§ 54.643   Funding commitments.

   (a) Once a vendor is selected, applicants must submit a “Funding Request”
   (and supporting documentation) to provide information about the services,
   equipment, or facilities selected and certify that the services selected
   were the most cost-effective option of the offers received. The following
   information  should be submitted to the Administrator with the Funding
   Request.

   (1) Request for funding. The applicant shall submit a request for funding
   (Form 462) to identify the service(s), equipment, or facilities; rates;
   vendor(s); and date(s) of vendor selection.

   (2) Certifications. The applicant must provide the following certifications
   as part of the request for funding:

   (i)  The  person  signing  the application is authorized to submit the
   application on behalf of the applicant and has examined the form and all
   attachments, and to the best of his or her knowledge, information, and
   belief, all statements of fact contained therein are true.

   (ii) Each vendor selected is, to the best of the applicant's knowledge,
   information and belief, the most cost-effective vendor available, as defined
   in § 54.642(c).

   (iii) All Healthcare Connect Fund support will be used only for eligible
   health care purposes.

   (iv) The applicant is not requesting support for the same service from both
   the Telecommunications Program and the Healthcare Connect Fund.

   (v) The applicant satisfies all of the requirements under section 254 of the
   Act and applicable Commission rules, and understands that any letter from
   the Administrator that erroneously commits funds for the benefit of the
   applicant may be subject to rescission.

   (vi) The applicant has reviewed all applicable requirements for the program
   and will comply with those requirements.

   (vii) The applicant will maintain complete billing records for the service
   for five years.

   (3) Contracts or other documentation. All applicants must submit a contract
   or other documentation that clearly identifies the vendor(s) selected and
   the health care provider(s) who will receive the services, equipment, or
   facilities; the service, bandwidth, and costs for which support is being
   requested; and the term of the service agreement(s) if applicable (i.e., if
   services are not being provided on a month-to-month basis). For services,
   equipment, or facilities provided under contract, the applicant must submit
   a  copy of the contract signed and dated (after the Allowable Contract
   Selection Date) by the individual health care provider or Consortium Leader.
   If  the service, equipment, or facilities are not being provided under
   contract,  the applicant must submit a bill, service offer, letter, or
   similar document from the vendor that provides the required information.

   (4) Competitive bidding documents. Applicants must submit documentation to
   support their certifications that they have selected the most cost-effective
   option,  including  a  copy of each bid received (winning, losing, and
   disqualified), the bid evaluation criteria, and the following documents (as
   applicable): bid evaluation sheets; a list of people who evaluated bids
   (along with their title/role/relationship to the applicant organization);
   memos,  board  minutes,  or  similar  documents  related to the vendor
   selection/award; copies of notices to winners; and any correspondence with
   vendors during the bidding/evaluation/award phase of the process. Applicants
   who claim a competitive bidding exemption must submit relevant documentation
   to allow the Administrator to verify that the applicant is eligible for the
   claimed exemption.

   (5) Cost allocation for ineligible entities or components. Pursuant to
   § 54.639(d)(3) through (d)(4), where applicable, applicants must submit a
   description  of how costs will be allocated for ineligible entities or
   components, as well as any agreements that memorialize such arrangements
   with ineligible entities.

   (6)  Additional  documentation for consortium applicants. A consortium
   applicant must also submit the following:

   (i)  Any  revisions to the network plan submitted with the Request for
   Services pursuant to § 54.642(e)(5)(i), as necessary. If not previously
   submitted, the consortium should provide a narrative description of how the
   network  will  be managed, including all administrative aspects of the
   network, including but not limited to invoicing, contractual matters, and
   network  operations.  If  the  consortium  is  required  to  provide a
   sustainability plan as set forth in § 54.643(a)(6)(iv), the revised budget
   should include the budgetary factors discussed in the sustainability plan
   requirements.

   (ii) A list of participating health care providers and all of their relevant
   information,  including  eligible (and ineligible, if applicable) cost
   information for each participating health care provider.

   (iii) Evidence of a viable source for the undiscounted portion of supported
   costs.

   (iv) Sustainability plans for applicants requesting support for long-term
   capital expenses: Consortia that seek funding to construct and own their own
   facilities or obtain indefeasible right of use or capital lease interests
   are required to submit a sustainability plan with their funding requests
   demonstrating how they intend to maintain and operate the facilities that
   are supported over the relevant time period. Applicants may incorporate by
   reference other portions of their applications (e.g., project management
   plan, budget). The sustainability plan must, at a minimum, address the
   following points:

   (A) Projected sustainability period. Indicate the sustainability period,
   which at a minimum is equal to the useful life of the funded facility. The
   consortium's budget must show projected income and expenses (i.e., for
   maintenance) for the project at the aggregate level, for the sustainability
   period.

   (B) Principal factors. Discuss each of the principal factors that were
   considered by the participant to demonstrate sustainability. This discussion
   must  include  all factors that show that the proposed network will be
   sustainable for the entire sustainability period. Any factor that will have
   a  monetary impact on the network must be reflected in the applicant's
   budget.

   (C) Terms of membership in the network. Describe generally any agreements
   made  (or  to be entered into) by network members (e.g., participation
   agreements, memoranda of understanding, usage agreements, or other similar
   agreements). The sustainability plan must also describe, as applicable:

   (1) Financial and time commitments made by proposed members of the network;

   (2) If the project includes excess bandwidth for growth of the network,
   describe how such excess bandwidth will be financed; and

   (3) If the network will include ineligible health care providers and other
   network members, describe how fees for joining and using the network will be
   assessed.

   (D) Ownership structure. Explain who will own each material element of the
   network (e.g., fiber constructed, network equipment, end user equipment).
   For purposes of this subsection, “ownership” includes an indefeasible right
   of use interest. Applicants must clearly identify the legal entity that will
   own each material element. Applicants must also describe any arrangements
   made to ensure continued use of such elements by the network members for the
   duration of the sustainability period.

   (E) Sources of future support. Describe other sources of future funding,
   including  fees  to  be  paid by eligible health care providers and/or
   non-eligible entities.

   (F) Management. Describe the management structure of the network for the
   duration of the sustainability period. The applicant's budget must describe
   how management costs will be funded.

   (v) Material change to sustainability plan. A consortium that is required to
   file  a  sustainability plan must maintain its accuracy. If there is a
   material  change  to  a required sustainability plan that would impact
   projected income or expenses by more than 20 percent or $100,000 from the
   previous submission, or if the applicant submits a funding request based on
   a new Form 462 (i.e., a new competitively bid contract), the consortium is
   required to re-file its sustainability plan. In the event of a material
   change,  the applicant must provide the Administrator with the revised
   sustainability plan no later than the end of the relevant quarter, clearly
   showing (i.e., by redlining or highlighting) what has changed.

   (b) [Reserved]

   [ 78 FR 13990 , Mar. 1, 2013]

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