The Broadband Equity, Access and Deployment (BEAD) Program provides $42 billion in funding to expand high-speed internet access across the United States. Part of the Infrastructure Investment and Jobs Act, BEAD will fund high-speed internet planning, infrastructure deployment, and adoption solutions.
According to a 2022 report by the America Achieves, “Creating and Expanding a Diverse Broadband Workforce with Good Jobs and Career Pathways,” the stakeholders involved in broadband deployment are represented by the following;
BEAD is administered by the National Telecommunications and Information Administration (NTIA). Part of the application process requires states adopt financial assurance measures for entities bidding on work associated with the program. Originally a letter of credit requirement, the NTIA recently announced that surety bonds would be an acceptable instrument to meet this need.
In most cases, the bonding requirement will be a 100% performance bond which may be reduced upon completion of milestones. While this level of bonding is typical on government funded projects, participating in BEAD will significantly increase the amount of surety capacity required by participants in this program. According to the “Subgrantee Selection Primer” published by the NTIA and US Department of Commerce, deployment work for participants in the BEAD program may include:
As individual state requirements and criteria are pending, we expect the surety market to take a cautious approach on extending capacity for the BEAD program. Planning and strategic discussions around bond programs will be critical in the next few months, as states move quickly to deploy these funds.
Strategy set today can provide meaningful improvement in future surety program results. The WTW Surety team provides measurable results for our clients by:
Willis Towers Watson hopes you found the general information provided in this publication informative and helpful. The information contained herein is not intended to constitute legal or other professional advice and should not be relied upon in lieu of consultation with your own legal advisors. In the event you would like more information regarding your insurance coverage, please do not hesitate to reach out to us. In North America, Willis Towers Watson offers insurance products through licensed subsidiaries of Willis North America Inc., including Willis Towers Watson Northeast Inc. (in the United States) and Willis Canada, Inc.
