PWSCIF NOFO 2 AMENDED DUE DATE.docx

PWSCIF NOFO 2 – Open Radio Commercialization and Innovation

NOTICE OF FUNDING OPPORTUNITY

Public Wireless Supply Chain Innovation Fund (PWSCIF) Grant Program NOFO 2 – Open Radio Commercialization and Innovation

EXECUTIVE SUMMARY

A. Federal Agency Name

National Telecommunications and Information Administration (NTIA), U.S. Department of Commerce

B. Funding Opportunity Title

Public Wireless Supply Chain Innovation Fund Grant Program - Open Radio Commercialization and Innovation

C. Announcement Type

Amended

D. Funding Opportunity Number

NTIA-PWSCIF-24-01

E. Assistance Listing (CFDA Number)

11.038 – Public Wireless Supply Chain Innovation Fund

F. Key Dates

Complete applications must be submitted through Grants.gov no later than 11:59 p.m. Eastern Daylight Time (EDT) on July 17, 2024.

NTIA expects to make awards on a rolling basis.

G. Application Submission Address

Complete application packets must be submitted electronically through the Grants.gov website. Application packages or portions thereof submitted through postal mail, courier, email, facsimile, or other means will not be accepted. See Section 4 of this NOFO for detailed information concerning application submission requirements.

H. Funding Opportunity Description

This NOFO is the second in a series that NTIA will issue and administer under the Public Wireless Supply Chain Innovation Fund (Innovation Fund). This NOFO is divided into two topic areas: open radio unit (RU) commercialization and open RU innovation. Throughout this document, open RU commercialization is referred to as “specific research focus area 1” (SRFA 1) and open RU innovation is referred to as “specific research focus area 2” (SRFA 2). A brief description of each SRFA is below:

· SRFA 1: Accelerating the development of open RU products to the point where they meet carrier needs and are ready for commercial trials; and

· SRFA 2: Improving the overall performance and capabilities of open RUs through targeted research and development.

Applications in response to this NOFO must address either SRFA 1 or SRFA 2. A single application cannot address both SRFAs. If an application is submitted addressing both SRFAs, it will be rejected. Applicants interested in applying for both SRFAs must submit a separate application for each SRFA. Applicants may only include one project per application, regardless of SRFA. Individual submissions containing multiple proposed projects will be rejected. Each applicant may submit a maximum of one SRFA 1 application and three SRFA 2 applications. Each SRFA 2 application must address at least one, and may address more than one, topic area listed in Section 3.3.1.

I. Funding Instrument

Grant

J. Eligibility

Eligibility varies for each SRFA. SRFA 1 eligibility is found in Section 2.2.1 and SRFA 2 eligibility is found in Section 3.2.1.

Additional eligibility requirements applicable to both SRFAs can be found in Section 6.1.

K. Anticipated Amounts

NTIA will award up to $420,000,000 under this NOFO. The amount of funding NTIA expects to award per project differs by SRFA, as follows:

· SRFA 1: NTIA expects to award $25,000,000-$45,000,000 per project.

· SRFA 2: NTIA expects to award $5,000,000-$10,000,000 per project.

L. Cost Sharing/Matching

There is a 10% minimum cost share requirement for SRFA 1. SRFA 1 applicants who provide a cost share of 16% or more will receive favorable weighting of their application during Programmatic Review. See Section 2.2.3 and Section 5.1.3 of this NOFO for more information.

SRFA 2 applicants are not required to provide a cost share. See Section 3.2.3 of this NOFO for more information.

TABLE OF CONTENTS

– Overview

The National Telecommunications and Information Administration (NTIA) issues this Notice of Funding Opportunity (NOFO) to describe the requirements under which it will continue awarding grants in connection with the Public Wireless Supply Chain Innovation Fund (Innovation Fund).

PROGRAM AUTHORITY

The Innovation Fund is authorized by Section 9202(a)(1) of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021, Pub. L. No. 116-283, 134 Stat. 3388 (Jan. 1, 2021) (FY21 NDAA), codified at 47 U.S.C. § 906(a)(1).

The Innovation Fund is appropriated by Div. A, Section 106 of the CHIPS and Science Act of 2022, Pub. L. No. 117-167, 136 Stat. 1392 (Aug. 9, 2022).

PROGRAM OVERVIEW

The Innovation Fund aims to foster competition and innovation across the global telecommunications ecosystem, lower costs for consumers and network operators, and strengthen the 5G and successor wireless technology supply chains. The program’s objectives include unlocking opportunities for innovative companies, particularly small and medium enterprises, to compete in a market historically dominated by a few suppliers, some of which present a high security risk.

