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Planning Funding Statistics Cost Metrics for Licensee Planning Funding Click here for a Printer-Friendly version To assist those Public Safety licensees that still require Planning Funding with the preparation of planning cost estimates, and to expedite the process of negotiating Planning Funding Agreements with Sprint Nextel, the 800 MHz Transition Administrator, LLC (TA) is making available a set of cost metrics that identify typical licensee planning costs and rates based on system size. These metrics were gathered from over 140 approved Planning Funding Agreements (PFAs) and include: Typical incumbent and vendor costs, expressed as medians and percentiles for the five major categories of work found in all PFAs: Frequency Analysis, System Inventory, Engineering & Implementation Planning, Legal Support and Project Management; Typical incumbent and vendor labor rates for these five work categories; and Typical distributions of incumbent and vendor costs across all work categories. The TA expects that this information should prove beneficial to stakeholders in expediting the preparation and negotiation of Planning Funding requests. This data is provided for information purposes only. Licensee costs can and do vary according to a number of factors. The TA reviews all licensee cost estimates and will approve any reasonable and prudent expenses directly related to the reconfiguration of the licensee’s 800 MHz system. Licensees must certify that all of their costs reflect the "minimum necessary" to provide facilities comparable to those presently in use. For additional information, visit the TA website www.800TA.org or contact the TA via phone at 1-888-800-8220 or via email at comments@800TA.org. Section I: Median Costs and Percentiles by Planning Cost Category Median licensee costs and percentiles are provided in three tables below for each of the five major categories of work found in all Planning Funding Agreements: Frequency Analysis, System Inventory, Engineering & Implementation Planning, Legal Support and Project Management. These costs are further segregated by system size expressed as the approximate number of subscriber units in the system, determined per the guidelines provided in the TA's Fast Track guidance published June 15, 2006. Six ranges of system size are provided; for each range, the median value - that is, the value that is precisely in the middle of the set of costs reviewed and approved by the TA - the 25th percentile and the 75th percentile are provided for each category of planning work. The 25th and 75th percentiles identify the range around the median within which 50% of the population falls. Thus, 25% of the population had a value less than the 25th percentile and 25% had a value greater than the 75th percentile. Note that in some cases the median value is zero, meaning that more than half of the licensees in that range did not request funding in that particular category. Separate tables for total planning costs, incumbent labor costs (i.e., work performed directly by licensee staff) and vendor costs are provided. Table 1.a: Median Planning Costs and Cost Ranges by number of units in the system Number of Units in the System Planning Costs 25th Percentile Median 75th Percentile 1-500 $19,054 $26,650 $36,824 501-1000 $32,078 $57,154 $80,026 1001-2000 $52,499 $79,738 $118,770 2001-4000 $96,838 $152,388 $193,876 4001-10000 $124,423 $284,256 $354,880 >10000 $490,782 $537,115 $820,548 Table 1.b: Median Incumbent costs and cost ranges by Planning cost category Number of Units in the System Frequency Analysis System Inventory Engineering and Implementation Planning 25th Percentile Median 75th Percentile 25th Percentile Median 75th Percentile 