FCC Record, Volume 27, No. 3, Pages 1878 to 2785, February 21 - March 16, 2012 Page: 1,890
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7. The 800 MHz R&O and subsequent orders in this docket require Sprint to negotiate a FRA
with each 800 MHz licensee that is subject to rebanding.'2 The Parties negotiated an FRA for
$2,265,031.75, which the TA approved on December 24, 2007.' After it completed rebanding, however,
Port Authority submitted a Change Notice for an additional $955,865.43. The nature and cost of the
services in the Change Notice had not been negotiated with or authorized by Sprint or the TA and were
presented to Sprint after they had been incurred.
8. The Change Notice identifies $74,425.22 in "hard costs" and $903,034.66 in "soft costs" for
various engineering and project management tasks."4 These tasks include: (a) "splitting" Port Authority's
Enhanced Digital Access Communication System (EDACS) facilities; (b) incorporating dual personality
programming in Port Authority radios to accommodate the EDACS split; (c) a temporary back-to-back
system; (d) remedying problems encountered with Port Authority AirTrain radios; (e) Mobile Data
Terminal (MDT) rack redesign; (f) logistics associated with additional equipment; (g) testing; and (h)
BAH technical support.'5
9. Sprint does not contest the hard cost amount claimed by Port Authority for these tasks but
disputes the claimed soft costs, which break down as follows: $190,044.42 for services performed by
M/A-COM, $429,481.20 for services performed by BAH, and $333,312.33 for work by Port Authority's
own personnel.6 Sprint contends that Port Authority's billing records lack sufficient detail to determine
whether these claimed amounts comply with the Commission's Minimum Necessary Cost Standard. Port
Authority responds that the degree of detail requested by Sprint is not required by the FRA.'7 and also
contends that Sprint has not acted in good faith because Sprint refuses to pay the full cost of tasks that
Sprint has conceded were necessary.'8 In addition to the amounts claimed in the Change Notice, Port
Authority requests $12,076.16 in legal and administrative costs for participating in mediation over the
Change Notice and preparing Port Authority's Proposed Resolution Memorandum (PRM) and Reply
10. Mediation of the disputed amounts was unsuccessful. Accordingly, on August 25, 201 1, the
TA Mediator submitted a Recommended Resolution (RR) and forwarded it with the mediation record, to
" See Improving Public Safety Communications in the 800 MI iz Band. WT Docket No. 02-55. Report and Order,
Fifth Report and Order, Fourth Menioranduin Opinion and Order, and Order, 19 FCC Rcd 14969 (2004) (800 MHz
R&O); Supplemental Order and Order on Reconsideration, 19 FCC Rcd 25120 (2004): Memorandum Opinion and
Order, 20 FCC Rcd 16015 (2005); Second Memorandumn Opinion and Order, 22 FCC Recd 10467 (2007): Third
Memorandum Opinion and Order, 22 FCC Red 17209 (2007).
13 Port Authority PRM at Exhibit B.
14 RR at 3. Herein, and as used by the Parties, "hard costs" refer to the acquisition and installation or modification
of radio equipment "'soft costs" refer to project supervision and management. planning, and engineering. The sum
of the hard costs and sotl costs reported by the TA Mediator is $977.459.99, whereas Port Authority states that it is
requesting $955,865.43 in its Change Notice. The record is insufficiently complete to allow reconciliation of the
$21,584.45 difference. T'he difference, however, is not material to our decision herein to allow only the costs
proposed by Sprint plus Port Authority's costs associated with preparation of its PRM and reply PRM.
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/m1/31/: accessed March 24, 2017), University of North Texas Libraries, Digital Library, digital.library.unt.edu; crediting UNT Libraries Government Documents Department.