Transcripts For CSPAN3 Hearing Focuses On The Public Safety Broadband Network 20160622

Responders. Firstnet ceo testified before the Senate Commerce subcommittee on communications and the internet. This hearing is an hour and 20 minutes. Good morning. Glad to convene todays hearing with my friend and colleague Ranking Member shots. We would like to focus on the progress and the challenge thats lie ahead in deploying Public Safety network. Firstnet was established. Narrator middle class tax relief of job creation act of 2012. It is intended to address communication failures that slow Recovery Efforts during Major National emergencies, including the 9 11 attacks and hurricane katrina. In mississippi, we saw firsthand consequences of Communication Network break down. Fema, red cross, and others were hindered from providing the Emergency Recovery Services needed. The 2012 act allocated 7 dls billion from spectrum option proceeds to launch firstnet. The aws three spectrum option which concluded raised the 7 billion needed to begin the planning and development stage. Although firstnet has made commendable progress in the first years questions linger about the future viability of the network. I appreciate firstnets commitment to providing our Rural Communities with the same services as larger urban cities. But rural and remote coverage remains a major concern of mine. The cost of the coverage and maintenance of the network in these hard to reach areas needs to be addressed on the front end of the deployment. An accurate inventory of the towers and equipment is critical to ensuring that infrastructure is capable of withstanding 200 mile per hour winds during the storms similar to katrina. Each region of the country faces unique set of challenges and addressing these challenges is critical. So fulfilling Congress Goal of creating firstnet. We should ensure that the plan for deployment include technical environments that may be necessary. Firstnet will be reviewing bids of all aspects of deployment as this process moves, first may have the sophisticate to determine has only the technical capacity. But also the ability to monetize the network. Are also major concern with regard to longterm sustainability. Last years oversight hearing examine the progress that has been made and the plan to far outreach to stake holders and each stated territory. I look forward to hearing about firstnets accomplishments in the past year. What bench marks have been met and what work is still needs to be done. I want to welcome all of our witnesses and thank them for testifying this morning. Our panel today includes a number of stake holders overseeing the deployment process who could help shed light on the challenges ahead. Senator schots. Thank you, mr. Chairman. Thank you to our witnesses. I especially want to offer my welcome to hawaiis general, general logan. We are here today to discuss the progress made towards creating an interoperable nationwide Wireless Broadband Network for First Responders. In 2012, when congress created firstnet, we made an important commitment to Public Safety. The new federal entity we created as a unique Publicprivate Partnership mandated to deploy this network for First Responders. At the time this legislation was passed, we still lacked a nationwide interoperable Public Safety Communication Network in spite of the glaring Communications Problems that had exposed following the tragedies of september 11th, hurricane katrina. Until this network was built, our First Responders o have to carry the heavy radios for the Voice Communications and carry around a commercial smart phone for the data. There is really no reason a 16yearold with a smart phone should have more technology at their finger tips than our First Responders. Firstnet will provide First Responders venues for the first time. This network will live up to the safety specifications. Well have competitive devices and specific applications. For example, firefighters can download a blueprint before they enter. Emergency person until will not be competing commercial users for bandwidth. They will have priority on this network. Firstnets staff and board should be congratulated for releasing its rfp earlier this year which is a real milestone towards the construction of the network. They received bids and will be evaluating potential venldors during the next several months. While continuing to work with the states on their participation, as they progress, firstnet and its commercial partner have to make sure that First Responders and each state sees the value in the network. As general logan may touch upon today, we need to ensure that the specific needs of all states and territories are respected in order to accommodate for geographic and other difference as cross our great country. While congress will continue to keep a close eye on this, were in a wait and see mode until firstnet chooses the private sector partner. I expect that mr. Pothon will be able aaddress every issue because theyre in the middle after a procurement process. Once the vendor has been chosen, firstnet and all of its partners can begin to earnest to build the network and deliver on the promise that congress made to the Public Safety in 2012. Again, i want to thank you the witnesses for appearing before the committee and i look forward to hearing your testimony. Thank you, our witnesses to day are mr. Michael pothe, ceo of the firstnet, director mcleod, arthur j. Logan, the single point of contact state of hawaii and the Hawaii Attorney general and fourthly, mr. Andrew kasarus for u. S. Department of commerce with washington, d. C. Gentlemen, we appreciate all of you being with us to day and we begin with the testimony of mr. Pothe. Every single day. We are the stewards for their network. Id like to take just a moment and thank those Public Safety person fwhoel are in the audience today, senators, their presence are an indication that they are keeping all of our feet to the fire as we Work Together and make first ks net a reality. We accomplished a great deal over past 12 months, wrapped up our initial consultation meetings with every state and territory partner who requested one. Kicked off 2016 consultation with our single points of contacts meetings. And were well under way with our coordination and released the rfp and now moving forward aggressively towards award. It is around the rfp i would like to focus the majority of my dments today. Whether the firstnet chairwoman testified before the full committee around 15 months ago, she laid out the road map that firstnet was planning to move along noord to successfully conduct consultation with the state and develop a strategy that would result in a Publicprivate Partnership. Firstnet continues to honor commitments to set out what we set out to do on time and under bujtd. We have to ensure that our core objectives including cybersecurity, Public Safety adoption and Financial Sustainability could be met by the Vendor Community but we have to propose a Business Opportunity mod that will would ultimately be a win for Public Safety, a win for the states, a win for first net, and a win for our commercial partner. A true Publicprivate Partnership across the board. Based on what weve seen in the past, the financial insent sieve not enough for the commercial community to do this on their own. We know that taxpayer funds are simply not there to do this by ourselves. In essence, we develop the business proposition to fulfill the needs of both parties. In developing the rfp, we met with hundreds of commercial entities educating them on the business proposition and listening to concerns and coming up with best practice methods and bringing the commercial world to the table. Were in the marketing mode to the demand. We held numerous industry days, informational sessions with investment