Open and interoperable wireless networks offer numerous benefits over traditional, closed networks that will lower the barriers of entry for new and emerging companies. Using open and interoperable wireless networks allows operators to procure the best solutions for their specific needs by mixing and matching network components, rather than procuring proprietary end-to- end solutions from a single supplier. Open and interoperable networks may also reduce costs for consumers and network operators by increasing competition between 5G and successor radio access network suppliers, leading to rapid innovation and/or potentially lowering capital expenditures and operating expenses. This increased competition will also drive innovation, leading to the development of new and improved radio access network (RAN) features. Ultimately, the increase in competition spurred by the shift to open networks will bolster resilience in the global telecommunications equipment market and enhance 5G and successor wireless technology supply chain security.

Pursuant to the FY21 NDAA, the Innovation Fund facilitates the adoption of open and interoperable wireless networks through the following statutory objectives:[footnoteRef:2] [2: This list of statutory objectives has been abridged for clarity. The verbatim list of statutory objectives can be found at 47 U.S.C. § 906(a)(1)(C).]

i. Promoting and deploying technology, including software, hardware, and microprocessing technology, that will enhance competitiveness in 5G and successor wireless technology supply chains that use open and interoperable interface radio access networks (RAN).

ii. Accelerating commercial deployments of open interface standards-based compatible, interoperable equipment.

iii. Promoting and deploying compatibility of new 5G equipment with future open standards-based, interoperable equipment.

iv. Managing integration of multi-vendor network environments.

v. Identifying objective criteria to define equipment as compliant with open standards for multi-vendor network equipment interoperability.

vi. Promoting and deploying security features enhancing the integrity and availability of equipment in multi-vendor networks.

vii. Promoting and deploying network function virtualization to facilitate multi-vendor interoperability and a more diverse vendor market.

The CHIPS and Science Act of 2022 provided critical appropriations for the Innovation Fund, investing $1.5 billion in the program.

The program’s first NOFO focused on expanding testing and evaluation (T&E) activities and developing new and improved testing methods to advance the interoperability, performance, and security of these networks.[footnoteRef:3] This second NOFO builds upon that critical work by investing in the technological development and commercial deployment of open radio units (RUs) – a core RAN component making up the largest part of a carrier network in terms of capital expenditures (CAPEX). This next NOFO marks a key step in advancing the adoption of open and interoperable wireless networks in line with Innovation Fund Program goals, as detailed in the FY21 NDAA. [3: NTIA, Notice of Funding Opportunity, Public Wireless Supply Chain Innovation Fund Grant Program – Expanding Testing and Evaluation (April 12, 2023)]

FUNDING OPPORTUNITY OVERVIEW

NTIA will support two specific research focus areas (SRFAs) under this NOFO:

SRFA 1 – Open RU Commercialization: Accelerate the development of open RU products to the point where they meet carrier needs and are ready for commercial trials.

SRFA 2 – Open RU Innovation: Improve the overall performance and capabilities of open RUs through targeted research and development.

These activities aim to address the complex technical and market challenges hindering open and interoperable network adoption to better facilitate commercialization. Like NTIA’s first funding opportunity, this NOFO is responsive to feedback received during NTIA’s listening session[footnoteRef:4] and the Request for Comment (RFC)[footnoteRef:5] period, as well as via ongoing market analysis. NTIA plans to publish additional NOFOs that build upon this work, insights from future engagement sessions, and learnings from NTIA’s forthcoming Innovation Fund Advisory Committee.[footnoteRef:6] [4: A video recording of NTIA’s listening session is available on the NTIA.Gov YouTube channel.] [5: See 87 Fed. Reg. 76182, Public Wireless Supply Chain Innovation Fund Implementation Notice and Request for Comment (December 13, 2022); RFC responses are available on the NTIA website.] [6: See 47 U.S.C. § 906(a)(1)(F). NTIA is required to establish a federal advisory committee to help inform (i) the strategic direction of the Innovation Fund, and (ii) efforts of the Federal Government to promote a more secure, diverse, sustainable, and competitive supply chain. Creation of the advisory committee is forthcoming as of the publication date of this NOFO.]

NOFO Structure

This NOFO is organized as follows:

Section 1 (Overview) provides an overview of the Innovation Fund and the focus of this NOFO: open RU commercialization and innovation. It then provides background information as to how this NOFO meets the statutory objectives of the Innovation Fund.

