[Federal Register Volume 65, Number 246 (Thursday, December 21, 2000)]
[Notices]
[Pages 80710-80718]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-32582]
[[Page 80709]]
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Part VII
Department of Commerce
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National Telecommunications and Information Administration
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Public Telecommunications Facilities Program: Closing Date; Notice
Federal Register / Vol. 65, No. 246 / Thursday, December 21, 2000 /
Notices
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DEPARTMENT OF COMMERCE
National Telecommunications and Information Administration
[Docket No. 001215353-0353-01]
RIN 0660-ZA14
Public Telecommunications Facilities Program: Closing Date
AGENCY: National Telecommunications and Information Administration
(NTIA), Commerce.
ACTION: Notice of availability of funds.
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SUMMARY: The National Telecommunications and Information Administration
(NTIA), U.S. Department of Commerce, announces the solicitation of
applications for planning and construction grants for public
telecommunications facilities under the Public Telecommunications
Facilities Program (PTFP).
DATES: Pursuant to 15 CFR 2301.8(b), the NTIA Administrator hereby
establishes the closing date for the filing of applications for PTFP
grants. The closing date selected for the submission of applications
for FY 2001 is February 15, 2001. Applications must be received prior
to 7 p.m. on or before February 15, 2001. Applications submitted by
facsimile or electronic means are not acceptable.
ADDRESSES: To obtain an application package, submit completed
applications, or send any other correspondence, write to: NTIA/PTFP,
Room H-4625, U.S. Department of Commerce, 1401 Constitution Avenue,
NW., Washington, DC 20230.
FOR FURTHER INFORMATION CONTACT: William Cooperman, Director, Public
Broadcasting Division, telephone: (202) 482-5802; fax: (202) 482-2156.
Information about the PTFP can also be obtained electronically via
Internet (http://www.ntia.doc.gov/otiahome/ptfp).
SUPPLEMENTARY INFORMATION:
I. Closing Date
Applicants for matching grants under the PTFP must file their
applications on or before 7 p.m., Thursday, February 15, 2001.
Approximately $30 million is available for FY 2001 PTFP grants in
response to this Notice.\1\ In appropriating FY 2001 funds, the
Congress directed that NTIA ``maintain an appropriate balance between
traditional grants and those to stations converting to digital
broadcasting.'' \2\ Information regarding digital television Broadcast
Other projects is included in Section V of this document. Section V
also describes revisions of the PTFP Rules which will be applicable
only for the 2001 Grant Round for applications in the Broadcast Other
category. The amount of a grant award by NTIA will vary, depending on
the approved project. For fiscal year 2000, NTIA awarded $25.8 million
in funds to 103 projects. The awards ranged from $4,054 to $1,250,680.
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\1\ See the Conference Report (H. Rept. 106-1033) on H.R. 4577,
Departments of Labor, Health and Human Services, and Education, and
Related Agencies Appropriations Act, 2001. NTIA has allocated
approximately $10 million from the $43.5 million appropriated for
multi-year projects initially funded in FY 2000.
\2\ See The House Rep. 106-1005, the Conference report on H.R.
4942. Similar language regarding PTFP has appeared in conference
reports accompanying appropraitions for fiscal yeasrs 1999 and 2000.
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II. Application Forms
PTFP has a new application form which all applicants must use for
the FY 2001 grant cycle. This form expires on October 31, 2003, and no
previous versions of the form may be used. Each page of the new
application form has the expiration date of 10/31/2003 printed on the
bottom line. (In accordance with the Paperwork Reduction Act, the
current application form has been cleared under OMB control no. 0660-
0003.) To apply for a PTFP grant, an applicant must file an original
and five copies of a timely and complete application on the new
application form. Applicants for television projects in the Broadcast
Other category (15 CFR 2301.4(b)(6)) are requested to supply one
additional copy of their application (an original and six copies), if
this does not create a hardship on the applicant. The current
application form will be provided to applicants as part of the
application package.
III. Regulations
The applicable Rules for the PTFP were published on November 8,
1996 (61FR 57966). In accordance with provisions provided in 15 CFR
part 2301, Sec. 2301.26, certain requirements of the PTFP are modified
in this Notice for FY 2001. Copies of the 1996 Rules will be posted on
the NTIA Internet site and NTIA will make printed copies available to
applicants. Parties interested in applying for financial assistance
should refer to these rules and to the authorizing legislation (47
U.S.C. 390-393, 397-399b) for additional information on the program's
goals and objectives, eligibility criteria, evaluation criteria, and
other requirements.
Applicants sending applications by the United States Postal Service
or commercial delivery services must ensure that the carrier will be
able to guarantee delivery of the application by the Closing Date and
Time. NTIA will not accept mail delivery of applications posted on the
Closing Date or later and received after the above deadline. However,
if an application is received after the Closing Date due to (1) carrier
error, when the carrier accepted the package with a guarantee for
delivery by the Closing Date, or (2) significant weather delays or
natural disasters, NTIA will, upon receipt of proper documentation,
consider the application as having been received by the deadline.
Applicants submitting applications by hand delivery are notified
that, due to security procedures in the Department of Commerce, all
packages must be cleared by the Department's security office. Entrance
to the Department of Commerce Building for security clearance is on the
15th Street side of the building. Applicants whose applications are not
received by the deadline are hereby notified that their applications
will not be considered in the current grant round and will be returned
to the applicant. See 15 CFR 2301.8(c); but see also 15 CFR 2301.26.
NTIA will also return any application which is substantially
incomplete, or when the Agency finds that either the applicant or
project is ineligible for funding under 15 CFR 2301.3 or 2301.4. The
Agency will inform the applicant of the reason for the return of any
application.
All persons and organizations on the PTFP's mailing list will be
sent a notification of the FY 2001 Grant round. Copies of the
application forms, Final Rules, Closing Date notification and
application guidelines will be available on the NTIA Internet site:
www.ntia.doc.gov/otiahome/ptfp. Those not on the mailing list or who
desire a printed copy of these materials may obtain copies by
contacting the PTFP at the telephone and fax numbers, at the Internet
site, or at mailing address listed above. Prospective applicants should
read the Final Rules carefully before submitting applications.
Applicants whose applications were deferred in FY 2000 will be mailed
information regarding the reactivation of their applications.
Applicants whose television projects were deferred from FY 2000 should
carefully review Section V. Television Broadcasting and Digital
Conversion, regarding policies which apply to the reactivation of their
applications.
Indirect costs for construction applications are not supported by
this
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program. The total dollar amount of the indirect costs proposed in a
planning application under this program must not exceed the indirect
cost rate negotiated and approved by a cognizant Federal agency prior
to the proposed effective date of the award.