community, educational webinars and public speaking engagements. After years of intense work, we were tibl release the rfp back in january of this year, the rfp was open to the Vendor Community for a little over five months and was closed on this may 31st. We are confident that rfp will lead to the successful Publicprivate Partnership that congress has and were confident that well enable our partner to acheest Public Safety user adoption targets, the coverage goals, price points, and Financial Sustainability that we need. We will maximize the value of the seven billion and the 20 megahertz spectrum that congress and the american taxpayer provide at firstnet. We also know that Public Safety user base exists and use area dopgs targets will become a Contract Term. We have zinld the rft to insentivize our partner to achieve the goals and so were allowing the market to work in both our and Public Safetys advantage. We have structured oversight controls over our partner to ensure we have the ability to keep them accountable throughout the duration of the contract. Today we are in the Evaluation Phase of the project. Due to the rules that federal acquisition regulations are placed on firstnet, i can not comment on any aspects of the organization related to the procurement n 2016, we still continue consultation efforts with the states conduct outreach with state and local tribal and federal Public Safety agencies. We will select the partner from the procurement phase of the project and develop the state plan. Our previously established partnerships with the states will be critical for this phase of the effort. We cannot afford to rest for one moment. Public safety is long demanding a Broadband Network. The men and women who protect us from harms way are counting on us to deliver the network and we must do so for the sake of First Responders around the country. The need of the network has never been higher. In order to meet the expect sagss of Public Safety every, where im the organization and committed to achieving the goals that congress laid out for us just a few short years ago. Thank you again for your support and i look forward to your questions. Thank you very much. Mr. Mcleod . Im director of the home hand security and Public Safety commission for best practices. I appreciate the opportunity to appear before you as a representative of our nations governors to discuss our shared commitment to building and sustaining a nationwide Broadband Network dedicated to Public Safety. Nga was a leading add voluntary cast the Public Safety spectrum that led to the creation of firstnet. And represented governors before congress on key implementation issues and challenges facing states. My testimony today will address factors that governors must weigh in reaching a decision whether to join in the deployment of the Public Safety Broadband Network as proposed by firstnet or to opt out and take on the responsibility of deploying, operating, and maintaining a Radio Access Network in their state. Specifically, im going to focus on three issues, one, coverage, two, cost, and three, the consultation process for which firstnet is required to engage. I would like to summarize remarks and ask my full written testimony be submitted to the record. Primary consideration for governor is the networks ability to offer reliable coverage statewide. This is a top concern in states with large rural areas and in states with challenging geography. First net is set for the buildout and maintenance of the network and rural areas is funneleded primarily from excess fees generated from the user base in more densely Populated Areas. They are likely to prioritize before rural areas. However, the financial needs of the network must be balanced with the needs of the Public Safety community. States are required that network be built in rural areas where commercial access is more limited. In addition to concerns about coverage, questions of cost top the agenda for many governors. Governors want to know whether the network can be built with existing cost mod ldz, two, what the user fee to connect the network will be and, three, what are the long term administrative and operation costs . The financial miles that underpin the long term sustainability requires a robust and diverse user base. If these are too high, they do not utilize the network. Network could be in jeopardy. States remain concerned that this could lead to user fees that exceed current outlays on Public Communications technology. Given the unprecedented nature of building and maintaining a network of this size and complexity, states are concerned about the possibility of unforeseen costs being shifted to them. Regarding firstnets outreach to governors on the consultation piece, some have expressed concern about the tone of the engagement. During the consultation process, firstnet has referred to states as constituents. While they may appear to be just word choice, it alters the tenor of the engagement and lessens the focus on partnership. Firstnet must view states as full partners in this endeavor. States have key information, processes and expertise that must be brought to bear on the full range of firstnet activities. In closing, to many states, the optout scenario is a false choice. While there are a number of likely significant financial liabilities associated with building, operating and maintaining and upgrading a full regular Access Network in their states, if they choose to opt out. Finally, id like to note that transition in governors administrations with the coming election cycles presents a continuing communication and education challenge for firstnet. On behalf of nga and our members, thank you for the opportunity to testify. Ill look forward to any questions the committee may have. Well, thank you very much. General logan. Chairman wicker, Ranking Member schatz, all the members of the senate committee, thank you very much for the opportunity to be here today. Im Major General arthur logan, the adjutant general for the state of hawaii and the governor appointed me as the state single point of contact for firstnet january of 2015. And when he first called me to this spot, i had to think back to star trek in the 1970s and i had to touch the top of my ears to make sure they werent pointed, but i gather theyre rounded, so everything was good. But im also the director of Emergency Management on the Homeland Security adviser to the governor. And if thats not enough, i also receive the hawaii army and air national guard. From those perspectives in my 20 years of Law Enforcement experience, i want to share with the members of this committee the importance of firstnet. At the time i was appointed in january 2015, the team had already been engaged in hawaii in the preparing for the deployment of firstnet. Much of the effort focused on education and outreach to Public Safety and Public Policy stakeholders as well as working towards establishing governance, governors model and strengthening hawaiis Public Safety communications infrastructure. My first year and a half on the job involved briefings from key staff in hawaii, meeting with firstnet leadership, and attendance to the biannual Firstnet Spock meetings and leading state efforts to develop key Public Safety communications commands. Let me cover just a few of the brief activities. Hawaii sponsored the first firstnet forum for noncontiguous states in territories in july of 2014, so hawaii had the foresight to anticipate the needs and concerns of noncontiguous states, such as hawaii, alaska, guam, american samoa, the commonwealth of the northern mariannas islands, puerto rico and virgin islands. And we know were different than our sister states of the lower 48, who are connected by borders and could share coverage. To that end, 2014, hawaii sponsored their first ever noncontiguous