§ 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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