Special Note: NTIA has established a policy which is intended to
encourage stations to increase from 25 percent to 50 percent the
matching percentage for those proposals that call for equipment
replacement, improvement, or augmentation (PTFP Policy Statement, 56
FR 59168 (1991)). The presumption of 50 percent funding will be the
general rule for the replacement, improvement or augmentation of
equipment. (This 50 percent presumption, however, does not apply to
television projects as explained in Section III. Television
Broadcasting and Digital Conversion.) A showing of extraordinary
need (i.e. small community-licensee stations or a station that is
licensed to a large institution [e.g., a college or university]
documenting that it does not receive direct or in-kind support from
the larger institution) or an emergency situation will be taken into
consideration as justification for grants of up to 75 percent of the
total project cost for such projects.
A point of clarification is in order: NTIA expects to continue
funding projects to activate stations or to extend service at up to 75
percent of the total project cost. NTIA will do this because applicants
proposing to provide first service to a geographic area ordinarily
incur considerable costs that are not eligible for NTIA funding. The
applicant must cover the ineligible costs including those for
construction or renovation of buildings and other similar expenses.
Since NTIA has limited funds for the PTFP program, the PTFP Final
Rules (published November 8, 1996) modified NTIA's policy regarding the
funding of planning applications. Our policy now includes the general
presumption to fund planning projects at no more than 75 percent of the
project costs. NTIA notes that most of the planning grants awarded by
PTFP in recent years include matching in-kind services and funds
contributed by the grantee. The new NTIA policy, therefore, codifies
what already has become PTFP practice. NTIA, however, is mindful that
planning grants are sometimes the only resource that emerging community
groups have with which to initiate the planning of new facilities in
unserved areas. We, therefore, will continue to award up to 100 percent
of total project costs in cases of extraordinary need (e.g. small
community group proposing to initiate new public telecommunication
service).
We take this opportunity to restate the policy published in the
November 22, 1991, PTFP Policy Statement (56 FR 59168 (1991)),
regarding applicants' use of funds from the Corporation for Public
Broadcasting (CPB) to meet the local match requirements of the PTFP
grant. NTIA continues to believe that the policies and purposes
underlying the PTFP requirements could be significantly frustrated if
applicants routinely relied upon another Federally supported grant
program for local matching funds. Accordingly, NTIA has limited the use
of CPB funds for the non-Federal share of PTFP projects to
circumstances of ``clear and compelling need'' (15 CFR 2301.6(c)(2)).
NTIA intends to maintain that standard and to apply it on a case-by-
case basis.
IV. Radio Broadcasting
During the FY 2001 grant round, NTIA is proposing no changes from
prior years in its support of radio applications. The changes outlined
in the next section of this document on Television Broadcasting and
Digital Conversion apply only to digital television applications. The
eligibility or priority of radio projects, eligibility of radio
equipment and the 50% presumption of funding for radio equipment
replacement applications remain as they were in the FY 2000 grant
round. NTIA will take great care to ensure that its funding of radio
applications reflects its responsibilities under 47 U.S.C. 393(c) that
``a substantial amount'' of each year's PTFP funds should be awarded to
public radio.
NTIA encourages the use of digital technologies for public radio
facilities. NTIA has funded projects for digital STLs and audio
production equipment which will assist public radio stations as they
prepare for conversion to digital technologies. These digital projects
are funded as equipment replacement, improvement or augmentation
projects with the presumption of a 50 percent Federal share as
discussed earlier in Section III of this document, Regulations, unless
a showing of extraordinary need for a higher percentage has been made
pursuant to Sec. 2301.6(b)(ii) of the PTFP Rules.
For fiscal year 2000, NTIA awarded $4.5 million in funds to 56
grants for public radio projects. The awards ranged from $4,054 to
$414,334.
V. Television Broadcasting and Digital Conversion
The FCC's adoption of the Fifth Report and Order in April 1997
requires that all public television stations begin the broadcast of a
digital signal by May 1, 2003. This deadline is so close that, last
year, NTIA instituted several new policies that applied only to FY 2000
applications for projects to convert public television stations to
digital transmission capability. NTIA requested comments on the
policies instituted for the FY 2000 grant round but received no written
comments. Informal comments received from applicants were favorable.
NTIA believes that the policies worked well and resulted in receipt of
106 digital television conversion applications. These applications
requested $100 million in FY 2000 funds and an additional $100 million
for subsequent years of multi-year projects permitted by the new
policies. Those policies are being continued for the FY 2001 Grant
Round and are included in full in this document.
NTIA recognizes that meeting the FCC's deadline is one of the
greatest challenges facing America's public television stations. Over
350 stations must overcome both technical and financial challenges in
order to complete conversion to digital broadcasting within the FCC's
timetable.
In February 1999, the Administration proposed a major expansion of
the PTFP and recommended that $355 million be appropriated to NTIA over
a five-year period. These funds would primarily be used to assist
public television stations in meeting the FCC's deadline. While these
sums are significant, NTIA anticipates that the majority of funds
required to convert all the nation's public television stations will
actually come from non-Federal sources.
For fiscal year 2000, NTIA awarded $18 million in funds to 34
projects which assisted public television stations in the conversion to
digital technologies. The awards ranged from $51,619 to $1,250,680.
NTIA awarded approximately $14.4 million from the Broadcast Other
category to assist in the digital conversion of thirty-eight public
television stations. NTIA also awarded an additional $3.6 million in
equipment replacement funds to nine projects which purchased digital
television equipment required for the orderly conversion of a station
to digital broadcasting.
NTIA has considered how best to efficiently implement the
distribution of digital conversion funds to public television stations
through the PTFP. One of NTIA's goals during the FY 2001 grant round is
to ensure that PTFP's administrative procedures as well as its funds
can support public television's needs in meeting the FCC's 2003
deadline. Another of NTIA's goals is to maintain an acceptable balance
between equipment replacement projects and digital television
conversion projects. NTIA is continuing the following policies/
procedures instituted during
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the FY 2000 grant cycle which will assist public television stations in
the application for and use of PTFP funds for digital conversion
projects.
These policies/procedures are summarized here and then are
discussed fully in parts A through G later in this section:
(A) Digital television conversion projects and digital equipment
replacement. NTIA has established a ``Digital TV List'' which includes
the equipment eligible for PTFP funding under the Broadcast Other
category. NTIA will also use the ``Digital TV List'' for most
television equipment replacement projects and modifies the way it views
television replacement applications.
(B) Multi-year funding. NTIA will accept applications under the
Broadcast Other category for phased projects requesting funding for up
to three years and which are intended to enable all of the applicant's
public television stations to meet the FCC's May 2003 digital
broadcasting deadline.
