[Federal Register: March 1, 2004 (Volume 69, Number 40)]
[Notices]
[Page 9576-9582]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr01mr04-34]
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DEPARTMENT OF AGRICULTURE
Rural Utilities Service
Announcement of Grant and Loan Application Deadlines and Funding
Levels
AGENCY: Rural Utilities Service, USDA.
ACTION: Notice of solicitation of applications.
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SUMMARY: The Rural Utilities Service (RUS) announces its Distance
Learning and Telemedicine (DLT) Program grant application window for
funding during fiscal year (FY) 2004. In addition, RUS announces the
minimum and maximum amounts for DLT grants, combination loan-grants and
loans applicable for the fiscal year. The DLT Program regulation (7 CFR
1703, subparts D, E, F and G) has not changed, but this Notice appears
in a new format, as mandated by a policy directive issued by the Office
of Federal Financial Management (OFFM) of the Office of Management and
Budget (OMB), published in the Federal Register on June 23, 2003.
DATES: You may submit completed applications for grants on paper or
electronically according to the following deadlines:
Paper copies must be postmarked and mailed,
shipped, or sent overnight no later than April 30, 2004, to be eligible
for FY 2004 grant funding. Late applications are not eligible for FY
2004 grant funding.
Electronic copies must be received by April 30,
2004, to be eligible for FY 2004 grant funding. Late applications are
not eligible for FY 2004 grant funding.
RUS will examine applications for items that
would disqualify them from consideration if the applications are
submitted on paper by March 31, 2004.
You may submit applications for FY 2004 combination loan-grants and
loans at any time.
ADDRESSES: You may obtain application guides and materials for all DLT
programs via the Internet at the DLT Web site: http://www.usda.gov/rus/telecom/dlt/dlt.htm.
You may also request application guides and
materials from RUS by contacting the DLT Branch at (202) 720-0413.
Submit completed paper applications for grants, combination loan-
grants or loans to the Rural Utilities Service, U.S. Department of
Agriculture, 1400 Independence Ave., SW., Room 2845, STOP 1550,
Washington, DC 20250-1550. Applications should be marked ``Attention:
Director, Advanced Services Division, Telecommunications Program.''
Submit electronic grant or combination loan-grant applications at
http://www.grants.gov (Grants.gov), following the instructions you find
on that Web site.
FOR FURTHER INFORMATION CONTACT: Orren E. Cameron, III, Director,
Advanced Services Division, Rural Utilities Service, U.S. Department of
Agriculture, telephone: (202) 720-0413, fax: (202) 720-1051.
SUPPLEMENTARY INFORMATION:
Overview
Federal Agency: Rural Utilities Service (RUS).
Funding Opportunity Title: Distance Learning and Telemedicine Loans
and Grants.
Announcement Type: Initial announcement.
Catalog of Federal Domestic Assistance (CFDA) Number: 10.855.
Dates: You may submit completed applications for grants on paper or
electronically according to the following deadlines:
Paper copies must be postmarked and mailed,
shipped, or sent overnight no later than April 30, 2004, to be eligible
for FY 2004 grant funding. Late applications are not eligible for FY
2004 grant funding.
Electronic copies must be received by April 30,
2004, to be eligible for FY 2004 grant funding. Late applications are
not eligible for FY 2004 grant funding.
RUS will examine applications for items that
would disqualify them from consideration if the applications are
submitted on paper by March 31, 2004.
You may submit applications for FY 2004 combination loan-grants and
loans at any time.
Items in Supplementary Information
I. Funding Opportunity: Brief Introduction to the DLT Program
II. Award Information: Available Funds, Minimum and Maximum Amounts
III. Eligibility Information: Who Is Eligible, What Kinds of
Projects Are Eligible, What Criteria Determine Basic Eligibility
IV. Application and Submission Information: Where to Get Application
Materials, What Constitutes a Completed Application, How and Where
to Submit Applications, Deadlines, Items That Are Eligible
V. Application Review Information: Considerations and Preferences,
Scoring Criteria, Review Standards, Selection Information
VI. Award Administration Information: Award Notice Information,
Award Recipient Reporting Requirements
VII. Agency Contacts: Web, Phone, Fax, E-Mail, Contact Name
I. Funding Opportunity
Distance learning and telemedicine loans and grants are
specifically designed to provide access to education, training and
health care resources for people in rural America. The Distance
Learning and Telemedicine (DLT) Program (administered by the DLT Branch
of the Rural Utilities Service (RUS)) funds the use of advanced
telecommunications technologies to help communities meet those needs.
