FCC_LSJ.pdf

Limited-Sources Justification

Post-Incentive Auction Broadcast Transition Consumer Education

The acquisition that is the subject of this limited-sources justification is conducted under the authority of the Multiple-Award Schedule (MAS) Program. 40 U.S.C. § 501. Limitation of sources is justified on the following facts, rationale, recommendations, and approvals pursuant to FAR 8.405-6(c).

1.0 Identification of the agency and the contracting activity, and specific identification of the document as a "Limited-Sources Justification."

This Limited-Source Justification (LSJ) was prepared by the Federal Communications Commission

(FCC), Office of the Managing Director, Administrative Operations, Enterprise Acquisition Center, located at 445 12th Street SW, Washington, DC 20554, with the assistance of FCC’s Incentive

Auction Task Force (IATF) and Office of Media Relations.

2.0 Nature and/or description of the action being approved.

This is a new requirement that will be awarded to Porter Novelli Public Services, Inc. (PNPS) under its GS-23F-0231N on the Professional Services Schedule pursuant to MAS program procedures. This document justifies the placement of work under a new order for one (1) base year, with two (2) six- month option periods of services. This work is necessary to execute the nationwide Strategic Consumer

Education Plan (Consumer Education Plan or Plan), which is currently under development, to increase public awareness of the post-Incentive Auction broadcast transition (Transition), and to inform over-the-air television viewers of the steps they must take to have uninterrupted access to local broadcast TV stations that have been assigned new broadcast frequencies as part of the Transition. The FCC’s consumer education initiatives are necessary to effectuate the Spectrum Act, Middle Class Tax Relief and Job

Creation Act of 2012, Pub. L. No. 112-96, §§ 6402, 6403, 125 Stat. 156 (2012) (the Spectrum Act), as modified and extended by the Reimbursement Expansion Act of 2018, Pub. L. 115-141, at Div. E, Title V, § 511, 132 Stat. 348 (2018) (codified at 47 U.S.C. § 1452) (the REA and, together with the Spectrum Act, the “Acts”). Among other things, the REA appropriated $50 million to the TV Broadcaster

Reimbursement Fund to be available to the Commission for the purpose of consumer education relating to the Transition. See 47 U.S.C. § 1452(j)(2)(A)(iv). The Transition is already underway and is affecting citizens in many markets nationwide. Therefore, it is imperative that the Commission’s consumer education efforts commence immediately.

a. Project title. Post-Incentive Auction Broadcast Transition Consumer Education.

b. Name and address of the proposed contractor(s).

Porter Novelli Public Services, Inc.

1615 L Street, N.W.

Suite 1150

Washington, DC 20036

3.0 A description of the supplies or services required to meet the agency’s needs (including its estimated value):

3.1 Background: The Acts

Congress authorized the FCC to conduct the Broadcast Incentive Auction as part of the Spectrum Act.

The Broadcast Incentive Auction was designed to repurpose a portion of spectrum currently used for over-the-air broadcast television broadcasting for use in the provision of wireless services. Now that the auction has concluded, nearly 1000 television broadcasters that will be remaining on the air are required to move to new broadcast frequencies to create contiguous blocks of clear spectrum in the 600 MHz band for the wireless carriers that purchased it in the auction. The reassignment of broadcasters to new frequencies is called “repacking” and is part of the post-auction Transition.

As part of the Spectrum Act, Congress established a $1.75 billion TV Broadcaster Relocation Fund

(Fund) to reimburse costs reasonably incurred by full power and Class A broadcast television stations that would be repacked after the auction. In addition, the Fund can be used to reimburse multichannel video programming distributors (MVPDs) for costs related to continuing to carry the signals of broadcast stations moving to a new frequency. Congress mandated that the FCC make all reimbursement payments within three years of the completion of the Incentive Auction. The Broadcast Incentive Auction closed on

April 13, 2017; therefore, all reimbursement payments were required to be made no later than April 13, 2020. Under the Original Incentive Auction Authorization, translators, low power television (LPTV), and

FM stations were not eligible for reimbursement from the Fund.

