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FAQs
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Reconfiguration Costs
What is the licensee-required certification of minimum costs?
The FCC requires that licensees include with submitted cost estimates for PFAs and FRAs a signed certification that the costs represent the minimum necessary to realize comparable facilities. The FCC has clarified, however, that this requirement does not mean the “absolute lowest cost in all circumstances.” Rather, it means the minimum cost possible to accomplish rebanding in a manner that is reasonable, prudent and timely. While all system reconfigurations are unique, the cost estimate must take into account the overall goals of the program to complete rebanding in as timely and efficient manner as possible and to minimize the burden on public safety licensees and their ability to continue operations during rebanding. Licensees, additionally, are not required to use competitive bidding when selecting vendors for reconfiguration services or equipment.
How does the TA use published cost metrics from previously approved PFAs and FRAs in its review of cost estimates?
In general, estimated costs that are consistent with published cost metrics based upon previously approved agreements will be presumed to represent the minimum necessary to complete rebanding in a reasonable, prudent and timely manner. However, this presumption may be rebutted by Sprint Nextel, the TA or both. The TA has the discretion to seek additional information from a licensee to explain a cost element in its submission, even where the proposed costs are found consistent with cost metrics established by previous agreements. In such cases, licensees are required to provide supporting information that explains the need for the work proposed to be performed. The TA also may reject individual cost elements found to be unreasonable, even where the overall deal may be consistent with the benchmarks. Because each system reconfiguration is unique, historical cost metrics, while useful, are not sufficient in and of themselves for the TA to conclude that the estimated costs are the minimum necessary to complete rebanding in reasonable, prudent and timely manner.
Who will pay for the reconfiguration?
Sprint Nextel is responsible for the cost of relocating all affected 800 MHz incumbents to new spectrum with comparable technological and operational capabilities. The FCC has required Sprint Nextel to provide irrevocable letters of credit in the amount of $2.5 billion to ensure payment for the costs of reconfiguring the 800 MHz band. Sprint Nextel must provide additional funds if the costs of the reconfiguration process exceed $2.5 billion. If new treaties to address international border area reconfiguration have not been completed by the time the rest of the 800 MHz reconfiguration is completed, Sprint Nextel will also be required to make funds available for the subsequent reconfiguration of the border areas.
Will funding be available to licensees for hiring engineering and legal assistance in planning and executing system reconfigurations?
The FCC’s R&O provides for a funding mechanism by which Sprint Nextel will pay for the costs of reconfiguring licensee systems. Sprint Nextel will make direct payments to vendors who provide goods and services to licensees for their reconfigurations and associated planning activities as agreed to with licensees. Sprint Nextel will also make payments directly to licensees for costs incurred by licensee personnel in performing reconfiguration or planning activities and vendor costs paid directly by the licensee.
When can I submit a Request for Planning Funding or Cost Estimate?
The TA has established firm deadlines for the submittal of Requests for Planning Funding (RFPFs). The following deadlines
have been established:
Channels 1-120
Wave 3, Stage 1: May 15, 2006
Wave 4, Stage 1: August 14, 2006
NPSPAC
Wave 1, Stage 2: July 17, 2006
Wave 2, Stage 2: August 1, 2006
Wave 3, Stage 2: November 1, 2006
Wave 4, Stage 2: February 1, 2007
Any Wave 4, Stage 1 licensee receiving a Frequency Proposal Report (FPR) on or after August 1, 2006 that needs to request planning funding will have 45 calendar days from the date of the earliest FPR cover letter received to submit the RFPF. The deadline will be noted in the FPR cover letter.
All licensees submitting RFPFs after June 19, 2006 must use RFPF version 2.6.
Cost Estimates for reimbursement of actual system reconfiguration costs should not be submitted until a licensee's voluntary negotiation start date. The TA expects that there will be exceptional situations requiring early review. Valid reasons may include reconfiguration of large and complex systems, systems spanning more than one stage/wave and systems involving multiple organizations. If the licensee and Sprint Nextel jointly agree to submit a contract prior to the defined start date, the TA will agree to review such contracts early.
Can the 800 MHz Transition Administrator recommend to licensees the names of consulting firms, radio frequency experts, or reconfiguration software packages?
The TA does not offer endorsements of individual reconfiguration experts, consultants or software packages. Licensees are free to make their own decisions concerning what individuals, agencies, or software they use for assistance with their reconfiguration efforts; provided that the vendors and service providers they select are qualified to perform the reconfiguration tasks for which they are hired.
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