states and territories meeting on the island of kwai. The meeting included policymakers in government and Public Safety and communication subject Matter Experts from hawaii and alaska and the territories from virgin islands, puerto rico, guam, american samoa. Firstnets leadership and the leadership of the department of Homeland Security office of Emergency Communications walked participants through the evolution of technologies used in Public Safety communications. From the current standard of land mobile radios to the future of Public Safety broadband. Firstnet heard directly from these jurisdictions and actively participated in our dialogue. A year later in july of 2014, governor egay and i sponsored executivelevel firstnet briefings. We invited ceo t. J. Kennedy and governor of Government Affairs ed parkinson, who flew to hawaii and engaged in the governors cabinet to bring the new leaders up to date on the concept of firstnet and how it may add value to Public Safety in hawaii. And then in august of 2015 was our first firstnet state consultation. Firstnet brought its technical and state plan staff to hawaii for adayandahalf meetings with all hawaii stakeholders. While firstnet updated the attendees on the progress of the project, hawaii stakeholders of over 90 county, state and federal partners also had the opportunity to inform firstnet directly about the challenges in Public Safety and communications that arise in hawaii. Over the time of the meeting, there was an active participation by the community and good questions were generated. It was said that its the first meeting ive been to in hawaii where people stayed the whole time, if theyre not out on the beach enjoying their fine weather. Later on, the firstnet Environmental Team came out to hawaii and proposed a problematic Environmental Impact statement, held Public Meetings on oahu and shared their findings with the public. Lastly, data submissions. Weve worked within our state, public county and throughout the community to supply firstnet with a great deal of data regarding the specific Communications Needs for Public Safety throughout the state. And firstnet will use that data in putting together our state plan. So, in conclusion, as the state single point of contact, i am grateful to the committee for the opportunity to share hawaiis perspectives and look forward to any questions. Thank you. Thank you very much. And mr. Katsaros. Good morning, chairman wicker, Ranking Member schatz, and distinguished members of the subcommittee. Thank you for providing me the opportunity to talk to you today about firstnet more than four years since the passage of the act that established the authority. I appreciate the opportunity to be here to discuss this important topic. I am the Principal Assistant Inspector General for audit and valuation at the department of Inspector General. Our testimony today will focus on three areas that we have identified as ongoing risks that firstnet will face. We believe that these challenges will become apparent during their efforts to ensure implementation of a nationwide, interoperable, Wireless Broadband Network for the Public Safety community. Specifically, these three areas of risk include, one, acquisition management, two, consultations with states and other localities, and three, internal control. Our office believes that if these three areas of short and longterm risk are not addressed between now and the launch in approximately midyear 2018, the implementation may not succeed. The first of the three topics i would like to discuss is that firstnet must effectively manage its acquisitions. The deadline for bidders responding to firstnets request for proposal has passed, and they plan to issue a final award this year. The approach to final issuance of this award may prove difficult with everything left to accomplish, and we believe that this schedule is aggressive. We also believe that successfully managing the request for proposal, including evaluating vendor proposals and avoiding conflicts of interest is critical to the development and implementation of the network. And in executing that implementation, we believe that firstnet will face geographical challenges in providing service to all 56 states and territories at a competitive cost. Finally, for firstnet to succeed, multiple federal agencies will have to collaborate efficiently over the 25year term of the complex contract. The second topic i would like to discuss is that effective consultation with states and other localities is critical to firstnets success. The act requires firstnet to consult with a variety of stakeholders as it builds a network, including but not limited to federal, state, tribal and local Public Safety entities. Firstnet has made progress in its discussion and outreach efforts in a variety of ways to include conducting visits with 55 states and territories, attending conferences, speaking at tribal gatherings, attending national Public Safety Association Events and statehosted outreach meetings, working with Law Enforcement leaders and engaging in social media. For the network to succeed, we believe that firstnet must continue its consultation and outreach efforts to identify Public Safety needs. While doing this, firstnet must use input from its consultations to develop individual plans for each state and territory which uniquely satisfied their needs. And finally, the third potential risk i would like to discuss is that firstnet must continue to strengthen its internal control. In each of our audit reports, we have identified control weaknesses. Similarly, as part of firstnets annual Financial Statement audit, independent auditing firms also identified areas where controls need strengthening. When made aware of these issues, firstnet management responded appropriately, stating their plans to address the areas of concern, and has in many instances begun to implement change. In conclusion, our office feels that these three areas are short and longterm risks to firstnet and that the groups efforts to minimize the potential impacts must be both ongoing and attentive. Chairman wicker, Ranking Member schatz, and members of the subcommittee, thank you again for this opportunity to appear before you today. I ask that my testimony be entered into the record, and i will be happy to answer your questions. Well, thank you very, very much. And lets do fiveminute rounds of questioning. Mr. Poth, lets talk about the fact that 7 billion doesnt go as far as it used to go. The 7 billion really was startup fundings, not intended to sustain the network for very long. With vastly rural populations having differing emergency needs, what challenges do you have there, and what are your thoughts about covering the rural areas of this nation . And also with regard to that, once firstnet is deployed, its going to charge user fees. Do you think the user fees will generate enough revenue to sustain firstnet . And is this going to be a problem for rural areas in terms of a cost burden . Thank you very much for the question. And youre exactly right, senator wicker. 