BEAD - Frequently Asked Questions (FAQ)

The questions and comments were compiled from the review of the draft Request for Applications (RFA). If you need assistance or have additional questions, send them to us at vcbb.bead@vermont.gov.

Topics:

• Abbreviations & Acronyms

• General

• Application

• Funding and Financial Details

• Project Requirements and Compliance

• Technical Requirements and Standards

• Impact and Outcomes

• Support and Resources

• Compliance and Reporting

Abbreviations & Acronyms:

General:

1. What is the BEAD Program?
   The BEAD Program is a Federal initiative under the Infrastructure Investment and Jobs Act, which allocates $42.45 billion to expand high-speed internet access nationwide. Administered by the NTIA, BEAD funds are prioritized for unserved and underserved areas and focus on infrastructure improvements, digital inclusion, and community connectivity, including support for CAIs.
2. What is Vermont’s BEAD Program and its primary objectives?
   Vermont’s BEAD program, managed by the VCBB, is designed to improve broadband access in unserved and underserved areas. It specifically targets locations that lack adequate broadband speeds, such as those under 25/3 Mbps or 100/20 Mbps, and focuses on connecting CAIs like schools, libraries, healthcare facilities, and public safety organizations that support critical community services. This program aims to ensure that high-quality internet reaches rural and hard-to-reach areas across Vermont.
3. What are the goals of the BEAD Program?
   The BEAD Program's main goals include expanding reliable high-speed internet to all Americans, promoting digital inclusion, and fostering economic growth in remote and underserved areas. Additionally, the program encourages local job creation in the broadband sector and aims to make affordable internet accessible to low-income households, including enhancing community resources such as libraries and schools through improved broadband access.
4. Who administers the BEAD Program in Vermont?
   The VCBB administers the BEAD Program in Vermont. This board is responsible for overseeing the distribution of BEAD funds within the state. The VCBB was created to coordinate, facilitate, support, and accelerate the development and implementation of universal community broadband solutions. https://publicservice.vermont.gov/vt-community-broadband-board-vcbb/abo…
5. How is the BEAD Program funded?
   Vermont’s BEAD program is funded through a federal allocation of $228.9 million, intended to support broadband infrastructure development, particularly in rural and unserved regions. This funding comes from the Infrastructure Investment and Jobs Act and is managed by the NTIA in partnership with the VCBB.
   https://publicservice.vermont.gov/announcements/vermonts-bead-initial-proposal-approved#:~:text=Vermont%20Community%20Broadband%20Board%20(VCBB,million%20allocated%20to%20the%20state.
6. What areas or populations does the BEAD program target?
   VCBB’s BEAD program targets unserved and underserved communities that currently lack access to reliable, high-speed internet (defined as speeds below 25/3 Mbps for unserved and below 100/20 Mbps for underserved locations).

   

Application:

1. Who is eligible to apply for funding?
   Eligible applicants for Vermont’s BEAD funding include local governments, nonprofit organizations, broadband providers, and other entities committed to providing high-speed internet to unserved or underserved areas. Applicants must comply with the VCBB application requirements, which include adhering to affordability and technical standards set forth by both state and federal guidelines.
2. What is the definition of ‘eligible entity’ and how does it differ from ‘prospective subrecipient’?
   The NTIA has designated eligible entities to include any state of the U.S., the District of Columbia, Puerto Rico, American Samoa, Guam, the U.S. Virgin Islands, and the Commonwealth of the Northern Mariana Islands. In line with NTIA’s designation, the State of Vermont is the “eligible entity” and has designated the VCBB to administer the BEAD program.

   A prospective subrecipient is any organization that meets the Vermont BEAD program’s eligibility requirements and submits a preliminary application, known as a pre-proposal, to participate in the program. If no pre-proposals are submitted for a designated area, a Prospective Subrecipient can still submit a full proposal to cover that area as part of their final project plan.

3. What is the difference between a consortium and a partnership?  
   As defined in the RFA, a Consortium is two or more eligible entities that jointly apply for one or more project areas. A Consortium application may not consist of multiple project areas or sub-project areas within a project area. Rather, each final project area requires exactly one full proposal. Requests for modifications to project areas must occur during the pre-proposal stage as described in the RFA.

   A partnership would be where one entity takes responsibility for the entire project area and has partners (i.e., construction partners, operating partners, etc.) that support in that entity completing its project.

4. What are the requirements of a Consortium application?
   Per NTIA guidance, a Consortium application requires a single, lead applicant for each project area and the applications for project areas must be separable, i.e., the eligible entity may select the Consortium as the winner in one area but not another.

   A Consortium must be documented with a signed memorandum of understanding between the parties and must identify the lead applicant. The lead applicant will be the point of contact and responsible party for the project subaward. The Eligible Entity will have an agreement with the lead applicant regarding all awarded grant funds. The state will create additional agreements for individual members of a Consortium to hold each party individually accountable for BSLs in the project area. The terms of the agreements made with the individual consortium members would be at the discretion of the VCBB.

   BEAD match is tied to each specific project area, meaning Consortium members may not pool or share match across project areas.