Section 2 (Specific Research Focus Area 1 – Open RU Commercialization) provides the specific objectives and eligibility, technical scope, and application requirements for SRFA 1.

Section 3 (Specific Research Focus Area 2 – Open RU Innovation) provides the specific objectives and eligibility, technical scope, and application requirements for SRFA 2.

Section 4 (Application and Submission Information) explains the application submission process that all applicants must follow and information that they must provide in their application package, regardless of SRFA. This includes application format, instructions for electronic filing, the revision process, and other submission requirements.

Section 5 (Application Review Process) explains each step of application review: Initial, Merit, Programmatic, and Selecting Official Approval. It also includes projected dates for awards and information on the applicant notification process.

Section 6 (General Requirements, Prohibitions, and Other Information) offers information related to ineligible entities, allowable costs, intellectual property, awarding agency contact information, and other information. NOTE: The requirements and prohibitions in this section apply to ALL submitted applications, regardless of SRFA.

NOFO Background

This NOFO aims to advance open RU commercialization (SRFA 1) and innovation (SRFA 2). The RU is the largest part of the carrier network and can prove an easy entry point to the network, offering a low-risk deployment option to Mobile Network Operators (MNOs) interested in Open RAN. Investing in the commercialization and innovation of these components in the Innovation Fund’s second funding opportunity can spur MNO adoption of open RUs during upcoming equipment buying cycles, generating momentum toward greater MNO adoption of Open RAN. The transition to open and interoperable wireless networks becomes a more feasible and attractive proposition when there is broad deployment of open RUs that meet or exceed MNO requirements, and components are available from suppliers at scale. However, the production, testing, and deployment of market-ready open RUs requires close collaboration between MNOs and RU suppliers. For this reason, SRFA 1 requires that RU suppliers partner with MNOs on commercialization projects.

Advancing open RU commercialization and innovation will also help achieve the following statutory objectives of the Innovation Fund:

· Enhance Market Competitiveness: SRFA 1 aims to accelerate MNO adoption of open RUs, which will help break vendor lock-in and create opportunities for new market entrants. Open RU innovation under SRFA 2 will improve the competitiveness of future commercial products.

· Accelerate Commercial Deployments: SRFA 1 applicants must demonstrate a plan to commercialize and scale their open RUs.

· Promote Forward Compatibility of Equipment: Open RUs developed under this NOFO will be compatible with MNO 5G equipment. Open RU innovation (SRFA 2) will help improve interoperability of future commercial products.

· Manage Network Integration: Successful SRFA 1 projects will address network integration.

· Enhance Security: SRFA 1 applicants must incorporate certain security specifications and tests when developing their open RU products.

· Promote Network Virtualization: SRFA 2 aims to advance software defined radio technology, among other innovations, to virtualize open RU functionality.

NTIA’s Innovation Fund RFC highlighted the need to invest in the open RU, specifically, to help advance adoption and address technical and market challenges inhibiting commercial deployments.[footnoteRef:7] Moreover, over 80 percent of companies that responded highlighted Open RAN integration and performance parity as key challenges hindering carrier adoption, while from a market perspective, over 85 percent of companies noted that uncertainty related to the total cost of ownership (TCO) inhibits carrier adoption. [7: See 87 Fed. Reg. 76182, Public Wireless Supply Chain Innovation Fund Implementation Notice and Request for Comment (December 13, 2022); RFC responses are available on the NTIA website.]

Widespread adoption of open and interoperable RUs is necessary to enhance market competitiveness and accelerate commercial deployments of open and interoperable equipment in line with the statutory objectives of the Innovation Fund, as outlined above. For open RUs to achieve widespread adoption, they must not only be cost-competitive at scale, but also meet or surpass the technical performance of traditional RUs. NTIA intends to fund projects that tackle both priorities. SRFA 1 will incentivize open RU suppliers and MNOs to collaborate on the development of market-ready open RUs, while SRFA 2 will drive open RU innovation that results in advanced performance and technical features for later 5G standards and future 6th generation (6G) technologies.