The grants, which are awarded through competitive process, may be
used to fund telecommunications, computer networks and related advanced
technologies.
Applications for loans and combination loan-grants are not
competitively scored. In addition to the items listed for grants, loans
and combination loan-grants may be used to fund construction of
necessary transmission facilities on a technology-neutral basis.
Examples of such facilities include satellite uplinks, microwave towers
and associated structures, T-1 lines, DS-3 lines, and other similar
facilities. Loan funds may also be used to obtain mobile units and for
some building construction. Please see 7 CFR
[[Page 9577]]
1703, subparts D, E, F and G for specifics.
This notice has been formatted to conform to a policy directive
issued by the Office of Federal Financial Management (OFFM) of the
Office of Management and Budget (OMB), published in the Federal
Register on June 23, 2003. This notice does not change the DLT Program
regulation (7 CFR 1703, subparts D, E, F, and G).
II. Award Information
A. Available Funds
1. General
The Administrator has determined that the following amounts are
available for grants, combination loan-grants and loans in FY 2004
under 7 CFR 1703.101(g).
2. Grants
a. $15 million is available for grants. Under 7 CFR 1703.124, the
Administrator has determined the maximum amount of an application for a
grant in FY 2004 is $500,000 and the minimum amount of a grant is
$50,000.
b. Assistance instrument: RUS will execute grant documents
appropriate to the project prior to any advance of funds with
successful applicants.
3. Combination Loan-Grants
a. $110 million is available for combination loan-grants ($100
million in loans paired with $10 million in grants, i.e., $100 loan:
$10 grant ratio). Under 7 CFR 1703.133, the Administrator has
determined the maximum amount of an application for a combination loan-
grant in FY 2004 is $10 million and the minimum amount of a combination
loan-grant is $50,000.
b. RUS will execute grant and loan documents appropriate to the
project prior to any advance of funds with successful applicants.
4. Loans
a. $200 million is available for loans. Under 7 CFR 1703.143, the
Administrator has determined the maximum amount of an application for a
loan in FY 2004 is $10 million and the minimum amount of a loan is
$50,000.
b. RUS will execute loan documents appropriate to the project prior
to any advance of funds with successful applicants.
B. DLT grants, combination loan-grants and loans cannot be renewed.
Award documents specify the term of each award. Applications to extend
existing projects are welcomed (grant applications must be submitted
during the application window) and will be evaluated as new
applications.
III. Eligibility Information
A. Who Is Eligible for Grants, Combination Loan-Grants and Loans? (See
7 CFR 1703.103)
1. Only entities legally organized as one of the following are
eligible for DLT financial assistance:
a. An incorporated organization or partnership,
b. An Indian tribe or tribal organization, as defined in 25 U.S.C.
450b (b) and (c),
c. A State or local unit of government,
d. A consortium, as defined in 7 CFR 1703.102, or
e. Other legal entity, including a private corporation organized on
a for-profit or not-for profit basis.
2. Individuals are not eligible for DLT financial assistance
directly.
3. Electric and telecommunications borrowers under the Rural
Electrification Act of 1936 (7 U.S.C. 950aaa et seq.) are not eligible
for grants or combination loan-grants. They are, however, eligible for
loans (see 7 CFR 1703.101(f)).
B. What Are the Basic Eligibility Requirements for a Project?
1. Required matching contributions (grants only). See paragraphs
IV.B.2.b and IV.B.2.g of this notice for information on documentation
of matching contributions. Please see 7 CFR 1703.125(g) for the
requirement.
a. Grant applicants must demonstrate a matching contribution, in
cash or in kind (new, non-depreciated items), of at least fifteen (15)
percent of the total amount of RUS financial assistance requested.