5. What is the difference between a Pre-Proposal, Full Proposal, and Final Proposal?
   • Full Proposal: A Prospective Subrecipient’s bid for providing broadband service to each unserved and underserved location within the selected Final Project Area(s).
   • Final Proposal: The Final Proposal is the “final submission” for the Eligible Entity’s BEAD grant funding, and, among other things, should provide an update to the approved Initial Proposal on how each State and Territory will ensure that every resident has access to a reliable, affordable, and highspeed broadband connection, drawing on all funding available to accomplish this goal, including but not limited to BEAD Program funds.
   • Pre-Proposal Phase: The phase where a Prospective Subrecipient submits an application that notifies the VCBB of its intent to participate in VT-BEAD, identifies any requested modifications to the Initial Project Area(s) for which it intends to submit a full proposal, and answers questions to provide basic information about the forthcoming full proposal and to indicate readiness to meet BEAD Gating Criteria.
6. What is the intention of the Pre-Proposal Phase?
   The pre-proposal process is a critical step in ensuring the success of the BEAD program. It fosters early engagement, efficient resource allocation, streamlined reviews, comprehensive coverage, risk mitigation, and transparency. These benefits collectively contribute to the effective and equitable expansion of broadband infrastructure.
7. What is the definition of “Ongoing Coverage”?
   Ongoing coverage of project means that service will continue to be provided to all locations in the project, as well as any new locations in the project area that may require service in the future (i.e. a newly built residence). This includes the cost to repair and/or replace the physical infrastructure in the area to ensure that the locations continue to be served, and with the same level of service as outlined in the proposal.
8. What is the definition of “Speed to Deployment”?
   Speed to Deployment has been defined within the NOFO and refers to the time (in years) for a prospective subrecipient to “deploy the planned broadband network and begin providing services to each customer that desires broadband services within the project area not later than four years after the date on which the subrecipient receives the subgrant from VCBB (BEAD NOFO).

   As such, the start date for this calculation is the date the subrecipient receives the executed subgrant from VCBB.

9. When does the four-year period commence in regard to Speed to Deployment?
   The four-year period will commence upon executed grant agreement, however, under the BEAD terms and conditions, VCBB must not initiate or allow a Subrecipient to initiate any grant funded implementation activities—except for the limited permissible activities and must not disburse any BEAD funds to a Subrecipient prior to the following:  
   • The completion of any review required under the National Environmental Policy Act of 1969 (42U.S.C. 4321, et seq.) (NEPA), and issuance by NTIA and the Grantee, as required, of a Categorical Exclusion (Cat Ex) determination, Record of Environmental Consideration (REC), Finding of No Significant Impact (FONSI), or Record of Decision (ROD) (hereinafter “decision documents”) that meets the requirements of NEPA;
   • The completion of reviews required under Section 106 of the National Historic Preservation Act of 1966 (54 U.S.C. 300101, et seq.) (NHPA), including any consultations required by Federal law, to include consultations with the State Historic Preservation Office (SHPO), and Federally recognized Native American tribes;
   • The completion of consultations with the U.S. Fish and Wildlife Service (USFWS) or the National Marine Fisheries Service (NMFS), as applicable, under Section 7 of the Endangered Species Act (16 U.S.C. 1531, et seq.), and/or consultations with the U.S. Army Corps of Engineers (USACE) under Section 404 of the Clean Water Act (33 U.S.C. 1251, et seq.), as applicable; and
   • Demonstration of compliance with all other applicable Federal, state, and local environmental laws and regulations.
10. How do I apply for the BEAD Program?
    Applications are submitted through the Vermont Department of Public Service’s platform, specifically managed by the VCBB. Applicants should review the BEAD RFA to understand submission requirements, timelines, and necessary supporting documentation.
11. What criteria are used to evaluate applications?
    Vermont’s VCBB evaluates applications based on several key factors, including the extent to which the proposed project will serve unserved and underserved populations, the applicant’s ability to meet technical and service quality standards, the long-term sustainability of the project, and its adherence to affordability requirements. Projects that prioritize extending service to locations without adequate connectivity (below 25/3 Mbps or 100/20 Mbps) receive priority.

    Additional information on the application evaluation is located within the Scoring Guide.

12. Are there specific requirements for underserved or unserved areas?
    Yes, Vermont’s BEAD program targets areas classified as underserved or unserved by FCC-defined standards: underserved areas lack broadband speeds of 100/20 Mbps, while unserved areas lack 25/3 Mbps. Projects aimed at these zones must demonstrate capacity for reliable, high-speed connectivity and meet VCBB guidelines for sustainable and affordable service to receive funding.
13. What is the intention for the encouragement of 20% served locations in proposals?
    Including up to 20% of served locations in proposals is consistent with the Infrastructure Act and the NOFO. While the primary focus should remain on unserved and underserved areas, allowing a small percentage of served locations can prevent wasteful overbuilding and make projects more viable. This flexibility supports the BEAD program’s goals by enabling broader participation and ensuring that all areas, especially those most in need, benefit from improved broadband infrastructure.
14. What evidence will be required by the VCBB to accept the applicant’s pre-proposal modification on the basis that certain locations do not actually require broadband service?
    The following evidence will be required by the VCBB to accept the applicant's pre-proposal modification on the basis that certain locations do not actually require broadband service:
    • Verification of Current Service: Documentation verifying that the specified locations currently have adequate broadband service, including service speeds, providers, and coverage maps.
    • Community Feedback: Evidence of community feedback or surveys indicating that the residents or businesses in the specified locations do not require additional broadband service.
    • Technical Analysis: A technical analysis demonstrating that the specified locations do not meet the requirements for BSLs, including any relevant data or studies.
    • Regulatory Compliance: Any relevant regulatory or compliance documents that support the modification request.
15. What is the process for modifying project areas if multiple parties submit pre-proposal modifications?
    If the modification would maximize the ability to provide Priority Broadband access to all the BSLs in the area, then the modification would be considered. The VCBB will consider each BSL at the request of each party and make its own determination. Following this review, the final project areas will be published.
16. How will the VCBB review modifications for Initial Project Areas and determine Final Project Areas?The VCBB will review and consider the requests of each applicant and make its own determination. The VCBB will then publish the Final Project Areas that may reflect a mix of the pre-proposal requests of multiple applicants. The process of making Final Project Areas is the VCBB's alone, considering input from the pre-proposal process.
17. Are there instances in which a proposal that did not receive a pre-proposal may be accepted?
    There are five reasons in which proposals that did not receive pre-proposal may be accepted:
    • 1. The full proposal is a Priority Broadband Project for a project area that did not receive any Priority Broadband Project pre-proposals.
    • 2. The full proposal is a Priority Broadband Project for a project area that did receive at least one Priority Broadband Project pre-proposal, but none of the Prospective Subrecipients that filed Priority Broadband Project pre-proposals meet the necessary gating criteria upon review of their full proposals.
    • 3. The full proposal is not a Priority Broadband Project and is for a project area that did not receive any pre-proposals.
    • 4. The full proposal is not a Priority Broadband Project and is for a project area that did receive at least one pre-proposal, but none of the Prospective Subrecipients that filed pre-proposals meet the necessary gating criteria upon filing of their full proposals.
    • 5. A new project area has been created based on input received during the pre-proposal phase.
18. How will VCBB handle situations in which a Prospective Subrecipient is unable to provide service to all unserved and underserved locations in a CUD?
    The CUD's have been formed to enhance broadband connectivity across Vermont by fostering collaboration, leveraging funding, and ensuring local input in broadband development.

