This purpose of this addendum is to harmonize with recent federal guidance as it relates to dispensing ARPA funds, including funding through SLFRF and CPF, for the expansion of broadband network infrastructure for the unserved and underserved areas of Arkansas. Unserved and underserved areas are locations without access to a reliable wireline connection of 100Mbps/20Mbps.

All ARPA approved projects funded through SLFRF must be able to provide synchronous bandwidths of 100mbps download and 100mbps upload. Where impractical, due to geographical, topographical or financial constraints the upload speed can be as low as 20mbps but must be scalable to 100mbps in such instances. Whenever bandwidths are asynchronous, the internet service provider (“ISP”) must submit a letter detailing why the upload speeds cannot be obtained at 100mbps and the Department of Commerce AEDC Broadband Office (“AEDC Broadband Office”) will determine if the ISP letter is approved for the requested bandwidth modification.

All ARPA approved projects funded through CPF must be able to provide synchronous bandwidths of 100mbps download and 100mbps upload. Projects funded through CPF will not permit temporary, asynchronous speeds allowed under SLFRF.

Priority will be given to fiber-optic infrastructures where feasible, as such advanced technology better supports scalability to meet expected increases in bandwidth demand. Regardless of technology infrastructure deployed, the ISP must demonstrate that it will reliably deliver a minimum of 100/20mbps in the case of SLFRF funded projects, and 100/100mbps in the case of CPF funded service throughout the service area. The ARPA program also requires the ISP to submit its customer pricing list with its project application. The ISP is also required to participate in the FCC's Affordable Connectivity Program. As indicated below, affordability of broadband service will be a significant factor in determining grant awards. Applications that include at least one low-cost option (less than $50 per month), at speeds of at least 100/20 mbps, without data usage caps or the obligation to purchase bundled services, will be awarded extra points in the scoring rubric. Applicants must include with their application a narrative demonstrating that their proposed pricing is affordable for consumers in the proposed project service area.

The AEDC Broadband Office, or its designee, will define project areas available for grant awards, funding source (i.e., SLFRF or CPF) and deadlines for submitting applications. Each project area will be comprised of full and partial census blocks identified as unserved and underserved areas in the Broadband Master Plan defined by a set of polygons in a GIS shapefile. It is anticipated that multiple applicants will submit applications for each project area.

All applicants must have a System for Award Management (SAM) number issued by the federal government to participate in the ARC program. ISPs must submit with their applications (i) audited financial statements made by an independent certified public accountant for the past two years, or, in the absence of audited financial statements, such other financial and operational documentation reasonably acceptable to the ASBO that demonstrates the financial stability of the applicant and its ability to fulfill the obligations under the grant agreement, and (ii) the endorsement of the application by each mayor or county judge within the proposed project area. It is expected that each mayor and county judge may endorse multiple applications. If the ISP is unable to secure the endorsement of a mayor or the county judge, then it must submit with its application a statement to that effect along with a description of its efforts to obtain an endorsement, and the reason, if any, that was given as to why an endorsement was not provided by the mayor or county judge.

Each project will be scored using 8 different scoring metrics: 1.) speed of service (10% of total score), 2.) future-proof (10% of total score), 3.) quality of coverage, i.e. reliability and scalability of service (15% of total score), 4.) time to deploy (15% of total score), 5.) qualifications/experience/financial strength of applicant (10% of total score), 6.) applicant's contribution toward project costs (10% of score), 7.) cost of project (15% of total score), and 8.) affordability of service to the consumer (15% of total score). The maximum score for this rubric is 100 points. All projects will be scored individually, with the highest scored applications receiving ARC grant funding awards. There is no minimum or maximum limit on project size or dollar amount requested for ARC grant program applications. But overall project cost is a key factor of consideration. Where there is a tie for project awards the AEDC Broadband Office, or its' designee, will make an administrative decision as to which project it will award. The AEDC Broadband Office, or its' designee, will consider the scores for the most important factors such as project price, quality of service, deployment timeline and affordability of service to the consumer to break ties. Next, if the tie is not resolved, the AEDC Broadband Office, or its designee, will consider the Mayor and County Judge project preferences and customer service complaints made to the AEDC Broadband Office, or its designee. Please keep in mind that verified customer complaints, depending on nature or frequency, from prior or present ARC projects could result in an application not being awarded an ARC grant no matter the project score. This is also true if the AEDC Broadband Office learns of verified complaints from customers from an ISPs pre-existing network(s). All projects for application submissions will be subject to a challenge process. See Section 8.

Qualified project areas subject to ARC grant funding must not have a federal commitment, i.e., a grant from the Rural Digital Opportunity Fund that will provide a reliable wireline connection of at least 100/20 Mbps. Each ISP applicant receiving a grant using ARPA funds will guarantee broadband service to the citizens of Arkansas, within its project footprint, for a minimum of 10 years from the time of completed infrastructure deployment. Grant awardees who fail to reliably deliver service within the project footprint for the required 10-year period will be subject to the penalty provisions of Arkansas Rural Connect Broadband Grant Program Rule.