§ 54.631   Designation of Consortium Leader.

   (a) Identifying a Consortium Leader. Each consortium seeking support
   from the Healthcare Connect Fund must identify an entity or
   organization that will be the lead entity (the "Consortium Leader").

   (b) Consortium Leader eligibility. The Consortium Leader may be the
   consortium itself (if it is a distinct legal entity); an eligible
   health care provider participating in the consortium; or a state
   organization, public sector (governmental) entity (including a Tribal
   government entity), or non-profit entity that is ineligible for
   Healthcare Connect Fund support. Ineligible state organizations, public
   sector entities, or non-profit entities may serve as Consortium Leaders
   or provide consulting assistance to consortia only if they do not
   participate as potential vendors during the competitive bidding
   process. An ineligible entity that serves as the Consortium Leader must
   pass on the full value of any discounts, funding, or other program
   benefits secured to the consortium members that are eligible health
   care providers.

   (c) Consortium Leader responsibilities. The Consortium Leader's
   responsibilities include the following:

   (1) Legal and financial responsibility for supported activities. The
   Consortium Leader is the legally and financially responsible entity for
   the activities supported by the Healthcare Connect Fund. By default,
   the Consortium Leader is the responsible entity if audits or other
   investigations by Administrator or the Commission reveal violations of
   the Act or Commission rules, with individual consortium members being
   jointly and severally liable if the Consortium Leader dissolves, files
   for bankruptcy, or otherwise fails to meet its obligations. Except for
   the responsibilities specifically described in paragraphs (c)(2)
   through (c)(6) of this section, consortia may allocate legal and
   financial responsibility as they see fit, provided that this allocation
   is memorialized in a formal written agreement between the affected
   parties (i.e., the Consortium Leader, and the consortium as a whole
   and/or its individual members), and the written agreement is submitted
   to the Administrator for approval with or prior to the Request for
   Services. Any such agreement must clearly identify the party(ies)
   responsible for repayment if the Administrator is required, at a later
   date, to recover disbursements to the consortium due to violations of
   program rules.

   (2) Point of contact for the FCC and Administrator. The Consortium
   Leader is responsible for designating an individual who will be the
   "Project Coordinator" and serve as the point of contact with the
   Commission and the Administrator for all matters related to the
   consortium. The Consortium Leader is responsible for responding to
   Commission and Administrator inquiries on behalf of the consortium
   members throughout the application, funding, invoicing, and
   post-invoicing period.

   (3) Typical applicant functions, including forms and certifications.
   The Consortium Leader is responsible for submitting program forms and
   required documentation and ensuring that all information and
   certifications submitted are true and correct. The Consortium Leader
   must also collect and retain a Letter of Agency (LOA) from each member,
   pursuant to § 54.632.

   (4) Competitive bidding and cost allocation. The Consortium Leader is
   responsible for ensuring that the competitive bidding process is fair
   and open and otherwise complies with Commission requirements. If costs
   are shared by both eligible and ineligible entities, the Consortium
   Leader must ensure that costs are allocated in a manner that ensures
   that only eligible entities receive the benefit of program discounts.

   (5) Invoicing. The Consortium Leader is responsible for notifying the
   Administrator when supported services have commenced and for submitting
   invoices to the Administrator.

   (6) Recordkeeping, site visits, and audits. The Consortium Leader is
   also responsible for compliance with the Commission's recordkeeping
   requirements and for coordinating site visits and audits for all
   consortium members.

   [ 78 FR 13985 , Mar. 1, 2013]

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