§  54.614   Eligible participant-constructed and owned network facilities for
consortium applicants.

   (a) Subject to the funding limitations of this subsection and the
   following restrictions, consortium applicants may receive support for
   network facilities that will be constructed and owned by the consortium
   (if the consortium is an eligible health care provider) or eligible
   health care providers within the consortium. Subject to the funding
   limitations under § § 54.616 and 54.619 and the following restrictions,
   consortium applicants may receive support for network facilities that
   will be constructed and owned by the consortium (if the consortium is
   an eligible health care provider) or eligible health care providers
   within the consortium.

   (1) Consortia seeking support to construct and own network facilities
   are required to solicit bids for both:

   (i) Services provided over third-party networks; and

   (ii) Construction of participant-owned network facilities, in the same
   request for proposals. Requests for proposals must provide sufficient
   detail so that cost-effectiveness can be evaluated over the useful life
   of the proposed network facility to be constructed.

   (2) Support for participant-constructed and owned network facilities is
   only available where the consortium demonstrates that constructing its
   own network facilities is the most cost-effective option after
   competitive bidding, pursuant to § 54.622(g)(1).

   (b) [Reserved]