Matching contributions must be used for eligible purposes of DLT grant
assistance (see 7 CFR 1703.121 and paragraph IV.G of this notice).
Greater amounts of eligible matching contributions may increase an
applicant's score (see 7 CFR 1703.126(b)(4) and paragraph V.B.2.d of
this notice).
b. Combination loan-grants and loans do not require matching
contributions.
2. The DLT program is designed to flow the benefits of distance
learning and telemedicine to residents of rural America (see 7 CFR
1703.103(a)(2)). Therefore, in order to be eligible, applicants must
propose to use the financial assistance to:
a. Operate a rural community facility; or
b. Deliver distance learning or telemedicine services to entities
that operate a rural community facility or to residents of rural areas,
at rates calculated to ensure that the benefit of the financial
assistance is passed through to such entities or to residents of rural
areas.
3. If a loan applicant is a telecommunications or electric borrower
under the Rural Electrification Act of 1936 (7 U.S.C. 901-950aa, et
seq.), they may either pass the loan along to an entity that will
fulfill paragraph III.B.2 of this notice; or acquire, install, extend
or improve a distance learning or telemedicine facility. Please see 7
CFR 1703.101(f).
4. Rurality. a. All projects that applicants propose to fund with
RUS financial assistance must meet a minimum rurality threshold, to
ensure that benefits from the projects flow to rural residents. The
minimum eligibility score is 20 points. Please see paragraphs IV.B.2.g
and V.B.2 of this notice. In addition, please see 7 CFR 1703.126(a)(2)
for an explanation of the rurality scoring and eligibility criterion.
b. Each application must apply the following criteria to each of
its end-user sites, and hubs that are also proposed as end-user sites,
in order to determine a rurality score. The rurality score is the
average of all end-user sites' rurality scores.
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Criterion Character Population DLT points
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Exceptionally Rural Area................. Area not within a city, [le]5000................... 45
village or borough.
Rural Area............................... Incorporated or 5000 and 30
unincorporated area. [le]10,000.
Mid-Rural Area........................... Incorporated or 10,000 and 15
unincorporated area. [le]20,000.
Urban Area............................... Incorporated or 20,000.......... 0
unincorporated area.
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c. Grants only: The rurality score is also one of the competitive
scoring criteria applied to grant applications.
5. Projects located in areas covered by the Coastal Barrier
Resources Act (16 U.S.C. 3501 et seq.) are not eligible for any
financial assistance from the DLT Program. Please see 7 CFR
1703.123(a)(11) for grants, 7 CFR 1703.132(a)(5) for combination loan-
[[Page 9578]]
grants and 7 CFR 1703.142(b)(3) for loans.
C. See paragraph IV.B of this notice for a discussion of the items
that make up a completed application. You may also refer to 7 CFR
1703.125 for completed grant application items, 7 CFR 1703.134 for
completed combination loan-grant application items, and 7 CFR 1703.144
for completed loan application items.
IV. Application and Submission Information
A. Where to get application information. Application guides, copies
of necessary forms and samples, and the DLT Program regulation are
available from these sources:
1. The Internet: http://www.usda.gov/rus/telecom/dlt/dlt.htm, or
http://www.grants.gov.
2. The DLT Branch of RUS for paper copies of these materials: (202)
720-0413.
B. What constitutes a completed application? 1. Detailed
information on each item in the table in paragraph IV.B.6 of this
notice can be found in the sections of the DLT Program regulation
listed in the table, and the appropriate DLT application guide(s).
Applicants are strongly encouraged to read and apply both the
regulation and the application guide(s). This notice does not change
the requirements for a completed application for any form of DLT
financial assistance specified in the DLT Program regulation.
a. When the table refers to a narrative, it means a written
statement, description or other written material prepared by the
applicant, for which no form exists. RUS recognizes that each project
is unique and requests narratives of varying complexity to allow
applicants to fully explain their request for financial assistance.
b. When documentation is requested, it means letters,
certifications, legal documents or other third party documentation that
provide evidence that the applicant meets the listed requirement. For
example, to confirm Enterprise Zone (EZ) designations, applicants use
various types of documents, such as letters from appropriate government
bodies and copies of appropriate USDA Web pages. Leveraging
documentation sometimes include letters of commitment from other
funding sources, or other documents specifying in-kind donations.
