The Progress of Recovery Act Broadband Projects Is Difficult to Measure because of Data Limitations

NTIA and RUS both use the amount of funds disbursed to awardees as  one method of tracking progress, and less than half of all the awarded  funding has been disbursed to Recovery Act BTOP and BIP awardees. Of  the roughly $3.8 billion available for the BTOP projects, NTIA has  disbursed approximately $1.9 billion (50 percent) to its awardees. Of the roughly $3.3 billion available for the BIP projects,  RUS has disbursed approximately $1 billion (30 percent) to its awardees. NTIA and RUS disburse awarded funds for projects as  payment becomes due, sometimes only as contracts are completed. In addition, the Recovery Act did  not require RUS to collect performance metrics from awardees. Without reliable information on the progress of BIP projects in  expanding infrastructure and moving toward completion of projects, RUS  may not be able to demonstrate the progress and effectiveness of the BIP  program. NTIA Has Expanded Access to Broadband through BTOP Projects; However, Data Limitations Make it Difficult to Measure the Effects of BTOP and BIP on Broadband Adoption

NTIA collects data on network miles deployed, community anchor  institutions connected, and workstations added at public computer  centers, which helps illustrate that BTOP expanded broadband  infrastructure and provided increased access to the public. As of March 31, 2012, BTOP’s  117 infrastructure projects reported that they have established over  57,000 new or upgraded network miles, with connections to over 8,000  community anchor institutions. As of March 2012, PCC awardees  reported that they provided nearly 34,000 new workstations for public  use. For  more information see, the sidebar titled “Example of PCC Project: State  Library of Louisiana.”

		Measurement and Data Limitations Make It Difficult to Assess the Programs’ Effects on Broadband Adoption

NTIA and RUS have faced difficulties in ensuring that awardees provide  reliable data regarding broadband subscribership for their BTOP and BIP  projects, which makes it challenging to fully and accurately determine the  effects of the programs on broadband adoption. NTIA and RUS Have Acted to Address the Variety of Challenges Awardees Identified in Completing Projects

BTOP and BIP awardees identified multiple challenges in completing  projects, including compliance with regulations and construction related  challenges. NTIA and RUS have  taken a number of actions to help awardees address these challenges,  including providing awardees with regular contact, expertise, webinars,  and guidance. PCC and SBA projects faced staffing and expertise  challenges, such as high staff turnover, or the need for additional staff to  handle tasks such as providing technical support for computers or  manning computer labs. While NTIA established performance measures and  collected data on non-financial measures of progress, RUS did not initially  collect comparable data, and once it did begin collecting these data, it  could not ensure their quality. Because both agencies have taken steps to improve the quality of  the subscribership data reported by awardees, we are not making a  recommendation to address this issue in this report. Recommendation for Executive Action

To ensure RUS is collecting reliable information regarding the effect of  investments in broadband, we recommend that the Secretary of  Agriculture direct RUS to take steps to improve the quality of its data on  the number of fiber miles and wireless access points created by BIP  projects. The  department disagreed with our characterization that RUS does not collect  adequate data to measure the progress of BIP and noted that RUS  collects financial data as well as contract-level data with information on  planned construction for each project. Thus, non-financial data,  such as fiber miles and wireless access points deployed, provide an  additional indicator of BIP’s progress. Although the department neither agreed or disagreed with our  recommendation that RUS should improve the quality of its data on the  number of fiber miles and wireless access points created by BIP projects,  the department stated that RUS has already taken steps to improve the  quality of its data. Appendix I: Scope and Methodology

This appendix provides information on the methodologies that we used to  assess (1) the progress made in implementing broadband projects funded  by the American Recovery and Reinvestment Act of 2009 (Recovery  Act), (2) the effect of the projects on expanding access to and adoption  of broadband service, and (3) the challenges that grant and loan  recipients face in completing broadband projects, and the actions that  agencies are taking to help address these challenges. Progress of Programs