7 billion doesnt go as far as it used to. So what we have done with the 7 billion, but more importantly, the 20 megahertz of spectrum that Congress Gave firstnet, that becomes the true value prop to then sit at the table with a partner to come together with their assets and our assets. And we believe that the 20 megahertz of spectrum is beach front property, and we should and will maximize the value of that for Public Safety. We expect that the commercial partners will come with x amount of capital on their side to start the nationwide buildout of the Broadband Network. Part of the components that we built into the rfp also is we are not satisfied just to attack the densely Populated Areas. We are also very focused on the rural coverage. And even though its a statutory requirement, weve built into the rfp that every phase of the buildout, at least a rural coverage component will be contained in there. We expect our commercial partners who are typically incentivized by only going out as far as economically feasible, will have to look at that mandate. And were expecting through the responses exactly what the coverage components can be. Weve also required in the rfp with each phase of the buildout, rural coverage components would by the fifth year of the buildout, 100 of what they had proposed in rural coverage, will be accomplished. Weve also, to address concerns about cost out in the rural areas, we are driving in through the rfp and with our partner four Public Safety preferred pricing. And we expect the commercial partner to be very successful, and we hope that they are, in commoditizing the excess spectrum on the commercial side that will keep the fees and the revenues coming in to firstnet for not only the sustainability, but also keep the costs down for Public Safety users, whether theyre in rural, urban or suburban areas. So, we think with all those various factors together we have provided a platform for success for both the Public Safety and the partner to be successful on this contract. Okay. Well, continue to keep us posted on that. You know, in the 1 42 remaining, i dont know if i can ask you to respond to mr. Katsaros testimony. But he did mention some concerns, no doubt about it, particularly about firstnet continuing to strengthen its internal control. And i think the clear message is that its not where it needs to be. Thats the way i took the testimony. So, let me ask you, your team has participated in outreach efforts throughout the country to assess the needs of each state. Do you believe the decisionmaking process as it stands today is as good as it should be . Theres obviously room for improvement in anything that you do, but ill make a run at trying to answer some of the concerns. On the acquisition management, we have a very rigorous process in place to ensure that the ultimate advisory let me just lets go then to the one that i specifically mentioned. Okay. Which, firstnet must continue to strengthen its internal control. And i do believe ive characterized the testimony as that its not where it should be. Right. I think, we believe that the internal controls that have been in place, and thanks to the work of the working collaboratively with the Inspector General, weve instituted even more rigor in the internal controls and audits, both within firstnet with Compliance Committee reviews, peoples and processes. Weve strengthened those. And with the Inspector Generals audits, i think we believe now that the controls that are in place are allowing us to be successful for the future for the partnership Going Forward. And do you think the decisionmaking process as it stands today is as good as it should be . I believe so. I have a very strong team that im extremely proud of, and im buffered by a board of directors that the statute is enabled that takes expertise from both the federal government, from the Wireless Community and financial communities. And when you bring those two together, i think the decisionmaking process is solid. Obviously, as we are foraging new territory, there will be twists and turns, but im confident with the team in place we will be able to navigate those turns. Thank you very much. Senator schatz. Thank you, mr. Chairman. My first question is for mr. Poth. Mr. Mcleod from nga talked about sort of a choice of words question with respect to whether or not states and governors and single points of contact are constituents or partners. And as a former lieutenant governor, a former member of the state of administration, im kind of sensitive to that on behalf of state governments. And id just like your assurance that youre listening to mr. Mcleod, and by virtue of listening to mr. Mcleod, hearing that concern and that we have your commitment working on a goingforward basis with the state administrations and t. A. G. S and others, that we really are going to be in a partnership situation, rather than a sort of granteegrantor relationship. No, absolutely. The states and the people that are leading those efforts in the states for Public Safety and for firstnet are a critical component. They are truly the tip of the spear of what were trying to enable. And the partnership is very, very important to us. Weve spent a lot of time trying to overcommunicate to the states. We dont view them as constituents, but they are critical partners, just like Public Safety and just like our federal partners. Thank you. And to general logan, and this is to the question of opting in versus opting out. What mr. Mcleod said, essentially the way the statute works, opting out is a mirage. I dont know if thats the statement or not, but thats the gist of it, is that its very tough to opt out. So, i want to actually focus on opting in. I understand you went through a pretty good process with governor egay and your team. And id like you to kind of explain how you came to opting in and how much support you thought you got from firstnet in that process. Senator, thank you very much for the question. I would say back to one of your the earlier question when firstnet came out to brief the governors cabinet, i kind of got with the team beforehand, and i sat down, i gave some of the interesting nuances of localism and how we in hawaii perceive people that come from d. C. Into our state. And i asked him not to wear a suit and tie. I asked him to come with an aloha shirt when they briefed the governor, and they did that. So, that kind of warmed over the crowd. We appreciate that. Yeah. But also, back to this question. I think after they presented to the cabinet, the governor and i and todd nacapuy, the states cio, got together and went through it quickly. The governors background being a Telecommunications Engineer and working for Telecom Companies in the state, i think it was kind of obvious to him that opting in was probably the best solution, although we had not made a final decision. We wanted to wait to see what our state plan is. Part of the issue the states are having, i think, or at least some of the anxiety the states are having is we dont know what the rfp is yet. We dont know what the state plan is, so we can only guess at how we can believe or what we think is going to happen. So, without all the knowledge it creates some anxiety. So, states are somewhat unprepared for what may happen, but i think were a lot better off than we were with all the Communications Going on. And firstnet would be the they are overabundance of communication. If you need something, they will answer your questions. And so, theyre very receptive to, at least i know in my state we are, and we have a conversation with them. So, i think looking at it from the states i. T. Perspective, what we havent done yet and what the state cio and i have discussed a couple weeks ago was meeting with some of the local vendors within the state, like your verizons, your at t, and just kind of talk through that to see what their perspective is. And maybe we could do it all by ourselves, but i dont think were there. Can you talk a little bit about i know youve had meetings with other noncontiguous states, but i think some of these concerns that come through the noncontiguous states affiliation also apply to a lot of our rural areas in the continental united states. Can you talk specifically about what the technical needs are and then how you see the kind of, the revenue distribution. And maybe very quickly, general logan, so i can hear from mr. Poth as well. Okay. Well, i have talked to fellow spocks from the other states that are noncontiguous states, and we all have generally the same issue. We have, like oahu is your center of the city