(C) Effective date for expenditure of local matching funds.
Applicants for digital conversion projects in the Broadcast Other
category may include eligible equipment from the Digital TV List in
their projects when that equipment is purchased with non-Federal funds
after July 1, 1999.
(D) Subpriorities for digital conversion projects. NTIA is creating
three Subpriorities to aid in the processing of digital conversion
applications.
(E) Funding levels for television projects. NTIA has revised the
presumption of funding from 50% Federal share for most television
projects to 40%, has established simplified procedures so stations can
qualify for hardship grants up to a 67% Federal share, and will provide
incentives for applicants who request only 25% Federal funding.
(F) Use of CPB funds. Applicants may use CPB funds as part of their
local non-Federal match in cases of clear and compelling need.
(G) Partnerships; urgency. NTIA encourages partnerships with
commercial as well as noncommercial organizations and clarifies its
consideration of urgency for digital conversion applications. NTIA
believes that digital conversion applications should be afforded high
urgency when they document time-sensitive partnerships, time-sensitive
funding opportunities, or which include the replacement of equipment
required to maintain existing service.
In implementing these policies for the FY 2001 grant round, NTIA
intends to remain responsive to the equipment replacement needs of
public television stations. NTIA's balancing of equipment replacement
and digital conversion applications is discussed in the following
sections.
In order to assist public television stations in meeting the FCC's
May 2003 deadline and to facilitate a station's raising non-Federal
matching funds required for digital conversion projects, NTIA is
modifying its application procedures in the following areas.
(A) Digital Television Conversion Projects and Digital Equipment
Replacement. For FY 2001, NTIA will support the equipment necessary for
a public television station to comply with the FCC's 2003 deadline.
This includes equipment required for digital broadcast of programs
produced locally in analog format as well as the broadcast of digital
programming received from national sources. NTIA is posting on its
Internet site a listing of transmission and distribution equipment (as
contained in the ``Digital TV List'') which is eligible for PTFP
digital television conversion funding. Printed copies of this list are
also be available from PTFP at the address shown in the ADDRESSES
section of this document. This list was developed in conjunction with
the Public Broadcasting Service and is similar to equipment lists PTFP
used during last year's grant round. The Digital TV List includes
transmission equipment (transmitters, antennas, STLs, towers, etc.) as
well as distribution equipment located in a station's master control
(routing switchers, video servers, PSIP generators, digital encoders,
etc.). Applications seeking funding for the equipment necessary to meet
the FCC's 2003 deadline will, as in FY 98, FY 99, and FY 2000, be
placed in the Broadcast Other category.
NTIA believes that many stations must replace obsolete equipment in
order to complete their digital conversion projects. NTIA is now
revising its policies to permit the replacement of obsolete equipment
as part of digital conversion projects. If the conversion to digital
transmission includes the urgent replacement of an existing item of
equipment, the application will be considered as a Broadcast Other,
rather than as replacement under Priorities 2 or 4. Replacement of
existing equipment then is a normal part of a digital conversion
application.
If the purpose of an application is just for replacement of
urgently needed equipment, even though the equipment is drawn from the
Digital TV List, the application will be classified as a Priority 2 or
4, as appropriate.
Any application which includes equipment replacement as a
justification for the urgency criterion should submit documentation of
downtime or other evidence in support of the urgency evaluation
criterion as contained in Sec. 2301.17 of the PTFP Final Rules. The
need to replace current equipment in order to maintain existing
services will, in many cases, strengthen the urgency criterion of a
digital conversion application.
Because of the requirement that all public television stations
begin their digital broadcasts by May 2003, all public television
applications, whether submitted for Priority 2, Priority 4 or the
Broadcast Other category, should include the station's comprehensive
plan for digital conversion to meet the FCC's deadline and explain how
the requested equipment is consistent with that plan. If the applicant
is still developing its plan for digital conversion, the application
should address how the requested equipment will be consistent with the
overall objective of converting the facility for digital broadcasting.
Failure to provide detailed information on the applicant's proposed or
existing digital conversion plan will place a television application at
a competitive disadvantage during the evaluation of the technical
qualification criterion as described in 15 CFR 2301.17 of the PTFP
Rules.
NTIA calls applicants' attention to the fact that television
production equipment is not included on the Digital TV List but will be
found on other equipment lists posted on the NTIA Internet site or
available from NTIA by mail. NTIA notes that while a television station
must use digital transmission and distribution equipment to begin
digital broadcasting, digital production equipment is not required to
meet the FCC's May 2003 deadline. As the FCC deadline approaches, NTIA
has reluctantly concluded that, with the funds available to it in FY
2001, it cannot fund television production equipment at the same level
as it has in the past. Television production equipment will continue to
be eligible for PTFP funding under Priority 2 and Priority 4, as
appropriate. However, for the FY 2001 grant round NTIA will fund
television production equipment replacement applications only for those
projects that present a ``clear and compelling'' case for the urgency
of such replacement. NTIA anticipates funding television production
replacement projects in FY 2001, though fewer than in recent years.
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When making the final selection of awards under the procedures of
Sec. 2301.17, NTIA will take care to ensure that there is an acceptable
balance between projects awarded for equipment replacement projects and
those awarded for digital conversion projects. Further, NTIA will
consider as part of this balance those stations in the Broadcast Other
category (1) which request digital conversion projects and (2) which
also include elements of equipment replacement. NTIA will not fund
applications in the Broadcast Other category requesting digital
conversion to the exclusion of those Broadcast Other applications which
include documentation supporting equipment replacement as part of their
urgency justification. Further, in making funding decisions for FY
2001, NTIA will limit its support of television replacement
applications for production equipment to those applications which
present a ``clear and compelling'' justification for funding during the
current grant round.
A complete listing of equipment eligible for funding during the FY
2001 grant round is posted on the NTIA Internet site and printed copies
are available from PTFP.
(B) Multi-year funding. NTIA anticipates that it will take many
public television licensees several years to complete their digital
conversion projects. The time required to complete a digital conversion
project will be determined by several factors. In some instances, it
will take a station several years to raise the local funds required to
complete the project. Even if a station has accumulated all the funds
required for its digital conversion project, the technical complexity
of some projects (such as the construction of a 1,000-foot tower) will
probably require several years to complete. Finally, many public
television licensees operate several stations and are, therefore,
responsible for the conversion of multiple broadcast facilities.
NTIA recognizes that the construction period for many of these
digital conversion projects must, of necessity, be longer than the
typical one to two years of the usual PTFP grant. Further, NTIA
acknowledges that, with the funds available for award, the PTFP would
be unable to fully fund more than a few of the digital conversion
applications it could receive in FY 2001.
