	Background

The 2012 act established numerous responsibilities for FirstNet, most of  which relate directly to developing the public safety network. The 2012 act also required FirstNet to  establish a standing public safety advisory committee to assist it in  carrying out FirstNet’s responsibilities and consult with federal, regional,  state, local, and tribal jurisdictions on developing the network. The 2012 act provides $7 billion from these proceeds to FirstNet for  buildout of the network, and requires FirstNet to become self-funding  beyond this initial $7 billion by generating revenue through user fees and  other sources. networks will be incorporated into its nationwide network, and has noted  that various factors could affect this determination. FirstNet Is Making Progress Meeting Responsibilities but Lacks Certain Elements of Effective Internal Controls

		FirstNet Is Making Progress Carrying Out Statutory Responsibilities

Our ongoing work indicates that FirstNet has made progress carrying out  its statutory responsibilities in three areas—(1) establishing its  organizational structure, (2) planning the public safety network, and (3)  consulting with stakeholders—but could face challenges in each of these  areas. Stakeholders we spoke with and surveyed for our ongoing work  expressed concern that organizational issues have slowed FirstNet’s  progress, and could continue to do so. However,  numerous stakeholders we interviewed cited upcoming difficulties. For  example, they noted that deciding the level of network coverage and  security, working out agreements for use of existing infrastructure, and  navigating state regulations will be difficult issues to address moving  forward. An internal  control system that is not based on complete risk assessments (that is,  assessments that incorporate these elements) could lead to FirstNet  responding to risks in a reactive manner and could hinder FirstNet’s  ability to achieve its objectives while maximizing use of its available  resources. Nonetheless, absent Standards of Conduct, we are concerned that  FirstNet may not be able to address deviations in conduct and  performance and take corrective actions in a timely manner. FirstNet Faces Difficult Decisions in Determining How to Pay for a Nationwide Public Safety Network Estimated to Cost Billions Cost of a Public Safety Network Estimated to Be at Least $12 Billion over the First 10 Years

Various entities have estimated the cost to construct and operate a  nationwide network for public safety from a low of $12 billion to a high of  between $34 and $47 billion, over the first 10 years. Various Factors Will Influence Cost of FirstNet’s Public Safety Network

Our preliminary analysis indicates that cost estimates notwithstanding,  various factors will influence the cost of constructing and operating  FirstNet’s public safety network, including (1) the business model used,  especially the extent of commercial partnerships; (2) use of existing  infrastructure; (3) efforts to ensure network reliability; and (4) network  coverage. FirstNet Faces Difficult Decisions about User Fees and Commercial Partnerships in Determining How to Become Self-Funding

Our preliminary analysis suggests that, although FirstNet has various  revenue options that it is authorized to use to become self-funding, it is  unclear how FirstNet will use those authorities. As the cost estimates  above illustrate, FirstNet’s network will likely cost tens of billions of dollars  to construct and initially operate. To meet the costs of building and  maintaining the network, the 2012 act authorizes FirstNet to generate  revenue through user fees and commercial partnerships, the latter of  which can involve secondary use of the network for non-public safety  services. Widespread network coverage can attract more users, and  thus user fee revenue, but is expensive to construct and maintain. Under the 2012 act, FirstNet can receive payment for the use  of the public safety network’s capacity by non-public safety users as well  as use of the network’s infrastructure. FirstNet Has Processes in Place to Identify Early Builder Project Lessons but Has Not Developed a Written Evaluation Plan

Our preliminary results indicate that FirstNet has taken steps to collect  and evaluate information and lessons learned from the early builder  projects, but could do more to ensure that the information and lessons are  properly evaluated. Additionally, FirstNet intends to gain knowledge from the projects  through contractors who have been assigned to each project to collect  and log formal and informal lessons, and through weekly meetings  FirstNet officials told us they hold. We have previously found that a  well-developed evaluation plan for projects like the early builder projects  can help ensure that agencies obtain the information necessary to make  effective program and policy decisions. Given that the early builder projects  are doing on a regional and local level what FirstNet must eventually do  on a national level, a complete evaluation plan that includes a detailed  data-analysis plan could play a key role in FirstNet’s strategic planning  and program management, providing feedback on both program design  and execution.
Why GAO Did This Study

