I've had no involvement with BEAD.  In the NY Broadband program, you'd get 
reimbursed for actual expenses, and then they do a physical plant audit.  If 
you submitted invoices for reimbursement for 17 Arista 7250 switches you'd 
better be able to show them 17 Arista 7250 switches either installed in the 
field or as spares on the shelf.  I cannot imagine why a state would do it any 
other way.  They must have lots of faith in the honesty of their utility 
companies.


________________________________
From: AF <[email protected]> on behalf of Chuck <[email protected]>
Sent: Friday, November 28, 2025 9:22 PM
To: [email protected] <[email protected]>
Cc: [email protected] <[email protected]>
Subject: Re: [AFMUG] how does BEAD subsidy work IRL?

Yep, you get the whole enchalada.  So hopefully your costs are way below you 
bid.
Sent from my iPhone

On Nov 28, 2025, at 6:41 PM, Ken Hohhof <[email protected]> wrote:



I know that BEAD is supposed to pay 75% and the provider 25%, with some 
exceptions.  But the states are administering the program, and the award goes 
to the provider who bid the lowest price for the project area.



So is their bid what they get, or do they get 75% of that?  Or do they still 
need to submit actual labor & materials costs and they get 75% of that?  I’m 
confused.



For example, let’s say the winning bid for an area with 200 locations is $5,000 
per location, $1 million total.  And let’s say it only costs $500K to connect 
all 200 locations, but nobody bid lower than $1 million.



Does BEAD pay out 75% of the $500K actual documented cost?  75% of the $1 
million bid?  Or the full $1 million because the bids were already supposed to 
factor in the 75/25 split?

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