Unpacking Approved BEAD Volume 2s: Michigan

BEAD
funding
Author

Michael Santorelli

Published

August 31, 2024

NTIA recently approved Michgan’s Initial Proposal Volume 2. The ACLP compared the final version with the initial pre-comment draft released by the state last fall (it did not post the version that it submitted to NTIA). A redlined comparison is available here. The following changes were evident:

Subgrantee Selection Process

Project Areas

The state will use Hexbins for its PAs but has reduced the size of them from 3 miles across to 1.5 miles.

Scoring - Minimal BEAD Outlay

The state has provided additional details about how it will award points across several sub-categories. Specifically:

  • Up to 14pts will be available for Grant Project Cost, with max points going to proposals that include a 60%+ match (i.e., only 40% or less of the costs will require BEAD funds).
  • Up to 14 pts will be awarded based on Total Project Cost and will be allocated on a sliding scale relative to a reference cost determined by the state (max points to proposals with total costs less 15% or more below the reference cost).
  • The remaining 7 points will be awarded based on the Scalability and Resiliency of the proposed project. Points are available for designs with redundant power supplies; scalability up to 10Gbps; burying cables; etc.

Scoring - Affordability

The state has reduced the number of points available here from 30 to 25. It has also provided a reference price for symmetrical gig service that it will use to assign points, with max points going to proposals that set the price at or below $67.18/month, a figure derived from the FCC URS.

Scoring - Fair Labor Practices

The state has increased the number of points in this category from 10 to 15. Points will be awarded for past compliance with relevant laws and commitments to the fair labor practices included in the V2.

Scoring - Secondary Criteria

The state made a number of changes to these categories:

  • Added a Technical Support & Customer Service category with 2pts available. Two-thirds of a point will be available for real-time support; multiple language support; and remote support options. This appears to have replaced the Digital Inclusion category that was in the initial V2 draft released by the state.
  • Increased the number of points (from 7 to 8) for Local Support & Community Engagement and detailed a number of sub-categories across which points will be available.
  • Decreased the number of points (from 5 to 4) for Michigan Business and detailed several sub-categories across which points will be available.
  • Detailed several sub-categories across which points will be available in the MBE/WBE/GDBE category.
  • Increased the number of points available (from 2 to 3) for Open Access and detailed several sub-categories across which points will be available.
  • Detailed several sub-categories across which points will be available in the Equitable Workforce Development category.

Low-Cost Waiver Point Deduction

The state will deduct up to 15pts from applicants who seek to raise the low-cost option price via a waiver. The points to be deducted will be calculated using a sliding scale, with higher priced plans having the most points deducted. This is the first time we’ve seen this included in an approved V2.

Low-Cost Option

The state has adjusted its pricing of the low-cost options, pegging it at 30% of the FCC Urban Rate Benchmark. For 2024, the rate for 100/20 Mbps would be $28/month. Subgrantees can seek waivers to increase the price to $65/month. However, as noted, applicants that seek a waiver in their application materials will have points deducted from their overall score.