Therefore, for FY 2001, the PTFP will accept construction
applications within the Broadcast Other category for digital television
conversion projects which propose multi-year funding.
Applicants may submit project plans and budgets for up to three
years. A multi-year application must contain the applicant's entire
digital conversion plan. The plan must be divided into severable
phases, with a budget request for each phase of the project. The
application must identify the Federal funds requested for each phase.
Only one phase of the project will be funded in any grant cycle. Once a
project is approved, applicants will not be required to compete each
year for funding of subsequent phases. Funding of subsequent phases
will be at the sole discretion of the Department of Commerce and will
depend on satisfactory performance by the recipient and the
availability of funds to support the continuation of the project(s).
Projections based on previous experience indicate availability of
between $8 million and $15 million to support multi-year digital
television projects in FY 2001. The exact level of funding available
for multi-year awards will be determined by NTIA after a review of
applications submitted for multi-year awards and those radio,
television and distance learning applications requesting a regular
award.
NTIA believes that multi-year funding for digital television awards
has significant benefits for both public television licensees and NTIA.
Submission of a multi-year application particularly should
help applicants which must convert multiple broadcast transmitters.
NTIA understands that many stations have already begun to raise
significant non-Federal funds with which they can begin to implement
their digital conversion plans. Upon submission of a multi-year
application, an applicant could begin spending its local match--at its
own risk. An applicant, therefore, might be able to complete a portion
of its digital conversion project using its local non-Federal funds for
which Federal matching funds may not be available for several years.
(For example, a future phase of a statewide project might be the
conversion of two repeater stations; one might be constructed with
available non-Federal funds, the second constructed if Federal funds
are received). Applicants are cautioned, however, that while
expenditure of the local match is permitted, PTFP Rules
(Sec. 2301.6(d)) prohibit a grantee from obligating funds from the
eventual Federal share of an award before a grant is actually awarded.
NTIA believes that a multi-year award will reduce the
administrative burden on both grantees and the PTFP. Grant recipients
will submit only one application to cover the multiple years of their
award, saving both the grantee and the PTFP the administrative tasks
required to process applications during the annual grant round.
Multi-year applications and awards will also assist both
NTIA and public broadcasting licensees in the advance planning required
to complete the conversion of almost 350 television facilities by May
2003.
By issuing multi-year grants, NTIA would be able to fund
the initial phases of more digital conversion projects with the monies
available in FY 2001 than if PTFP funded fewer entire digital
conversion plans.
NTIA believes that multi-year funding through the Broadcast Other
category also is appropriate for projects which include urgent
replacement of equipment, since, as noted earlier, most television
equipment replacement requests can be viewed as one phase of a
station's conversion to digital broadcasting.
Applications which are reactivated for the FY 2001 grant round must
comply with the guidelines included in this notice, including the
funding levels for television projects discussed later in this
document.
Applicants submitting projects for consideration under the
Broadcast Other category have a choice and may request either multi-
year funding or a single grant. However, applications submitted for
consideration under Priority 2 or Priority 4 may only request a single
grant for a project, as in the past. NTIA anticipates that a majority
of the television grants funded in FY 2001 will include multi-year
projects.
(C) Effective date for expenditure of local matching funds for
digital conversion projects. NTIA recognizes that many public
television stations have begun to raise significant non-Federal funds
for their digital conversion projects. State or local governments may
have appropriated funds to initiate digital conversion projects that,
by local law, must be expended during the fiscal year in which they are
awarded. Public television licensees that have raised significant non-
Federal funds may desire to take advantage of unique opportunities
(such as partnering with other stations to share broadcast antennas or
towers). Some stations may be anxious to begin digital conversion
projects with long lead times for completion, or may desire to begin
digital broadcasting on the same timetable as commercial stations in
their market. Within the limitations of Federal regulations, NTIA
supports efforts undertaken by public television stations which bring
the benefits of
[[Page 80714]]
digital television broadcasting to their communities as quickly as
possible.
In order to facilitate the raising of non-Federal funds for digital
television projects and to also permit stations to begin construction
of their digital facilities as soon as possible, NTIA is revising
section Sec. 2301.6(b)(2) of the PTFP Final Rules. This section states
that ``Inclusion of equipment purchased prior to the closing date will
be considered on a case-by-case basis only when clear and compelling
justification is provided to PTFP.''
For FY 2001, NTIA will modify this regulation. If eligible
equipment for a Broadcast Other project was purchased with non-Federal
funds after July 1, 1999, NTIA will permit the applicant to include
this equipment in a PTFP application. This date was selected to
coincide with the beginning of the 2000 fiscal year used by many state
and local governments and was announced at the beginning of this
digital television conversion initiative in the Notice of Availability
of Funds for the FY 2000 PTFP grant cycle (64 FR 246, pp. 72225-72234).
NTIA also anticipates that July 1, 1999 will be the effective date in
the FY 2002 and FY 2003 grant rounds for the expenditure of non-Federal
funds for projects in the Broadcast Other category. Applicants who
desire to use equipment purchased prior to July 1, 1999 as part of
their local match must submit a ``clear and compelling justification''
supporting their request.
Applicants who are reactivating applications originally submitted
in FY 99 and deferred from the FY 99 and FY 2000 grant rounds will be
permitted to use the closing date of their original applications.
(D) Subpriorities for Digital Conversion Projects. As almost 350
public television stations are required to convert to digital
broadcasting by May 2003, NTIA anticipates a significant increase in
the number of applications in the Broadcast Other category for digital
conversion projects. In order to process these applications in an
orderly manner and to provide guidance to potential applicants for the
FY 2001 grant round, NTIA will divide the Broadcast Other category into
three subpriorities; Broadcast Other-A; Broadcast Other-B, and
Broadcast
Other -C.
These three divisions are intended to reflect the priorities NTIA
has used in the evaluation of traditional broadcast applications and to
place a premium on projects either to assist stations providing sole
service, to encourage cooperative efforts among different stations, or
to support licensees facing the requirement to convert multiple
transmission facilities in several television markets. NTIA notes that
in the past it has been able to fund applications each year in most if
not all of the five traditional broadcast Priorities and anticipates
that it will be able to fund applications in FY 2001 in most if not all
of the subpriorities under the Broadcast Other category.
NTIA will assign the following applications for conversion of
public broadcasting facilities to advanced digital technologies at the
first subpriority level within the Broadcast Other category. These
applications will receive equal consideration as subpriority A.
--A single applicant providing the sole service in an area unserved by
a digital public television signal. This reflects PTFP's funding
priority for equipment replacement projects for sole service stations
(PTFP Priority 2).
