	Background

The Middle Class Tax Relief and Job Creation Act of 2012 (2012 act)  established numerous responsibilities for FirstNet, most of which relate  directly to developing the nationwide public-safety broadband network  (hereafter, public safety network). In establishing this network, FirstNet must  issue open, transparent, and competitive Requests for Proposals  (RFP) to private sector entities for the purpose of building, operating,  and maintaining the public safety network; develop RFPs that include appropriate timetables for construction,  and network coverage areas and service levels, among other things; enter into agreements to use, to the maximum extent economically  desirable, existing commercial, federal, state, local, and tribal  infrastructure; promote competition in the public-safety equipment marketplace by  requiring that equipment for the public safety network be built to open,  non-proprietary standards; promote integration of the public safety network with public-safety address special considerations for areas with unique homeland or  require deployment phases that include substantial rural coverage  milestones; and develop the technical and operational requirements for the public  safety network, as well as the practices and procedures for managing  and operating it. The 2012 act requires  FirstNet to be self-funding beyond this initial $7 billion. Efforts to establish local and regional public-safety networks are also  ongoing, and predate the 2012 act. Even with the establishment of the public safety network, first responders  will continue to rely on their current LMR systems for mission-critical voice  communications. FirstNet Is Making Progress Meeting Responsibilities but Lacks Certain Elements of Effective Internal Controls

		FirstNet Is Making Progress Carrying Out Statutory Responsibilities

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. FirstNet has set objectives and taken some steps to assess risks. However, FirstNet has not yet fully assessed risks it may face in  accomplishing its objectives. Given this, complete risk assessments could help FirstNet  appropriately design its full internal control system and achieve its  objectives while maximizing use of its available resources. However, FirstNet has not yet finished establishing its control  environment. Specifically, although FirstNet officials told us that they intend to  develop a code/standards of conduct policy, which is an important form of  ethical and behavioral guidance for personnel, they have not yet  developed this item as of February 2015. 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 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

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

Although FirstNet has various revenue options it is authorized to use to  become self-funding, it is unclear how FirstNet will use those authorities. However, FirstNet faces difficult decisions determining how to  best utilize these revenue sources. Coverage: Widespread network coverage can attract more users,  and thus user fee revenue, but is expensive to construct and maintain. FirstNet Has Processes in Place to Identify Early Builder Project Lessons but Has Not Developed a Written Evaluation Plan

While FirstNet has taken steps to collect and evaluate lessons learned  from the early builder projects, it could do more to ensure that the lessons  are properly evaluated. 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, in part, 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. Recommendations for Executive Action

To improve the accountability and transparency of FirstNet’s operations,  and ensure that FirstNet is gaining as much knowledge from the early  builder projects as possible, we recommend that FirstNet take the  following two actions:  strengthen FirstNet’s internal control system by fully assessing risks,  developing standards of conduct, and evaluating performance against  these standards, and develop an evaluation plan that includes a detailed data-analysis plan  for the early builder projects’ performance and results, including how  the observations and lessons learned reported to FirstNet and  identified by consultants will be evaluated. FirstNet also stated that it plans to establish supplemental  standards of conduct, which will operate in conjunction with applicable  regulations and existing FirstNet and Department of Commerce policies. Specifically, we  reviewed (1) the extent to which FirstNet is carrying out its responsibilities  and establishing internal controls for developing the public safety network,  (2) how much the public safety network is estimated to cost to construct  and operate and how FirstNet plans to become a self-funding entity, and  (3) what lessons can be learned from local and regional public-safety  network projects.
Why GAO Did This Study

For communications during emergencies, public safety officials rely on thousands of separate systems, which often lack interoperability, or the ability to communicate across agencies and jurisdictions. The 2012 act created FirstNet within the Department of Commerce to establish, for public safety use, a nationwide, interoperable, wireless broadband network, which will initially support data transmissions. The 2012 act established numerous responsibilities for FirstNet, provided $7 billion for network 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 are building local and regional public-safety broadband networks.
GAO was asked to examine FirstNet's progress in establishing the network. GAO assessed (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 FirstNet documentation and public-safety network cost estimates, surveyed all state-designated FirstNet contacts, and interviewed FirstNet officials and public safety stakeholders selected for their telecommunications and public safety experience.

What GAO Found

The First Responder Network Authority (FirstNet) has made progress carrying out its responsibilities established in the Middle Class Tax Relief and Job Creation Act of 2012 (the 2012 act) but lacks certain elements of effective internal controls. FirstNet is charged with the complex and challenging task of establishing a new, nationwide, wireless broadband network for public safety entities, in consultation with federal, state, local, and tribal stakeholders. The network will initially support interoperable data communications, and later integrate mission-critical voice capabilities as public safety standards for voice communications are developed. FirstNet has made progress establishing an organizational structure, planning for the network, and consulting with stakeholders. FirstNet has also begun establishing policies and practices consistent with federal internal control standards. Officials told GAO that they plan to continue to do so. However, FirstNet has not fully assessed its risks or established standards of conduct—which is an important form of ethical guidance for its personnel . Given that FirstNet faces numerous risks to achieve its complex objectives, fully assessing risks could help FirstNet achieve its objectives and maximize use of its resources. Developing standards of conduct could also help FirstNet address any performance issues in a timely manner.
A nationwide public-safety broadband network has been estimated by various entities to cost billions of dollars, and FirstNet faces difficult decisions determining how to fund the network's construction and ongoing operations. These estimates indicate the cost to construct and operate such a network could be 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 may be higher if FirstNet does not utilize partnerships and some existing infrastructure. To become self-funding, FirstNet is authorized to generate revenue through user fees and commercial partnerships. However, FirstNet faces difficult decisions in determining how to best utilize these revenue sources. For instance, widespread network coverage can attract more users and 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 the lessons are properly evaluated. 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, FirstNet does not have a plan that clearly articulates how it will evaluate those experiences and lessons. Although FirstNet told GAO that it remains in close contact with early builder projects, 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.

What GAO Recommends

FirstNet should complete its risk assessment, develop standards of conduct, and develop an evaluation plan for early builder projects. FirstNet concurred with the recommendations.