Thanks for your response!
For the answer to #1: We have had background bluetooth working for several weeks now using the exact method you mentioned and are able to get the packet when the phone screen is on and unlocked. However, I am more concerned with replicating this behavior while the iPhone is LOCKED. Right now, if the phone is locked, NO packets come through. The discovery does not work the same as when the phone screen is on. Is there something we need to do to get the background bluetooth to operate the same when the phone us locked and unlocked? This is critical as we need the data to flow consistently and many people have their phones locked and in their pockets for a large portion of the day!
Thanks for the article for #2! We will dig into that!