and county of honolulu. Thats the major metropolitan area. Almost a Million People live there. But the neighbor islands, not that many. I think we have 140,000 on the big island, maybe 50,000, 60,000 on the island of kwai and close to 100,000 on maui. So, there are many rurals, so how do we guarantee coverage . What i look at is if its good for the city cop, its got to be good for the rural cop, fireman and emt. We cant say, well, because you live in the city, you get First Priority and were going to get these guys last. Thats not a fair system across the board, so weve got to make sure Public Safety is covered across the board. And mr. Poth, we have your commitment to work on these issues, not just for noncontiguous states, but for rural areas across the country . Absolutely, and thats the basic premise of our revenuesharing model. Thank you. Thank you. Senator gardner. Thank you, mr. Chairman, and thank you to the witnesses for your time and testimony today. The potential to revolutionize Public Safety communications is extremely important. Very excited firstnet chose boulder, colorado, as home of its technical headquarters. Its a great Tech Community in colorado, a great tech corridor. Just down the road from firstnet in boulder, of course, is the National Institute of standards and technology, which is doing great work on Public Safety Communications Research at the Communications Technology laboratory. So, weve got a great tech and vibrant economy running in colorado, and appreciate you being there. Mr. Mcleod, i want to start with you first. You in your testimony talked about firstnet quote unquote must view states as partners, rather than constituents in the consultation process. You mentioned some states dont believe firstnet is interested in developing genuine partnerships with the states is how you said it. Following up on what mr. Schatz was talking about, can you talk further about that point and talk about the nature of the meetings you mentioned and that nature that have caused concern in developing those genuine partnerships, that desire to create them. And then talk about the obligation to take that state advice. Thank you for the question, senator. So, i think i will say that firstnet stepped up their efforts over the last year to communicate with states. And as the general said, if there is a question the states have, theyve been more than willing to answer those questions. I think my statement reflects the feeling among states that although they may be complying with the letter of the law, that at the end of the day, states dont feel that they are necessarily viewed as full partners. And maybe just as a quick example, during the development of the state plan, states will be seeing drafts of those plans, but the final plan that will be submitted to them, they will not have an opportunity to really suggest revisions, or at least that many revisions would be made. So, i think that goes to the sense that were it a True Partnership that states would be more engaged in the development of that plan, beyond just the consultations that have been happening. Please continue, if you have no. Mr. Poth, do you want to respond to that, then i can get back to you with an additional question . Sure. Part of the thing that we have to do with the state plans is were going to be at that point under a contract with our partner. We have submitted into the rfp all of the state data, unfiltered, what each state and territory felt was important. We are expecting the Vendor Community now has responded in each particular state how they would go about deploying the network in that state, the random Radio Access Network. We are then, as mr. Mcleod said, plan on giving a draft to the state so that they have plenty of time to understand the coverage, the cost and what is being proposed. There is opportunities for feedback, but we are going to have some limitations, since it will already be under a Contract Term as to how much variations, if a state felt it was important. But it is our commitment, as weve always done, to work with the states, and we want to provide that before we turn and have the state plan go final, which then starts the 90day shot clock for the governors. Because we dont want the states to be surprised at what the plan is with our partner. But mr. Mcleod is correct, there may be some limitations as to what changes could be done from the draft to final. And i think one of the concerns that we have, of course, in colorado is the geography and the limitations that geography can pose to coverage and the challenges it can pose to that coverage. So are you concerned at all that the approach that youre talking about would youre not concerned that it would undermine the state consultation process, then . No. And if firstnets not relying on that if you end up with this time crunch that mr. Mcleod is talking about, though, and that you just identified, and you have these unique challenges to geography in the states, i mean, who are you looking for the exercise to fill the gap to make sure you dont have a problem . So, in the state of colorado, for example, all the data and what the state committee felt was important and Public Safety, what they felt important, was submitted to the vendors and its in the reading room. So, they understand what the states position is and whats important, both in the urban and the rural areas. And the Rocky Mountains and those types of areas. What were expecting back is how the vendor is proposing to facilitate all that, both with terrestrial, and possibly with deployable coverage, and what that scenario and the phasing and the buildout would look like for the state. We continue to work with all of the states, and we want to make sure that they understand, you know, the limitations of what may be possible from the contract, although we are absolutely committed to maximize the value for Public Safety in the states. There will be some limitations probably that well expect, but were going to continue to work with the states. And the other important thing were envisioning, and this will be a 25year contract. In excess revenues we are going to reinvest back into the network to where we can advance technology, hopefully expand the rural footprint. So, it may not be day one that a state or a Public Safety agency gets everything they want, but we do have a mechanism in place to continue to fund not only for our Financial Sustainability but to grow the network and with the technology. Mr. Chairman, could i ask one followup question after what you said . Thank you. With this revenue issue, and just curious, the prioritization of those funds, Network Maintenance over network expanse, how will you make that determination . As the excess spectrum funds come in, were going to be evaluating whats the latest technology. Were building in the contract that were expecting our partner to evolve and change as the technology, without us funding that. Thats just part and table stakes for part of this contract. We will then evaluate what the priorities are with technological advancements, or possibly, coverage advancements. Thank you, mr. Chairman. Thank you. We now we have daines, fischer and then manchin. Thank you, mr. Chairman. In places like montana, technology really removed geography as a constraint. This extends not only to our businesses and schools, but of course, to First Responders as well. Its especially important in states like montana and states like cory in colorado, where we have significant rural areas, First Responders can be 50 miles or more away from an accident. So, the goal here, i understand, is to provide coverage in 99 of the country. As weve seen with mobile wireless coverage, the remaining 1 of the country often includes places like montana. Mr. Poth, tell me about the future plans, if any, to eventually cover that 1 of