Request
for Information: Market Research for Implementation
of the Digital-to-Analog Converter Box Coupon Program
Question
and Answers
Acquisition Process and Pre-award
Activities
Question: The "Request
for Information - Market Research for Implementation
of Digital-to-Analog Converter Box Coupon Program"
was issued by the Acquisition and Grants Office
of NOAA. Are we correct in assuming that NOAA
will be conducting the Coupon Program procurement
on behalf of the NTIA? Is it contemplated that
NOAA will also administer any contract(s) resulting
from the procurement?
Answer: NOAA will be
administering the procurement on behalf of NTIA. In
addition, NOAA will handle Contract Officer responsibilities
for any contracts resulting from the procurement,
while NTIA will have contract officer technical
representative responsibilities for contracts.
Question: Please
explain what action NTIA will take on this RFI.
Answer: NTIA plans
to use the information submitted in response
to this RFI to develop a request for proposals
(RFP) from vendors interested in assisting DoC
with the implementation and administration of
the Digital-to-Analog Converter Box Coupon Program. The
RFI gives industry an opportunity to comment
on the proposed procurement, identify potential
problem areas, and suggest alternative recommendations
on how best to administer the program.
Question: Where
can one find a listing of the attendees of the
meeting?
Answer: DoC has
emailed these Q&As and a participant’s
list to all the attendees.
Question: Will
all questions and answers related to the RFI
be made available to the public and where can
they be found?
Answer: All Q&As
related to the RFI will be posted as an attachment
to the FedBizOpps announcement for this RFI as
well as on the NTIA web site.
Question: Will
all RFI responses be made public?
What if the responder wishes to provide proprietary
solutions in order to help the NTIA?
Answer: DoC will
use the responses from the RFI to craft the RFP. Although
DoC does not plan to publicly post responses
to the RFI, any information submitted is not
considered proprietary and is subject to FOIA
(Freedom of Information Act) inquiries.
Question: When does NTIA
anticipate issuing the RFP(s) that will award
work related to this program?
Answer: The Department
of Commerce (DoC) anticipates issuing the RFP
in early 2007, and plans to award to contract(s)
by July 2007.
Question: When should
the vendor expect to begin project planning and
preparation activity?
Answer: The issuance
of an award by July 2007 will provide the winning
vendor(s) with six months to establish systems
necessary to accept coupon applications from
the public in January 2008 as required by the
legislation.
Question: Can any contractor
bid for this contract or do potential bidders
have to be pre-approved government contractors?
What are the requirements, if any, to bid on
this contract? Must a contractor satisfy all
Commerce Department government contractor requirements
in order to bid on the NTIA project?
Answer: DoC has not defined
the requirements for this acquisition. The intent
of this RFI is to seek information from the vendor
community that will shape our acquisition strategy
and the request for proposals. We encourage input
from interested vendors. In order
to be awarded a contract under this procurement,
any potential vendor must register their company
with the Federal Government’s Central Contractor
Registration website (www.ccr.gov).
Question: Do NOAA
and the NTIA contemplate conducting the anticipated
Coupon Program procurement as a "full-and-open"
competition, or do NOAA and the NTIA expect to
create a "short list"
of potential service providers, from respondents
to the RFI, to be used in a subsequent limited
competition for the Coupon Program services?
Answer: As mentioned
in our response to a previous question, DoC has
not defined the requirements for this acquisition.
DoC, however, has not planned for a down-select
process to pre-qualify vendors. The intent
of this RFI is to seek information from the vendor
community that will shape our acquisition strategy
and the request for proposals. We encourage input
from interested vendors.
Question: Could
this be a single source RFI without an RFP?
Answer: The RFI
does not constitute a request for proposals. If
DoC goes forward with this procurement effort,
an RFP will be issued.
Question: Will
DoC award the full $100 million authorized in
the Act for contracts to administer the Coupon
Program?
Answer: DoC will
not award the full $100 million as contracts. DoC
will use a portion of this figure to administer
the contract(s) and conduct other inherently
governmental functions related to this program.
Question: To the
extent NTIA chooses not to award a contract
for end to end execution of the Coupon Program,
will it award a contract for overall program
management to one firm that will manage and
coordinate the activities of multiple Contractors?