Evidence of legal existence is sometimes proven by applicants who
submit articles of incorporation. None of the foregoing examples is
intended to limit the types of documentation that may be submitted to
fulfill a requirement. DLT program regulations and the application
guides provide specific guidance on each of the items in the table.
2. The DLT application guides and ancillary materials provide all
necessary forms and sample worksheets.
3. While the table in paragraph IV.B.6 of this notice includes all
items of a completed application for each program, RUS may ask for
additional or clarifying information if the submitted item(s) do not
fully address a criterion or other provision. RUS will communicate with
applicants if the need for additional information arises.
4. Submit the required application items in the listed order.
5. DUNS Number (new for FY 2004). As required by the OMB, all
applicants for grants or combination loan-grants must now supply a Dun
and Bradstreet Data Universal Numbering System (DUNS) number when
applying. The Standard Form 424 (SF-424) contains a field for you to
use when supplying your DUNS number. Obtaining a DUNS number costs
nothing and requires a short telephone call to Dun and Bradstreet.
Please see the DLT Web site or Grants.gov for more information on how
to obtain a DUNS number or how to verify your organization's number.
6. Table of Required Elements of a Completed Application, by
Program:
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Required items by application type
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Combination loan-
Application item Grants (7 CFR grants (7 CFR Loans (7 CFR 1703.144 and 7
1703.125 and CFR 1703.134 and 7 CFR CFR 1703.145)
1703.126) 1703.135)
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SF-424, completely filled out Yes.................. Yes................. Yes.
(Application for Federal
Assistance form).
Executive Summary (narrative)..... Yes.................. Yes................. Yes.
Objective Scoring Worksheet....... Yes.................. No.................. No.
Rural Calculation Table........... Yes.................. Yes................. Yes.
National School Lunch Program Yes.................. No.................. No.
Determination.
EZ/EC or Champion Communities Yes (documentation).. No.................. No.
designation.
Documented Need for Services/ Yes (narrative & No.................. No.
Benefits Derived from Services. documentation, if
necessary).
Innovativeness of the Project..... Yes (narrative & No.................. No.
documentation).
Budget (table or other appropriate Yes.................. Yes................. Yes.
format).
Leveraging Evidence and Funding Yes (documentation).. Yes (no leveraging Yes (no leveraging evidence
Commitments from All Sources. evidence required). required).
Financial Information/ Yes.................. Yes................. Yes.
Sustainability (narrative).
Pro Forma Financial Data.......... No................... Yes (documentation). Yes (documentation).
Ability to execute a note with No................... Yes (documentation). Yes (documentation).
maturity 1 year.
Revenue/expense reports and No................... Yes for educational Yes for educational
balance sheet (table or other institutions/ institutions/consortia.
appropriate format). consortia. (documentation).
(documentation).
Income statement and balance sheet No................... Yes for medical Yes for medical institutions/
(table or other appropriate institutions/ consortia. (documentation).
format). consortia.
(documentation).
Balance sheet (table or other No................... Yes (documentation). Yes (documentation).
appropriate format) for a
partnership, corporation,
company, other entity; or
consortia of such entities.
Property list (collateral)/ No................... Yes (documentation). Yes (documentation).
adequate security.
Depreciation schedule............. No................... Yes (documentation). Yes (documentation).
Revenue Source(s) for each hub and No................... Yes (documentation). Yes (documentation).
end-user site.
[[Page 9579]]
Economic analysis of rates--if No................... Yes (documentation). Yes (documentation).
applicant proposes to provide
services to another entity.
System/Project Cost Effectiveness Yes.................. No.................. No.
(narrative & documentation).
Telecommunications System Plan Yes.................. Yes................. Yes.
