In 2010, the Maryland Department of Information Technology received approximately $160 million in one of the largest NTIA grants in the nation. As the lead recipient, DoIT was responsible for designing and constructing 1,300 fiber miles and connecting nearly 1,100 community anchor institutions. Approximately $4.25 billion has been allocated within NTIA’s BTOP program, making it clear that One Maryland Broadband Network will face intense competition for resources, contractors, and products.
NTIA’s broadband allocation is now more than 10 times larger than BTOP’s, making the lessons learned from OMBN invaluable in mitigating vendor supply chain risk in today’s competitive environment.
Early recognition and strategic approach: OMBN identified three critical path items early in the process. These include ensuring timely supply of products at scale (conduits, handholes, fibers, etc.), creating a frictionless and competitive public offering environment, and standardizing products and equipment.
Start early collaboration with product manufacturers: OMBN proactively met with manufacturers to confirm product availability and discuss project pricing. By establishing clear expectations for product delivery and comparing them to the anticipated installation schedule, OMBN secured an initial subset of the required products. This facilitated a comprehensive assessment of procurement speed and allowed us to work seamlessly with construction procurement and installation.
Implemented product standardization: Significant value has been added by aggressively promoting standardization of fiber, conduit, and handhole sizes. This approach promoted predictability and consistency and streamlined monitoring, installation procedures, learning curves for new personnel, connection efforts, and logistics, contributing to more consistent and cost-effective project execution. .
Common definition established: By introducing standardized naming and numbering conventions for installations, we differentiated segments as underground construction or aerial installation applications. This shared approach provided value by fostering a common language and understanding between internal and external project stakeholders. Standardized definitions have contributed to enhanced communication, streamlined documentation, and streamlined workflows. This facilitated smoother collaboration, reduced potential misunderstandings, and resulted in a more organized and effective project management process.
Streamlined and simplified procurement: By starting to recruit via RFQ, we have built a deep pool of construction contractors and product suppliers. Prior to the commencement of the BTOP project, DoIT awarded the Cable & Wire contract, resulting in approximately 20 pre-qualified contractors eligible to bid on his RFP for construction and product supply. This diverse group ranges from small local businesses to national vendors.
For product supply requests, OMBN implemented just-in-time delivery specifications in subsequent RFPs for conduit, handholes, and fiber. By working with construction RFPs to create a product vendor pool, OMBN achieved the necessary depth, diversity, and flexibility between regional and national suppliers. By leveraging this approach, suppliers can assume storage and logistics risks upfront, allowing them to release products without the burden of large storage spaces. By maintaining a diverse supplier pool, organizations can increase redundancy in dealing with supply chain bottlenecks should they occur.
To facilitate competitive bidding and cost-effectiveness, RFPs for installation were released at reasonable and manageable distances. This enabled local and regional contractors to compete effectively with national contractors and eliminated onerous bonding requirements. It also promotes competitive pricing and favorable combinations between small local businesses and regional and national contractors, resulting in overall project cost savings even in the face of other budget constraints. This has resulted in cost reductions that can be reallocated.
OMBN customized the RFP for underground construction and fiber installation to include only labor, excluding contractors responsible for consumables such as ground rods, conduit end caps, and mullet tape. OMBN minimized unnecessary complexity and material waste by moving the risks associated with consumables away from infrastructure owners. Additionally, for underground segments, invoice or payment milestones were associated with successful conduit proofing, whereas milestones for aerial segments were associated with successful fiber master reel installation. This approach facilitated predictable and quick completion of work and invoices, prevented unfinished segments and applications, and discouraged contractors from delaying handhole completions and repairs.
Manage your supply chain efficiently: OMBN was able to manage its entire product supply chain within a suitable outdoor secure storage space to reduce risk and reduce costs. Ordering fiber, conduit, and handholes according to truck load secured the greatest discounts and brought predictability to storage yard organization and management. This not only reduces potential risks, but also helps streamline and streamline the supply chain, enabling better cost control and resource utilization throughout the project lifecycle.
Achieve significant cost savings and project success: OMBN achieved significant financial savings of over $5 million in budget efficiency. This financial prudence has made it possible to allocate funds to the expansion of Backbone and his CAI. As a result, project completion rates were exceptional, exceeding 107% for fiber miles and 121% for his connected CAI in rural counties. This exceeded the original grant goal and demonstrated not only the financial effectiveness of the project, but also its significant impact on expanding connectivity to unserved areas not originally anticipated.
These breakthrough sourcing and logistics strategies exemplified innovation in managing procurement processes, fostering strategic vendor engagement, and implementing efficient supply chain practices. OMBN’s overachievement highlights the importance of careful planning for large and complex broadband infrastructure projects. In an environment where the competition for resources is as relevant and challenging as the completion of the construction work itself, these proven approaches not only demonstrate ingenuity but also encourage infrastructure owners, project team members, and construction contractors. , it also confirmed the spirit of partnership between the product vendors.
Eric Bathras is AECOM’s Global Broadband Leader. In 2010, he served as the OMBN program manager responsible for planning, design, and implementation of the state’s NTIA/BTOP grants in local counties. He later served as Director of Network Operations for Maryland Network. Currently, he designs America’s smartest streets and is an invited speaker at the Wharton School of Business and the National League of Cities, and has challenged hyperscalers, public sector organizations, broadband authorities, and DOT on regional planning. and advises on his best practices regarding expansion. and global fiber optic infrastructure. This expert’s opinion is limited to Broadband His Breakfast.
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