To determine the progress made in implementing the projects funded by  the Recovery Act, we obtained data that allowed us to calculate the  amount of funds awarded and the amount of funds disbursed to projects  participating in the Broadband Technology Opportunities Program  (BTOP) administered by the National Telecommunications and  Information Administration (NTIA), and the Broadband Initiatives Program  (BIP) administered by the Rural Utilities Service (RUS). Both NTIA and RUS have reliable  financial measures of progress.
Why GAO Did This Study

Access to affordable broadband service is seen as vital to economic growth and improved quality of life, yet residents in many areas of the country lack access to or do not use broadband. To extend broadband access and adoption, the American Recovery and Reinvestment Act of 2009 (Recovery Act) provided over $7 billion to NTIA and RUS for grants or loans to support broadband projects. NTIA and RUS made all awards by September 30, 2010.
This report responds to mandates under the Recovery Act for GAO to examine the use of Recovery Act funds and report on the quarterly estimates of jobs funded. This report addresses (1) the progress of broadband projects, (2) their effect on expanding access to and adoption of broadband, and (3) any challenges awardees face in completing projects and agency actions to address these challenges. GAO analyzed program documentation and data and interviewed agency officials and BTOP and BIP awardees.

What GAO Found

The progress of the broadband projects is difficult to measure because of data limitations. As projects progress, the National Telecommunications and Information Administration (NTIA) and the Rural Utilities Service (RUS) disburse awarded funds to projects on, for example, a reimbursement basis. As of July 2012, NTIA has disbursed approximately $1.9 billion of the $3.8 billion it awarded for projects under the Broadband Technology Opportunities Program (BTOP), and as of June 2012, RUS has disbursed approximately $1 billion of the $3.3 billion it awarded for projects under the Broadband Initiatives Program (BIP). These disbursements are one measure of progress, and the disbursements indicate that the projects in aggregate are less than half complete. However, disbursements sometimes lag behind actual progress for a number of reasons, such as contracts that provide for payment after work is completed. In addition, the agencies have been inconsistent in collecting non-financial data on project progress. While NTIA has collected data on BTOP projects, RUS did not collect data until recently. According to NTIA data, 76 percent of planned network miles are complete. According to RUS, the data it has recently collected are not reliable measures of fiber miles and wireless access points deployed by BIP projects. Without reliable information on the progress of BIP projects in expanding infrastructure, RUS may struggle to demonstrate the progress and effectiveness of the BIP program.
Data limitations make it difficult to fully measure the effect of BTOP and BIP on expanding access to and adoption of broadband. NTIAs non-financial data indicate that BTOP awardees have established over 57,000 new or upgraded network miles, with connections to over 8,000 community anchor institutions, such as schools, libraries, and hospitals, and nearly 34,000 new computer workstations for use in public computer centers, such as libraries. RUS initially did not collect comparable non-financial data for BIP projects, and the data it has are not reliable; therefore, it is not possible to fully assess the effect of BIP on expanding access to broadband. With respect to broadband adoption, however, both NTIA and RUS have faced difficulties collecting reliable data from awardees on subscribership for BTOP and BIP projects. Both agencies have taken steps to address this issue, with NTIA providing guidance to awardees and RUS developing a tool for staff reviews of subscribership data reported by awardees.
Both NTIA and RUS helped awardees address multiple challenges in completing their broadband projects. Specifically, awardees identified challenges complying with regulations and obtaining permits, as well as handling construction-related issues such as broadband fiber shortages. BTOPs non-infrastructure projectswhich provide computers to libraries or encourage broadband adoptionfaced a different set of challenges, including staffing, contracting, and procurement. NTIA and RUS have taken a number of actionsincluding providing regular contact and expertise, webinars, and guidanceto help awardees address these challenges. In addition, RUS hired additional staff to address delays in its review and approval of contracts, a challenge that delayed some BIP projects.

What GAO Recommends

To ensure RUS is collecting reliable information regarding the effect of its investments in broadband, GAO recommends that RUS take steps to improve the quality of its data on the number of fiber miles and wireless access points created by BIP projects. RUS disagreed with GAOs characterization that it does not collect adequate data, and stated it has already taken steps to improve data quality. GAO believes that more reliable data will permit RUS to better assess the progress of the BIP program.