Tuesday, January 12, 2010

The Money Grab

It looks like some people are trying to capitalize on the frustration some are feeling over not getting word yet that their projects will get funded and are going after desperate folks with Broadband Stimulus Grant in a Box kits. Check this out:

BTOP Grant Application Support Package

I'm all for capitalism (even though this looks like a Chinese company) and I wouldn't knock another man's hustle, BUT and that's a Big BUT, at what point does this smack in the face of the purpose of the grants and turns to an unadulterated money grab?

Are all the consultants, equity seekers, attorneys and analysts who are advising applicants going after their cut in the money grab and looking for their big pay day as well? After all, the government permits a good percentage (EDITED to add the words "up to" 5%) of the funds to go towards professional consultancy fees which include grant writers.

[EDITED TO ADD based on an email I received, you are not at all obligated to surrender 5% of your grant money. The government simply permits you to use up to 5% of the grant funding to pay for invoices for services that accrued from the day the application was released until your application is completed. By all means, it is NOT A CONTINGENCY. There is a presumption that you should have paid bill in advance, but to the extent you have an outstanding balance, you are permitted to use award funds to pay towards that balance that consultants, attorneys and engineers charged for their services. Sorry to confuse. See Below*]

What percentage of those waiting for funding are truly eager to getting word that their work will start to get America back on track to being a competitive force in the broadband world and connecting unserved and underserved populations of this great nation and what percentage is just waiting for their cut in the stimulus funding?

It boggles the mind. I suppose it doesn't help that I've had to listen to independent radio for a client project I am currently working on... Much of the rhetoric being espoused is couched in between segments of people cursing the government for taking tax payer dollars and distributing them among various projects they don't approve of and for making private industry and their lawyers and consultants rich.

Are the consultants guiding applicants just as guilty as the Grant-in-a-box guys?

I'm thinking............................. HELL NO! It takes a lot of energy and work to pull this stuff together. I, for one, know what my team went through on behalf of my clients. That is certain.

As all of us watching the stimulus funding know, the ideal project is still an enigma to the administrators themselves. All this has been a trial and error process for them too - these uncharted waters they find themselves in. How the heck are these bozos pushing a one size fit all package thinking this is the solution? (though I would give them that it is a crisp organized tool for presentation purposes)

However, at this point, I think you'd need three college degrees including a doctorate in economics, an engineer Master's degree, a JD and not to mention a little bit of clairvoyance and mind reading capabilities to know what it takes to put together THE perfect grant application.

And even then, you'd offshoot by a mile if your application did not include top experienced management team with an impressive background and track history for success.

Again, there is a big BIG BIG fear from the grant administrators of funding projects with so-called new companies with no experience in managing big projects. The administration does NOT want any failures to come back and bite them in the ass.

I think that is also the reason behind the hesitancy to fund private companies with no public government party partners. After all, the government is supposed to be looking after its constituents and is presumed to not sell out its citizens in favor of large executive bonuses. The idea of being seen as doling out tax dollars to support a private company's bottom line scares the begeezus out of some of these administrators. To be honest, I do think some private companies were arrogant in thinking local and state governments had/have no clue how to run broadband and weren't worthy of soliciting for partnership. Maybe, they will have the last laugh in the end. Who knows. I digress...

Again, soooo unless this package was formulated via a carbon copy of a winning grant, I'm thinking a plug-in approach won't cut it! Nice try. Come again. I do hope no one is so desperate enough to try and get around hiring a top notched experience consultancy team to resort to something like this...

You know what they say, "desperate times call for desperate measures"

The answer is to be patient and not wave the white flag until...oh...two -three more weeks when you will know for sure if your project will get funded or not. Then PANIC!

(just kidding...if not funded, the answer, if you can bear it will be to learn lessons from those that did get funded, start over and hire one of the great experienced people who will be able to read the tea leaves and get you there.)


* Section D.2.(a)(iii) of the NOFA permit fund dollars to be used
"To fund reasonable pre-application expenses in an amount not
to exceed five percent of the award. Pre-application expenses may be
reimbursed if they are incurred after the publication date of this NOFA
and prior to the date on which the application is submitted to RUS or
NTIA;"

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