Applicant eligibility criteria for each SRFA is specific to that SRFA. SRFA 1 eligibility is limited to entities capable of production and commercial sale of open RUs (referred to throughout this document as “RU suppliers”). Additionally, in their application, every SRFA 1 applicant must partner with an MNO to assist with defining requirements and testing. By pairing qualified RU suppliers with MNOs who serve as potential future customers, NTIA intends to maximize the likelihood that SRFA 1 projects will be commercially adopted and deployed, in support of statutory objective (ii).[footnoteRef:8] The partnership requirement also helps minimize the risk of funding projects with no clear commercial customer or otherwise speculative proposals (see Section 2.4.4 for additional information regarding the SRFA 1 partnership requirement). SRFA 2 eligibility is broader: eligibility is generally open to any for-profit company, non-profit company, institution of higher education, industry group, or partnership of such entities that can demonstrate they are qualified to conduct the research proposed under SRFA 2. This broader eligibility was implemented to leverage the creativity and expertise found across the private, non-profit, and academic sectors (see Section 3.2.1 for additional information regarding SRFA 2 eligibility requirements). [8: See 47 U.S.C. § 906, statutory objective (ii): Accelerating commercial deployments of open interface standards-based compatible, interoperable equipment, such as equipment developed pursuant to the standards set forth by organizations such as the O-RAN Alliance, the Telecom Infra Project, 3GPP, the Open-RAN Software Community, or any successor organizations.]

In developing this NOFO, NTIA elected to use Technology Readiness Levels (TRLs) and Manufacturing Readiness Levels (MRLs)[footnoteRef:9] as tools to better define the level of maturity desired for projects under each SRFA and improve the understanding of applicants, reviewers, and other stakeholders. These TRL and MRL criteria enable NTIA to better tailor NOFO requirements to facilitate wise investments that advance the goals of each SRFA. For SRFA 1, these criteria will facilitate investments that support the promotion and commercial deployment of open RU technology, in alignment with statutory objectives (i) and (ii).[footnoteRef:10] Per the SRFA 1 eligibility requirement outlined above, it is crucial that RU suppliers partner with MNOs for their products developed under this NOFO to reach TRLs 6 and 7, as these TRLs require the MNO customer to validate that the product is successfully performing in relevant and operational environments. For SRFA 2, these criteria will facilitate investments that advance the maturity of early-stage inventions to improve the competitiveness and interoperability of future commercial products, in alignment with statutory objectives (i) and (iii).[footnoteRef:11] Leveraging TRLs and MRLs also allows NTIA to avoid focusing on projects that do not meet the desired maturity requirements (e.g., products that are already widely deployed, projects too speculative to be commercially feasible, and basic research that is outside the scope of this statutory authority). [9: More information on TRLs and MRLs can be found in Appendix B of this document.] [10: See 47 U.S.C. § 906. Statutory objectives (i) and (ii) are the following: (i) Promoting and deploying technology, including software, hardware, and microprocessing technology, that will enhance competitiveness in the fifth-generation (commonly known as “5G”) and successor wireless technology supply chains that use open and interoperable interface radio access networks; (ii) Accelerating commercial deployments of open interface standards-based compatible, interoperable equipment, such as equipment developed pursuant to the standards set forth by organizations such as the O-RAN Alliance, the Telecom Infra Project, 3GPP, the Open-RAN Software Community, or any successor organizations.] [11: See 47 U.S.C. § 906. Statutory objectives (i) and (iii) are the following: (i) Promoting and deploying technology, including software, hardware, and microprocessing technology, that will enhance competitiveness in the fifth-generation (commonly known as “5G”) and successor wireless technology supply chains that use open and interoperable interface radio access networks; (iii) Promoting and deploying compatibility of new 5G equipment with future open standards-based, interoperable equipment. ]

NTIA also sets specific parameters regarding the place of performance under this NOFO. Most work performed under this NOFO is expected to take place in the United States. The U.S. is one of the largest telecommunications markets in the world and a global leader by volume of RAN R&D facilities. It is also a global leader in technological innovation. Therefore, a strong U.S. RAN ecosystem is essential to advancing 5G supply chain security, competition, and innovation in line with the program’s authorizing statute. A domestic performance requirement will strengthen the U.S. RAN ecosystem, enabling U.S.-based companies, including small and medium enterprises, to enter the market and compete, while allowing global RU suppliers to participate and leverage U.S. resources and infrastructure.

