NCDOT 600 Mile I-95, US 70, and US 74 Broadband Project

KPMG

The project seeks to create a fiber backbone along the 600-mile route of I-95, US 70, and US 74 for North Carolina Department of Transportation’s current and future technology needs. It aims to expand the state’s fiber network for universal access, including rural areas, schools, police, emergency response, and economic development. The scheme is also looking to increase commercialization opportunities for the private sector from excess capacity. To provide greater flexibility, NCDOT designed a multitrack procurement process that offered the option to bid on: (i) DB services only; (ii) OMC services only; or (iii) DBOMC services combined. NCDOT received bids for all three procurement tracks and determined that the maximum value to the state would be achieved through separate agreements for DB and OMC services. The results demonstrated an overall $20m saving through this approach. NCDOT also incorporated a market benchmark of the O&M price every five years during the term to ensure it receives a reliable O&M service at a competitive market-based price.