    If there are unique instances where it is not feasible for one prospective subrecipient to provide service to all unserved and underserved locations within the municipality, they will be assessed on a case-by-case basis.

19. Is the date at which the proposed project will be Net Present Value Positive part of the scoring or gating criteria?
    The date at which the proposed project will be Net Present Value is not part of the scoring criteria. Rather, this component is included in the gating criteria to help make the determination whether the project is financially feasible and can continue to serve customers beyond the BEAD program.
20. What is the curing process for any failures of the gating criteria?
    Once the full proposal submission window has opened, the VCBB will impose a quiet period lasting until the VCBB Board has approved the BEAD project awards. During this quiet period, communications between Prospective Subrecipients and the public regarding the specific nature of a Prospective Subrecipient’s participation are prohibited. During the quiet period time, the VCBB may continue communications with Prospective Subrecipients.

    The VCBB acknowledges that some Prospective Subrecipients may have business arrangements outside of the BEAD context and may need to communicate as part of those arrangements. The restriction imposed here is on the specific nature of a Prospective Subrecipient’s bid, therefore, communications related to business matters that are outside the scope of the BEAD proposal are permitted.

    Further, where two or more entities are planning to submit a joint proposal, communication among those entities is essential to preparing a proposal and therefore are permitted. A Prospective Subrecipient that communicates details regarding its proposal in violation of the quiet period will be disqualified from participating in the BEAD Program.

21. Will applications be rescored?
    VCBB reserves the right to rescore any application based on the result of negotiations. Rescoring application maintains VCBB's goal to served project areas with fiber as a priority and to rescore any applications that may change with regards to technology within project areas.
22. What resumes should be uploaded in the “Managerial and Operational Capability” part of the application?
    The prospective subrecipient should include resumes of key managerial staff, including leadership, operations, and network construction staff, in a single document.
23. Is the RFA plain language user-friendly for individuals with learning disabilities?
    The document follows the standards set in the State of Vermont Accessibility Policy outlined here:
    https://www.vermont.gov/policies/accessibility#gsc.tab=0

    

Funding and Financial Details:

1. How much funding is available through the BEAD Program?
   Vermont has received $228.9 million in BEAD funding as part of a nationwide initiative to enhance broadband access, especially in underserved and unserved areas. This funding allocation is managed by the VCBB under federal guidelines established by the NTIA.
2. Is there a minimum or maximum funding limit per project?
   While Vermont’s BEAD program may set guidelines for funding limits based on the project scope and regional needs, minimum and maximum funding per project can vary depending on cost per location and the technical requirements outlined by the VCBB. Funding guidance is clarified within the RFA released by the VCBB.
3. Are matching funds required?
   Consistent with the BEAD NOFO, the VCBB’s goal is to minimize BEAD program outlays and maximize subrecipient matches in areas where expected operational costs and revenues are likely to justify greater investment by the subrecipient. The BEAD Program requires a minimum 25% match for deployment projects, exclusive of “high-cost areas.” Any funds provided as match for deployment projects must stay with the project and cannot be allocated to other program activities (i.e., match cannot be aggregated). For BEAD, a matching contribution can either be a cash match or an in-kind match (BEAD NOFO).

   Match is not required for areas that are considered “high-cost areas.” A high-cost area is an unserved area in which the cost of building out broadband service is higher, compared to the average cost of building out broadband service in unserved areas in the United States (as determined by the Assistant Secretary, in consultation with the Federal Communications Commission). Incorporating factors for determining “high-cost area” include: Additional information on the matching requirements is located within the RFA.

   • 1. The remote location of the area;
   • 2. The lack of population density of the area;
   • 3. The unique topography of the area;
   • 3. A high rate of poverty in the area; or
   • 4. Any other factor identified by the Assistant Secretary, in consultation with the FCC, that contributes to the higher cost of deploying broadband service in the area.
4. Can funds be used for planning or only implementation?
   BEAD funding may be used to support implementation and planning activities, in certain instances.

