Unpacking Approved BEAD Volume 2s: Ohio

NTIA recently approved Ohio’s Initial Proposal Volume 2. The ACLP compared the final version with the version submitted by the state to NTIA for review last year. A redlined comparison is available here. The following changes were evident:

Subgrantee Selection Process

Rounds

The state clarified that there will be up to three rounds. The first round will consist of $1 bids for priority projects that will serve an entire PAU. Remaining unserved PAUs will be bid on in a second round. A third round will be held if any BSL remain.

Scoring – Minimal BEAD Outlay

The state has changed how it will award points in this category. Up to 550pts are still available but will be allocated in two buckets of 275pts each. The first bucket revolves around total BEAD outlay – up to 275pts will be awarded on a sliding scale relative to the amount of BEAD funding/location. The remaining 275pts will be awarded using a formula focused on match percentage, with higher matches receiving more points.

Scoring – Fair Labor Practices

Like many other states, Ohio has created two pathways for receiving max points (100). For established entities, up to 60pts will be available for past compliance with relevant labor laws and 40pts will be available for plans for future compliance. For new entrants, all 100pts can be earned by committing to hire at least 5% of their workforce from apprenticeship programs (fewer points will be allocated for hiring commitments below 5%).

Scoring – Secondary Criteria

The state adjusted several of these categories.

• Speed to Deployment: the state adjusted its point allocation, with 12pts now available for deployments of 3 years; 18pts for deployments of 2 years; and max points for deployments within a year.
• General Experience and Technical/Financial Ability: the number of points available in this category have doubled, from 38 to 75. Up to 38pts will be available for Financial Ability, a key prong of which is no prior defaults, including RDOF, along with other criteria around a record of timely deployments and ability to successfully meet deployment commitments. The remaining 37pts are for Technical Experience, which will be awarded in a similar manner (i.e., based on previous experience with meeting deployment commitments, etc.).
• Removed the Years Providing Service in Ohio category. Those 37pts appear to have been reallocated to the General Experience sub-criterion.

Areas with No Proposals

The state removed mention of creating, as a last resort, a program to fund “local providers” to serve any remaining PAU/BSL.

Operational Capacity

The state added a new sub-category of required submissions focused on Operational Capability. Applicants are required to submit, among other things, information on past compliance with federally funded deployment projects; whether they have defaulted on federal or state obligations to deploy broadband; and the number of times it has been a “defendant in a state of Ohio criminal proceeding or civil litigation…”

Non-Deployment Uses

The state will set aside $50M in funding for a workforce development initiative that will be awarded competitively to several entities via an RFP process. Previously, the state had indicated that it would spearhead this initiative itself.

Low-Cost Option

The state will allow subgrantees to change the $30 price-point for the low-cost option after the first 4 years. Beginning in year 5, the $30/month price-point will be the price floor for the option and the FCC’s Urban Rate Benchmark rate will serve as the ceiling. Increases within this range will be presumptively granted.