(narrative & documentation; maps
or diagrams, if appropriate).
Proposed Scope of Work (narrative Yes.................. Yes................. Yes.
or other appropriate format).
Statement of Experience (narrative Yes.................. Yes................. Yes.
3-page, single-spaced limit).
Consultation with the USDA State Yes.................. No.................. No.
Director, Rural Development
(documentation).
Application conforms with State Yes.................. No.................. No.
Strategic Plan per USDA State
Director, Rural Development, (if
plan exists) (documentation).
Certifications:
Equal Opportunity and Yes.................. Yes................. Yes.
Nondiscrimination.
Architectural Barriers............ Yes.................. Yes................. Yes.
Flood Hazard Area Precautions..... Yes.................. Yes................. Yes.
Uniform Relocation Assistance and Yes.................. Yes................. Yes.
Real Property Acquisition
Policies Act of 1970.
Drug-Free Workplace............... Yes.................. Yes................. Yes.
Debarment, Suspension, and Other Yes.................. Yes................. Yes.
Responsibility Matters--Primary
Covered Transactions.
Lobbying for Contracts, Grants, Yes.................. Yes................. Yes.
Loans, and Cooperative Agreements.
Non Duplication of Services....... Yes.................. Yes................. Yes.
Environmental Impact/Historic
Preservation.
Certification..................... Yes.................. Yes................. Yes.
Questionnaire..................... No................... Yes, if project Yes, if project involves
involves construction.
construction.
Federal Obligations on Delinquent Yes.................. Yes................. Yes.
Debt.
Evidence of Legal Authority to Yes.................. Yes................. Yes.
Contract with the Government
(documentation).
Evidence of Legal Existence Yes.................. Yes................. Yes.
(documentation).
Supplemental Information (if any) Optional............. Optional............ Optional.
(narrative, documentation or
other appropriate format).
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C. How many copies of an application are required? 1. Applications
submitted on paper (grants, combination loan-grants and loans): a.
Submit the original application and two (2) copies to RUS. b. Submit
one (1) additional copy to the State government point of contact (if
one has been designated) at the same time as you submit the application
to RUS. See http://www.whitehouse.gov/omb/grants/spoc.html for an
updated listing of State government points of contact or contact the
DLT branch.
2. Electronically submitted applications (grants and combination
loan-grants):
a. The additional paper copies for RUS specified in 7 CFR
1703.128(c) and 7 CFR 1703.136(b) are not necessary if you submit the
application electronically through Grants.gov.
b. Submit one (1) copy to the State government point of contact (if
one has been designated) at the same time as you submit the application
to RUS. See http://www.whitehouse.gov/omb/grants/spoc.html for an
updated listing of State government points of contact.
D. How and where to submit an application. Grant and combination
loan-grant applications may be submitted on paper or electronically.
RUS cannot accept electronic loan applications at this time; please
submit loan applications on paper.
1. Submitting applications on paper (grants, combination loan-
grants or loans).
a. Address paper applications for grants, combination loan-grants
or loans to the Rural Utilities Service, U.S. Department of
Agriculture, 1400 Independence Ave., SW., Room 2845, STOP 1550,
Washington, DC 20250-1550. Applications should be marked ``Attention:
Director, Advanced Services Division, Telecommunications Program.''
b. For grants only: paper applications must show proof of mailing
or shipping consisting of one of the following:
(i) A legibly dated U.S. Postal Service (USPS) postmark;
(ii) A legible mail receipt with the date of mailing stamped by the
USPS; or
(iii) A dated shipping label, invoice, or receipt from a commercial
carrier. c. Due to screening procedures at the Department of
Agriculture, packages arriving via the USPS are irradiated, which can
damage the contents. RUS encourages applicants to consider the impact
of this procedure in selecting their application delivery method.
2. Electronically submitted applications (applies only to grants
and combination loan-grants).
a. Applications will not be accepted via facsimile machine
transmission or electronic mail.
b. Electronic applications for grants or combination loan-grants
will be accepted if submitted through the Federal government's
Grants.gov initiative at http://www.grants.gov.
c. If you want RUS to review your application for items that would
disqualify it for further consideration(see paragraph V.D of this
notice), please do not use Grants.gov. Submit your application on
paper.
