Broadcasters_Outrearch_-_Statement_of_Work.pdf

FEDERAL COMMUNICATIONS COMMISSION

STATEMENT OF WORK

Broadcaster Outreach Support

Broadcast Incentive Auction

1.0 BACKGROUND

The 2010 National Broadband Plan proposed a broadcast incentive auction as a voluntary, market-based means of repurposing broadcast spectrum by encouraging existing broadcast television licensees to voluntarily relinquish their spectrum usage rights in exchange for a share of the proceeds from an auction of new licenses to use the repurposed spectrum to provide mobile broadband services.

Congress, in passing the Middle Class Tax Relief and Job Creation Act of 2012

(“Spectrum Act”) in early 2012, authorized the FCC to conduct incentive auctions.1 In

October 2012, the FCC launched a proceeding to hold the world’s first Incentive Auction, of broadcast spectrum, implementing the Spectrum Act and acting on the vision first outlined in the National Broadband Plan. In May 2014, the Commission adopted rules to implement the Incentive Auction. These rules provide the essential framework for the

Incentive Auction.

The Incentive Auction will be a groundbreaking event for the broadcast television, mobile wireless, and technology sectors of the U.S. economy. This innovative and unprecedented process brings market forces to bear on many of the most important decisions about spectrum reallocation (e.g., how much spectrum and in what markets should spectrum be reallocated). The Incentive Auction proceeding is an important component of the Commission’s ongoing efforts to make additional licensed and unlicensed spectrum available for broadband. The spectrum reclaimed through the auction will promote economic growth; enhance America’s global competitiveness;

increase the speed, capacity and ubiquity of mobile broadband service; and accelerate the smartphone and tablet-led mobile revolution, benefitting consumers and businesses throughout the country.

The Incentive Auction will consist of a “reverse auction” and a “forward auction.”

Television licensees who voluntarily relinquish spectrum usage rights in the “reverse auction” will receive a share of the proceeds from the sale of repurposed spectrum to wireless users in the “forward auction.” For purposes of making available spectrum to carry out the forward auction, the Spectrum Act authorizes the Commission to reorganize

(“repack”) the television stations that elect to remain on the air.2

The Incentive Auction will present a significant financial opportunity for broadcasters who wish to relinquish spectrum rights. It is worth emphasizing, however, that broadcaster participation in the auction is wholly voluntary. Broadcasters that choose not to participate will continue providing the public with free over-the-air television service.

Should a broadcaster decide to participate in the Incentive Auction it will have the following options to choose among: (1) relinquish their spectrum rights and going off the air; (2) channel-share with another broadcaster; or (3) move to a lower spectrum band.

Middle Class Tax Relief and Job Creation Act of 2012, Pub. L. No. 112-96, §§ 6402, 6403, 125 Stat. 156

(2012) (“Spectrum Act”).

Id. § 6403(b)(1).

Extensive broadcaster education and outreach is an important component to making the

Incentive Auction a success. It should be noted that broadcaster participation in the

Incentive Auction must be kept confidential; therefore, sensitivity is necessary related to education and outreach opportunities and events

2.0 SCOPE

The FCC intends to select a contractor to assist the Commission with outreach to broadcast station owners to educate them about their options should they chose to participate in the Incentive Auction as well as about the auction process itself. The

Incentive Auction offers broadcast station owners unique financial opportunities to monetize the value of their spectrum usage rights. To assess these opportunities, broadcasters need to understand the background and operation of the Incentive Auction, which is a complex and novel undertaking; the options presented to broadcasters under the Incentive Auction, including channel sharing; and the valuation that could be attributed to the spectrum currently held by broadcasters if reallocated for mobile broadband use. This complex information must be presented clearly and comprehensively.

This Statement of Work (SOW) supports outreach and education for potential broadcast participants including the creation of outreach materials, specifically the creation of an

“Incentive Auction Opportunities Book” (“Book”) that explains the Incentive Auction and presents financial information related to the estimated value of the spectrum usage rights that broadcasters would tender in the auction. Additionally, the Contractor will provide advisory services. A limited amount of travel may be required by the Contractor to attend meetings at the FCC or with stakeholders.

Work performed by the contractor will utilize work already performed by or for the FCC, including the FCC’s estimated valuation of spectrum usage rights. In addition, presentations about channel sharing should include information from the Catalogue of

Potential Expenses and Estimated Cost produced by Widelity, Inc. (Widelity Report).

3.0 PERFORMANCE REQUIREMENTS

The contractor shall provide all labor, materials, and supervision to provide program management support described below to support the development, administration, and management of the outreach program. The contractor shall be responsible for supporting the management and administration of all services provided under this contract. The contractor shall perform the program management functions including the technical and business management functions that are necessary to execute the total effort required by this contract in compliance with the FCC’s Incentive Auction Report and Order; related policy documents; and the Spectrum Act and other related regulations. Contractor shall analyze the technical requirements of the SOW and propose a level of effort that will be necessary to meet the requirements.

Conflict of Interest

The awardee may not have previously advised broadcasters regarding the Incentive

Auction, and must agree not to advise, or seek to advise, broadcasters regarding the

Incentive Auction during or after the fulfillment of this acquisition.

Requirement 3.1: Creation of Outreach Materials (“Book”)

Support for the program shall be provided by a contractor with a comprehensive understanding of the complex policy objectives and implementation needs of the program. The contractor shall assign these tasks to personnel with extensive experience and backgrounds in the following areas: media and communications industry; financial analysis and asset valuation; business reorganizations, mergers, and other transactions involving companies valued above $1 billion dollars; advising of federal government agencies; outreach and education; and, specific expertise in communicating complex auction information to investors and other owners that results in an informed decision.