However, NTIA recognizes that for the Innovation Fund to be successful in meeting its statutory objectives, global promotion and commercial adoption are necessary. This is why SRFA 1 allows for applicants or their MNO partner(s) to be based outside of the United States and allows for funding to be used for certain overseas activities. Either the applicant, an MNO partner, or both must hold Ultimate Beneficial Ownership (UBO) in the United States, its territories, and possessions. NTIA allows applicants to leverage overseas capabilities, but federal funds requested and any eligible cost match must be used for activities in the United States, except where expressly authorized in this NOFO. (see Section 2.2.5)

For each SRFA, NTIA is limiting the number of applications allowed per applicant. Each SRFA 1 applicant is limited to one (1) application, and each SRFA 2 applicant is limited to three (3) applications. Each application may only contain one proposed project. This helps NTIA efficiently use the limited resources available to review applications and prevents exploitation by entities that may try to submit multiple, low-quality applications in hopes of one being successful.

The Period of Performance (POP) also varies by SRFA. The POP for SRFA 1 is expected to be 18-24 months. It may be fewer than 18 months and shall not exceed 24 months. Since many MNOs are approaching refresh cycles for their 5G investments, and many operators globally are still considering their initial 5G rollouts, NTIA expects SRFA 1 projects to have potential for near-term commercial success. The SRFA 2 POP is expected to be 3-5 years, as is customary for many federal grants investing in technology of similar maturity. It may be fewer than 3 years and shall not exceed 5 years.

Available Funding

NTIA may award up to $420,000,000 under this NOFO.

Anticipated Award Amounts

The amount of funding anticipated for each award varies by SRFA, as follows:

The ranges of award amounts for each SRFA are not mandatory minimums or maximums. However, eligible entities requesting amounts for projects outside the ranges of the anticipated SRFA award amounts must provide a reasonable explanation for the variance. Relative cost effectiveness will be considered in the Selecting Official criteria (see Section 5.1.4(e)).

Statutory Limitation on Award Amounts

In accordance with 47 U.S.C. 906(a)(1)(B)(ii), the cumulative amount of federal funding awarded to a single awardee for a single SRFA may not exceed $50,000,000. Applications requesting more than $50,000,000 in federal funding for a single SRFA will be disqualified.

There is no statutory limitation on the amount of cost share provided by an applicant. Applications with a total project cost of more than $50,000,000 but that request less than $50,000,000 in federal funding remain eligible.

Cost Share

Cost sharing is mandatory for SRFA 1.[footnoteRef:12] Applicants must include a minimum cost share of 10% of the total project cost (i.e., the combined total of the federal share and non-federal share of costs). SRFA 1 applicants who provide a cost share of 16% or more will receive extra weighting of their project proposal during Programmatic Review, as described in Section 5.1.3. [12: While the Innovation Fund’s authorizing and appropriations statutes do not mandate a specific cost share, NTIA is including cost share requirements in this NOFO to ensure SRFA 1 applicants are invested in the success of their projects and taxpayer dollars are used efficiently. Successful development of commercial-grade open RUs will help enhance market competitiveness and accelerate the commercial deployment of open and interoperable equipment in line with the statutory objectives of the program.]

Cost sharing is not required for SRFA 2.

– SRFA 1 – Open RU Commercialization

OVERVIEW

The Innovation Fund aims to facilitate the adoption of open and interoperable wireless networks, including through the acceleration of commercial deployments. Given limited Open RAN adoption by commercial carriers, perceived integration challenges, and the need to better align open RU performance capabilities with MNO requirements, NTIA’s second NOFO invests in open RU commercialization. Under SRFA 1, NTIA seeks to accelerate MNO adoption by requiring suppliers and MNOs to partner to collaborate on the development of open RU products that meet operators’ performance and feature requirements.

Requirements Summary

Incentives available for higher cost share, beginning at 16%.

MNO-related overseas activities eligible.

ELIGIBILITY REQUIREMENTS

Eligible Entities

Eligible entities include for-profit companies, non-profit companies, institutions of higher education, industry groups, and partnerships consisting of two or more such entities. In addition, applicants must meet the following requirements:

a) They must be capable of production and commercial sale of open RUs. This capability must be demonstrated in application materials.

b) They must partner with at least one (1) Mobile Network Operator (MNO). This partnership must be demonstrated through a Letter of Partnership Intent that is on the MNO’s letterhead and signed by a senior representative of the entity (see Section 2.4.4). This letter by itself is sufficient to demonstrate that a partnership exists. Although an MNO may also be a subrecipient or contractor of the applicant, neither of these relationships is a requirement for a partnership to exist.

c) Applicants must demonstrate their intent and ability to deploy open RU(s) developed under this NOFO in one or more commercial networks at scale after the period of performance, as demonstrated in the Commercial Transition Plan (see Section 2.4.3).

d) The applicant and MNO partner(s) can be based in the United States or abroad. However, either the applicant, an MNO partner, or both must hold Ultimate Beneficial Ownership (UBO) in the United States, its territories, and possessions. UBO will be validated by the SAM Registration or SF-328 of each party. If neither the applicant nor any MNO partners meet the UBO requirement, the application will be disqualified.