[[Page 9580]]
Grants.gov does not yet support such pre-application reviews.
d. How to use Grants.gov: (i) Navigate your Web browser to http://www.grants.gov
.
(ii) Follow the instructions on that Web site to find grant or
combination loan-grant information.
(iii) Download a copy of an application package.
(iv) Complete the package off-line.
(v) Upload and submit the application via the Grants.gov Web site.
e. Grants.gov contains full instructions on all required passwords,
credentialing and software.
f. RUS encourages applicants who wish to apply through Grants.gov
to submit their applications in advance of the deadline, in the case of
grants.
g. If a system problem occurs or you have technical difficulties
with an electronic application, please use the customer support
resources available at the Grants.gov Web site.
h. New information for FY 2004 grant and combination loan-grant
applications. The Distance Learning and Telemedicine Branch of RUS now
offers applicants the opportunity to submit grant (and combination
loan-grant) applications online through Grants.gov (http://www.grants.gov
). The Web site is part of the Government-wide e-
Government project under the President's Management Agenda. In addition
to online application submission, Grants.gov offers applicants a fully
searchable database of Federal grant opportunities. All Federal grant-
making organizations are required to post their grant opportunities at
Grants.gov, beginning with FY 2004. You can find more information on e-
grants at http://www.usda.gov/rus/telecom/dlt/dlt.htm and http://www
.grants.gov.
(i) Central Contractor Registry. In addition to the DUNS number now
required of all grant applicants, submitting an application through
Grants.gov requires that you list your organization in the Central
Contractor Registry (CCR). Setting up a CCR listing (a one-time
procedure with annual updates) takes up to five business days, so RUS
strongly recommends that you obtain your organization's DUNS number and
CCR listing well in advance of the deadline specified in this notice.
(ii) Credentialing and authorization of applicants. Grants.gov will
also require some one-time credentialing and online authentication
procedures. These procedures may take several business days to
complete, further emphasizing the need for early action to complete the
sign-up, credentialing and authorization procedures at Grants.gov
before you submit an application at that Web site.
E. Deadlines. 1. Grants only: Paper applications must be postmarked
and mailed, shipped, or sent overnight no later than April 30, 2004, to
be eligible for FY 2004 grant funding. Late applications are not
eligible for FY 2004 grant funding.
2. Electronic grant applications must be received by April 30,
2004, to be eligible for FY 2004 funding. Late applications are not
eligible for FY 2004 grant funding.
3. RUS will examine applications for items that would disqualify
them from consideration if the applications are submitted on paper by
March 31, 2004.
4. Applications for FY 2004 combination loan-grants (paper or
electronic) and loans (paper only) may be submitted at any time.
F. Intergovernmental Review. All DLT programs are subject to
Executive Order 12372, ``Intergovernmental Review of Federal
Programs.'' As stated in paragraph IV.C of this notice, a copy of a DLT
grant or combination loan-grant application must be submitted to the
State single point of contact if one has been designated. Please see
http://www.whitehouse.gov/omb/grants/spoc.html to determine whether
your state has a single point of contact.
G. Funding Restrictions. 1. Eligible purposes. a. End-user sites
may receive financial assistance; hub sites (rural or non-rural) may
also receive financial assistance if they are necessary to provide DLT
services to end-user sites. Please see 7 CFR 1703.101(h).
b. To fulfill the policy goals laid out for the DLT Program in 7
CFR 1703.101, the following table lists purposes for financial
assistance and whether each purpose is eligible for the assistance.
Please consult the application guide(s) and the regulations (7 CFR
1703.102 for definitions, in combination with the portions of the
regulation cited in the table for each type of financial assistance)
for detailed requirements for the items in the table.