   Implementation activities (site preparation, demolition, construction, ground disturbance, fixed installation, or any other implementation activities) may not begin prior to the completion of all Environmental and Historic Preservation (EHP) requirements as outlined in this Section. The subrecipient must comply with all conditions placed on the grant funded activities as the result of The National Environmental Policy Act (NEPA) or The National Historic Preservation Act (NHPA) consultation or processes under other applicable laws—e.g., mitigation requirements, best management practices, or other measures necessary to reduce environmental impact. The subrecipient must also provide any information requested by VCBB or NTIA to ensure both initial and ongoing compliance with all requirements described above.

   Limited permissible pre-implementation activities are outlined by NTIA. For a list of permissible pre-implementation activities, please see FAQ number 5 below.

5. When can applicants begin recording costs for pre-award expenses?
   Implementation activities (site preparation, demolition, construction, ground disturbance, fixed installation, or any other implementation activities) may not begin prior to the completion of all EHP requirements as outlined in this Section.

   Based on the guidelines outlined by the NTIA, VCBB will allow limited permissible activities under NEPA to proceed using award funds prior to the completion of the EHP review process, including the following:

   Subrecipients that undertake unauthorized project activities in contravention of this Section proceed at their own risk and may face de-obligation of funding (BEAD General Terms and Conditions).  Furthermore, subrecipients that incur costs prior to execution of final award agreement proceed at their own risk and may face rejection if deemed unallowable.

   • i.    Pre-construction planning, including collecting information necessary to complete environmental reviews;
   • ii.    Applications for environmental permits;
   • iii.    Studies including, but not limited to, Environmental Assessments (EA), wetland delineations, biological assessments, archaeological surveys, and other environmental reviews and analyses;
   • iv.    Administrative costs;
   • v.    Pre-award application costs;
   • vi.    Activities supporting consultations required under the NHPA, the Endangered Species Act, and the Clean Water Act; and/or
   • vii.    Limited, preliminary procurement, including the purchase or lease of equipment, or entering into binding contracts to do so; the purchase of applicable or conditional insurance; and/or funds used to secure land or building leases (including right-of-way easements).
6. What types of projects and expenses are eligible for BEAD funding in Vermont?
   Vermont’s BEAD program intends to fund a wide range of broadband activities. With regard to last-mile broadband deployment projects, VCBB will align to the eligible use of funding outlined below.

   Eligible uses of funding in connection with last-mile broadband deployment projects include the following:

   • 1. Construction, improvement, and/or acquisition of facilities and telecommunications equipment required to provide qualifying broadband service, including infrastructure for backhaul, middle- and last-mile networks, and multi-tenant buildings.
   • 2. Long-term leases (for terms greater than one year) of facilities required to provide qualifying broadband service, including indefeasible right-of-use (IRU) agreements.
   • 3. Deployment of internet and Wi-Fi infrastructure within an eligible multi-family residential building.
   • 4. Engineering design, permitting, and work related to environmental, historical and cultural reviews.
   • 5. Personnel costs, including salaries and fringe benefits for staff and consultants providing services directly connected to the implementation of the BEAD Program (such as project managers, program directors, and subject matter experts).
   • 6. Network software upgrades, including, but not limited to, cybersecurity solutions.
   • 7. Training for cybersecurity professionals who will be working on BEAD-funded networks.
   • 8. Workforce development, including Registered Apprenticeships and pre-apprenticeships, and community college and/or vocational training for broadband-related occupations to support deployment, maintenance, and upgrades.
7. What is the definition of ‘drop cost’ and what costs should be included for drops within the Capital Budget?
   A fiber drop refers to the final segment of a fiber optic network that connects the telecommunications infrastructure to an individual home, business, or building. This section typically involves the installation of fiber optic cable from a nearby junction box or utility pole to the customer’s premises, either overhead or underground. The "drop" in the term signifies this final connection.

   In the context of Fiber-to-the-Home (FTTH) or Fiber-to-the-Building (FTTB) networks, the fiber drop is a crucial part of delivering high-speed internet directly to users. It includes the cable, any associated connectors, and the interface equipment that links the broader fiber optic network to the end-user’s equipment.

   In this context, “drops” refer to the total cost (including labor, materials, equipment, etc.) associated with deploying fiber drops to every BEAD-eligible address, ensuring service can be activated within 10 days of a customer request. The total cost to the customer should be reasonable and not exceed the provider’s standard installation charge to connect service at the location.

8. Are interest costs associated with the ten percent hold-back grant eligible?
   Interest is not an eligible cost per the allowable deployment uses in NTIA’s Eligible Expenses and Reimbursement Fact Sheet.  Additionally, this Fact Sheet expressly indicates that payments related to loans are unallowable costs.
9. What is a fixed subaward?
   A fixed amount subaward is a type of subgrant agreement where payments are based on meeting specific requirements of the federal award (e.g., performance and results), rather than actual costs incurred. This type of award reduces some of the administrative burden for the recipient and subrecipient. Utilizing fixed award subawards may render certain requirements of 2 CFR 200 inapplicable, as described below.
   • Cost Principles: The cost principles do not apply as compliance requirements to fixed amount subawards. Instead, the cost principles or other pricing information are used as a guide when budgeting for the work that will be performed under the fixed amount subaward.
   • Procurement: Subrecipients that receive a fixed amount subaward are not required to comply with the procurement practices of the Uniform Guidance.
   • Property Standards: Fixed Award Subrecipient that receive a fixed amount subaward have more flexible property standard options including exceptions, adjustments, and clarifications for fixed amount subawards, including title, management and use requirements, liens, encumbrance and disposition.
10. What are the guidelines for fixed amount subawards and milestone payments?
    NTIA held in the Uniform Guidance Policy Notice that the BEAD competitive subrecipient selection process will allow states to establish fixed amount subawards for broadband infrastructure projects that are based on a reasonable estimate of actual costs, subject to the requirement that each state monitor “the reasonableness of the subrecipient costs.”  that the BEAD competitive subrecipient selection process will allow states to establish fixed amount subawards for broadband infrastructure projects that are based on a reasonable estimate of actual costs, subject to the requirement that each state monitor “the reasonableness of the subrecipient costs.”

