FCC Record, Volume 27, No. 3, Pages 1878 to 2785, February 21 - March 16, 2012 Page: 1,889
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3. Sprint also disputes whether the services provided by BAH, MA-COM, and Port Authority
personnel conform to the Commission's '"Minimum Necessary Cost Standard."'6 Sprint submits that with
respect to BAH, neither Sprint nor the Commission can assess whether the Minimum Necessary Cost
Standard has been met because BAH refuses to itemize the services performed and the time taken to
perform them. Sprint also claims that Port Authority's records for services performed by its own
personnel are insufficiently specific to permit a determination of whether they conform to the Minimum
Necessary Cost Standard. With respect to M/A-COM, Sprint submits that while some of the vendor's
invoices are sufficiently specific to determine whether the Minimum Necessary Cost Standard has been
met, many of the services that Port Authority authorized M/A-COM to perform were neither reasonable
nor necessary. Sprint has offered $205.394.89 for the services that it contends are adequately documented
and meet the Commission's standard. It also offers to pay Port Authority $12,076.16 for legal and
administrative expenses associated with meditation and the preparation of pleadings.
4. Port Authority submits that the Parties contemplated that Port Authority would incur, and
Sprint would pay, expenses in excess of those specified in the FRA, and that Sprint now is attempting to
renege on that understanding. Port Authority also claims that the FRA does not require it to itemize work
performed to the level of detail that Sprint asserts is required. Port Authority submits that Sprint was on
notice of the additional work that Port Authority was performing and did not object, and that Sprint
therefore cannot now claim that the work was unnecessary.
5. The post-FRA expenses claimed by Port Authority place it in the 99" percentile for costs
associated with similar-sized rebandings.7 Our precedent requires that we give careful scrutiny to such
claims. Applying that scrutiny to the record before us, we conclude that: (a) Port Authority should have
submitted its Change Notice in advance of incurring the claimed $955,865.43 in expenses: (b) Port
Authority's claim for reimbursement is inadequately documented in most instances, and many of the
claimed expenses that are adequately documented do not comport with the Commission's Minimum
Necessary Cost Standard; and (c) many of the claimed costs are for services that were foreseeable and
should have been included in the FRA. Accordingly, we find in favor of Sprint and direct it to pay Port
Authority $242.092.98 in full satisfaction of the costs Port Authority incurred after it signed its FRA,
including administrative and legal costs associated with mediation and preparation of pleadings. We find
no merit in Port Authority's claim that Sprint acted in bad faith in refusing to pay the amount demanded
by Port Authority.
6. Port Authority operates a seven-channel regional simulcast trunked public safety radio system
and a five-channel trunked system operated as part of the National Mutual Aid system.8 Port Authority
also holds licenses for and operates campus-based 800 MHz public safety radio channels at several
facilities." These latter channels serve the Port Authority police department, known as the Public Safety
Division, and two AirTrain in-car passenger emergency communications systems.'t Port Authority has
11 sites and more than 2,000 mobile and portable radios."
F See infra para. 60.
7 See infra para. 61.
SRR at 3. The Port Authority, a bi-state agency created between the States of New York and New Jersey, uses the
M/A-COM Enhanced Digital Access Communication System (EDACS) in the 800 MHz band under call signs
WNNM887, WNNM888 WPDS601, WPFN315. WPGV310, WPWQ420, WPXP445. WQAE549, and WQCZ732.
Federal Communications Commission
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United States. Federal Communications Commission. FCC Record, Volume 27, No. 3, Pages 1878 to 2785, February 21 - March 16, 2012, book, March 2012; Washington D.C.. (digital.library.unt.edu/ark:/67531/metadc94252/m1/30/: accessed September 19, 2017), University of North Texas Libraries, Digital Library, digital.library.unt.edu; crediting UNT Libraries Government Documents Department.