Broadband Office Name: Maryland Office of Statewide Broadband (OSB)
BEAD Award Amount: $267.7 M
Maryland Broadband Director: Ronnie K. Hammond
Website: https://dhcd.maryland.gov/Broadband/Pages/default.aspx
Maryland BEAD Program Tracker
| State | IP Vol 1 Approval | IP Vol 2 Approval | Challenge Process Submission Started | Challenge Process Final Determination Phase Completed | 1-Year Subgrantee Selection Process |
|---|---|---|---|---|---|
| Maryland | Yes | Yes | Yes | No | N/A |
Maryland BEAD Program Information
Key Updates
Maryland’s Initial Proposal Volume 2 has been approved by the NTIA, signaling the start of its 1-year BEAD Subgrantee Selection process.
Maryland’s Challenge Process opens on July 16, 2024. The deadline to submit challenges is August 15, 2024. Detailed information on the challenge process, including registration, can be found here.
Maryland BEAD Program Plans & Maps
Maryland BEAD Program Initial Proposal Volume 2: Overview
*All information is sourced from Maryland’s BEAD Initial Proposal Volume 2.
BEAD Long-Term Objectives
The Maryland Office of Statewide Broadband (OSB) has set the following goals:
- Serving 100 percent of unserved locations (i.e., below 25/3 Mbps) within five years— including public and nonprofit owned multiple dwelling unit (MDU) locations that are determined to be unserved through the challenge process to ensure the availability of reliable and affordable high-speed broadband access in low-income and affordable public housing.
- Promoting access, affordability, and equity by serving all unserved locations, particularly public and private MDUs, to provide reliable and affordable high-speed broadband access in low-income and affordable public housing.
- Serving 100 percent of underserved locations (i.e., between 25/3 and 100/20) within five years
- Delivering gigabit connections to community anchor institutions that do not have that level of service within five years.
- Addressing affordability, equity, and adoption in the above service by ensuring BEADfunded projects include a low-cost service option and middle-class affordability as well as
awareness of affordable options. - Deploying the above service in a way that creates quality Maryland jobs and supports
Maryland businesses, including workforce readiness, labor standards and protection,
labor surplus area firms, and minority- and women-owned businesses.
Should BEAD funds remain after the first three objectives are fulfilled, Maryland will then focus
on the following objective:
- Driving adoption and equity by supporting digital equity and inclusion programs to help drive higher adoption among BEAD-defined covered populations
Maryland BEAD Program Project Area Design
OSB plans to define project areas through a Grant Area determination process in which it specifies the geographic boundaries of the Grant Areas for which prospective subgrantees can apply based on how single eligible BSLs are clustered.
OSB will define the service areas (including units of measurement) based on its extensive knowledge of the unserved and underserved areas of Maryland, so as to create grant areas that will maximize competition among applications.
OSB will establish the geographic boundaries for project areas based on the results of its cost modeling and other data, as well as the map of BEAD-eligible locations that results from the Challenge Process, taking into account a range of factors.
Among these factors will be the following, which OSB expects to result in project areas of widely varying sizes, and be as inclusive as possible of prospective applicants’ participation in the grant process:
- Potential for competition among applicants to submit competitive and attractive applications to serve those areas. Ideally, Grant Area design will encourage competition among applicants and result in multiple applications.
- Locations of unserved and underserved units.
- Economic and technical viability and efficiency. Application areas will reflect OSB’s internal data, modeling, and engineering expertise regarding the most economically viable grouping of unserved locations into a single geographic unit for application.
- Community needs. OSB will endeavor where possible to ensure that boundaries reflect unique local circumstances.
Maryland BEAD Program Extremely High Cost Threshold
OSB plans to identify the Extremely High Cost Per Location Threshold (EHCPLT) to determine
where it is possible, under NTIA’s rules, to fund technologies other than fiber.
OSB anticipates that, once it has received all grant applications, it will use the EHCPLT to calculate
area budgets and efficiently allocate its BEAD funding based on the applications received. Based
on both State and federal goals (and the federal requirement) to fund fiber-to-the-premises
wherever possible, OSB will optimize EHCPLT (and area budgets) to achieve the goal of 100%
broadband statewide and ensure greater fiber coverage. In addition to the data provided by
applicants, OSB will also consult other data, including its cost-model based area benchmark cost.