--Cooperative applications by two or more licensees for the first
digital public television service to an area. This is intended to
encourage cooperation and efficiencies among stations in overlap
markets (as listed by CPB) in constructing digital facilities. It would
provide stations in overlap markets the opportunity, if they work
collaboratively, to be eligible for the highest priority in funding
within this category.
--A statewide staged plan for the conversion of multiple stations,
whether a state network, or other appropriate statewide organization,
or a staged plan from a licensee with stations in several markets. This
is intended to encourage licensees that must convert multiple stations
and also to encourage groups of stations to work collaboratively in
developing a digital conversion project.
NTIA will assign the following applications for conversion of
public broadcasting facilities to advanced digital technologies at the
second subpriority level within the Broadcast Other category. These
applications will receive equal consideration as subpriority B.
--An applicant in a multi-PTV station market providing first public
television service in an area. An applicant in a multi-PTV station
market who chooses to file separately, rather than in conjunction with
another licensee in the same area, receives a second priority for
funding.
--A cooperative application by two or more licensees in an area already
served by a digital public television station. The application is given
a priority over Broadcast Other--C to encourage efficiency and
cooperation. Since this is not the first service in the area, it is
given a second priority.
NTIA will assign the following applications for conversion of
public broadcasting facilities to advanced digital technologies at the
third subpriority level within the Broadcast Other category. These
applications will receive equal consideration as subpriority C.
--Individual applicants proposing a second digital public television
service in an area already receiving a digital public television
signal. This reflects PTFP's funding priority for equipment replacement
applications in served areas (Priority 4).
--All other public television digital conversion applications.
(E) Funding Levels for Television Projects. As noted earlier in
Section III of this document, NTIA has published several policies
regarding the presumed Federal share of a requested project. These
policies are intended to aid applicants in the planning of their
applications. The policy for PTFP support of equipment replacement
applications has long been the presumption of a 50 percent Federal
share, although applicants are permitted to submit justification for a
Federal grant of up to 75 percent of project costs. Those policies are
also contained in Sec. 2301.6(b) of the PTFP Final Rules.
In reviewing the projected costs to convert all the public
television stations in the country, NTIA has concluded that it cannot
continue its 50 percent presumption of Federal funding for television
equipment replacement or digital conversion projects. Furthermore, NTIA
believes that many public television facilities will be unable to raise
50 percent of the project costs. A significant number of stations may
need Federal funding of 67 percent of a project's cost, or even up to
the legal maximum of 75 percent of a project's cost, in order for them
to meet the FCC's deadline.
In order to ensure that sufficient Federal funds are available to
support the conversion of the nation's public television stations, NTIA
is establishing a new policy regarding the presumed Federal funding
level for television equipment. As noted earlier in this section, NTIA
recognizes that equipment on the PTFP Digital TV List may be included
in either Broadcast Other digital conversion applications or in
Priority 2 or Priority 4 equipment replacement applications. In order
to treat all applicants equitably, NTIA's new policy will be the
presumption of a 40 percent Federal share of the eligible project costs
for television equipment
[[Page 80715]]
for digital conversion or equipment replacement, improvement or
augmentation projects. This 40 percent presumption will apply whether
the application requests consideration under the two equipment
replacement priorities (Priority 2 or 4) or under the digital
conversion category (Broadcast Other). As noted earlier, NTIA will fund
the replacement of production equipment upon a showing of clear and
compelling need. However, since the deadline for digital conversion is
rapidly approaching and Federal funds are limited, NTIA will fund
replacement of production equipment at the same level of Federal
support as digital conversion or equipment replacement projects. The
presumption of a 40 percent Federal share will extend to all television
projects to replace or upgrade equipment. However, because of the
emphasis NTIA places on the extension of broadcast services to unserved
areas, NTIA has retained the 75 percent level of Federal funding
applications proposing new television facilities in Priority 1
(Sec. 2301.4(b)(1)).
Applicants who are reactivating applications deferred from the FY
99 grant round will be permitted to request the same percentage of
Federal support as requested in the FY 99 application as long as the
scope of their application remains the same. Applicants who wish to
revise their deferred application to include their full digital
conversion plans, however, will be subject to the new policies
presented in this section.
As already noted, NTIA recognizes that many small stations,
primarily in rural areas, will be unable to raise even a 50 percent
local share of the funds required for their PTFP projects. NTIA has
long permitted stations to request more than the standard level of
Federal support upon a showing of ``extraordinary need'' per
Sec. 2301.6(b)(ii) of the PTFP Rules. NTIA will permit applicants to
qualify for hardship funding and receive a 67 percent Federal share of
their project costs. An applicant can qualify for 67% Federal funding
by certifying that it is unable to match at least 60% of the eligible
project costs, and either (a) by providing documentation that its
average annual cash revenue for the previous four years is $2 million
or less, or (b) by providing documentation that the eligible project
costs are greater than the applicant's average annual cash revenue for
the previous four years.
In addition, NTIA will continue to permit any applicant to provide
justification that it has an ``extraordinary need'' for Federal funding
up to the legal limit of 75 percent of eligible project costs.
In order to gather additional funds to award to stations which
qualify under the hardship criteria, NTIA encourages financially able
applicants to request a smaller share of Federal funds for digital
equipment projects than the standard 40 percent. NTIA will add three
additional points to the application evaluations from the independent
review panel for applicants who request no more than 25 percent Federal
funding. This provision will give extra credit to applications already
highly reviewed, and, based on NTIA's previous experience, is often
sufficient to move applications into the range for funding.
However, when making the final selection of awards, NTIA will take
care to ensure that there is an acceptable balance between projects
awarded to stations requesting a 25 percent Federal share and those
requesting a higher Federal share. NTIA will not fund applications
requesting a 25 percent Federal share to the exclusion of applications
meeting the hardship criteria or to the exclusion of those requesting
the standard 40 percent Federal share.
(F) Use of CPB funds. As discussed earlier in this document at the
conclusion of Section III. Regulations, NTIA has limited the use of CPB
funds for the non-Federal share of PTFP projects to circumstances of
``clear and compelling need'' (15 CFR Sec. 2301.6(c)(2)). NTIA
recognizes that it will be difficult for many public television
stations to raise the funds required to meet the FCC's digital
broadcasting deadline. Therefore, NTIA continues it past policy that
applicants may submit justification under this section for the use of
CPB funds as part of their local match. Any request for the use of CPB
funds must be accompanied by a statement regarding any limitations that
CPB has placed on the expenditure of those funds.