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Combination loan-grants
Grants (7 CFR 1703.121 (7 CFR 1703.131 and 7 Loans (7 CFR 1703.141)
and 7 CFR 1703.123) CFR 1703.132) and 7 CFR 1703.142)
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Lease or purchase of eligible DLT Yes--equipment only.... Yes.................... Yes.
equipment and facilities.
Acquire instructional programming.... Yes.................... Yes.................... Yes.
Technical assistance, develop Yes, not to exceed 10% Yes, not to exceed 10% Yes, not to exceed 10%
instructional programming, of the grant. of the financial of the financial
engineering or environmental studies. assistance. assistance.
Medical or education equipment or No..................... Yes.................... Yes.
facilities necessary to the project.
Vehicles using distance learning or No..................... Yes.................... Yes.
telemedicine technology to deliver
services.
Teacher-student links located at the No, if this is the sole Yes, if linking is part Yes, if linking is part
same facility. project objective. of a broader DLT of a broader DLT
network that meets network that meets
other combination loan- other loan purposes.
grant purposes.
Links between medical professionals No, if this is the sole Yes, if linking is part Yes, if linking is part
located at the same facility. project objective. of a broader DLT of a broader DLT
network that meets network that meets
other combination loan- other loan purposes.
grant purposes.
Site development or building No..................... Yes, if the activity Yes, if the activity
alteration. meets other meets other loan
combination loan-grant purposes.
purposes.
Land or building purchase............ No..................... Yes, if the activity Yes, if necessary to
meets other the overall project
combination loan-grant and incidental to the
purposes. loan amount.
[[Page 9581]]
Building construction................ No..................... Yes, if the activity Yes, if necessary to
meets other the overall project
combination loan-grant and incidental to the
purposes. loan amount.
Acquiring telecommunications No..................... Yes, if other Yes, if other
transmission facilities. telecommunications telecommunications
carriers will not carriers will not
install in a install in a
reasonable time period reasonable time period
& at an economically & at an economically
viable cost to the viable cost to the
project. project.
Salaries, wages, benefits for medical No..................... No..................... No.
or educational personnel.
Salaries/administrative expenses of No..................... No..................... No.
applicant or project.
Recurring project costs or operating No (equipment leases No (equipment & Yes, for the first two
expenses. are eligible). facility leases are years after approval
eligible). (leases are not
recurring project
costs).
Equipment to be owned by the LEC or Yes.................... Yes.................... Yes.
other telecommunications service
provider, if the provider is the
applicant.
Duplicate distance learning or No..................... No..................... No.
telemedicine services.
Any project that, for its success, No..................... No..................... No.
depends on additional DLT financial
assistance or other financial
assistance that is not assured.
Application preparation costs........ No..................... No..................... No.
Other project costs not covered in No..................... No..................... Yes, for the first two
regulation. years of the
operation.
Costs & facilities providing distance No..................... No..................... Yes; financial
learning broadcasting. assistance amount
directly proportional
to the distance
learning portion of
use.
Reimburse applicant or others for No..................... No..................... No.
costs incurred prior to RUS''
receipt of completed application.
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2. Eligible Equipment & Facilities. Please see 7 CFR 1703.102 for
definitions of eligible equipment, eligible facilities and
telecommunications transmission facilities as used in the table above.
V. Application Review Information
A. Special Considerations or Preferences
1. American Samoa, Guam, Virgin Islands, and Northern Mariana
Islands applications are exempt from the matching requirement up to a
match amount of $200,000 (see 48 U.S.C. 1469a; 91 Stat. 1164).
2. Related Preferences: 7 CFR 1703.112 directs that an RUS
telecommunications borrower will receive expedited consideration and
determination of a loan application or advance under the Rural
Electrification Act of 1936 (7 U.S.C. 901-950aa, et seq.) if the loan
funds in question are to be used in conjunction with a DLT grant, loan
or combination loan-grant (See 7 CFR 1737 for loans and 7 CFR 1744 for
advances).
B. Criteria
1. Grant applications are scored competitively and subject to the
criteria listed below. Combination loan-grants and loan applications
are not scored competitively. However, they are evaluated on the basis
of technical, financial, economic and other criteria. Please see
paragraph IV.B.2.g of this notice for the items that will be evaluated
for a combination loan-grant or loan application, and paragraph
V.B.3.b. of this notice for a brief listing of evaluation standards.