Answer: To the extent
feasible as determined by feedback from the
RFI, DoC will award one contract for program
management and all or most major functions
under the program. DoC will encourage vendors
to partner and provide us with one solution.
DoC, however, is amenable to awarding a separate
contract for major functions such as the
public education campaign.
Question: Will the
NTIA require, as part of proposal evaluation,
past performance references which demonstrate
the offeror's ability to deliver the services
outlined by the draft SOW and NPRM, or is
the NTIA limiting their consideration to
the successful integration of COTS solutions?
Answer: As mentioned
in our response to a previous question, DoC
has not defined the requirements for this
acquisition. The
"Draft Statement of Requirements" is
intended to provide vendors with an understanding
of the program that will assist in responding
to the RFI. The RFI seeks information from
the vendor community that will shape our
acquisition strategy and the request for
proposals. We encourage input from interested
vendors.
Coupon Program Management
and Contractor Role
Question: Who will
perform the general contractor role, coordinating
efforts of the manufacturer(s), the retailer(s)
and the vendor for the RFP? The NTIA? Another
vendor? The vendor for the RFP?
Answer: DoC plans
to seek assistance through one or more contracts
to implement and administer the Coupon Program.
DoC will generate task assignments and monitor
performance pursuant to the contract. As
stated in the RFI, we would prefer an end
to end integrator who can coordinate all
aspects of the program: coupon distribution,
coupon redemption, retailer certification,
and consumer education. We realize that these
are very different tasks, so it may be necessary
for organizations to form teams to bid on
the project. As stated in the RFI, a company
may respond by providing information on only
one or more elements of the program if they
believe that they can make a contribution
in that area.
Question: In
preparing the draft Statement of Work (SOW)
and the Notice of Proposed Rulemaking (NPRM)
for the Coupon Program, did the NTIA pattern
their proposed approach after one or more
existing
"coupon models" currently in operation
in the retail industry? For example, does
the NTIA contemplate that a Converter Box
Coupon will be processed and function in
a manner similar to grocery store style coupons
published in magazines and newspaper inserts?
Please note that the model selected may have
considerable implications on waste, fraud,
and abuse concerns expressed throughout both
documents.
Answer: DoC has not
proposed an approach to administering the
Coupon Program. Through the RFI and the NPRM
we are seeking input from the public on how
best to implement this program within the
framework established by Digital Television
Transition and Public Safety Act of 2005.
The Act stipulates many aspects of the coupon
program’s operation. For example,
consumers must request coupon, and the coupons
must be delivered to consumers via the U.S.
mail.
NTIA is aware that the model
selected will have significant implications
on the extent of waste, fraud, and abuse.
We are using both the rulemaking process
and the RFI process to explore different
models and their costs versus the level of
protection they offer.
Question: Based
on the response to the previous question,
how does the NTIA plan to validate or test
the model contemplated for the Coupon Program?
Answer: Based on
the input we receive from responses to the
NPRM and RFI as well as the program's funding
limits, DoC will award contract(s) that provide
the best solution in meeting the legislative
objectives and complying with program rules.
We anticipate trials and tests of the coupon
program before full rollout. Such validation
and testing should be included in proposals.
Question: Refer to
the following from the "Draft Statement
of Requirements":
Coupon
Distribution
*
Design the coupon and related materials such
as instructions for redeeming coupons and
description of eligible boxes for mailing
to eligible households.
Does the NTIA contemplate
that the successful contractor will be able
to control the design of the coupon - so
as to ensure that the distributed instrument
can be effectively processed through the
implemented solution?
Answer: DOC has not
defined the requirements for this acquisition.
The intent of this RFI is to seek information
from the vendor community on many aspects
of the coupon program.
Question: The
NPRM proposes that manufacturers self-certify
that set top boxes meet proposed NTIA standards.
The RFI does not address any activities relating
to manufacturer certification of set top
boxes. Is that outside the scope of the anticipated
RFPs? Will the program audit function include
audits of manufacturer certification process
and/or results?
Answer: Manufacturer
certification is outside the scope of the
RFI. DoC is seeking comments on this issue
through the July 25 NPRM. DoC anticipates
NTIA staff will handle the review and audit
function related to this area of the program.
