Request for proposals / request for information (side bar)

Throughout the public broadband planning process, a public entity may choose to use either a Request for Proposal (RFP) or Request for Information (RFI) process, or a combination thereof, to select vendors and/or project partners. Communities must always be aware of and follow their own state’s and local procurement and contracting processes before finalizing purchase or partnership arrangements. Most public entities use either RFPs or RFIs on a regular basis for all kinds of public construction and services.

These RFP/RFI tools may be useful during both planning and implementation phases. There are many examples online. In the planning phase, communities may be selecting vendors for surveys, marketing, engineering, and business planning, as well as selecting ISP partners. During implementation, there would be many selections of equipment vendors, contractors, and finance and marketing services.

In general, an RFP is a formal document that describes a project and desired services in detail to ensure a competitive bidding process. The RFP describes the necessary qualifications of prospective bidders, the overall project scope, specific work tasks, and required timelines. A bidder would describe their qualifications, previous relevant work experience, key staff dedicated to the project, hourly billing rates, and/or total price for the desired services.

The RFP would describe how projects would be evaluated and any scoring system. Once proposals are received, they are generally reviewed by an internal team, possibly assisted by an external advisory team, to independently score and evaluate the proposals. Cost may or may not be the most important scoring factor. Public entities are generally required to select the proposal with the highest score.

An RFI is a less formal process that public entities can use to select project partners. An RFI is generally used to promote an opportunity for various vendors to make themselves known to a public entity seeking services. An RFI describes the general opportunity, though not necessarily a specific and detailed work plan. Respondents describe their firms, relevant experience, and key staff. They also describe their approach to the work. RFIs generally do not include pricing. An RFI can be used to narrow the field of vendors under consideration.

There are also public-relations reasons to be mindful of how project partners are selected. In particular, the process used to select a broadband provider partner is critical to overcoming community and/or provider objections. Incumbent providers could use the absence of a transparent ISP partner selection process as a public-relations wedge to derail the public broadband project, no matter what the scope of public involvement.

What Are the Best Roles for the Public Sector in Broadband Infrastructure?

According to the U.S. Department of Homeland Security’s Federal Emergency Management Administration (FEMA), infrastructure “includes, at a minimum, the structures, facilities, and equipment for roads, highways and bridges; public transportation; dams, ports, harbors, and other maritime facilities; intercity passenger and freight railroads; freight and intermodal facilities; airports; water systems, including drinking water and wastewater systems; electrical transmission facilities and systems; utilities; broadband infrastructure; and buildings and real property; and structures, facilities, and equipment that generate, transport, and distribute energy including electric vehicle (EV) charging.” 

City, county, and state governments are often the primary infrastructure providers—roads, sewer and water systems, and airports and ports are prominent examples. Beyond these traditional infrastructures, the public sector is also quite adept in delivering electrical services. According to the American Public Power Association, one in seven Americans, representing more than 2,000 communities, are served by public power utilities, with lower rates and higher reliability than investor-owned utilities. According to Statista, there are more than 450 municipal electric utilities in the United States.

Existing municipal electric utilities are likely to diversify into broadband services for the following reasons:

  • They already deliver utility services to the entire community, often with an excellent track record.
  • They have existing back office, technical support, billing systems, utility poles, and trained technicians.
  • Fiber-optic and/or wireless networks are already used to connect substations and meters due to growing requirements for smart grid management and to monitor smart meters and connected electric devices, including electric cars and solar systems.
  • Electric utility policymakers recognize the community benefits of locally owned utilities.

The Institute for Local Self-Reliance calculates that there are approximately 450 community-owned networks in the United States. In addition, there are an additional 200 or more cooperatives offering broadband services, many of them delivering services across wide swaths of America, including both small communities and the rural countryside.