Subgrantee Resources

BEAD was implemented as a competitive grant program. Applicants proposed projects to build reliable high-speed internet infrastructure to connect unserved and underserved locations. Successful applicants will be awarded BEAD funding to construct those projects and provide high-speed internet service to the previously unserved or underserved locations. Subgrantees are those awarded funding through the BEAD Program.

A wide variety of entities are allowed to apply to participate in BEAD including cooperatives, nonprofits, public-private partnerships, private companies, public or private utilities and local units of governments.

Michigan’s BEAD Program has a two-step application process: pre-registration and project application. Resources to support you in reviewing Michigan’s BEAD-eligible locations, completing pre-registration, and completing project applications are available below.

Key Pre-Registration Dates: Every potential applicant must complete pre-registration with information about their organization. Pre-registration has been open since June 28, 2024. Preregistration submissions made by 4:00 pm Eastern on Thursday, January 9, 2025 will be responded to with requests for clarification if additional or different information is needed. Pre-registration submissions received between 4:01 pm Eastern on Thursday, January 9, 2025 and before 4:00 pm Eastern on Monday, March 10, 2025, will be reviewed exactly as submitted.

Key Project Application Dates: After completing pre-registration, an organization may submit one or more project applications. Project applications will be accepted between 9:00 am Eastern on Thursday, January 9, 2025, and 4:00 pm Eastern on Wednesday, April 9, 2025.

As outlined in Initial Proposal Volume 2 which has received final approval by the NTIA, MIHI has proposed two grant application rounds. The first round will focus on receiving Priority Project applications while the second round can include both Priority and Non-Priority Projects.

The NTIA has prioritized the deployment of fiber-optic technology when designing the BEAD Program. Priority Projects are those that propose to build end-to-end fiber networks, including fiber connectivity to the customer, offering speeds of at least 1 Gbps download and 1 Gbps upload (1/1 Gbps). Non-Priority Projects are those that propose to build high-speed internet infrastructure using fiber-optic, coaxial cable or licensed fixed wireless technology offering speeds of at least 100 Mbps download and 20 Mbps upload (100/20 Mbps).

Fiber-optic internet is widely regarded as the superior technology for accessing the internet due to its exceptional speed, reliability and bandwidth capabilities. Fiber-optics transmit data using pulses of light allowing significant data transfer rates. Fiber technology is less susceptible to interference which results in a more stable and reliable connection. Fiber networks can also handle higher bandwidth which supports the increasing demands of modern applications and online activities. Internet connections over fiber offer low latency (the delay in transferring data) that also enhances the internet experience. Finally, fiber-optic internet service can meet the connectivity needs of Michiganders today and 30-years from now given the ease at which speeds and throughput can be increased over time using the same infrastructure.

Many states are using pre-defined boundaries, such as counties, school districts or census blocks, to define project areas for BEAD. While this makes comparing competing applications easy, it also creates inefficiency in network deployment as broadband networks do not often conform to political boundaries or are split by road center lines. Conversely, allowing applicants to choose the individual locations they plan to serve as part of a project provides the greatest flexibility in project design, it can result in gaps in deployment and create heavy administrative burdens to deconflict overlapping project areas down to the individual location level.

As outlined in NTIA approved Initial Proposal Volume 2, MIHI is proposing to generate and use a 1.5-mile hexagonal grid laid over the state that applicants will use to define their project areas. Each BEAD eligible location will be associated with the hexagon covering that area. Applicants can select the hexagons they’d like to include in their project and will be committing to build infrastructure to all of the eligible locations within each hexagon included in their project. This method allows applicants to efficiently design network deployment projects while providing a standardized unit for MIHI to easily deconflict overlapping project applications.

Except in certain specific circumstances (i.e., projects in “high-cost areas” and other cases in which NTIA has waived the matching requirement), the BEAD Program requires high-speed internet infrastructure subgrantees to provide matching funds of not less than 25% of project costs. A matching contribution may be provided by the subgrantee, a unit of local government, a utility company, a cooperative, a nonprofit or philanthropic organization, a for-profit company, regional planning or governmental organization, a federal regional commission or authority or any combination thereof.

High-cost areas are unserved areas that the NTIA has identified as having a higher cost to build out broadband as compared with the average cost of building out broadband service in unserved areas in the United States (as determined by the Assistant Secretary, in consultation with the Federal Communications Commission), incorporating factors that include — (I) the remote location of the area; (II) the lack of population density of the area; (III) the unique topography of the area; (IV) a high rate of poverty in the area; or (V) any other factor identified by the Assistant Secretary, in consultation with the Commission, that contributes to the higher cost of deploying broadband service in the area. In high-cost areas, there is no match requirement. The high-cost areas in Michigan are limited, and can be found here.

Section III.B.4. of the BEAD Notice of Funding states that matching funds may be provided in the form of either cash or in-kind contributions, so long as such contributions are made consistent with the Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards set forth at 2 C.F.R. Part 200. In-kind contributions, which may include third-party in-kind contributions, are non-cash donations of property, goods or services, which benefit a federally assisted project, and which may count toward satisfying the non-federal matching requirement of a project’s total budgeted costs when such contributions meet certain criteria. In-kind contributions must be allowable and allocable project expenses.

As noted in Section IV.B.5.b. of the BEAD Notice of Funding an “Unserved Service Project” or “Underserved Service Project” may include Middle Mile Infrastructure in or through any area required to reach interconnection points or otherwise to ensure the technical feasibility and financial sustainability of a project providing service to an unserved location, underserved location or eligible CAI. Projects that are Middle Mile only, and do not provide service directly to underserved or underserved locations, are ineligible.

To evaluate a prospective subgrantee’s record of and plans to be in compliance with fair labor practices, NTIA requires that MIHI:

1. Obtain and evaluate information on the prospective subgrantee’s record of compliance with federal labor and employment laws, as well as the records of any other entities that will participate in the project, including contractors and subcontractors, and
2. Require the submission of, and evaluate, the prospective subgrantee’s plans for ensuring compliance with federal labor and employment laws (NOFO Section IV.C.1.e).

Information on (1) the prospective subgrantee’s record of compliance must include:

1. Information on the entities’ compliance with federal labor and employment laws on broadband deployment projects in the last three years;
2. Data on prospective subgrantee’s historical use of contracting and subcontracting arrangements, including staffing plans; and
3. Examples of the contractor and subcontractor’s past performance in the context of a similar project.

Information on (2) the prospective subgrantee’s plan for ensuring compliance with fair labor practices may include:

1. How the prospective subgrantee will ensure compliance in its own labor and employment practices, as well as that of its contractors and subcontractors;
2. Information on applicable wage scales and wage and overtime payment practices for each class of employees expected to be involved directly in the physical construction of the broadband network; and
3. How the subgrantee will ensure the implementation of workplace safety committees that are authorized to raise health and safety concerns in connection with the delivery of deployment projects.