(G) Miscellaneous Items. As discussed earlier in this section, part
(D) on New Subpriorities, NTIA encourages efforts which promote
efficiency within the public television system in order to save both
current conversion costs and future operating costs. NTIA, therefore,
also encourages public television stations to partner with commercial
entities when this is in the best interests of the public station and
the Federal government. In cases of public television partnerships with
commercial entities, the PTFP project will be limited to the public
television station's ownership share or use rights in the equipment.
NTIA believes that such partnerships with commercial organizations
comply with current PTFP regulations and PTFP has funded several
projects for joint use of towers and broadcast antennas.
The urgency of an application is one of the criteria under which
all PTFP applications are evaluated. (The evaluation criteria are
listed in Sec. 2301.17 of the PTFP Rules). NTIA suggests that there are
at least three situations in which Broadcast Other applications may
present high degrees of urgency. As we have just noted, applications
containing proposals for joint use/ownership partnerships with other
organizations may demonstrate a high urgency due to a time-sensitive
opportunity. NTIA encourages these applicants to document the time-
sensitive nature of the partnership opportunity in their response to
the urgency criterion.
NTIA also recognizes that some applicants may be presented with
time-sensitive funding opportunities and, therefore, encourages these
applicants to document the time sensitive nature of these funding
opportunities in their response to the urgency criterion. Finally, as
already noted, NTIA expects that some applications will request urgent
replacement of existing equipment as part of a Broadcast Other
application. NTIA encourages such applicants to provide documentation
of their need to replace their equipment during the current grant
round. This documentation might include maintenance logs, letters from
manufacturers, reports from independent engineers, photos etc.
NTIA will instruct the panels evaluating the FY 2001 Broadcast
Other applications that they should award the highest score under the
urgency criterion to those applications which fully justify and
document either (1) the time sensitive nature of partnerships, (2) the
time sensitive nature of funding opportunities, or (3) the need for
equipment replacements that must be accomplished during this grant
round in order to maintain existing services.
VI. Distance Learning Projects
Since 1979, NTIA has funded nonbroadcast distance learning projects
through the ``Special Applications'' category as established in
Sec. 2301.4(a) of the PTFP Rules. In 1996, NTIA established a similar
category for broadcast projects, ``Broadcast/other'' in
Sec. 2301.4(b)(6). NTIA encourages applications in either category for
innovative or unique distance learning projects which address
demonstrated and substantial community needs. For fiscal year 2000,
NTIA awarded $1.14 million in funds to five grants for distance
learning projects. The awards ranged from $49,781 to $368,440.
[[Page 80716]]
The growth of digital technologies provides new opportunities for
distance learning projects using both broadcast or nonbroadcast
facilities. NTIA encourages applicants to consider the use of digital
technologies in proposing unique or innovative distance learning
projects for funding in FY 2001. Examples of innovative digital
applications might include projects (1) which use broadband
technologies for distance learning, (2) which distribute educational or
informational programming via Direct Broadcast Satellite technologies,
or (3) which use the multi-channel capabilities of a digital public
television station. All distance learning applications must address
substantial and demonstrated needs of the communities being served.
NTIA is particularly interested in distance learning projects which
benefit traditionally underserved audiences, such as projects serving
minorities or people living in rural areas.\3\
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\3\ House Rep. 106-1005, the Conference report on H.R. 4942
directs that NTIA ``place special emphasis on distance learning
initiatives targeting rural areas.''
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As discussed in Section V of this document, NTIA anticipates that,
in FY 2001, it will receive numerous digital conversion applications in
the Broadcast/ Other category. NTIA recognizes that, due to the multi-
channel capability of digital television, distance learning components
may well be a part of a digital conversion application. NTIA will,
therefore, consider such distance learning proposals under the
subpriorities established in Section V. If NTIA determines that a
broadcast distance learning project is not part of a digital conversion
application, NTIA will evaluate the application pursuant to
Secs. 2301.4(b)(6) and 2301.17.
The November 22, 1991, PTFP Policy Statement (56 FR 59168 (1991))
mentioned in the Application Forms and Regulations section discussed a
number of issues of particular relevance to applicants proposing
nonbroadcast educational and instructional projects and potential
improvement of nonbroadcast facilities. These policies remain in effect
and will be available to all PTFP applicants as part of the Guidelines
for preparing FY 2001 PTFP applications.
VII. Eligible and Ineligible Costs
Eligible equipment for the FY 2001 grant round includes the
apparatus necessary for the production, interconnection, captioning,
broadcast, or other distribution of programming, including but not
limited to studio equipment; audio and video storage, processing, and
switching equipment; terminal equipment; towers; antennas;
transmitters; remote control equipment; transmission line; translators;
microwave equipment; mobile equipment; satellite communications
equipment; instructional television fixed service equipment; subsidiary
communications authorization transmitting and receiving equipment;
cable television equipment; and optical fiber communications equipment.
A complete listing of equipment eligible for funding during the FY
2001 grant round is posted on the NTIA Internet site and printed copies
are available from PTFP.
Other Costs
(1) Construction Applications: NTIA generally will not fund salary
expenses, including staff installation costs, and pre-application legal
and engineering fees. Certain ``pre-operational expenses'' are eligible
for funding. (See 15 CFR 2301.2.) Despite this provision, NTIA regards
its primary mandate to be funding the acquisition of equipment and only
secondarily funding of salaries. A discussion of this issue appears in
the PTFP Final Rules under the heading Support for Salary Expenses in
the introductory section of the document.
(2) Planning Applications. (a) Eligible: Salaries are eligible
expenses for all planning grant applications, but should be fully
described and justified within the application. Planning grant
applicants may lease office equipment, furniture and space, and may
purchase expendable supplies under the terms of 47 U.S.C. 392 (c). (b)
Ineligible: Planning grant applications cannot include the cost of
constructing or operating a telecommunications facility.
(3) Audit Costs. Audits shall be performed in accordance with audit
requirements contained in Office of Management and Budget Circular A-
133, Audits of States, Local Governments, and Non-Profit Organizations,
revised June 30, 1997. OMB Circular A-133 requires that non-profit
organizations, government agencies, Indian tribes and educational
institutions expending $300,000 or more in federal funds during a one-
year period conduct a single audit in accordance with guidelines
outlined in the circular. Applicants are reminded that other audits may
be conducted by the Office of Inspector General.
NTIA recognizes that most of its grant recipients are divisions of
state and local governments or are public broadcasting facilities, all
of which routinely conduct annual audits. In order to make the maximum
amount of monies available for equipment purchases and planning
activities, NTIA will, therefore, fund audit costs only in exceptional
circumstances.