the country. We hope to to expect 100 coverage is probably a very Steep Mountain to climb, no pun intended. With the coverage thats required, were really expecting industry to come back and the technology to evolve to where deployables, Satellite Technology and those types of things will enable Public Safety, especially in remote areas, to still maintain connectivity. The goal of getting to 100 coverage throughout the 56 states and territories i think is going to be a pretty aggressive goal. Related to the issue of technology and i spent a lot of years in the technology business, where it moves at the speed of business, versus the speed of government. As you think about the future of where its headed, how will you keep up at firstnet as it relates to when Technology Changes . By the time the projects completed, im guessing technology will be well ahead of where you end. Right. And thats one of the big focuses and basic tenants of us as an independent authority. We are going to continue to grow, and we are going to continue to push technology. The mention of our labs in boulder, we are going to be advancing and pushing Public Safety innovation and technology for years to grow. And with the nist lab also focused on that, we believe were going to be able to optimize the benefits to Public Safety of whats available. If you can envision, we dont even know what technologys going to be like in ten years. We often think people say, well, your android or your iphones, that was the cuttingedge technology, because it is going to go so fast. Were going to have in the contract the ability to grow and push the technology as it goes from 3g, 4g to 5g and grow with it. And were going to have the organization in place to remain the advocates and stewards for Public Safety with our partner so that they dont lose focus on whats important. We heard today that firstnet plans to use fees generated from densely Populated Areas to help fund the buildout in more rural areas. Weve had similar funding programs, like the universal service funding, in place since the 90s, and we still havent achieved universal service. How is firstnets plan different . And why is your plan going to succeed when others havent . We have a pretty focused mandate and mission its to serve Public Safety, regardless of jurisdiction, regardless of state. And so, thats one of our driving forces. The other thing that we are going to do is we are going to remain responsible and accountable to Public Safety. Theyre not going to let us allow for anything less than that. And our independent board that oversees firstnet is also going to ensure for years to come that we dont lose focus on what the investments and what the priorities are. As you can imagine, the broadband and the wireless coverage that we do have in montana is often provided by our Rural Telecom providers. So, i certainly appreciate the requirement that the prime contractor partner with these rural companies. But its still unclear to me what Accountability Measures firstnet has in place to ensure that these partnerships happen with these rural teleco providers. So, maybe you could elaborate what plan firstnet has in place to ensure that the prime contractors follows through on its commitment to partner with the rural providers. Once we have the bids that are submitted in and evaluated and we get to a contract award, we are going to have specific milestones, both on the Rural Partnership participation and the coverage. Then we will then those milestones become measurables that we are going enforce. And we tried to incentivize through the contract the right behavior, but there are disincentives to ensure our commercial partner is achieving the coverage and the cost control measures that weve asked for. Now, i understand the selling excess Network Capacity is key to paying for the network. How will firstnet ensure that selling its capacity does not end up competing with our existing providers . We believe with the infusion of the new spectrum and the needs of spectrum throughout the country in all different bands, we think that theres going to be sufficient demand on all the spectrums where we dont believe that will necessarily be a competition or a takeaway for those providers. All right. Thank you, mr. Poth. Thank you, mr. Chairman. You know, it occurs to me, when members come before this committee, theyre going to get a lot of questions about rural areas. And it just makes me feel very good about the brilliance of the founding fathers. They created a senate that wasnt totally populationbased. And its my pleasure to recognize now the senator from another rural state, senator fischer. Thank you, mr. Chairman. And i wont let you down. I have a couple more questions about rural areas. Mr. Poth, ive heard concerns. Mr. Posth, firstnet is going rey on networks in rural areas rather than deploying a fixed network. For example, instead of building a tower in the nebraska panhandle, perhaps firstnet is going to bring in communications, vehicle to provide, i guess temporary coverage during an emergency. When we look at tornados and fires, all these emergencies that happen in very rural areas, how can we be assure that had these Deployable Networks are going to be viable tool for our First Responders and can they move quickly enough to be useful during really these critical times when we have to have a quick response. Right, what we did with the rp being an objective base, we asked one of the particular objective is rural coverage. We have asked the industry of you tell us whats the best way to solve that requirement. It could be deployable. We dont know how they have come world cup the answer yes. When we get to that point, that could be part of the solution set. We are asking destroy to do what they do best. Come up with the most Creative Solutions to solve and previously discussed and pointed out and hopefully industries have been listening the last three years. Rural coverages are a success to this network. We are hoping and optimistic there will be Solutions Addressing those concerns. We have also heard some concerns from state holders of the deployment of the broad band network that could be sold of over buildings of networks and in nebraska you and i discussed this previously that your communication are doing a really good job of bringing service to our rural areas and around the served areas. Do you have any specific steps that firstnet is taking to ensure that this over building or what i would consider maybe an appropriate use of limited funds maybe addressed . We are not expecting nor anticipating an over building even in the rural areas. If you envision what is happening in technology today, you heard the term of internet of things. Tl numb the number of devices are required to have access to spectrum. Not to mention our most important customer is Public Safety. We believe as device and the internet of things and Public Safety things grow, the spectrum that are currently in use will be saturated and also with our additional band 14 will come into fourteen will complement that. Mr. Mcleod, have you heard anything from governors that are concern of over building existing commercial networks. Thank you for the question, senator. I think the big concern for the governor is making sure that these are possible using existing resources to build out the network, just be mindful. I am have not heard specifically thats a big concern for them. You know firstnet spent 250,000 in 2012, it is been 17 million in 2014 and 49 million in fiscal year 2014. Can you clarify if all of these numbers reflect spending thats considered add minute restrictiv administrative and expenses under the act and this upward trend in funding not suggest that firstnet is going to perceive allowable administration and the cost. Whats going to happen for us . Thank you for the