    As such, VCBB intends to utilize fixed amount subawards to reduce the program’s administrative costs to both applicants and VCBB. Fixed amount subawards should also encourage broader participation in the program.

11. What type of payment method will be used in this program?
    In accordance with NTIA guidance, VCBB will utilize a performance-based reimbursement method of repayment in which costs will be reimbursed to subrecipients in accordance with either objectives met, units built, or total project complete.

    Funding for deployment projects will be disbursed to subrecipients as the performance-based milestones are met, which would allow the VCBB to withhold funds if the subrecipient fails to take the actions the funds are meant to subsidize.

    Please refer to the fixed amount subawards section of the RFA for additional information on fixed amount subawards.

12. What is the process for calculating matching funds in the absence of NTIA guidance?
    See Funding and Financial Detail section question 3 for more information regarding the match requirement.
    • Cash Match: Cash match, or cash contribution, includes cash spent for project-related costs. Cash is the Prospective Subrecipient’s own funds or funds from a third party.
    • In-Kind Match: In-kind matches, also known as in-kind contributions, are non-cash donations of property, goods, or services which benefit a federally assisted project, and may count toward satisfying the non-federal matching requirement of a project’s total budgeted costs when such contributions meet certain criteria. In-kind contributions must be allowable and allocable project expenses and may come from a third party.

    VCBB must maintain thorough documentation to justify the valuation of any in-kind property and services contributed toward meeting BEAD’s matching requirements, so Prospective Subrecipients will need to provide support. This documentation must clearly show how the assigned value was determined. Records should include details on the contribution, the valuation method used, and the donation terms to support the amount claimed as matching funds for the project.

    Additionally, the contribution should be both relevant and necessary for the project. The valuation methodology and supporting documentation should reflect actual market conditions. 

13. What are the restrictions on selling the publicly funded asset?
    Subrecipients are subject to the Property Standards outlined in 2 CFR Part 200. Additionally, according to BEAD NOFO Page 69, footnote 90, “If the subgrantee is no longer viable as a going concern, or if it is unable to provide sustained service over the network at issue, the Eligible Entity should work with the subgrantee and NTIA to assist in sale of the assets to a new owner that can assume the original subgrantee’s service and programmatic responsibilities.

    

Project Requirements and Compliance:

1. What are the reporting requirements for funded projects?
   At a minimum, reporting requirements should follow the will include the following:
   • Quarterly Reporting: Subrecipients must report quarterly to the VCBB on their progress to ensure that sufficient progress is being made towards each construction and/or other specifically identified milestone in the deployment in accordance with the provisions of their grant agreement.
   • Regular Reporting: Regular reporting must include an update on how the subrecipient is ensuring a high- quality and safe work environment, including any recruitment from diverse populations, labor area surplus firms, and apprenticeship programs; training offered to workers; labor violations; workforce and safety practices; and any other metrics needed to ensure high- quality jobs and careers are fostered by the BEAD Program. Subrecipients will also need to include in regular reporting the site visits they have conducted to ensure labor standards and protections are adhered to. Regular reporting must include any Minority Business Enterprises, Women Business Enterprises, and labor area surplus firms that the subrecipient has contracted with; a description of the efforts that have been taken to solicit bids from these businesses and to reach out to communities that reach these businesses; and to structure bids in a divisible way so that smaller firms can bid on portions of the work. Regular reporting must also include all components outlined in the BEAD NOFO (p. 90–92).
   • Annual Reporting: The VCBB will require subrecipients to submit annual audited financial statements prepared by an independent certified public accountant to the VCBB within the earlier of 30 days of the subrecipient receiving their audited financial statements or nine months after the end of the audit period during the project. Annual reporting must include the pricing tiers of service the subrecipient offers so that VCBB can ensure broadband connections remain affordable for middle class families throughout Vermont.
   • Milestone Reporting: Final “as built network designs “must be provided upon the completion of construction. Subrecipients will be required to report if they fail to meet interim build-out milestones within 10 business days of missing the applicable milestone deadline.
2. How long do recipients have to complete their projects?
   All subrecipients that receive BEAD Program funds for network deployment must deploy the planned broadband network and begin providing services to each customer that desires broadband services within the project area not later than four years after the date on which the subrecipient receives the subgrant from the Eligible Entity (BEAD NOFO).
3. Are there guidelines on technology standards or broadband speeds?
   Yes, Vermont’s BEAD program follows NTIA’s guidelines on technology standards. Projects must aim to deliver minimum broadband speeds of 100/20 Mbps to underserved locations and prioritize unserved locations with speeds below 25/3 Mbps. Additionally, projects should ensure long-term scalability and high reliability, meeting federal technology and infrastructure standards.
4. What happens if a project does not meet compliance standards?
   If a funded project does not meet the required compliance standards, the VCBB has procedures in place for corrective action. This may include requesting a project improvement plan, withholding further funding, or, in some cases, requiring the repayment of funds. Compliance enforcement ensures projects are held accountable to Vermont’s broadband objectives and federal BEAD guidelines. Project milestones should be developed to reflect meeting the desired compliance standards, and the project retainage will allow for curing prior to final payment. For further information missed milestones, and non-compliance please refer to page 45 of the RFA.
5. What is the Vermont BEAD Challenge Process, and how does it work?
   Vermont’s BEAD Challenge Process allows local governments, non-profits, and broadband providers to contest or verify the service status of Broadband Serviceable Locations (BSLs) on the FCC’s National Broadband Map. Eligible entities registered on Vermont’s challenge portal to submit claims regarding unserved or underserved designations, ensuring that BEAD funds are directed to areas genuinely in need.

