT can fund up to 80%, with the remaining 20% not counted as part of the University’s contribution to their project, and must not be included in the total eligible project costs.

Successful applications are reassessed for each project and competition, but it is likely that assessments will be consistent with previous subsidy-level outcomes.

77. What is the full economic costs funding rate for subcontractors who are contracted through academic organisations? (Updated 19 May)

Where Universities are acting as a Research Knowledge- Dissemination Organisation i.e not acting as an ‘enterprise’ (doing non-economic activity) they can apply for up to 100% DSIT funding.

Where Universities are also acting as an enterprise for the purposes and this is limited, then DSIT can fund up to 80%, with the remaining 20% not counted as part of the University’s Contribution to their project, and must not be included in the total eligible project costs.

Evidence and milestone payments

78. Are partial milestone payments permitted - and are the grant finance and reporting processes the same for ONE as it was for 5G Testbeds and Trials programme? (Updated 19 May)

All eligible costs incurred can be claimed at the end of a delivery period, even if the associated milestone(s) has not been fully completed. This means - Projects can claim for any costs incurred that fall in the grant claim period of a particular claim AND these costs contribute to delivery of a milestone/deliverable for the project.

Partners can only claim for historical costs that are backed up by the required evidence (invoices/timesheets etc.)

Please note payment is subject to overall delivery. i.e project partners will still need to evidence progress towards deliverables/milestones before grant claim payment.

79. What evidence will be required to support grant funding claims? (Updated 19 May)

For any transaction or labour expense to be claimable we would require invoice/receipt evidence to be available for all transactions as well as timesheets for all labour expenses.

In terms of % utilisation of an FTE as evidence - We would still need to understand for % contribution of an individual to the project - how many days that translates to, the total salary of the individual and the cost contribution of this to the project for each claim and individual’s labour is claimed for.

International

80. Is Vietnam considered a key allied country?

Vietnam is considered a country of interest rather than a key allied country.

IPR

81. How do you define IPR?

IPR or Intellectual Property Rights are broadly defined as rights pertaining to the limited or exclusive ownership of an inventor’s work for a certain period of time. Please refer to the definitions of IPR in the Grant Funding Agreement and Collaborate Agreements for further detail.

In practice the Authority requires IPR rights to ensure the ‘results of the project are widely

High Demand Density

82. Would an application need to relate to a private open network, or would applications relating to neutral host open network be considered?

The deployment environment must be designed to help projects explore one or more of the key challenges faced by a public-facing mobile network in a high demand density (HDD) setting.

Deployment environments could include a MNO-led public network or other environments which offer reasonable proxies for the performance of specific elements of public networks, such as neutral host, fixed wireless access or private networks, provided these exhibit features in line with high-density environments. More information and guidance can be found in our competition guidance and HDD guidance.

83. Are those conducting research into HDD expected to complete a live HDD trial?

Yes, those conducting research into HDD will be expected to complete a live trial.

84. Can you expand on the definition of live HDD deployment?

‘Live’ deployment refers to demonstration of Open RAN equipment in a realistic environment, showing Open RAN HDD performance.

The deployment environment must be designed to help projects explore one or more of the key challenges faced by a public-facing mobile network in an HDD setting.

The broad challenges posed by HDD areas could include, but are not limited to, the need for networks to cope with high user densities, high traffic densities, high peak and average data uplink and downlink rates, and high levels of mobility, without compromising user quality of experience.

The types of technical response to these challenges that could be explored include:

• support for multi-layer cell architectures, and for sharing of bands, bandwidths and networks;
• the need to take account of challenging power consumption, weight and size constraints, and to support the highest spectrum efficiencies;
• the need for High-performance features that support energy-saving, carrier aggregation, load balancing and account for high levels of user mobility; and
• the need for network solutions to enable operators to respond to a wide range of RIC use cases and SMO requirements.

Further information about the technical features of HDD areas, and the typical performance expectations that a mobile network operator may have for equipment used within these environments, can be found in the publication ‘Open RAN in high demand density environments: technical guidance’.

The ‘live’ deployment could include a MNO-led public network, or another environment which offer reasonable proxies for the performance of specific elements of public networks - such as neutral host, fixed wireless access or private networks, provided these exhibit features in line with the types of challenge faced by a public-facing network in an HDD setting.

85. Are HDD venues eligible to apply for funding, or can they only participate as non-funded partners?

Yes, HDD venues can apply for funding. £3 million costs are only recoverable at the subsidy intensity (in this scenario 60%)

RF Hardware

86. Is systems integration among the priorities for open RAN hardware?

A project that focuses on advancing the maturity of systems integration credibly meets our objectives for open RAN hardware.

87. Do projects focusing on microprocessors need to be silicon based?

No, microprocessor focused projects do not need to limit themselves to silicon based microprocessors. Projects focusing on non-silicon semiconductors, such as power management focused compound semiconductors, are also among our priorities, assuming they align with our objectives in their impact on the ecosystem.

88. How flexible is DSIT on TRL levels, particularly in relation to RF and Hardware?

DSIT is willing to be flexible on TRL’s. We have deliberately not specified a TRL range that projects must meet to maintain that flexibility. Projects are free to make a case for their research taking advancing development, maturity, availability, interoperability, or another credible advancement of the open networks ecosystem and should use TRL levels where appropriate.

89. Given that third parties are non-UK companies and therefore cannot be consortium partners, how could an advanced node ASIC development be structured given such a development would be close to the project limit and need non-UK project costs which could not be funded by consortium partners or subcontractors? And, how could an advanced node ASIC development be structured given such a development would be close to the project limit and need non-UK project costs which could not be funded by consortium partners or subcontractors ?

Another partner(s) in the consortium could procure from the same supplier so you may want to consider if the work could be shared. You may also want to consider if the supplier could be a partner in the consortium, even if they are based overseas they can participate in a consortium if they have a UK Ltd subsidiary. Please note that a subcontractor does not have to be based in the UK, however we would require evidence that the bulk of their activities would take place in the UK.

We continually evaluate our approach to providing funding opportunities such as the Open Networks Ecosystem competition and the need for funding and resulting impacts. That has included the government’s semiconductor strategy and we will continue to work closely with relevant policy teams across DSIT and the rest of government.