Project Structure for Community Broadband Utility Projects

Understanding the DBFOM Structure

Central to our community broadband utility project is the Design-Build-Finance-Operate-Maintain (DBFOM) model. DBFOM allows for comprehensive project execution, from initial design phases through to long-term operations and maintenance. The efficiency of this model is rooted in its continuity, ensuring that every phase of the project is seamlessly integrated and executed to the highest standards.

Special Purpose Vehicle (SPV): The Investment Backbone

The project’s financial and organizational core is the Special Purpose Vehicle (SPV). Specifically crafted for this initiative:

  • It serves as the primary entity for investment, gathering resources from various stakeholders and ensuring they’re allocated effectively.

  • The SPV is responsible for the overarching management and governance of the project, guaranteeing alignment with our objectives and community values.

  • From the SPV emanates a contractual framework that delineates responsibilities to specialized subcontractors, ensuring expertise in each domain of the project.

Project Stages and Phases

The Broadband Utility Project is divided into three distinct stages: INCEPTION, ANALYSIS, and EXECUTION. Each stage encompasses specific phases, detailing the strategic approach and action items essential for the successful implementation of the project.

pipeline-diagram

Below, you’ll find an outline of each stage and its constituent phases:

INCEPTION

The INCEPTION stage is all about understanding the market, analyzing feasibility, and setting the groundwork for the project.

Phases:

  1. Origination Phase:

    • Conduct market research and analysis

    • Study feasibility reports of target communities

    • Conduct clarification meetings

    • Clarify business case

    • Prepare RFIs

  2. Pursuit Phase:

    • Study the target community’s needs

    • Prepare project high-level specifications

    • Prepare cost estimates and develop a pricing strategy

    • Submit a competitive bid within the given timeline

ANALYSIS

The ANALYSIS stage dives deep into the project specifics, evaluating feasibility, and establishing a clear roadmap.

Phases:

  1. Project Performance:

    • Evaluate project feasibility and viability

    • Analyze the technical, financial, and socio-environmental aspects

    • Prepare a detailed project roadmap

  2. Partner Diligence:

    • Undertake a detailed review of project aspects

    • Identify potential partners and negotiate terms

    • Conduct legal, technical, and financial due diligence

  3. Project Listing:

    • Establish a financing plan and structure

    • Engage with potential investors/lenders

    • Convey analysis, due diligence, and performance to investors and explain our assumptions & hypothesis to investors

  4. Project Closing:

    • Finalize all partnership agreements

    • Ensure legal, financial, regulatory, and compliance requirements are met

    • Officially close the pre-dev phase

EXECUTION

The EXECUTION stage is where the plans are put into action, encompassing design, build, operate, and maintain phases of the project.

Phases:

  1. Design:

    • Leverage Digital Twin Technology to provide detailed design information by all contractors ahead of the build

  2. Build:

    • Once the design has been selected, there will be tracing of the projects to ensure that the build phases are done on time and all the assets are tracked and managed properly

  3. Operate:

    • The infrastructure will be operated with ongoing hookups and MACDs over the term of the agreement as part of the relationship with the community, at the end of which the project will be transferred to the community

  4. Maintain:

    • The infrastructure will be maintained for break and fixes as well as ongoing refresh for long-term success

Understanding these stages and phases is critical to ensuring that all project activities are aligned with the overarching goals and that stakeholders are on the same page throughout the project lifecycle.

The Three Prime Contracts and Subcontractors

The SPV establishes three prime contracts, each dedicated to a specific domain of expertise:

  1. Design-Builder for the Outside Plant Work:

    • This subcontractor is in charge of the foundational work, crafting the physical infrastructure required for our broadband network.

    • They are responsible for ensuring that all outside plant work is completed efficiently, adhering to standards and ensuring the infrastructure’s longevity.

    • Whether it’s fiber optics or other essential components, the Design-Builder’s role is pivotal in establishing a robust physical foundation for the network.

  2. Integrator for Networking Solutions:

    • The Integrator is responsible for providing a turn-key integrated networking solution.

    • Their expertise ensures that the technology used is not only cutting-edge but also compliant with prevailing specifications and standards.

    • This component guarantees that our broadband utility is not just operational, but also primed for future technological evolutions.

  3. Operator for Ongoing Operations and Maintenance:

    • The Operator’s mandate is to ensure the smooth day-to-day functioning of the broadband utility.

    • From Moves, Adds, Changes, and Disconnects (MACDs) to ongoing hookups for new users, the Operator ensures seamless service delivery.

    • They are also responsible for long-term maintenance, ensuring the network’s health and addressing any issues promptly.

To ensure the smooth execution of the Broadband Utility project, clear roles and responsibilities have been established. This section elaborates on the roles of each prime contractor and the Special Purpose Vehicle (SPV), termed as "Owner" in our project structure.

In conclusion, our project structure is meticulously crafted to ensure each facet of the community broadband utility project is handled by experts in the domain. This structure ensures efficiency, adherence to standards, and a promise of long-term service excellence to the community.