Eligible entities may submit no more than one (1) application under this SRFA proposing no more than one (1) project.

Anticipated Award Range

NTIA anticipates awards under SRFA 1 will range between $25,000,000 and $45,000,000.

Federal funding requests below $25,000,000 or between $45,000,000 and $50,000,000 may be considered, but the application must explain why the request falls below or above the anticipated award range and provide a justification for that difference. Applications with requests over $50,000,000 will be disqualified, as there is a $50,000,000 statutory limit on federal funding under each SRFA.

Cost Share

The Innovation Fund is a crucial and significant investment in the Open RAN ecosystem, but it does not provide enough funding on its own to meet the program’s economic and national security objectives. SRFA 1 applicants should therefore structure the finances of their projects in a way that maximizes private sector contributions and minimizes the need for government incentives. NTIA will evaluate the degree to which an applicant, through its funding request, leverages private investment, cash and in-kind contributions, and other sources of funding as a means of demonstrating its commitment to project success. A project with the potential for commercial viability will be grounded on a sound business case that is sufficient to maintain continued future investment in the relevant open RU technology.

To ensure the efficient use of taxpayer dollars, SRFA 1 applicants must provide 10% of the total project cost as cost share. This can include cash or in-kind contributions. All contributions to cost share must meet the requirements in 2 CFR § 200.306 and other allowable cost requirements of this NOFO.

Cost share percentage will be calculated based on information provided in the SF-424, Section 18, as follows:

· All non-federal sources of funding will be summed (18b through 18e)

· Cost share percentage will be calculated by dividing the nonfederal funding by the total project cost (18g)

· Calculated cost share percentage will be rounded down to the nearest integer value.

SRFA 1 applications that do not include the minimum 10% cost share, as calculated above, will be disqualified. NTIA expects that it will primarily fund SRFA 1 applicants who contribute more than the minimum required amount, as an applicant’s financial commitment to project success is an essential component of any successful application. Applications with a cost share of 16% or more will receive favorable weighting during Programmatic Review (see Section 5.1.3) to ensure applicants have the capability to make sustaining investments that strengthen the security of the wireless supply chain. Applicants should not rely on funding from this NOFO to displace private capital or enable outsized returns relative to commercially reasonable expectations for similar projects.

Period of Performance

The period of performance of SRFA 1 awards is expected to be 18-24 months. The period of performance may be fewer than 18 months and shall not exceed 24 months from the date of award.

While extensions are possible under this NOFO (see Section 6.2.1), the application will be assessed for risk of exceeding the mandated period of performance. Per Department of Commerce policy, the period of performance, inclusive of all extensions, shall not exceed five (5) years.[footnoteRef:13] [13: See U.S. Department of Commerce, Grants and Cooperative Agreements Manual (April 20, 2021), Section 9.I.2.a.1.]

Place of Performance

SRFA 1 activities for RU supplier product development work shall be done in the United States, its territories, and possessions. This includes but is not limited to design, development, prototyping, and initial testing.

Work performed by the MNO or by the RU supplier in support of MNO lab or field testing for verification, validation, and demonstration (e.g., testing hosted at MNO facilities) of open RU performance and interoperability requirements may be performed outside of the United States, except in covered nations or when the work involves an entity described in Section 6.1.3.

Changes in location for work conducted outside of the United States not included in the application must be approved by NTIA in advance.

RU supplier product development activities conducted outside of the United States and its territories and possessions in support of the project are permissible but are not eligible for federal funds or cost share. For example, if a supplier already has an overseas team supporting product development, the supplier is not required to transition the overseas workstream to the United States, but the supplier cannot use federal funds from this NOFO to pay for those activities, nor can they count those activities towards cost share.

Activities taking place in covered nations or involving an entity described in Section 6.1.3 are not permissible under any circumstances.

TECHNICAL SCOPE REQUIREMENTS

Technology Readiness Level

RU Technology Readiness for SRFA 1 targets existing 5G New Radio (NR) RU inventions that are ready to enter, or already in, the product development stage with the goal of bringing them to the commercial market, ready for MNO trial and deployment. As such, only projects at Technology Readiness Levels 5, 6, and 7 are eligible for funding under this NOFO (see Appendix B for additional guidance on TRLs).

