November 14, 2024
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1 min read
Louisiana's approach to implementing BEAD offers valuable lessons for other states trying to save BEAD and get their funding deployed to their communities in need. Through careful program design and innovative implementation strategies, ConnectLA has achieved remarkable results while maintaining cost efficiency and promoting competition.
At the heart of their success was a bidding structure that leveraged behavioral economics to drive down costs. By creating a two-round process where almost no awards were made in the first round, providers had to knuckle down and reduce costs by approximately 20% in the second round. This approach, combined with small project areas averaging 75 locations each, allowed providers to build flexible applications that included combinations of project areas that made fiscal sense while also ensuring comprehensive coverage.
ConnectLA’s administrative approach aimed to minimize bureaucracy by prioritizing efficiency. They did this by streamlining the early stages of the application process without sacrificing accountability in the final stages. Rather than requiring extensive documentation upfront, they allowed applicants to qualify with minimal initial requirements, only requiring full documentation from winning bidders. This reduced barriers to entry while maintaining program integrity.
The office also made several elements of the program clear up-front to incentivize participation and competition – allowing consortiums to apply together but receive separate award agreements, published benchmark funding amounts per project area and using fixed subawards with front-loaded payments to help smaller providers manage cash flow.
The results speak volumes: 95% of locations will receive fiber-to-the-home service, with local providers winning approximately 75% of the funding despite no in-state preference. The entire process from initial bidding to preliminary awards took just six weeks, demonstrating that efficiency and thoroughness aren't mutually exclusive.
Perhaps most tellingly, the competitive nature of the process was so robust that even winning bidders expressed disappointment at not winning more areas – a fact that the ConnectLA office says reflects the impartiality and competitive nature of their program. This healthy competition helped ConnectLA achieve their coverage goals while maintaining cost discipline, with prices generally tracking CostQuest estimates until reaching the most topographically challenging and isolated locations.
For states currently designing their BEAD implementation strategies, Louisiana's experience suggests focusing on creating flexible, provider-friendly processes while maintaining strong competitive pressure. By combining streamlined administration with smart program design, states can achieve both universal coverage and cost efficiency in their broadband deployment efforts.