Question: Would
the contractor be expected to identify and
address the special needs/disabled community
as it pertains to distribution of the converter
boxes?
Answer: The contractor
will be expected to meet accessibility requirements
with respect to the disabled community's
ability to apply for and receive coupons. This
program, however, will not "distribute
boxes" to participants. Consumer
participants will apply coupons toward the
purchase of boxes from participating retailers.
Question: Can
an electronics retailer also administer the
Coupon Program?
Answer: Contract
law does not prohibit this scenario, but
the vendor would need to ensure that this
scenario does result in a conflict of interest
or disadvantage to other participating retailers.
Question: Does
all of the work performed under this contract
need to be performed on U.S. soil?
Answer: Contract
law does not restrict the performance of
service contracts to U.S. workers and companies. If
a vendor is considering the performance of
activities under this program through foreign
workers or companies, we encourage them to
respond to this RFI with an explanation of
the advantages of foreign sourcing certain
tasks.
Question: Is
end of FY2009 (September 30, 2009?) a hard
date for cessation of all program activities
to be managed by Contract, including complaint
processes for retailers denied reimbursement
or program close-out activities?
Answer: The Act authorizes
NTIA to make payments only through the end
FY 2009, and DoC will expect all contract
activities and program closeout to be completed
by September 30, 2009.
Coupon Program
Rules and Authority
Question: When does
NTIA anticipate adopting program rules pursuant
to the Notice of Proposed Rulemaking (NPRM)?
Answer: NTIA anticipates
adopting program rules in early 2007 to coincide
with the issuance of the RFP.
Question: Will the
number of retailers charged with distribution
of the converter boxes be limited? If so,
how many retailers will be selected? Will
any be small - local or regional retailers?
Answer: The Act does
not direct NTIA to "charge"
any retailers with distribution of the boxes.
The NPRM addresses retailer participation
in the program. The NPRM proposes to make
retailer participation voluntary, and does
not propose to require any retailer to carry
these boxes. The NPRM also does not propose
to limit the number or size of retailers
who can participate.
Once the Department publishes
the program's final rules, retailers may
need to meet certain eligibility requirements
in order for the Federal Government to provide
reimbursement for coupons redeemed by the
public.
For the program to succeed
it must be easy for consumers to purchase
the boxes. So, it is desirable that the boxes
be widely available. For the boxes to be
widely available, the coupon process should
not unduly burden retailers or otherwise
discourage them from participating.
As you will note, the language
in the Act does not mention retailers. The
accompanying report language, however, expresses
an expectation that NTIA provide for the
certification, education and auditing of
retailers involved in the program. We expect
the NPRM to generate a great deal of comment
from retailers and their representative organizations
on the best way to certify, educate, and
audit participating retailers. NTIA will
consider these comments in creating guidelines
for retailer participation and also to develop
ways to discourage fraudulent retail practices.
Question: Has the
manufacturer(s) of the converter box been
selected? If so, what company is it?
Answer: DoC has not
been directed to select a manufacturer of
the converter box. No company will be required
to produce the boxes. We will not be
selecting manufacturers or brands. Several
consumer electronics companies have proto-type
boxes. Through the rulemaking, DoC
will determine certain standards for a minimum-capabilities
converter box that will be eligible for purchase
with a coupon. The DoC is seeking public
comments on the standards through the July
25 NPRM.
The rulemaking will define
the legislative language which says
"..the term 'digital-to-analog converter
box' means a stand-alone device that does not
contain features or functions except those
necessary to enable a consumer to convert any
channel broadcast in the digital television
service into a format that the consumer can
display on television receivers designed to
receive and display signals only in the analog
television service, but may also include a
remote control device."
Manufacturers will not be required
to produce boxes that meet standards established
by NTIA. However, the NPRM proposes that the
coupons can only be used to purchase eligible
boxes that meet defined standards. Once the standards
are defined and the rules finalized, consumers,
manufacturers, and retailers will be advised
on the converter boxes that meet the standards
and are eligible for the coupon program.
Question: Is there
information available on the likely number, demographic
make up, and geographic distribution of the converter
box program participants.
Answer: The GAO
Reports referenced as attachments to the Request
for Information provide a great deal of background
information that assisted in the development
of the legislation and the NPRM. Please
refer to the February 17, 2005 report on the
profile of potential participants.