VIII. Notice of Applications Received
In accordance with 15 CFR 2301.13, NTIA will publish a notice in
the Federal Register listing all applications received by the Agency.
Listing an application merely acknowledges receipt of an application to
compete for funding with other applications. This listing does not
preclude subsequent return of the application for the reasons discussed
under the Dates section above, or disapproval of the application, nor
does it assure that the application will be funded. The notice will
also include a request for comments on the applications from any
interested party. NTIA will also publish more complete information
about all the applications received by the Agency on the NTIA Internet
site and will make this information available by mail. The address of
the NTIA Internet site is: www.ntia.doc.gov/otiahome/ptfp.
IX. Evaluation Process
See 15 CFR 2301.16 for a description of the Technical Evaluation
and 15 CFR 2301.17 for the Evaluation Criteria.
X. Selection Process
Based upon the above cited evaluation criteria, the PTFP program
staff prepares summary recommendations for the PTFP Director. These
recommendations incorporate outside reviewers rankings and
recommendations, engineering assessments, and input from the National
Advisory Panel, State Single Point of Contacts and state
telecommunications agencies. Staff recommendations also consider
project impact, the cost/benefit of a project and whether review panels
have consistently applied the evaluation criteria. The PTFP Director
will consider the summary recommendations prepared by program staff,
will recommend the funding order of the applications, and will present
recommendations to the OTIA (Office of Telecommunications and
Information Applications) Associate Administrator for review and
approval. The PTFP Director recommends the funding order for
applications in three categories: ``Recommended for Funding,''
``Recommended for Funding if Funds Available,'' and ``Not Recommended
for Funding.'' See 15 CFR 2301.18 for a description of the selection
factors retained by the Director, OTIA Associate Administrator, and the
Assistant
[[Page 80717]]
Secretary for Telecommunications and Information.
Upon review and approval by the OTIA Associate Administrator, the
Director's recommendations will then be presented to the Selection
Official, the NTIA Administrator. The NTIA Administrator selects the
applications for possible grant award taking into consideration the
Director's recommendations and the degree to which the slate of
applications, taken as a whole, satisfies the program's stated purposes
set forth at 15 CFR 2301.1(a) and (c). Prior to award, applications may
be negotiated between PTFP staff and the applicant to resolve whatever
differences might exist between the original request and what PTFP
proposes to fund. Some applications may be dropped from the proposed
slate due to lack of FCC licensing authority, an applicant's inability
to make adequate assurances or certifications, or other reasons.
Negotiation of an application does not ensure that a final award will
be made. The PTFP Director recommends final selections to the NTIA
Administrator applying the same factors as listed in 15 CFR 2301.18.
The Administrator then makes the final award selections taking into
consideration the Director's recommendations and the degree to which
the slate of applications, taken as a whole, satisfies the program's
stated purposes in 15 CFR 2301.1(a) and (c).
XI. Project Period
Planning grant award periods customarily do not exceed one year,
whereas construction grant award periods for grants in the five
broadcast Priorities and nonbroadcast Special Applications category
commonly range from one to two years. Construction projects funded in
the Broadcast Other category would commonly be awarded for a one to two
year period with the expectation that they would be extended annually
in subsequent years dependent on the availability of Federal funds.
Although these time frames are generally applied to the award of all
PTFP grants, variances in project periods may be based on specific
circumstances of an individual proposal.
XII. NTIA Policies on Procedural Matters
Based upon NTIA's experience during the PTFP 2000 grant round, NTIA
has determined that it is in the best interest of NTIA and applicants
to continue recent policies regarding three procedural matters. The
following policies are applicable only to the FY 2001 PTFP grant round
and resulting awards.
Applications Resulting From Catastrophic Damage or Emergency Situations
Section 2301.10 provides for submission of applications resulting
from catastrophic damage or emergency situations. NTIA would like to
clarify its implementation of this provision.
For FY 2001 PTFP applicants, when an eligible broadcast applicant
suffers catastrophic damage to the basic equipment essential to its
continued operation as a result of a natural or manmade disaster, or as
the result of significant equipment failure, and is in dire need of
assistance in funding replacement of the damaged equipment, it may file
an emergency application for PTFP funding at any time. NTIA limits this
request to equipment essential to a station's continued operation such
as transmitters, towers, antennas, STLs or similar equipment which, if
the equipment failed, would result in a complete loss of service to the
community.
When submitting an emergency application, the applicant should
describe the circumstances that prompt the request and should provide
appropriate supporting documentation. NTIA requires that applicants
claiming significant failure of equipment will document the
circumstances of the equipment failure and demonstrate that the
equipment has been maintained in accordance with standard broadcast
engineering practices.
NTIA will grant an award only if it determines that (1) the
emergency satisfies this policy, and (2) the applicant either carried
adequate insurance or had acceptable self-insurance coverage.
Applications filed and accepted for emergency applications must
contain all of the information required by the Agency application
materials and must be submitted in the number of copies specified by
the Agency.
NTIA will evaluate the application according to the evaluation
criteria set forth in Sec. 2301.17(b). The PTFP Director takes into
account program staff evaluations (including the outside reviewers) the
availability of funds, the type of project and broadcast priorities set
forth at Sec. 2301.4(b), and whether the applicant has any current NTIA
grants. The Director presents recommendations to the Office of
Telecommunications and Information Applications (OTIA) Associate
Administrator for review and approval. Upon approval by the OTIA
Associate Administrator, the Director's recommendation will be
presented to the Selecting Official, the NTIA Administrator. The
Administrator makes final award selections taking into consideration
the Director's recommendation and the degree to which the application
fulfills the requirements for an emergency award and satisfies the
program's stated purposes set forth at Sec. 2301.1(a) and (c).
Service of Applications
FY 2001 PTFP applicants are not required to submit copies of their
PTFP applications to the FCC, nor are they required to submit copies of
the FCC transmittal cover letters as part of their PTFP applications.
NTIA routinely notifies the FCC of projects submitted for funding which
require FCC authorizations.
FY 2001 PTFP applicants for distance learning projects are not
required to notify every state telecommunications agency in a potential
service area. Many distance learning applications propose projects
which are nationwide in nature. NTIA, therefore, believes that the
requirement to provide a summary copy of the application in every state
telecommunications agency in a potential service area is unduly
burdensome to applicants. NTIA, however, does expect that distance
learning applicants will notify the state telecommunications agencies
in the states in which they are located.
Federal Communications Commission Authorizations
For the FY 2001 PTFP grant round, applicants may submit
applications to the FCC after the closing date, but do so at their own
risk. Applicants are urged to submit their FCC applications with as
much time before the PTFP closing date as possible. No grant will be
awarded for a project requiring FCC authorization until confirmation
has been received by NTIA from the FCC that the necessary authorization
will be issued.
