§ 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.

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