Project development activities shall already be at a minimum of TRL 5, meaning there is a “high fidelity” proof of concept, such as integration with commercially-adopted components in a developer environment. Proposed activities shall bring the open RU solution through completion of TRL 6, meaning there is a “high fidelity” proof of concept/prototype in a complex lab or simulated field environment.

Applicants may also include field trial activities (TRL 7) in the scope of their project. As noted above in Section 2.2.4, awards will not be made for activities that extend beyond the 24-month period of performance.

Given the limited government funding available, activities for first office application (TRL 8) and full-scale deployment (TRL 9) are not eligible for funding under this NOFO. NTIA has determined that the amount of government funding required to effectively support TRL 8 and 9 activities would be cost-prohibitive for the program. Activities below TRL 5 are not eligible for funding because there is a greater risk that they will not result in commercialization due to their earlier stage in the product development lifecycle. NTIA can more efficiently achieve the program’s statutory objectives by funding activities in the TRL 5-7 range that promote market competitiveness and accelerate commercial deployment.

Manufacturing Readiness Level

Applicants shall demonstrate that they have considered the manufacturing implications of their projects. Project development activities shall already be at a minimum of Manufacturing Readiness Level 4 (MRL 4), meaning prototype systems are developed internally in a lab. NTIA is particularly interested in supporting activities associated with development, preparation, and manufacturing of the open RU up to MRL 8, including manufacturing of prototype and sample open RUs. Costs related to the stand-up of new production capacity at contract manufacturing facilities or an applicant’s existing production facilities are allowable, except for construction costs.[footnoteRef:14] [14: Construction costs are not allowed under this NOFO as the focus of SRFA 1 is commercialization and the focus of SRFA 2 is R&D. Construction of highways, buildings, or other real property is not necessary for the successful completion of SRFA 1 or SRFA 2 projects and would not be an efficient use of funds.]

Given the limited government funding available, NTIA will not fund low-rate initial production (MRL 9) and full-rate production (MRL 10). See Appendix B for additional guidance on MRLs. As with the TRLs described above, NTIA has determined that the amount of government funding required to effectively support MRL 9 and 10 activities would be cost-prohibitive for the program. Activities below MRL 4 are not eligible for funding because there is a greater risk that the project will not result in commercialization due to the earlier stage in the product development lifecycle. There is also a greater risk that the project will not achieve the required manufacturing capability within the period of performance. NTIA can more efficiently achieve the program’s statutory objectives by funding activities in the MRL 4-8 range that promote market competitiveness and accelerate commercial deployment.

Performance and Interoperability Requirements

The application shall include all performance and operational requirements, including minimum and target key performance indicators (KPIs), cost targets, field performance specifications under which the MNO will commit to deploying the open RU, and any other success criteria. Project activities shall be structured to build an open RU product to meet these requirements in order to meet MNO laboratory testing requirements in preparation for large scale field trials/deployments.

Note: Comprehensive performance requirements must be either provided to the RU supplier by the MNO partner or developed collaboratively by the RU supplier and MNO partner. Both parties have a joint responsibility to resolve any inconsistencies or inaccuracies. Relying solely on the minimum specifications and test cases identified later in this section is not allowable.

All projects shall be based on, as a minimum, 3GPP 5G NR Release 16 specifications. If an applicant chooses to use a later 3GPP 5G NR release, it shall be documented in the technical proposal.

Performance requirements shall include at a minimum the following 3GPP specifications:

Table 1: 3GPP Specification Requirements

The following O-RAN Alliance specifications shall be included:

Table 2: O-RAN Alliance Conformance Requirements

The following O-RAN Alliance interoperability specifications shall be tested against:

Table 3: O-RAN Alliance Interoperability Requirements

Project activities must include RU interoperability verification, validation, and demonstration of successful multi-supplier interoperability—that is, that the RU under development meets the pre-determined requirements when connected to the distributed unit (DU) of a different supplier. The document shall identify how the following testing criteria will be demonstrated:

Table 4: Operation Validation Requirements

Security Requirements

In addition to the base requirements of the Security Management Plan (see Section 4.1.1(m)), all SRFA 1 applicants shall incorporate the following O-RAN Alliance and 3GPP security specifications and tests:

SPECIFIC APPLICATION REQUIREMENTS

This section describes the application document requirements unique to SRFA 1. A comprehensive list of required application material can be found in Section 4.1.