25th Percentile Median 75th Percentile 1-500 $0 $0 $0 $0 $96 $480 $0 $0 $335 501-1000 $0 $0 $107 $0 $752 $1,619 $0 $192 $2,532 1001-2000 $0 $0 $437 $0 $944 $2,817 $0 $518 $2,870 2001-4000 $0 $124 $516 $0 $2,550 $6,920 $0 $3,802 $8,568 4001-10000 $0 $500 $1,512 $0 $4,325 $11,410 $0 $4,309 $6,480 >10000 $31 $2,778 $8,483 $7,774 $32,350 $37,707 $8,554 $31,929 $59,363 Table 1.b (continued): Median Incumbent costs and cost ranges by Planning cost category Number of Units in the System Legal Project Management 25th Percentile Median 75th Percentile 25th Percentile Median 75th Percentile 1-500 $0 $0 $525 $0 $0 $1,538 501-1000 $0 $591 $2,208 $0 $1,214 $4,591 1001-2000 $0 $553 $2,313 $0 $2,517 $6,741 2001-4000 $0 $819 $2,176 $0 $3,096 $6,066 4001-10000 $0 $1,050 $8,500 $0 $8,443 $12,800 >10000 $0 $1,515 $13,508 $2,459 $13,380 $69,414 Table 1.c: Median Vendor costs by Planning cost category Number of Units in the System Frequency Analysis System Inventory Engineering and Implementation Planning 25th Percentile Median 75th Percentile 25th Percentile Median 75th Percentile 25th Percentile Median 75th Percentile 1-500 $1,225 $1,488 $3,263 $1,457 $2,408 $3,453 $5,950 $8,225 $9,325 501-1000 $1,925 $2,942 $4,419 $2,979 $5,418 $7,555 $7,145 $13,414 $20,697 1001-2000 $1,571 $2,625 $4,775 $5,052 $8,675 $10,830 $7,863 $13,519 $21,864 2001-4000 $3,540 $5,210 $13,409 $12,789 $16,265 $20,973 $17,595 $26,250 $45,695 4001-10000 $5,224 $7,320 $14,325 $16,647 $22,400 $69,855 $23,405 $40,000 $55,643 >10000 $26,024 $39,224 $55,481 $42,154 $71,741 $168,506 $68,156 $94,076 $171,806 Table 1.c (continued): Median Vendor costs by Planning cost category Number of Units in the System Legal Project Management 25th Percentile Median 75th Percentile 25th Percentile Median 75th Percentile 1-500 $3,380 $5,000 $8,378 $7,875 $7,875 $12,585 501-1000 $4,607 $8,400 $12,854 $7,875 $15,321 $29,190 1001-2000 $4,800 $7,500 $13,800 $7,875 $15,887 $32,678 2001-4000 $9,150 $10,825 $16,838 $19,450 $35,039 $39,550 4001-10000 $14,426 $21,297 $31,500 $26,000 $39,550 $53,040 >10000 $9,200 $16,000 $16,320 $39,550 $48,263 $68,709 Section II: Median Labor Rates by Planning Work Category Median incumbent and vendor labor rates are provided in the table below for each of the five planning work categories. Table 2: Median Incumbent and Vendor rates (hourly) by Planning cost category   Frequency Analysis System Inventory Engineering and Implementation Planning   Legal   Project Management Median Incumbent Rate $54 $48 $54 $92 $51 Median Vendor Rate $175 $158 $175 $350 $175 Section III. Distribution of Costs by Planning Work Category for Incumbent and Vendor The distribution of incumbent and vendor costs across planning work categories is provided in the table below, both as a percentage of the total costs in a Planning Funding Agreement and as a percentage of the incumbent's or vendor's total costs. Note that on average, vendors tend to account for roughly 77% of Planning Funding costs, whereas incumbents tend to account for 23%. Table 3: Incumbent and Vendor cost distribution by Planning cost category   Cost distribution as a % of TOTAL Planning Costs Cost distribution for Incumbents and Vendors** PLANNING COST CATEGORY INCUMBENT COSTS AS % OF TOTAL COSTS VENDOR COSTS AS % OF TOTAL COSTS   INCUMBENT COSTS AS % OF TOTAL INCUMBENT COSTS VENDOR COSTS AS % OF TOTAL VENDOR COSTS Frequency Analysis 1.5% 6.2%   6.6% 8.0% System Inventory 4.9% 13.9%   21.5% 18.0% Engineering 5.3% 23.5%   23.3% 30.4% Legal 2.8% 6.8%   12.2% 8.8% Project Management 7.8% 23.7%   34.1% 30.7% Other 0.5% 3.1%   2.4% 4.0%   22.8% 77.2%   100.0% 100.0% **Cost distribution for Incumbent and Vendors is derived as a % of Incumbent total or Vendor total

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