How should states prepare for FirstNet opt-out decision?

I am sure some of the FirstNet RFP bidders took a stab at which states would want to opt out. If I had been managing the pricing, I would have low-balled the cost of build-out for those states in the RFP response. In this way I would be able to make the opt-in, opt-out decision even tougher for those states. If they knew grant funds would be limited they might consider the true cost to the state for opting out. But again, New Hampshire won’t have that metric to factor into its opt-in and opt-out decision.

New Hampshire may not have to worry about this, because it seems to think the contract it is signing is a true no-cost contract to the state. That would mean the bidder would shoulder all the costs of building and maintaining the network in that state for the next 25 years. If that ends up being the contract the state signs, more power to it. Especially since I believe the state of New Hampshire does not have enough first responders or total population (even in the summer) to offset construction and operation of the network with user and secondary revenue income.

Because a vendor will be bidding on only one or a few state contracts, it will not be able to match the economics of scale of a nationwide contract. Therefore, I believe prices bid to a state may not be based on the same criteria as that set forth by FirstNet in its RFP. I have to wonder how many land-mobile-radio (LMR) network systems have ever come in under budget. I think the answer is few, if any, and in many cases the final cost of the system exceeded the bid cost by a substantial amount. You might recall that the objectives-based RFP FirstNet issued was extremely comprehensive and prepared with more time and diligence than any individual state will be able to apply. If the winning bidder meets all 16 objectives in the RFP, and the states opt in, they will have access to a world-class public-safety broadband network at the lowest possible cost. This is what I think should be the objective of state leadership in meeting its fiduciary responsibilities to its taxpayers, as well as ensuring that public safety finally has the new broadband network it really needs.

There are many reasons for states to prepare to make intelligent decisions about working with FirstNet and the selected partner beyond opt-out issues. Those that will make the best decisions will be those best prepared to compare and contrast proposals when all the facts are on the table. Once the FirstNet RFP is awarded and terms of the deal are known, states can make sure any RFI or RFP they might issue does, in fact, include the same information they provided to FirstNet. Moreover, it means any decision about an opt-out award should wait until state RFP responses can be compared to the FirstNet/Partner state plan presented or negotiated.