question. Those are the total cost. They are not their administrative cost. Their administrative cost are much less than that. They have been trending over the ten years period and less than 10 million already. There are no concerns in that area at the moment. So that should be within the 100 million thats been authorized and if that Current Trends continues for the administrative cost, is that correct . Correct. They are well under that. Mr. Poth, do you anticipate thatll happen, that you will be under that 100 million . Well absolutely be under that 100 million. Thank you, mr. Chairman. Independent authority with ntia, is that fact working out and how is that how is that for all that ntia had. We are not aware of another independent authority that is housed within a federal department other than firstnet. So when i was created. It does not compute to ig. When we were confronted with an over site challenge, the Nation National toll communication and administrative, so it maintains some of the capacity and administrative capacity of the ntia and allows us to partner with ntia, and initially costs us to sign a memorandum understanding to fund our over site activities for firstnet which we now cancelled. The relationship with ntia exists and it is part of the law. We work with both offices. Were you referring to the mou with commerce . Correct. As i understand it, firstnet and commerce agreed to terminate the memorandum that all the issues haves been adequately addressed. Are you satisfied thats the case . I believe the cancellation of the mou was con templati contem considered under the mou had been addressed. To the extent that the request of firstnet of ig service is included. Those services had been completed. There are many more things to do from an over site perspective of firstnet that are still to be accomplished. Mr. Poth, would you respond particularly to this independent authority aspect of the question just now . Well, while we enjoy certain rights with the independent authority, we do find ourselves from time to time bogged down with clunky well intended federal processes that do not enable us remaining quick and nimble and agile as we need to be. We had a lot of success to work around within the rules. A lot of times people confuse our need for independence as clouded as we are trying not to accountable and responsible. Thats not the case. We have to move very fast, senator earlier, mentioned technology and Technology Companies are moving very fast and to be a true, private public partnership, well need to have more streamlining and more the con strengstraints that sometim placed upon an agency then another agency have. We are are continuing to work with congress and ntia to streamline those areas but it is still some time constraining. Would it be fair to say there is a difference opinion between new shops and ntia as to what that term actually means, independent authority . I dont think it is difference of opinion. It is how it is appimplied. They are responsible within their organization. That conflicting wording sometimes creates a little havoc. It adds over sights and checks that sometimes we dont believe necessarily is going to help us get to the value ad. We welcome and always will respond to being responsible and accountable for all our actions. We do look forward to continuing to work with them to streamline it. I dont want to start a fight. But, i think you said there was a cluckiness. I think it will be helpful if you would enlighten the community about that. Well, there is certain process that we submit and there is up to ten agencies that this gets circulated and signed off before we can hit the send button to your offices. We welcome additional recommendations and over sights on certain thing and participation. That in troe ductitroduction a delay has certain twist and turns coming up with any major effort like this, if we had that same sort of process to make sure that everyone is comfortable with the decision, that clunkyness may resort in certain delays a decision maybe made and a more realtime fashion. I want to give you a chance to expand on that answer for the record. I am not trying to create a strive here. Mr. Mcleod and general logan. I think i have characterized there teds testimony of there is shortcomings. Would either of you care to respond to the testimony from the ig as best to some of the challenges that he has out lined . Sir, i am not sure if i understand the question. Have i mischaracterize your testimony . It seems that your testimony is that you have some serious doubts about this all coming together as planned and required in win paper, is that correct . I think thats fairly well summarized. I think there is still a lot unknown especially at this phase. With respect to your comment earlier in a lot of way, firstnet is still a start up organization and they experience sort of the typical operational challenges that a start sup organization would encounter. And, i do appreciate working with firstnet that they have adjusted and made those changes that were necessary to kind of move forward so thats not a distraction. Thats the important thing that these operational challenges and acquisition challenges are procurementish issues are now a they challenge to do this important work. Are you optimistic this year . Thats a great question. It is going to be very difficult to answer. Like we keep on talking about this preaward phase in our office. We are looking at in november 1st time line. We state thats aggressive. This is going to be the consultations of several faces and ongoing over the next several months. There are a lot of variables that need to fall in place nor this to be successful. Let us know if the committee can be helpful. Either you care to respond to that or if not well sure. I can say that governors are fully committed of being successful and they push hard to get legislation passed and they want to see this work and be successful. I think certainly Going Forward to being questioned is the unknown. This is as i said unprecedented in terms of side and the scope. So to the extent, there are Unanswered Questions about, for example, can the bill exist if the costing models and what is the fee for the network. You know maybe are not anticipated right now. I think with just keep in mind of concerns about the unknown and until we get to the state plan of the end of the year, states are going to hold back and wait to see. Thank you very much, i had a hint. Thank you, mr. Chairman and thank you for enabling us to participate. We learned quite a bit and i gather. The reason is we have a very distinguish panel. Thank you all for being here today. I dont need to tell anybody here that during emergencies, local resources are strained and communities dependant on the support of outside organizations and First Responders and united way and the red cross all kinds of organizations that play by the rule and protecting property and restoring and maintaining the health and safety of individuals. One example of connecticut shoreline with super storm sandy for an organization and mobilized quickly and they helped displace families and provided with food and shelter. The nonprofit helped with the state 8211 and human and Service Information help line which plays a Critical Role in the kind of emergencies that we encounter in super storm sandy. Floods and hurricanes and clearly there is a need for Central Organization to have access to a national Public Safety broad band network. In order to operate as effectively as possible. But, i understand that the states currently lack clarity as to what enemies will be able to use. The statute or Public Safety enemies. It is not clear what that term mean or Public Safety enemy. So, let me ask you mr. Poth, in addition to our First Responders and Law Enforcement and police and what