OSB will determine the EHCPLT (and area budgets) through a process that will involve analysis of
the following:
- The Eligible Entity Planning Tool provided by NTIA
- Data developed by OSB in the course of previous broadband grant programs
- OSB’s own cost model data, developed in 2023 by OSB’s engineers and analysts based on
customized Maryland cost inputs
OSB will develop the EHCPLT (and area budgets) using the pricing and associated data provided by applicants through the application process, including feedback and outcomes from the negotiations, and dynamically adjust these values as projects are selected and project areas are assigned.
Based on all these inputs, OSB will develop the EHCPLT (and area budgets) in order to determine
at what cost per unit (if any), fiber-to-the-premises is too costly to achieve the critical BEAD goal
of achieving 100 percent broadband coverage with the funds provided in the BEAD allocation.
BEAD Deployment Subgrantee Selection
OSB is asking for the following preregistration evidence from subgrantees and compliance with: Financial capability, managerial capability, operational capability, technical capability, ownership info, public funding info, compliance with laws, cybersecurity/supply chain compliance, and BABA/EHP/NEPA/NHPA compliance.
Primary Scoring Criteria for Priority Broadband Projects:
- 30 pts – Minimal BEAD Outlay
- 15 pts – Affordability
- 30 pts – Fair Labor Practices
Secondary Scoring Criteria:
- 1 pt – Speed to Deployment
- 5 pts – Speed of Network and other Technical Capabilities
- Up to 10 points (for Priority Broadband Projects) or up to 5 points (for Other Last-Mile Broadband Deployment Projects) – Community Support
- 5 pts – Climate and Hazard Mitigation
- 5 pts – Low-income Affordability Demonstration
- 4 pts – Middle-Class Affordability Demonstration
BEAD Non-Deployment Subgrantee Selection
OSB does not anticipate having non-deployment subgrantees. However, it will support non-deployment activities if there is available funding consistent with the BEAD Notice of Funding Opportunity (NOFO).
BEAD Eligible Entity Implementation
The estimated cost for Maryland to provide universal broadband service exceeds its BEAD allocation. If additional funds become available, the state plans to implement the following:
- General administration of the BEAD award
- Oversight of BEAD subgrant applications and issuance
- Implementation of the BEAD challenge process
- Management of the subgrantee application and issuance process
- Acquisition of software to manage both processes
- Oversight of subgrantee compliance
These measures will ensure effective management and implementation of the BEAD program in Maryland.
BEAD Local, Tribe, and Regional Broadband Planning Process
OSB has established a robust collaborative partnership with both private sector entities and local jurisdictions to achieve its mission:
- Inter-Agency Coordination: Maryland has developed strong coordination with workforce development agencies.
- Stakeholder Engagement: OSB leverages relationships with private and public entities to develop and update its stakeholder contact list.
- Modes of Engagement:
- 4 in-person regional meetings
- 4 virtual listening sessions
- Social media outreach
- Phone surveys (collecting data from 1,932 adult residents)
The in-person regional meetings were day-long events featuring multiple workshop panels.
BEAD Labor Standards & Protection
OSB requires all BEAD subgrantees to submit the following information:
A record of past compliance with federal/employment laws:
- Must address info on deployment projects within the last 3 years.
- Certification form from an Officer/Director level employee of past compliance.
- Written confirmation that subgrantee has disclosed any violations from contractors within the last 3 years.
- Discussion of workforce plan
Plans for ensuring compliance with federal/employment laws:
- How subgrantee will ensure compliance in its labor/employment practices.
- Info on applicable wage scales, wage, and overtime practices for each class of employee expected to be involved in physical construction of the network.
- How subgrantee will ensure implementation of workplace safety committees.
- Comply with the Prevailing Wages Act.
- Other items as outlined in the BEAD NOFO.
BEAD Minority Business Enterprises / Women’s Business Enterprises / Labor Surplus Area Firms Inclusion
Support for Small, Minority, and Women’s Business Enterprises in Maryland
Governor’s Office of Small Minority & Women’s Business Affairs (GOSBA):
- MBE/WBE Certification: Offers a certification process for Minority Business Enterprises (MBE) and Women’s Business Enterprises (WBE) with no cost to receive an MBE certification.
- MBE Liaison: Provides support to MBEs and WBEs.
State Resources and Achievements:
- State Business Opportunities: Maryland provides resources to help MBEs and WBEs pursue state business opportunities.
- Contracts Awarded: In 2021, 1,162 MBEs/WBEs were awarded over $1.1 billion in state contracts.
- Small Business Impact: Small businesses make up 99% of Maryland’s businesses and employ 49% of the private sector workforce.
