Three years ago, the federal government set out on an ambitious project to create a massive new broadband network to help first responders across the country communicate with each other during major disasters.
The idea of the First Responder Network or FirstNet was to have a dedicated network for firefighters, police officers and other emergency workers instead of relying on the commercial networks that might be jammed by overuse.
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The project, a joint venture between the Commerce and Homeland Security departments, was originally estimated to cost about $7 billion and be completed by 2022. At the time, officials said it would come at very little cost to the government because they would seek commercial partners and charge fees to users in order to pay for it.
However, over the last three years, federal auditors have raised serious questions about the project’s sustainability.
The latest report comes from the Government Accountability Office, which says that although FirstNet has made progress in establishing the network in numerous states across the country—it’s price tag is likely to skyrocket.
Since officials didn’t have a strategy or partners in place when they started developing FirstNet, it should come as no surprise that the project is likely going to cost much more than originally estimated.
A new report from the Government Accountability Office, estimates that FirstNet could cost anywhere between $12 billion and $47 billion –depending on how many partners participate.
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Though the auditors said FirstNet has made progress in establishing the network in numerous states across the country, they said the First Responder Network Authority lacks a strategy in place to assure that it can get enough commercial partners to pay for it.
“FirstNet faces difficult decisions determining how to fund the network's construction and ongoing operations,” the auditors said. They added that the project faces even more challenges “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.”
The GAO also said that the agency hadn’t assessed the risks associated with the massive project—which could end up costing taxpayers far more than expected.
“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,” the report said. “Developing standards of conduct could also help FirstNet address any performance issues in a timely manner.”
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The report was requested by Sen. John Thune (R-S.D.), Chair of the Senate Commerce Committee, who held a hearing last month on the project’s sustainability.
At the time, Thune said the government wasn’t “in a budget environment that can easily tolerate spending more than the $7 billion in taxpayer dollars” for the project.
The $7 billion that has already been allocated to FirstNet was raised through a spectrum auction last year. The rest is supposed to be self-sustaining as time goes on. Yet, the GAO and others have been skeptical.
An earlier report from the Congressional Research Service raised concern about the project’s sustainability.
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“Congress may want to consider ways to ensure that FirstNet will be self-sustaining and that the states will have adequate funds to participate in FirstNet and to maintain public safety communications networks,” it said, adding that the projects’ costs are poised to dramatically increase for construction as well as annual maintenance costs.
Ultimately, the project’s future and the government’s ability to pay for it will come down to who participates in it.
Under federal law, states have the right to opt out of using FirstNet and instead develop their own first responder network. The CRS study suggests that officials could run into challenges persuading states to use FirstNet instead of their own network –especially since most already operate their own networks, and use different rules and technologies.
First Responder Network Chairman Susan Swenson acknowledged during the hearing that convincing states to participate wouldn’t be easy.
“My expectation is we might see a few bumps along the way,” she said.
The GAO recommended that FirstNet establish a policy to address any potential risks or cost increases that might come with not having enough participants in the program. Separately, GAO recommended that FirstNet strengthen its internal controls. The agency agreed with all of the GAO’s recommendations and said it has already taken steps to address the auditors’ concerns.
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