other entities of Public Safety and would include in connecticut or united way or red cross or our community organizations. Thank you very much for the question, what we have done is helping us sort through these questions and it relate to local control. We have asked them and they represented forty Public Safety agencies and chief of police. We ask them what would be based on the Public Safety needs of hierarchy of control. Everyone will have access to the network where it becomes important is what is that is priority you mention that some of the three traditional ems can extend hospitals down to the schools. They are helping us to work through that as to what is important for local control. When we work with our partners, those things are set up. I think they have 19 tiers of priority that they identify through local control. You are exactly right n a time of crisis, it is not just the First Responders that are needed. It is a two Community Wide effort that relies on both public and private partnership volunteered to be apart of that. The structure and the fabric of Emergency Response includes hospitals, Health Care Providers and authorities and so forth. They are Public Safety entities in a sense as well. Absolutely, there are states that have standing agreements with bus companies. They have to move mass quantities of people out there due to flooding. Those type s of things. Let me ask you of the last year firstnet, i asked what to be done to make sure that firstnet is not hammered by a sluggish hiring process that it has authorities needed to hire the most efficiently and i would like to revisit that question. Of our hiring processes, changed or improved . Yes, i think we have the brightest. Our technical and Management Team i would not say second to none. We have some of the traditional challenges in the federal system, we have developed working closely with the other agencies and Human Resources to streamline that as effective as possible. But, we are, you know competing with a commercial market for some of that talent. We have been lucky because of the mission and the passion our employees have for this mission that it becomes an easier sale. Thank you very much. Again, i thank this panel for contributions of sharing your Public Policy and being thehere today. Thank you. Thank you very much mr. Chairm chairman. I am sorry about earlier. We had some canadians in town. I head up the group. I have a candid question to camp that off. Senator and i head up the caucus generation. We worked hard to update some of our system and making it, we had the i35 w bridge collapsed and despite the fact where there dozens of cars in the collapse and of the biggest collapse. I think it does not get a lot of attention of why they were able to get people to safety and get them to hospitals so immediately was that the Emergency Community center, Communication Center received a process over 500 call and 51 came directly from the scene to feel disaster. 77 men and women were handling those calls and of course, no warning what so ever and not even the warning of the storm. It is an incredible story of work that had been done for years into it and anticipating some kind of disaster between our area hospitals. My first question is about the in ability, we had a major shooting. It changed the way we look at it. When the police from many jurisdictions were chasing the man who killed the police officer. They are using 13 different system and many of them could not communicate with each other. So that really spurred us onto make some changes. I know that we have been working on this since 2004. Mr. Poth, what guarantee can you give to the community that the feedback i gathered from stake holders and as states are developing, these plans will be incorporate rat incorporated and how will firstnet respond. Thank you very much for the question. What we have done is the outreach to both the states and cities and councils and public to make sure they understand it is the corner stone of what we are trying to accomplish with this network. The with the candidate is we are expecting as we continue to keep post accusation to continue and channelling the cost for the state with our partners and in the Technology World to keep pushing advancements. You mention the dependancy and interconnectivity and dispatch are key components into that First Response in a lot of that incident. We work closely to make sure their efforts and what is going on with ng 911 is tied into what we are trying to accomplish. Since you brought it up. Thank you so i can report back to our 15 members who are in town. We are concerned of the interim ability since we are right on the Canadian Border of minnesota as so many of our states and you got the great lakes right there and thats a vast expanse between our two countries. Could you talk about and give ussen update we also have the luxury with canada in that the ban 14 spectrum is the same and they also have al galegated with pub safety. I believe that makes it seem less. Updates with the Canadian Team as they are trying to implement this on their side. On the firstnet board, Law Enforcement and are there some specific needs that firefighters felt incorporated of the design of firstnet and what do you think can be done with Law Enforcement and firefighters. I thank you for the question. States look at the network as being available to a wide range of First Responders and fire police. I think that goes back to making sure that there is real value there and they demonstrate that to your state and fonirst responders. Thank you, i have one more question, get back to you mr. Poth, with the firstnet, the project tested of Public Safety of pd network and in rural areas. I am glad you are looking at those partnership with rural companies to a lot of our gaps. I have seen this and it is everything from a major case of and to someone with a snow mobile. They are completely isolated and they cannot get to us even if they have a cell phone. It is my hope that well not only share Public Safety Community Serve the Public Safety community and also share all these kinds of addition additional like we have seen in the pilot. Can you talk about this pilot and in particular what you learned. The particulars of that i didnt know that we use that. We incorporate those events to make sure we work with our new partners and still identify to learn from those lessons as we begin the deployment into the the nation. We also are expecting as you already noted of the process that the Rural Partnership to be articulated and going out to our rural areas clearly stated in all the plans. All right, very good, thank you all of you. Good work. Sor sorry, i did not get to everyone. Thank you, gentlemen, i think this is a very knowledgeable panel and very enlightening here. Thank you very much. Thank you. The hearing is close. Thank you. In 1996, we were wrapping up a golden age, we were launching the first golden age of plant tear exploration of the mission of the 1970s to mars and to the outer planets. With we are now in another golden age, particularly on mars. We tore the museum with valley neal and head of the museum space Industry Department and learn about the story of human Space Exploration from the moon to mars. On the presidency, james rose bush, former deputy assistance, why it matters and what made reagan reignreigns. A great leader of character is a person that has the ability to discern the future and lead people to it and through it. For the complete American History tv weekend schedules, go to cspan. Org. Next, middleton interim universi university, he spoke at the university. Good morning and welcome to the National Press club. I am the washington correspondence for the Salt Lake Tribune and the 109th president of the National Press club. I would like to welcome our cspan radio and