On March 23, 2018, Congress passed the REA as part of the 2018 Omnibus Spending Bill. The REA expanded the Spectrum Act by, among other things:

• Extending the deadline for the FCC to make reimbursement payments until July 3, 2023;

• Providing an additional $1 billion in funding for TV Broadcaster Relocation Fund and consumer education. Specifically, it:

o Increased the amount of money for Full Power & Class A Stations and MVPDs (i.e.

$1.75 billion funding increased to $2.5 billion);

o Allowed new industry segments to be reimbursed by the Fund:

▪ TV Translator & Low Power (LPTV)Stations;

▪ FM Radio Stations; and o Provided funds for consumer education ($50 million); and

• Requiring the FCC to complete a rulemaking by March 23, 2019, to implement the legislation.

In appropriating $50 million for the Commission’s consumer education efforts, Congress clearly recognized the importance of assuring that TV viewers receive uninterrupted service local and national news, emergency alerts, and other TV programming. In response to that concern, PNPS is currently creating a nationwide Consumer Education Plan pursuant to a separate procurement to develop a comprehensive effort to educate television viewers about the Transition and the need to rescan their over-the-air TVs. Execution of that Plan is one component of this critical mission, and given that consumers in many markets nationwide are already being affected by the Transition, it is essential that implementation of the Consumer Education Plan commence immediately.

3.2 The Requirement

The Transition and repacking process mandated by the Acts will impact over 17 million households, requiring viewers who receive channels over-the air via a rooftop or indoor antenna to rescan their televisions or converter boxes to continue to receive the local channels that move to new broadcast frequencies. Viewers may need to rescan their televisions and converter boxes multiple times over the Transition period.

Proactive consumer outreach is critical to executing an orderly Transition. When one or more of the local broadcast TV stations moves to a new frequency, consumers in that locality will need to rescan their television sets or converter boxes. Based on experience to date, without a comprehensive education campaign, consumers will be caught unaware of the change, have questions about how to perform the required rescan, or require additional information about antennas and reception on the new broadcast frequencies.

The goal of this contract to execute this Consumer Education Plan is to assure that consumers have immediate and uninterrupted access to local TV stations. Execution of the Plan needs to occur as soon as possible given that the Transition has already commenced in many markets nationwide.

The Consumer Education Plan considers audience segmentation and provides a variety of methods to reach the different audiences, including, for instance, minority, low-income, rural, people with disabilities, seniors, non-English-speaking households, millennials, Native American Tribes, cord-cutters, and consumers in large over-the-air markets. The FCC requires a contractor with direct and recent experience and professional expertise to execute the Plan.

• Requirement type.

❑ Research & development (R&D)

❑ R & D support services

X Support services (non-R&D)

❑ Supplies/equipment

❑ Information technology (IT)

❑ Construction

❑ Architect-engineer (A & E) services

❑ Design-build

❑ Other (specify): ____________________

• Type of action

X New requirement

❑ Follow-on

❑ Other (specify): ______________________

• Proposed contract/order type.

X Firm-fixed-price

❑ Other fixed-price (specify, e.g., fixed-price award-fee, fixed-price incentive-fee):

❑ Cost-plus-fixed-fee

❑ Other cost reimbursement (specify, e.g., cost-plus-award-fee, cost-plus-incentive-fee):

X Time and materials

❑ Indefinite delivery (specify whether indefinite quantity, definite quantity, or requirements): ___________

❑ Other (specify): ___________

Total estimated dollar value and performance/delivery period

Estimated Value: Base + Options = The independent cost estimate (IGCE) projects an estimated 2-years maximum potential value of $13.92 million.

• Base Period: 12 Months: January 25, 2019 – January 24, 2020;

Options: Plus Two (2) Six Month Option Periods

• Contract Total is: Two (2) years

4.0 The authority and supporting rational and, if applicable, a demonstration of the proposed contractor’s unique qualifications to provide the required supply or service:

The authority relied upon for limiting sources is FAR 8.405-6(a)(1)(i)(A) (“An urgent and compelling need exists, and following the procedures would result in unacceptable delays.”). The brief timelines created by the Acts and delays in the procurement and implementation of the contract for creation of the

Plan results in an urgent and compelling need to expeditiously execute the Plan. For the reasons explained below, conducting even a limited competition for a contract to execute the Consumer Education Plan is no longer feasible.

