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County officials say NTIA-funded broadband work remains in engineering phase; construction stalled pending RFP responses and change-order review

5067316 · June 25, 2025
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Summary

County staff told commissioners the county's NTIA-backed broadband project has spent roughly $2 million on engineering and environmental work, is nearly fully reimbursed by federal grant and Salem County cost-share, but has no construction underway because no contractor has been selected and change-order disputes remain.

County officials updated the Board of Commissioners on the status of a National Telecommunications and Information Administration (NTIA) grant-funded broadband project, saying engineering work is complete but construction has not started because the county has not selected a contractor and is reviewing change-order claims.

A county official said roughly $2 million has been expended to date on the project, primarily for engineering, environmental studies and drawings that identify where broadband lines will run through the county. The official said the county is reimbursed roughly 70% of eligible grant expenditures by the NTIA and that Salem County's share of reimbursement is about 12%.

The county reported it has not yet paid construction invoices because it is not in the construction phase: "There are no shovels that have hit the ground," the official said. The project is at a standstill while the county awaits responses to an RFP and while it reviews change-order claims, including an environmental change-order request of about $243,000 that the contractor says was not included in the original contract. County staff said some invoices remain outstanding and the county will not expend additional money until outstanding procurement questions are resolved.

Commissioners and staff discussed allowing the contractor an additional 30 days to substantiate change-order claims so the county can finalize its position. County staff emphasized they had completed planning, drawings and location mapping and that remaining work to resolve invoicing and change-order items is necessary before selecting a contractor or proceeding with construction.

Why this matters: The broadband project is federally funded and intended to extend service to unserved or underserved areas. Engineering completion with no construction delays deployment; change-order disputes and lack of responsive contractors could slow timelines and increase local administrative costs.

County staff said the county would withhold further construction spending until change-order and procurement issues are resolved and that additional financial details would be shared with commissioners as they become available.