   The final classification of each unserved location, underserved location, or Eligible Community Anchor Institution within the jurisdiction of the State of Vermont is provided in CSV files found here. This data, approved by the NTIA on 9/23/24, includes federal funding deduplication and the true-up to the Version 4 CostQuest Fabric with availability data dated 12/31/2023.

   These Broadband Serviceable Locations (BSLs) and Community Anchor Institutions (CAIs) are the final BEAD eligibility lists. The only additional availability changes allowable will be confirmed enforceable commitments identified during the pre-proposal process while project areas are being finalized for the competitive BEAD subrecipient selection process.

   

Technical Requirements and Standards:

1. Are propagation studies and maps required for any fixed wireless component?
   Yes, the Licensed Professional Engineer (PE) certification for wireless projects typically includes certifying to a propagation map. According to the Broadband Data Collection (BDC) requirements, fixed wireless broadband service providers must submit supporting data that includes information on the propagation modeling parameters, link budgets, and clutter data used in the provider’s modeling. This means that propagation studies and maps are required for any fixed wireless component.
2. What is considered a “Priority Broadband Project”?
   A Priority Broadband Project is defined as a project that provisions service via end-to-end fiber-optic facilities to each end-user premises. Any project that might otherwise qualify as a Priority Broadband Project may be disqualified from this status, with the approval of the Assistant Secretary of Commerce for Communications and Information, if the location surpasses the Eligible Entity’s Extremely High Cost per Location Threshold (EHCT) or for other valid reasons subject to approval by the Assistant Secretary. Therefore, while alternative technologies may be included in an end-to-end fiber project, such a project would no longer be considered a Priority Broadband Project.
3. If a non-fiber technology is capable of 1G symmetrical speeds with low latency, will it be considered part of a Priority Project?
   A Priority Broadband Project is defined as a project that provisions service via end-to-end fiber-optic facilities to each end-user premises. Any project that might otherwise qualify as a Priority Broadband Project may be disqualified from this status, with the approval of the Assistant Secretary of Commerce for Communications and Information, if the location surpasses the Eligible Entity’s Extremely High Cost per Location Threshold (EHCT) or for other valid reasons subject to approval by the Assistant Secretary. Therefore, while alternative technologies may be included in an end-to-end fiber project, such a project would no longer be considered a Priority Broadband Project. However, there may be instances where alternative last-mile solutions are more cost-effective or appropriate based on specific circumstances.
4. How will low earth satellite solutions be evaluated as a non-priority broadband solution?
   Low earth satellite solutions will be evaluated with the same criteria for Other Last-Mile Broadband Deployment Projects. Technologies such as satellite that have higher costs to upgrade and shorter capital asset cycles can receive up to 5 points (out of 13 points) based on the technology’s demonstrated speed and latency capabilities (VT Initial Proposal Volume 2_1 Aug 2024_Public.pdf).
5. What is the applicant’s responsibility to provide service when using third-party broadband solutions?
   VCBB will provide guidance on applicant responsibilities when issues arise while using third-party solutions prior to the service period.

   Initial Proposal Volume 2 Section 2.4.2.1 states that satellite (and similar technologies) can receive no more than 5 points for “Speed of Network and Other Technical Capabilities” due to their "higher costs to upgrade and shorter capital asset cycles."

   Additionally, applicants should be familiar with the "Obligations for Subgrantees Deploying Network Projects Guidance” released by NTIA here: https://broadbandusa.ntia.gov/sites/default/files/2024-08/BEAD_Obligations_for_Subgrantees_Deploying_Network_Guidance.pdf  and the "Reliable Broadband & Alternative Technologies Guidance" from NTIA here: https://broadbandusa.ntia.doc.gov/sites/default/files/2024-01/BEAD_Reliable_Broadband_Service_Alternative_Technologies_Guidance.pdf  

6. What is the ‘Extremely High-Cost Threshold’ (EHCT) and how is it calculated?
   The EHCT is a cost per unserved/underserved location above which the VCBB may decline to select or seek adjustment to a proposal if it cannot be negotiated below the EHCT (Adapted from BEAD NOFO pg. 13 https://broadbandusa.ntia.doc.gov/sites/default/files/2022-05/BEAD%20NOFO.pdf.)  The EHCT is based on BEAD funding requested per location (i.e., does not include match), is set iteratively after receiving all BEAD full proposals, and may vary from project area to project area.

   The VCBB will establish the EHCT through an iterative process that includes evaluation of project area density and available funding, and that occurs in tandem with negotiations with prospective subrecipients on fund requests, locations included in proposals, technology choices, and other factors. The preliminary EHCT calculation will be made based upon full proposals received and available funding. Subsequent iterations of EHCT calculations will take into consideration ongoing negotiations with prospective subrecipients.  