Congress passed the REA in late March 2018, leaving the Commission little time to develop and implement the statutorily-mandated consumer outreach before the testing period for Phase 1 of the

Transition began on September 14, 2018. The Commission decided to engage a public relations firm to create the Consumer Education Plan and conducted a competitive procurement for that contract in

September 2018. When no vendors responded to the RFP, the Commission proceeded with a sole-source award to PNPS. Delays associated with that competitive procurement and the subsequent implementation of the PNPS contract to develop the Plan mean that there is simply no time left to conduct a competition for a contract to execute the Plan and at the same time assure, as Congress directed, that the Commission make consumer education resources are available to TV viewers impacted by the first phases of the

Transition. Any further delay places viewers at risk of interrupted service and will impair the FCC’s ability to comply with statutory requirements.

The 10-phase broadcast Transition schedule has already commenced, and there is now a critical and immediate need to initiate intensive consumer education efforts in markets impacted by the Transition.

Phase 1 of the Transition was completed by November 30, 2018, and impacted approximately 100 markets. Consumers who receive over-the-air TV in those markets needed to “rescan” their television antennas or digital converter boxes in order to continue to receive stations that moved to new broadcast frequencies. The testing period for Phase 2 began on December 1, 2018, and will end on April 12, 2019.

Television viewers in these two phases are therefore already impacted, and if they are not informed about the need to rescan, may have lost or may lose their access to local stations.

The subsequent eight phases of the transition will follow sequentially, and more rapidly, with the final phase ending on July 3, 2020. During the 10 phases, nearly 1000 full power and Class A TV stations, and as many as 2164 low power TV and TV translator stations, will change their frequencies, requiring action by millions of consumers nationwide who watch television via over-the-air antennas. The Commission’s contractor must be able to immediately commence creative development of paid media announcements and other materials to assure consumer awareness throughout the Transition.

Absent immediate execution of the Consumer Education Plan envisioned by this contract, consumers could lose access to critical emergency alerts, local news, and other essential programming. Given that the Phase 1 cutover is has already occurred and Phase 2 has commenced, outreach to consumers in those phases must commence immediately in order to promote the public interest and public safety.

Significant consumer education and outreach is critical to ensure the success of the broadcast transition and the continued ability of TV viewers to have access to critical emergency alerts, local news, and other

TV programming. Viewers that rely on over-the-air television include a disproportionate number of seniors, rural residents, low-income households, and non-English-speaking viewers. Timely and proactive consumer education is essential to reach these populations. The dates of the transition phases are fixed, and viewers affected by each of the phases will not be able to receive affected local channels as of the date that each station cuts over to its new frequency. Given that the 10 phases are already underway, outreach tools to educate consumers on the actions they must take must be created immediately, and the dissemination of those tools over local broadcast and print media, digital and social media, and other channels must commence without delay to minimize the risk of confusion or disruption for consumers who rely on over-the-air television.

Delay will cause harm to consumers, and by making emergency alerts unavailable, that harm could be potentially life-threatening. Many over-the-air TV viewers, particularly senior citizens and viewers in rural areas, rely on broadcast television stations to provide vital information in the event of severe weather or other public safety emergencies. These vulnerable populations must be made aware of the

Transition of their local TV stations and be educated about how to rescan their TVs or digital converter boxes to ensure uninterrupted access to over-the-air stations.

5.0 A determination by the Contracting Officer that the order represents the best value consistent with FAR 8.404(d).

Per FAR 8.404(d), GSA has already determined the prices of supplies and fixed-price services, and rates for services offered to be fair and reasonable under its Schedule contracts. The Contracting Officer (CO) uses PNPS’s schedule as price comparison point, as well as other market information, such as catalogs, to assure pricing is competitive. The CO sought discounts from the vendor’s GSA schedule contract rates and prices to ensure that Government receives the best value. An independent government estimate

(IGCE) was prepared and compares favorably to the contractor’s proposed pricing. As more fully described below, PNPS is well qualified and best suited in these circumstances to conduct the implementation of the Plan based on both its prior directly relevant experience in reaching the types of localized populations at risk in the Transition, its substantial expertise in the outreach channels and materials needed in this effort, and the fact that it is developing the Plan on behalf of the Commission and will therefore be intimately familiar with the steps needed to execute that Plan and be able to commence that effort immediately.