Affirmative Steps for Inclusion:
- Solicitation Lists: Placing qualified small, minority, and women’s businesses on solicitation lists.
- Targeted Solicitation: Ensuring small, minority, and women’s businesses are solicited whenever they are potential sources.
- Dividing Requirements: Breaking down total requirements into smaller tasks or quantities to maximize participation.
- Flexible Delivery Schedules: Establishing delivery schedules that encourage participation from these businesses.
- Utilizing Support Services: Leveraging the services of organizations like the Small Business Administration and the Minority Business Development Agency.
- Subgrantee Requirements: Ensuring subgrantees also take these affirmative steps in relation to subcontractors.
BEAD Cost & Barrier Reduction
1. Promoting the use of existing infrastructure.
2. Promoting and adapting dig-once policies.
3. Streamlining permitting processes.
4. Streamlining cost-effective access to poles, conduits, and easements.
5. Streamlining rights of way, including the imposition of reasonable access requirements.
BEAD Low-Cost Broadband Service Option
Current Internet Access:
- 94.1% of Maryland residents have home internet.
- 12% of households without service cite affordability as the top reason.
Affordable Connectivity Program (ACP) Enrollment:
- Only 28% of eligible households have enrolled in ACP.
Maryland Emergency Broadband Benefit (MEBB):
- Funded by $45M from the American Rescue Plan Act (ARPA).
- Provides a $15 state subsidy in addition to the ACP benefit.
- 33% of ACP-eligible households are enrolled in MEBB.
- Maryland residents are also eligible for the Lifeline program.
Recent Initiatives:
- Maryland ActNow (July 2023): Announced by Governor Moore, this program partners with EducationSuperHighway to increase awareness of ACP and MEBB programs.
- New Programs (October 2023):
- $45M for the Home Stretch for Public Housing Program and the Home Stretch for Difficult to Serve Properties Program, funded by ARPA.
OSB proposes to require all subgrantees to offer a service option that meets, at a minimum,
the following criteria:
- Will be available to all households that meet the eligibility requirements of the
federal ACP program - Cost of $30 per month or less, inclusive of all government taxes and fees, with application
of an annual inflation factor based on the Producer Price Index for the State of
Maryland)
104 - Available to households with income equal to or below 200 percent of the federal poverty
line - Participates in the ACP or successor program, allows the end user to apply the ACP, if
applicable, subsidy to the service price, and requires ISPs to ensure that prospective
customers are aware of their participation in the ACP - Meets performance requirements as established by the BEAD program, with download
speeds of at least 100 Mbps and upload speeds of at least 20 Mbps - Delivers typical latency of no more than 50 milliseconds
- Is not subject to data caps, surcharges, or usage-based throttling, and is subject only to
the same acceptable use policies to which subscribers to all other broadband internet
access service plans offered to home subscribers by the participating subgrantee must
adhere - Allows subscribers to upgrade at no cost in the event the provider later offers a low-cost
plan with higher speeds (downstream or upstream)
BEAD Middle-Class Affordability
Median Household Income:
- In 2021, the median household income in Maryland was $91,431.
Internet Service Gaps:
- About 2% of Maryland residents without service report that they believe it is “not worth it.”
Risk Management by the Office of Statewide Broadband (OSB): OSB plans to address several areas of risk in broadband deployment:
The OSB plans to manage middle-class affordability within the context of the BEAD
program by addressing the following areas of risk:
- Small, local providers propose low requested BEAD support but set high subscription
costs: OSB will encourage ISPs participating in the State BEAD grant program to offer
areas they serve with grant funding their best price for analogous products they offer in
other areas, in alignment with the gigabit best offered pricing requirement in the BEAD
program rules. (ISPs should include current pricing through the prequalification process,
and a rigorous financial proficiency test will be built into the letter of credit and
prequalification process.) - Providers shift drop and installation costs to the consumer to recover capital costs:
Grant participation rules will make clear that drops and network equipment are eligible
BEAD costs and should be built into grant proposals to avoid inflated subscriber prices.
OSB expects this risk to be somewhat mitigated by expanding competition in rural areas
from 5G home internet and LEO satellite options. - Providers refuse to provide service to expensive locations: OSB will monitor and ensure
that awardees make good on their BEAD service commitments, including not assessing
additional fees beyond standard installation fees. - Differential pricing between urban and new project areas: The gigabit best pricing policy
mandated in the BEAD program scoring matrix sets requirements around geographic nondiscrimination.