Technical Proposal

Note: Technical Proposals must not exceed 20 pages in length (excluding cover page and references).

This section describes the specific content that applicants must include in their technical proposals for SRFA 1. Proposals that do not include each of the elements listed below will not move forward to Merit Review and will not be considered for award.

The technical proposal shall include the following content:

a) Executive Summary (max 1 page)

Provide a short executive summary of the proposed project. It is important that the executive summary focus only on salient aspects of the broader technical proposal, as the executive summary will be used during initial scope review of proposals received.

If the project is selected for funding, the executive summary may be used by NTIA in award announcement materials and posted on the public NTIA.gov website. Therefore, applicants should ensure that no proprietary or business confidential information is included in the executive summary.

b) Technical Objectives

Describe the technical objective of the project, including application/use case of the radio(s) to be produced. This shall include the technical specifications of the radio, including, but not limited to frequency range(s), power output, form factor, etc. Applicants should note if they elect to use a later release than 3GPP Release 16.

The technical objectives shall explain in detail the requirements developed in collaboration with the MNO partner and how the technical specifications required by this NOFO (see Section 2.3.3 and Section 2.3.4) will be addressed.

c) Work Plan Summary

While a separate, detailed work plan is required (see Section 2.4.2), a work plan summary included in the technical proposal shall sufficiently describe the activities such that reviewers can understand the scope of work proposed by the applicant, including major milestones and deliverables.

d) Qualification of Applicant and Unique Aspects of Proposal

Explain the qualifications of the applicant to develop and market open and interoperable RU solutions for 5G radio access networks. Provide examples of past successes of relevant products.

The applicant shall also describe the unique aspects of the work proposed and how it differs from other RU products currently on the market. The unique aspects described shall also be reflected in the Commercial Transition Plan and MNO Letter of Partnership Intent.

e) Facilities and Equipment

Provide a description of, and information regarding the availability and location of, instrumentation and physical facilities used for the proposed open RU development activity, including manufacturing. Any new facility or equipment costs, including software and services, should be itemized, and justified.

Work Plan

Note: Work Plans must not exceed 20 pages in length (excluding cover page).

Provide a detailed work plan on how the open RU product development will be conducted. The work plan shall include a detailed milestone and deliverable schedule covering the period of performance of the proposed project.

The work plan shall also include all applicable testing phases, decision points, and points where technology readiness and/or manufacturing readiness is expected to improve.

Commercial Transition Plan

Note: Commercial Transition Plans must not exceed 10 pages in length (excluding cover page).

Applicants shall provide details about their plan to commercialize and scale their product after the period of performance. A strong Commercial Transition Plan will provide specifics on the following:

· Customer and end-market demand, such as an agreement with the MNO strategic partner indicating that the product (if it meets specifications agreed upon at the outset of the award) can or will be integrated into the MNO’s network.

· An assessment of market position and key competitors, including an analysis of the cost of the applicant’s open RU relative to competitor RUs, market dynamics, supply and demand dynamics over time, and estimated pricing, as well as any plans to expand the customer base for the product beyond the initial customer/carrier. This should include details on target MNOs, sales capabilities in target geographies, field support, and integration.

· Program plan specifying possible timing to move from advanced prototype to mass production, including further work to achieve break-even at full rate production.

· An awareness of a project’s commercial risks, and the applicant’s strategies for mitigating them.

MNO Letter(s) of Partnership Intent

SRFA 1 applications require eligible applicants to have one or more MNO partners. Each MNO partnership should be demonstrated through a Letter of Partnership Intent, as described below. This letter by itself is sufficient to demonstrate that a partnership exists, however, please note that a more formal demonstration of the partnership will be requested post-award. Although an MNO may also be a subrecipient or contractor of the applicant, neither of these relationships is a requirement for a partnership to exist.

In a successful SRFA 1 application, an applicant will demonstrate their MNO partnership(s) through a Letter of Partnership Intent with each MNO describing:

· A brief explanation of the form of the partnership. Why have the partners chosen to work together? NTIA is interested in partnerships that will continue after the end of the period of performance and support supply chain diversity, security, and competition. What benefits will each partner bring to the partnership and for how long? How has the partnership been formalized?

· A demonstratable commercial need for the technology from both the MNO and open RU supplier perspective. The application should provide a basic explanation of the MNO’s desire for the radio units. Post-award, where might the MNO deploy this technology? How does this product fill a critical gap?

· Resources invested by both parties. NTIA expects that both the MNO and RU supplier are committing resources to the project.