6.0 A description of the market research (FAR Part 10) conducted among GSA schedule con tract holders and the results or a statement of the reason market research was not conducted.

The FCC conducted market research in preparation for the Consumer Education Plan procurement.

Commission staff expert in public relations and media outreach reviewed GSA schedule rates for qualified public relations firms, reviewed commercial benchmarks for media buy and associated costs, and used their industry knowledge and experience. While it would be possible, with sufficient additional time to compete the requirement to execute the Plan, given the time constraints imposed by the statute and subsequent procurement difficulties in related procurements, for the reasons presented below, PNPS is most suited (and perhaps uniquely suited) to satisfy the requirement under these time pressures and considering the limited lead and learning curve times available.

PNPS recently conducted a federal government education campaign which is materially similar to the

FCC’s needs. PNPS recently conducted a seven-wave nationwide integrated campaign to educate senior citizens about the new Medicare card for the Centers for Medicare and Medicaid Studies (CMS). The same community that is a high priority focus of the Consumer Education Plan. Through this campaign

PNPS’s developed proprietary strategies and expertise for educating hard-to-reach citizens on a phased, highly localized basis. PNPS developed materials, benchmark data, and federal media liaisons which are directly reusable for the FCC’s needs. PNPS also developed a database of highly localized distribution channels and known current media contacts that will eliminate the time that would otherwise be needed to create such resources. PNPS is therefore a proven source of access to this critical community. PNPS is also currently developing the Consumer Education Plan for the Commission, and it is therefore prepared to immediately commence implementation of that plan. As part of the development of the Plan, PNPS has piloted outreach campaigns. As a result, PNPS will be able to pivot immediately to implementation and to execute the consumer education initiatives set forth in the Plan. Rapid implementation of these strategies is necessary to comply with the consumer education requirements in the Acts.

PNPS’ corporate capabilities and past performance identified PNPS’ extensive experience working with federal agency partners to implement localized consumer education solutions on national public policy matters, including campaigns for the Federal Deposit Insurance Commission, Internal Revenue Service, and Department of Health and Human Services. PNPS is currently completing a successful national campaign to promote the new Medicare card for CMS. More broadly, PNPS has comprehensive knowledge of paid and earned media trends, leveraging online resources, and experience targeting hard-to-reach audiences.

PNPS has a proven record of conducting successful education campaigns on behalf of the federal government around complex issues, including the Medicare card project for CMS that is directly analogous to the Commission’s Consumer Education Plan and outreach program. PNPS has demonstrated an understanding of how to take a national issue like the Transition and tailor it to local markets. PNPS also has recent, highly-relevant experience targeting hard-to-reach audiences with a message about how the actions of a federal agency will impact them and explaining the steps that consumers must take. Its work on the campaign Medicare card, and the experience of relevant personnel who are now available to work on this procurement, demonstrate the skills needed to effectively implement the Consumer Education Plan.

Further, the FCC has analyzed the GSA rate tables submitted by PNPS as well as the firm’s capabilities. PNPS has demonstrated the necessary capabilities to perform the requirements and the firm’s rates are competitive and reasonable. An independent government estimate (IGCE) was prepared and compares favorably to the contractor’s proposed pricing.

7.0 Any other facts supporting the limited sources justification and/or any other facts supporting the use of other than full and open competition.

The time restraints of the Transition do not allow for complete and comprehensive specifications, plans, and statements of work, which may frustrate vendors. PNPS has demonstrated exceptional adaptability, expertise, longevity, past performance and capability to perform this public-facing requirement expeditiously and tactfully.

8.0 A statement of the actions, if any, the agency will take to remove or overcome any barriers that led to restricted consideration before any subsequent acquisition for supplies and services is made.

While this is a time-critical acquisition resulting from specific statutory requirements of the Acts, the requirement is non-recurring. Given the time left for onboarding, short time for complete