§  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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