For FY 2001 PTFP applications, since there is no potential for
terrestrial interference with Ku-band satellite uplinks, grant
applicants for Ku-band satellite uplinks may submit FCC applications
after a PTFP award is made. Grant recipients for Ku-band satellite
uplinks will be required to document receipt of FCC authorizations to
operate the uplink prior to the release of Federal funds.
For FY 2001 PTFP applications, NTIA may accept FCC authorizations
that are in the name of an organization other than the PTFP applicant
in certain circumstances. Applicants requiring the use of FCC
authorizations issued to another organization should discuss in the
application Program Narrative why
[[Page 80718]]
the FCC authorization must be in the other organization's name. NTIA
believes that such circumstances will be rare and, in its experience,
are usually limited to authorizations such as those for microwave
interconnections or satellite uplinks.
As noted above, for FY 2001 PTFP applications, NTIA does not
require that the FCC applications be filed by the closing date. While
NTIA is permitting submission of FCC applications after the closing
date, applicants are reminded that they must continue to provide copies
of FCC applications, as they were filed or will be filed, or equivalent
engineering data, in the PTFP application so NTIA can properly evaluate
the equipment request. These include applications for permits,
construction permits and licenses already received for (1) construction
of broadcast station, (including a digital broadcasting facility) or
translator, (2) microwave facilities, (3) ITFS authorizations, (4) SCA
authorizations, and (5) requests for extensions of time.
For those applicants whose projects require authorization by the
Federal Communications Commission (FCC), NTIA reminds applicants that
the mailing address for the Federal Communications Commission has
changed to: 445 12th St., SW., Washington, DC 20554.
XIII. Department of Commerce Application Requirements
Applicants should note that they must continue to comply with the
provisions of Executive Order 12372, ``Intergovernmental Review of
Federal Programs.'' The Executive Order requires applicants for
financial assistance under this program to file a copy of their
application with the Single Points of Contact (SPOC) of all states
relevant to the project. Applicants are required to provide a copy of
their completed application to the appropriate SPOC on or before
February 15, 2001. Applicants are encouraged to contact the appropriate
SPOC well before their PTFP closing date. A listing of the state SPOC
offices may be found with the PTFP application materials at the NTIA
Internet site. A list of the SPOC offices is available from NTIA (see
the ADDRESS section above).
Notwithstanding any other provision of the law, no person is
required to respond to, nor shall any person be subject to a penalty
for failure to comply with, a collection of information subject to the
requirements of the Paperwork Reduction Act (PRA), unless that
collection displays a currently valid Office of Management and Budget
(OMB) control number.
All primary applicants must submit a completed Form CD-511,
``Certifications Regarding Debarment, Suspension, and Other
Responsibility Matters; Drug-Free Workplace Requirements and
Lobbying,'' and the following explanations are hereby provided:
(1) Nonprocurement Debarment and Suspension. Prospective
participants (as defined at 15 CFR Part 26, section 105) are subject to
15 CFR part 26, ``Nonprocurement Debarment and Suspension'' and the
related section of the certification form prescribed above applies;
(2) Drug Free Workplace. Grantees (as defined at 15 CFR Part 26,
section 605) are subject to 15 CFR part 26, Subpart F, ``Government-
wide Requirements for Drug-Free Workplace (Grants)'' and the related
section of the certification form prescribed above applies;
(3) Anti-lobbying. Persons (as defined at 15 CFR part 28, section
105) are subject to the lobbying provisions of 31 U.S.C. 1352,
``Limitation on use of appropriated funds to influence certain Federal
contracting and financial transactions,'' and the lobbying section of
the certification form prescribed above applies to applicants/bidders
for grants, cooperative agreements, and contracts for more than
$100,000, and loans and loan guarantees for more than $150,000, or the
single family maximum mortgage limit for affected programs, whichever
is greater; and
(4) Anti-lobbying Disclosures. Any applicant that has paid or will
pay for lobbying using any funds must submit an SF-LLL, ``Disclosure of
Lobbying Activities,'' (OMB Control Number 0348-0046) as required under
15 CFR part 28, Appendix B.
Recipients shall require applicants/bidders for subgrants,
contracts, subcontracts, or other lower tier covered transactions at
any tier under the grant award to submit, if applicable, a completed
Form CD-512, ``Certifications Regarding Debarment, Suspension,
Ineligibility and Voluntary Exclusion-Lower Tier Covered Transactions
and Lobbying'' and disclosure form, SF-LLL, ``Disclosure of Lobbying
Activities.'' Form CD-512 is intended for the use of recipients and
should not be transmitted to the Department. SF-LLL submitted by any
tier recipient or subrecipient should be submitted to the Department in
accordance with the instructions contained in the award document.
All non-profit applicants are subject to a name check review
process. Name checks are intended to reveal whether key individuals
associated with the applying organization have been convicted of, or
are presently facing, such criminal charges as fraud, theft, perjury,
or other matters that significantly reflect on the applicant's
management, honesty, or financial integrity. Potential non-profit
recipients may also be subject to reviews of Dun and Bradstreet data or
other similar credit checks.
No award of Federal funds shall be made to an applicant who has an
outstanding delinquent Federal debt until either: (1) The delinquent
account is paid in full; (2) a negotiated repayment schedule is
established and at least one payment is received, or (3) other
arrangements satisfactory to the Department are made.
If an application is selected for funding, the Department of
Commerce has no obligation to provide any additional future funding in
connection with that award. Renewal of an award to increase funding or
extend the period of performance is at the total discretion of the
Department.
Recipients and subrecipients are subject to all Federal laws and
Federal and DOC policies, regulations, and procedures applicable to
Federal assistance awards. In addition, unsatisfactory performance by
the applicant under prior Federal awards may result in the application
not being considered for funding.
If applicants incur any costs prior to an award being made, they do
so solely at their own risk of not being reimbursed by the Government.
Notwithstanding any verbal or written assurance that they have
received, there is no obligation on the part of the Department to cover
preaward costs.
Applicants are reminded that a false statement on the application
may be grounds for denial or termination of funds and grounds for
possible punishment by a fine or imprisonment as provided in 18 U.S.C.
1001.
Authority: The Public Telecommunications Financing Act of 1978,
as amended, 47 U.S.C. 390-393, 397-399(b). (Catalog of Federal
Domestic Assistance No. 11.550)
Bernadette McGuire-Rivera,
Associate Administrator, Office of Telecommunications and Information
Applications.
[FR Doc. 00-32582 Filed 12-20-00; 8:45 am]
BILLING CODE 3510-60-U