Competitive bidding design options.

§ 1.2202 Competitive bidding design options. (a) Public notice of competitive bidding design options. Prior to conducting competitive bidding in the reverse auction, public notice shall be provided of the detailed procedures that may be used to implement auction design options. (b) Competitive bidding design options. The public notice detailing competitive bidding procedures for the reverse auction may establish procedures for collecting bids, assigning winning bids, and determining payments, including without limitation: (1) Procedures for collecting bids. (i) Procedures for collecting bids in a single round or in multiple rounds. (ii) Procedures for collecting bids for multiple reverse auction bid options. (iii) Procedures allowing for bids that specify a price for a reverse auction bid option, indicate demand at a specified price, or provide other information as specified by competitive bidding policies, rules, and procedures. (iv) Procedures allowing for bids that are contingent on specified conditions, such as other bids being accepted. (v) Procedures to collect bids in one or more stages, including procedures for transitions between stages. (vi) Procedures for whether, when, and how bids may be modified during the auction. (2) Procedures for assigning winning bids. (i) Procedures that take into account one or more factors in addition to bid amount, such as population coverage or geographic contour, or other relevant measurable factors. (ii) Procedures to evaluate the technical feasibility of assigning a winning bid. (A) Procedures that utilize mathematical computer optimization software, such as integer programming, to evaluate bids and technical feasibility, or that utilize other decision routines, such as sequentially evaluating bids using a ranking based on specified factors. (B) Procedures that combine computer optimization algorithms with other decision routines. (iii) Procedures to incorporate public interest considerations into the process for assigning winning bids. (3) Procedures for determining payments. (i) Procedures to determine the amount of any incentive payments made to winning bidders consistent with other auction design choices. (ii) The amount of proceeds shared with a broadcast television licensee will not be less than the amount of the licensee's winning bid in the reverse auction.