Question: How many
households are you anticipating supporting?
Answer: The legislation
authorizes DoC to issue up to 22 million coupons,
and possibly 37 million coupons with additional
approval from Congress. The number of household
will depend on whether consumers request one
or two coupons.
Question: Do you envision
that the $40 coupon will cover the full cost
of the converter box?
Answer: Based on the
information we received from industry and earlier
GAO Reports, the converter box will likely exceed
the $40 value of the coupon. We expect
consumers will have to contribute toward the
cost of a converter box. Industry
estimates range from $50 to $100 per box.
Question: What are
specific transactional roles of the retailers
in the process? (assumption is they will
collect the coupons and then bill back the government
based on the number of units they redeem).
Answer: DoC is
seeking comments through the July 25 NPRM on
the participation of retailers in the process. The
NPRM proposes that participating retailers will
be reimbursed for valid coupons that are tendered
by consumers.
Question: Will
retailers be expected to buy the devices wholesale from
suppliers and hold in inventory as they
would any of their regular products, or
would they merely distribute the devices on behalf
of the government with some straight transactional
fee? (noting that shifting of stock based on
demand geographically or between retailers may
be necessary)
Answer: We expect
that retailers will handle the converter boxes
in same manner they handle their inventory for
any other product. The Federal Government
will not play a role in the supply or distribution
of the converter box.
Question: We understand
the requirement to apply for and receive the
coupon via U.S. mail. Are there any
restrictions on the redemption of coupons and
delivery of converter boxes (i.e., Can one redeem
by mail?/Can converter boxes be shipped?)
Answer: The legislation
restricts only the receipt of the coupon via
U.S. mail. We envision that the contractor
will develop several methods—mail, electronic,
and call center—for consumers to apply
for coupons. The Federal Government will
not play a role in the distribution and selling
of the converter boxes.
Question: Is there
a limit on the number of retailers (chains and
individual outlets) that can be certified?
Answer: DoC does
not plan to limit retailer participation in this
program.
Question: MSTV
announced last year that LG and Thomson
will supply the STB (set top box) to MSTV. Does
MSTV as well as LG and Thomson have
some priority in supplying STB or one of vendor?
Answer: As stated
previously, the Federal Government will not play
a role in the supply of converter boxes.
Question: What
manufacturers are currently working on a converter
box or have any in production?
Answer: Several
companies such as LG and Zoran have developed
prototypes of a converter box. We are not
aware of any converter boxes currently in production.
Question:
NPRM proposes that manufacturers self-certify
that STB meet proposed NTIA standard. NTIA
standard has almost basic features that receive
DTV signal and convert to Analog signal. If
our company make STB with extra features like
HDD integrated DTV STB, can consumer buy
this high level STB with the coupon distributed?
Answer: The
Act stipulates restrictions on the capabilities
of converter boxes eligible for coupon redemption. DoC
is seeking comments on converter box standards
through the NPRM process.
Question: Will
a converter box work for more than one television
set?
Answer: A
set-top box only will convert digital signals
to analog for a single television set.
Consumer Education Campaign
Question: What level
of involvement is anticipated for facilitating
participation of interested stakeholders in the
consumer-education process? Provide examples
of activities.
Answer: Consumer education
is one of the biggest challenges in this program
and one that we are especially looking for solutions
based on the public affairs and promotion expertise
of a potential vendor. As noted in the RFI, the
legislation limits spending on consumer education
to $5 million, a relatively modest amount for
a national campaign. Of course, we also expect
that as the date approaches the broadcasters,
the consumer electronics industry, consumer groups,
and others with an interest in the transition
will be more active in promoting the transition.
In the NPRM, we are also seeking public comment
on what roles the various stakeholders will play
in educating consumers about the Digital-to-Analog
converter box program as well as the most effective
means to provide consumer education.
Question: Can part of
the $100 million administration budget be used
for creating public/consumer awareness of coupon
availability other than would be deemed consumer
education under the $5 million cap for such effort,
providing there will be excess funds in the administration
budget?
Answer: The legislation
clearly places a $5 million limit on consumer
education related to the "digital television
transition and the availability of the digital-to-analog
converter box program." |