The Challenge
Until 1993, the Federal Communications Commission (FCC) relied upon comparative hearings and lotteries to select a single licensee for available electromagnetic spectrum. That year, Congress authorized the Commission to use competitive bidding to generate revenue for the U.S. Treasury, by making spectrum available to a wider audience.

Soon thereafter, the FCC engaged Computech to analyze the scope of work and help prepare its solicitation for an off-the-shelf auction system. After choosing a commercially available platform, the Commission realized it instead required a custom-tailored automated system. Appreciating that Computech had a thorough understanding of the specifications - and impressed with the firm's can-do attitude - the Commission chose Computech as its partner. Within six months, the FCC Computech team launched the Automated Auction System (AAS).

Initially, this client/server-based system enabled the FCC to send auction software to participants who then dialed into a call center for the bidding process. However, within a few years, the Internet became so prevalent in bidding parties' offices that the FCC asked Computech to re-architect the AAS as a Web application. Collaborating closely with the FCC, Computech provided ongoing technological enhancements, and the AAS began to evolve into the Integrated Spectrum Auction System (ISAS).

The Solution
Over the years, the FCC and Computech have partnered to refine the business functionality of the auction system well beyond Web enablement. To meet bidder demand to purchase customized spectrum packages, rather than single blocks, the Computech team further enhanced the system to support the nation's first combinatorial spectrum auction (held in 2003). Subsequently, the team developed ISAS, a new generation of software that enables the FCC to hold both individual and bundled spectrum auctions simultaneously.

The ISAS's advanced platform integrates and automates all auction functions - from the application process to the assignment of winning bidders - saving time and effort. Previously, a senior-level employee monitored the results of each round and read them to other FCC staff via a videoconference. Senior-level staff can now perform more business-critical functions because ISAS uses robust, self-running software that displays each round's real-time results on large plasma screens in three secure locations. Consequently, the FCC gains immediate insight into auction participants' behavior - valuable information for refining ISAS.

Computech's innovative, secure system includes redundant servers and sophisticated software that withstands fluctuations in processing load. The design also ensures a fair auction process for all bidders. And, ISAS works with the FCC's Revenue Accounting Management Information System (RAMIS), which, in turn, interacts with the U.S. Treasury System, where information on the revenue generated from the auctions resides.

The Payoff
The FCC now processes more spectrum licenses, with greater efficiency, than ever before. As of June 2005, the FCC auctioned more than 55,000 spectrum licenses, valued in excess of $50 billion. Using ISAS, the FCC achieves the following goals:

• Meets its primary mission of delivering spectrum into the hands of the people who need it most.
• Enables a more diverse audience to bid on spectrum. To date, participants include the following:
  • 1,202 minority-owned businesses,
  • 647 rural telephone companies,
  • 976 women-owned businesses, and
  • 9,925 other businesses.
• Continuously generates revenue for the U.S. Treasury.

The system's inherent flexibility makes it easily transferable to other nations or agencies. For example, the sale of ISAS to the Government of Mexico generated additional revenue for the U.S. Treasury. Other U.S. Government agencies can configure the auction system for their own purposes, offering more revenue-producing opportunities.