Public safety officials rely on thousands of separate radio systems to communicate during emergencies, which often lack interoperability, or the ability to communicate across agencies and jurisdictions. The 2012 act created FirstNet to establish a nationwide, interoperable, wireless broadband network for public safety use. In doing so, the act established numerous responsibilities for FirstNet, provided $7 billion from spectrum auctions proceeds for the network's construction, and required FirstNet to be self-funding beyond this initial allocation. As part of the effort, FirstNet is working with five “early builder projects” that have permission to build local and regional interoperable public-safety broadband networks.
This statement is based on preliminary information from GAO's ongoing review of FirstNet. This statement addresses (1) FirstNet's progress carrying out its responsibilities and establishing internal controls, (2) how much the network is estimated to cost and how FirstNet plans to become self-funding, and (3) what lessons can be learned from the early builder projects. GAO reviewed relevant FirstNet documentation and public-safety network cost estimates recommended by agency officials and experts; surveyed the state-designated FirstNet contact in 50 states, 5 territories, and the District of Columbia; and interviewed FirstNet officials and public safety and wireless industry stakeholders selected for their telecommunications and public safety experience, among other things.

What GAO Found

GAO's ongoing work has found that the First Responder Network Authority (FirstNet) has made progress carrying out the responsibilities established in the 2012 Middle Class Tax Relief and Job Creation Act (the 2012 act) but lacks certain elements of effective internal controls. FirstNet has made progress establishing an organizational structure, planning the nationwide public-safety broadband network, and consulting with stakeholders. Nevertheless, stakeholders GAO contacted cited upcoming issues, such as deciding the level of network coverage, which will be difficult for FirstNet to address as it continues to carry out its responsibilities. With respect to internal controls, FirstNet has begun establishing policies and practices consistent with federal standards, but it has not fully assessed its risks or established Standards of Conduct . Given that FirstNet faces a multitude of risks to achieve its complex objectives, fully assessing risks would help FirstNet respond to risks in a proactive way. Developing standards of conduct would help FirstNet address conduct and performance issues in a timely manner.
A nationwide public-safety broadband network is estimated to cost billions of dollars, and FirstNet faces difficult decisions determining how to fund the network's construction and ongoing operations. Various entities have estimated the cost to construct and operate such a network from $12 to $47 billion over the first 10 years. The actual cost of FirstNet's network will be influenced by FirstNet's (1) business model, especially the extent of commercial partnerships; (2) use of existing infrastructure; (3) efforts to ensure network reliability; and (4) network coverage. For example, the cost of the network will likely increase if FirstNet does not utilize commercial partnerships and at least some existing infrastructure. The 2012 act provides FirstNet $7 billion to establish the network. To become self-funding, FirstNet is authorized to generate revenue through user fees and commercial partnerships, the latter of which can involve secondary use of the network for non-public safety services. However, GAO's ongoing work suggests that FirstNet faces difficult decisions in determining how to best utilize these revenue sources. For instance, widespread network coverage can attract more users, and thus user fee revenue, but is expensive to construct and maintain, especially in rural areas.
FirstNet has taken steps to collect and evaluate information and lessons from the five “early builder projects” that are developing local and regional public-safety networks, but could do more to ensure that it properly evaluates and incorporates these lessons. For example, FirstNet has asked the projects to report on the experiences of their networks' users and has assigned contractors to collect and log lessons. However, preliminary results indicate that FirstNet does not have a plan that clearly articulates how it will evaluate those experiences and lessons. GAO has previously found that a well-developed evaluation plan for projects like these can help ensure that agencies obtain the information necessary to make effective program and policy decisions. Given that the early builder projects are doing on a local and regional level what FirstNet must eventually do nationally, an evaluation plan can play a key role in FirstNet's strategic planning and program management, providing feedback on both program design and execution and ensuring FirstNet has not missed opportunities to incorporate lessons the projects have identified.