This support includes but is not limited to:

The contractor will be working with FCC personnel to develop the Book and related outreach materials to educate broadcasters regarding their potential participation in the Incentive Auction. The Book must include an overview of the

Incentive Auction, the bidding process, and a presentation of financial information related to the estimated value of the spectrum usage rights that broadcasters would tender in the auction. The Book and the related outreach materials will utilize financial and engineering analyses already performed by or for the FCC.

Contractor shall create materials that shall include a description of the entire process from the start of the application process, through the auction, and the post-auction transition process for each of the options as well as confidentiality protections. The FCC shall provide details of these processes for use in drafting the outreach materials.

The outreach materials shall include the following elements:

o A description of the options for participating in the Broadcast Incentive

Auction;

o Information to assist broadcasters in understanding the unique opportunity afforded by the Broadcast Incentive Auction, including the benefits of each option as applied to specific broadcasters;

o Financial information regarding the potential proceeds from the sale of broadcast spectrum usage rights in the “reverse auction”;

o Information about the auction process, with a focus on the reverse auction;

o Information tailored to educate public television stations, or other not-for-profit entities including non-commercial educational and religious broadcasting stations, that have different organizational goals and frameworks and may lack the same financial incentives as commercial broadcasters to participate in the Broadcast Incentive Auction; and o Details about the channel-sharing option, including details on the pilot project(s) that have been authorized by the Commission.

Requirement 3.2: Advisory Services

Support for the program shall be informed by a contractor with a comprehensive understanding of the complex policy objectives and implementation needs of the program. The contractor shall assign these tasks to personnel with extensive experience and backgrounds in the following areas: media and communications industry; financial analysis and asset valuation; business reorganizations, mergers, and other transactions involving media or communications companies valued above $1 billion dollars; advising of federal government agencies; specific expertise in communicating complex auction information to investors and other owners that results in an informed decision; and outreach and education. The Contractor shall provide advice to the Commission on how to most effectively to present the financial opportunities available to broadcasters through the Incentive Auction. Additionally, the Contractor shall provide advice on how to present options such as moving from UHF to VHF channels or from high VHF to low

VHF channels.

Requirement 3.3: Management Support

The contractor shall designate a program manager to coordinate the day-to-day activities and to act as the technical interface with the Contract Officer’s Representative

(COR). The contractor shall maintain “in-house” skills and/or subcontracting arrangements to ensure the availability of staff with the requisite experience, skills, and knowledge. The contractor shall be capable of ensuring that the following functional requirements, at a minimum, are satisfied throughout the life of the contract:

A technically proficient and professionally capable staff is established and maintained throughout the life of the contract;

Staff must work collectively and professionally with the FCC;

Staff must learn and maintain current knowledge of FCC’s business processes;

Personnel turnover is minimized and individuals are motivated to achieve excellent performance;

Track and monitor all deliverables;

Ensure quality of the products and services provided under this contract meets expectations and is continually monitored throughout the life of the contract;

Provisions are made to add and/or delete staff as required by assigned tasks.

Ongoing Project Management

The contractor shall designate a program manager to coordinate the day-to-day activities and to act as the technical interface with the Contract Officer’s Representative

(COR). The contractor shall maintain “in-house” skills and/or subcontracting arrangements to ensure the availability of staff with the requisite experience, skills, and knowledge. The contractor shall assign these tasks to personnel with experience in project management.

Biweekly Status Reports

The contractor shall submit a written biweekly (every 2 weeks) status report to the CO and the COR. The biweekly status report shall provide a summary of accomplishments and overall status of tasks including the advisory services provided by the contractor. All travel requests and travel must be documented. Status reports shall contain programmatic and financial information. Status reports shall be submitted via e-mail to the CO and the

COR. The format of status reports shall be approved by the COR and each report shall conform to the approved format.

4 DELIVERABLES

All products delivered under this contract must be approved by CO and COR and shall be issued as Incentive Auction Task Force, Media Bureau, Wireless Telecommunications

Bureau, or Commission products, as specified by the COR. All deliverables shall be delivered to and approved by the COR via email and one hard copy. A copy of each transmittal letter shall be forwarded to the Contracting Officer (“CO”) for inclusion in the contract file.

Written documents should be concise and clearly written. The contractor shall ensure accuracy, functionality, completeness, professional quality, and overall compliance with government guidelines and requirements of all deliverables. Where appropriate, the contractor shall maintain records of the documents for at least one year after completion of the contract, and these documents shall be made available as requested by the COR.

All deliverables developed for this project become the property of the Government, may be used by the Government without prior permission of the contractor, and shall not be used by the contractor for any other purposes. All broadcaster-specific information or documentation, with no exceptions, shall be treated as confidential and proprietary during and after the completion of work under this contract.

The deliverables shall be delivered on the dates specified. If for any reason a deliverable cannot be delivered within the scheduled time frame, the contractor shall immediately notify the CO and COR in writing with cause of delay and the proposed revised schedule.

This notice shall include the impact on the overall project.

Schedule of Deliverables

SOW Section Deliverable Due

3.1 Outreach Materials

“Book”

Detailed description of outreach materials to be created must be delivered within 14 days from the start of the contract. Drafts of final materials are due within 14 days of the acceptance of the detailed description by the

CO or COR.

3.2 Advisory Services Advisory services will not exceed 60 hours of contractor time from partners and/or senior associates.

3.3 Status Reports Bi-weekly