Unpacking Approved BEAD Volume 2s: Hawaii

BEAD
funding
Author

Michael Santorelli

Published

July 23, 2024

NTIA recently approved Hawaii’s BEAD Initial Proposal Volume 2 (V2). The ACLP has compared the final version with the version that the state submitted to NTIA in the fall. A redlined comparison is available here. The following major changes were evident:

Subgrantee Selection Process

Scoring – Minimal BEAD Outlay

The state changed nearly every aspect of its scoring rubric for the second time (between the initial draft and the submitted version, HI increased the number of points available in most categories). For Minimal BEAD Outlay, 150pts are available (up from 65pts in the submitted version). Up to 100pts will be available to the lowest overall proposed cost, with other applicants receiving points on a sliding scale relative to the lowest cost. The remaining 50pts will be awarded on a sliding scale relative to the highest match, which will receive max points.

The state also clarified its match strategy. Previously, the state was going to permit applicants to use subsidized subscriptions to add to their match proposals. However, in the final V2, the state notes that it will “meet the minimum 25% project [match] by state appropriated funds [some $33M] to meet the minimum threshold, and [supplement] that state matching funds through the competitive procurement process to secure additional matching funds from prospective subgrantees.”

Scoring – Affordability

The state increased the number of points available to 100 (from 15). The way these points will be allotted has not changed.

Scoring – Fair Labor Standards

The state increased the number of points available to 75 (from 15) and provided more detail about how these will be allocated. In a nutshell, applicants that commit to meeting all minimum (e.g., prevailing wage) and highly desired labor requirements (e.g., using labor peace agreements) will get max points. Applicants that only meet the minimum will get 65pts.

Scoring – Secondary Criteria

The state will have only two categories of secondary criteria for priority projects:

  • Points for Speed to Deployment have increased to 30 (from 10) and will still be awarded on a sliding scale.
  • The state has retained its Open Access category and has kept the points the same (10).
  • The state added a Speed of Network category for non-priority projects (20pts). Points will be awarded for speed (10pts max for 1000/35Mbps), longevity of the proposed network (5pts), and scalability (5pts).

Low-Cost Option

The state maintained the $30/month price-point and most other aspects of the NTIA model plan. However, the state added a waiver option wherein it will permit subgrantees to increase the option price to no more than $70/month upon a showing that the $30/month price-point would result in an “unsustainable loss.”