A legislative panel on Wednesday signed off on the state Department of Commerce's proposed $2.2 million contract with the Broadband Development Group of Little Rock to create a statewide broadband implementation plan.
The Legislative Council's eight-member executive subcommittee completed its review of the proposed contract with no audible dissenters and without asking any questions. The council had previously authorized the executive subcommittee to make a final decision on the proposed contract in order to expedite the work of a broadband consultant.
Last week, the panel delayed action on its review of the proposed contract after the Department of Commerce's executive broadband manager, Steven Porch, surprised lawmakers by suggesting the department should issue a new request for proposals to hire a consultant to develop the implementation plan.
Porch's suggestion to issue a new request for proposals was made after the secretaries of the departments of Commerce; Finance and Administration; and Parks, Heritage and Tourism selected the Broadband Development Group as the consultant.
Parks, Heritage and Tourism Secretary Stacy Hurst told the executive subcommittee Wednesday that state lawmakers on Arkansas' American Rescue Plan steering committee appointed by Gov. Asa Hutchinson called for the creation of a broadband master plan during its June 2 meeting, and both senators and representatives suggested the development of a master plan during the Legislative Council's June 18 meeting.
After the first meeting on July 8 of the governor's broadband working group in the Cabinet that Hurst leads, and "with the governor's endorsement, we endeavored to work with the Legislature to pursue a consultant to create a master plan for broadband deployment," she said.
"It is apparent to all of us I believe that at this juncture in our state's history and with this historic [federal] funding that we have available that a fresh look and a road map would be both timely and helpful," Hurst told state lawmakers with Commerce Secretary Mike Preston and Finance and Administration Secretary Larry Walther at her side to show their support for the proposed contract with Broadband Development Group.
In March, President Joe Biden signed into law the $1.9 trillion American Rescue Plan Act that is designed to help the United States' recovery from the economic and health effects of the coronavirus pandemic.
Hurst said state officials explored their options for hiring a broadband consultant with the Office of State Procurement.
"We chose to follow a most advantageous proposal process," primarily because it allowed for competition through a request for proposals, and it's a quicker and somewhat new process, she said.
Hurst said the procurement office instructed state officials to draft a scope of work that's general in nature for this request for proposals. She acknowledged that the scope of work has been an issue of concern for some lawmakers.
A state agency generally states what it wants through this process, and the vendors paint a picture of what they recommend based on their expertise, their method or their business model, she said.
"The MAP [most advantageous proposal process] is not a straight invitation for bids where the scope of work must be very defined and then the low bidder is selected in that process," Hurst explained.
She said she provided a draft of the scope of work "pretty broadly," including to a dozen state lawmakers, officials at the Department of Commerce and Department of Finance and Administration, and the state's broadband office.
There are probably many ways that the scope of work could have been drafted and still provided the guidance needed for an appropriate response, Hurst said.
She said the scope of work could have been improved.
"Did we have any ulterior motives in drafting it in the way we did? Absolutely not," Hurst said. "We conducted the process transparently. We sought input. We operated in good faith and with the guidance of the Office of State Procurement."
The Broadband Development Group is one of three companies that submitted proposals after the request for proposals was issued Aug. 16. The deadline to submit proposals was Aug. 23. Deloitte Consulting and CostQuest Associates also submitted proposals.
Broadband Development initially submitted a proposal with a $2.75 million price tag, while CostQuest Associates of Cincinnati submitted a proposal with a cost of $533,600 and Deloitte Consulting LLP of Austin, Texas, proposed to do the work for $489,273, according to state records.
The proposals were scored by state officials based on cost and a technical review by one information technology employee apiece from the Commerce, Finance and Administration, and Parks, Heritage and Tourism departments.
CostQuest Associates' proposal received the highest score at 881.7; Deloitte Consulting's proposal got the second-highest score at 801.7; and Broadband Development's proposal was scored at 461.3, according to state records.
Hurst testified Wednesday that all three vendors proposed different approaches for assessing the current broadband availability in Arkansas through field verification or "boots on the ground" in the state and proposed different plans to conduct community outreach.
After the technical and cost scoring was completed, she said the three department secretaries started further evaluation of the three proposals, and the vendors provide more documentation and more detail.
The state's information technology experts and American Rescue Plan consultant, the Center for Toxicology and Environmental Health, also were involved in these discussions, Hurst said.
"I am confident that this process led us to the most advantageous proposal and an outcome that will be in the best interest of the state," she said. "It's our hope that we can move forward today and engage a consultant and begin the important work of increasing connectivity in Arkansas."
So far, the Commerce Department has spent about $275 million on broadband grants through the Arkansas Rural Connect program.
Three weeks ago, Hutchinson set a goal for the broadband grant program to award $250 million more in grants financed with federal American Rescue Plan funds by the end of this year.
The Broadband Development Group's board of directors includes Aaron Bragg, son of Rep. Ken Bragg, R-Sheridan, and Ryan Holder, the husband of Arkansas Highway Commissioner Marie Holder, according to state records. The records show that Aaron Bragg has a 10% ownership interest and Ryan Holder has a 5% ownership interest.
Attorney Martha Hill is a registered lobbyist for the Broadband Development Group, while the Gilmore Strategy Group -- led by Hutchinson's chief political strategist and former deputy chief of staff Jon Gilmore -- is a registered lobbying firm for Deloitte Consulting, according to the secretary of state's website. Hill is the wife of U.S. Rep. French Hill, R-Ark. CostQuest Associates doesn't have a registered lobbyist in Arkansas, based on a search through the secretary of state's website Wednesday afternoon.