   The VCBB will use the following formula to determine the EHCT:

   • 1. Sum the value of all lowest cost Priority Broadband Project bids for unserved and underserved locations, for the state and for each project area (inclusive of subrecipient BEAD funding requests and proposed matches).
   • 2. If any unserved or underserved locations do not receive end-to-end fiber bids, reference average bids in other locations with a similar housing density (i.e., +/- 10 percent housing density calculated at the census block level) to estimate the cost. If there are no other bids in similar housing density areas (e.g., very remote locations that received no bids), then use a statistical model to estimate the cost.
   • 3. Sum the total available funding for broadband deployments, including BEAD funding, prospective subrecipient matches associated with proposals, and any other public funding (ARPA CPF, ARPA State and Local funding, etc.), that has not already been deduplicated as part of the BEAD Challenge process and that is not already included as part of the prospective sub grantee bidder matches.
   • 4. Using the difference between (1) and (2), establish an EHCT for each project area that is high enough to maximize deployment using end-to-end fiber, while still low enough to ensure that all unserved and as many underserved locations as possible will gain access to high quality broadband.
   • 5. Use this value to negotiate proposals from prospective winners below the EHCT. Once these negotiations have taken place, again sum the total project cost for projects intended to serve unserved and underserved locations and use the difference between this number and the total available funding for broadband deployments (from step #2) to set a new EHCT.
   • 6. Repeat step #4 in an iterative fashion as many times as necessary to arrive at a final EHCT number for each project area that maximizes Priority Broadband Project deployment while ensuring funding to all unserved and as many underserved locations as possible throughout the state.
7. What is meant by ‘useful life of the funded network asset’?
   The useful life of an asset refers to the estimated lifespan of a depreciable fixed asset, during which it can be expected to contribute to company operations. The period of useful service or useful life established in each case for usable capital assets must take into consideration factors such as the type of construction, nature of the equipment, technological developments, historical data, and the renewal and replacement policies followed for the individual items or classes of assets involved.

   The BEAD IPFR General Terms and Conditions clarifies that the “useful life” coincides with the Federal Interest Period. The Federal interest in all real property or equipment acquired or improved as part of a subgrant for which the major purpose is a broadband infrastructure project will continue for ten years after the year in which that subgrant has been closed out in accordance with 2 CFR 200.344.

   The required length of service availability requirement aims to ensure sustained service quality and affordability, aligning with the VCBB program’s goals of long-term infrastructure viability and community benefit. Applicants should carefully consider this commitment when preparing their proposals to ensure they can meet these extended service obligations.

8. What are the requirements for a letter from a licensed professional engineer?
   Per the BEAD NOFO Section IV.D.2.c (page 74), “prospective subgrantees must submit a network design, diagram, project costs, build-out timeline and milestones for project implementation, and a capital investment schedule evidencing complete build-out and the initiation of service within four years of the date on which the entity receives the subgrant, all certified by a professional engineer, stating that the proposed network can deliver broadband service that meets the requisite performance requirements to all locations served by the Project. An Eligible Entity shall not approve any grant for the deployment or upgrading of network facilities unless it determines that the materials submitted to it demonstrate the prospective subgrantee’s technical capability with respect to the proposed project.”(BEAD NOFO)
9. What is the process for submitting a network design, network diagram, and network map?Prospective subrecipients must submit a network design, diagram, project costs, build-out timeline and milestones for project implementation, and a capital investment schedule evidencing complete build-out and the initiation of service within four years of the date on which the entity receives the subgrant, all certified by a professional engineer.
10. What is the definition of middle mile?
    The definition of middle mile infrastructure is "any broadband infrastructure that does not connect directly to an end-user location, including a community anchor institution. This includes (i) leased dark fiber, interoffice transport, backhaul, carrier-neutral internet exchange facilities, carrier-neutral submarine cable landing stations, undersea cables, transport connectivity to data centers, special access transport, and other similar services; and (ii) wired or private wireless broadband infrastructure, including microwave capacity, radio tower access, and other services or infrastructure for a private wireless broadband network, such as towers, fiber, and microwave links.
11. What are the interconnection requirements and wholesale access guidelines for middle mile infrastructure?
    According to VCBB's Initial Proposal Volume II, "as required by the BEAD NOFO (page 69), in the event that a subgrantee can no longer provide broadband service to the end user locations covered by the subgrant, Vermont, in consultation with NTIA, will require the subgrantee to sell the network capacity at a reasonable, wholesale rate on a nondiscriminatory basis to one or more other broadband service providers or public-sector entities or sell the network in its entirety to a new provider who commits to providing services under the terms of the BEAD Program, subject to approval by VCBB, NTIA, and any other federal entity with authority to review the acquisition."
12. In the event that a private owner prohibits or impairs access to an easement, could a subrecipient obtain a waiver of any penalty by providing evidence of a good faith effort to obtain such an easement?
    Potential applicants should begin evaluations of permitting challenges in advance of deployment to understand challenging BSL locations that may cause a delay. At this time, NTIA has not issued a standard waiver of penalty for providers that are unable to serve all proposed locations.

    

Impact and Outcomes:

1. How will the program measure its impact on broadband access?
   The VCBB will track metrics such as the number of households and community anchor institutions CAIs connected, broadband speed improvements, and the program’s reach across underserved and unserved areas. Progress reports, recipient data submissions, and community feedback will help measure impact, ensuring the program aligns with NTIA standards and Vermont’s broadband goals
2. What communities have been prioritized for access?
   The BEAD program in Vermont prioritizes communities currently classified as unserved (below 25/3 Mbps) and underserved (below 100/20 Mbps). Special focus is given to rural areas and CAIs, such as libraries, schools, and healthcare facilities. The VCBB also aligns with Vermont’s equity objectives, working to ensure digital inclusion for low-income and geographically isolated communities.
3. What are the expected benefits for local residents and businesses?
   Expanding broadband access through the BEAD program is expected to provide numerous benefits: improved access to remote education and government services, telehealth services, and online job opportunities for residents, along with enhanced efficiency and growth potential for local businesses. By closing connectivity gaps, the program aims to stimulate economic development, enhance quality of life, and increase Vermont’s competitiveness as a digitally connected state.

