Goto Section: 54.642 | 54.644 | Table of Contents
Revised as of March 14, 2019
Goto Year:2018 |
§ 54.643 Funding commitments.
Link to an amendment published at 84 FR 4732 , Feb. 19, 2019.
(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
(iii) Evidence of a viable source for the undiscounted portion of
(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
(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
(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.
[ 78 FR 13990 , Mar. 1, 2013]
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Goto Section: 54.642 | 54.644
Goto Year: 2018 |
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