   

Support and Resources:

1. Where can I find resources to help with the application process?
   Resources for the application process, including detailed guidelines, sample forms, and eligibility criteria, are available on the Vermont Department of Public Service’s website under the BEAD Program section. Additionally, VCBB provides RFA guidance, which outlines each funding round’s requirements and expectations.
2. Is technical assistance available for potential applicants?
   Yes, the VCBB offers technical assistance to help applicants understand BEAD program requirements, meet compliance standards, and complete application materials accurately. This support may include guidance on eligibility, project planning, and understanding the financial and reporting obligations required by the NTIA and the state.
3. Are there any upcoming informational sessions or webinars?
   Vermont’s BEAD program is planning to hold informational webinars and training sessions to assist applicants later this month. These sessions will cover program updates, application walkthroughs, and Q&A opportunities with program administrators. Upcoming webinars and their schedules are announced on the Vermont Department of Public Service’s website found here.  

   

Compliance and Reporting:

1. What are the guidelines for establishing delivery schedules that encourage participation by MBE/WBE?
   To comply with and demonstrate “establishing delivery schedules that encourage participation by MBE/WBE,” VCBB suggests implementing documented policies and procedures that outline specific steps to support minority and women-owned business enterprises. This can include:
   • Flexible Scheduling: Allowing for flexible delivery schedules that accommodate the needs of MBE/WBE suppliers.
   • Clear Communication: Including specific language in contracts that clearly states the commitment to encouraging MBE/WBE participation.
   • Supportive Measures: Providing resources or assistance to MBE/WBE suppliers to help them meet delivery schedules.
   • Monitoring and Reporting: Establishing a system to monitor and report on the participation of MBE/WBE suppliers to ensure compliance and effectiveness.

     By incorporating these measures, VCBB aims to create an environment that supports and encourages the participation of MBE/WBE suppliers.

2. What are the requirements for a letter of credit or performance bond?
   The BEAD NOFO includes a Letter of Credit (LOC) requirement (pp. 72–73), subsequently modified in NTIA’s conditional programmatic waiver, BEAD Letter of Credit Waiver (October 23, 2023) and subsequent BEAD Financial Capability Alternatives Policy Notice (February 27, 2024). This waiver and alternative guidance provide for letters of credit from certain credit unions and for the substitution of the Letter of Credit with a Performance Bond covering 100% of the amount of the VT-BEAD subaward. Alternative options may be available should an eligible Prospective Subrecipient wish to submit comparable evidence of financial capability for consideration. 

   Where requested, VCBB may seek NTIA approval to waive this requirement for a Prospective Subrecipient that has the statutory authority to issue public bonds (for example, municipal revenue bonds), is legally prohibited or otherwise unreasonably restricted from entering into a Letter of Credit and provides sufficient comparable evidence in support of its financial capabilities. Thus, unless waived, a letter from a bank or credit union will be required from Prospective Subrecipients as a gating criterion to be submitted at the time of filing the Full Proposal. This letter must include the financial institution’s commitment to issuing an irrevocable standby Letter of Credit to the Prospective Subrecipient and the bank or credit union’s commitment to follow the terms and conditions of the VCBB’s Model Letter of Credit, which is available for reference in Addendum 3.

   If selected for VT-BEAD funding, the Prospective Subrecipient must provide the irrevocable standby Letter of Credit and an opinion letter from the Subrecipient’s legal counsel clearly stating that the letter of credit or proceeds of the letter of credit would not be treated as the Subrecipient’s property in a bankruptcy proceeding, before the grant agreement may be executed.

3. What is the process for requesting a waiver for the letter of credit requirement?
   According to NTIA’s Letter of Credit Waiver from October 2023, the LOC Requirement is waived under specific conditions, such as using credit unions or performance bonds. The waiver process includes submitting a letter from a company holding a certificate of authority as an acceptable surety on federal bonds, obtaining a performance bond, and meeting specific deployment milestones.
4. What are the guidelines for the low-cost broadband service option?
   The low-cost option is intended for low-income households. The Low-Cost Plan is required to be offered to eligible low-income residents, as defined by Section IV.C.2.c.i of the BEAD NOFO.
   • Cost: Monthly recurring cost not to exceed $45 for ACP-eligible households, inclusive of all taxes, fees and charges, and no initiation or installation fees.
   • Speed: 100/100 Mbps for on-grid; 100/20 Mbps for off-grid.
   • Latency: 50 milliseconds for on-grid locations; 100 milliseconds for off-grid locations.
     https://publicservice.vermont.gov/sites/dps/files/documents/VCBB%20Board%20Mtg_Internet%20for%20All%20Plans%20Update_11Sept2023.pdf
5. What is the process for reallocating funds if a selected address opts to continue using low Earth satellite solutions?
   The VCBB will provide guidance on when funds should be reallocated to another recipient if the selected addresses opt to continue using low Earth satellite solutions. Applicants are required to submit an overall budget for the project area, which should include the cost of providing services.

   Applicants should be familiar with the "Obligations for Subgrantees Deploying Network Projects" Guidance released by NTIA here and the "Reliable Broadband & Alternative Technologies Guidance" from NTIA here. 

6. What are the guidelines for cybersecurity risk management plans?
   The VCBB will provide cybersecurity plan resources for providers to ensure consistency and alignment with the required NIST framework.

   Applicants should stay informed on guidance and can refer to the NTIA resource on Cybersecurity and Supply Chain Risk Management found here: https://broadbandusa.ntia.gov/sites/default/files/2023-04/Cyber_and_SCRM_Webinar_Presentation_0.pdf