2. Grant application scoring criteria (total possible points: 235)
See 7 CFR 1703.125 for the items that will be reviewed during scoring,
and 7 CFR 1703.126 for scoring criteria.
a. Need for services proposed in the application, and the benefits
that will be derived if the application receives a grant (up to 55
points).
b. Rurality of the proposed service area (up to 45 points).
c. Percentage of students eligible for the National School Lunch
Program (NSLP) in the proposed service area (demonstrates economic need
of the area) (up to 35 points).
d. Leveraging resources above the required matching level (up to 35
points). Please see paragraph III.B.1.a of this notice for a brief
explanation of matching contributions.
e. Level of innovation demonstrated by the project (up to 15
points).
f. System cost-effectiveness (up to 35 points).
g. Project overlap with Empowerment Zone, Enterprise Communities or
Champion Communities designations (up to 15 points).
C. Review Standards
1. Grants. In addition to the scoring criteria that rank
applications against each other, RUS evaluates grant applications for
possible awards on the following items, according to 7 CFR 1703.127:
a. Financial feasibility.
b. Technical considerations. If the application contains flaws that
would prevent the successful implementation, operation or
sustainability of a project, RUS will not award a grant.
c. Other aspects of proposals that contain inadequacies that would
undermine the ability of the project to comply with the policies of the
DLT Program.
2. Combination loan-grants and loans.
a. RUS evaluates applications' financial feasibility using the
following information. Please see paragraph IV.B.g of this of this
notice for the items that
[[Page 9582]]
constitute a completed combination loan-grant or loan application.
Also, see 7 CFR 1703 Subpart F for combination loan-grants and 7 CFR
1703 Subpart G for loans:
(i) Applicant's financial ability to compete the project;
(ii) Project feasibility;
(iii) Applicant's financial information;
(iv) Projects sustainability;
(v) Ability to repay the loan portion of a combination loan-grant,
including revenue sources;
(vi) Collateral for which the applicant has perfected a security
interest; and
(vii) Adequate security for a loan or the loan portion of a
combination loan-grant.
b. Services to be provided by the project.
c. Project cost.
d. Project design.
e. Other characteristics.
D. As a courtesy, RUS will examine, provide comment, and return
applications that include items that would disqualify them from further
consideration for modification, if the applications are submitted by
March 31, 2004. If you want RUS to examine your application in this
manner, please submit your application on paper. Grants.gov does not
currently support this kind of pre-application review.
E. Selection Process
1. Grants. Grant applications are ranked by final score, and by
application purpose (education or medical). RUS selects applications
based on those rankings, subject to the availability of funds. RUS may
allocate grant awards between medical and educational purposes, but is
not required to do so. In addition, RUS has the authority to limit the
number of applications selected in any one State during a fiscal year.
See 7 CFR 1703.127.
2. Combination loan-grants and loans. Based on the review standards
listed above and in the DLT Program regulation, RUS will process
successful loan applications on a first-in, first-out basis, dependent
upon the availability of funds. Please see 7 CFR 1703.135 for
combination loan-grant application processing and selection; and 7 CFR
1703.145 for loan application processing and selection.
VI. Award Administration Information
A. Award Notices
RUS recognizes that each funded project is unique, and therefore
may attach conditions to different projects' award documents.
1. Grants. RUS generally notifies applicants whose projects are
selected for awards by faxing an award letter. RUS follows the award
letter with a grant agreement that contains all the terms and
conditions for the grant. An applicant must execute and return the
grant agreement, accompanied by any additional items required by the
grant agreement, within 120 days of the selection date.
2. Combination loan-grants and loans.
a. RUS generally sends a letter defining the characteristics of a
loan (or the loan portion of a combination loan-grant) such as the
term, interest rate and any conditions on the loan. An applicant must
communicate agreement with the characteristics of the loan to RUS
before a loan or combination loan-grant moves into the approval
process. b. After receiving the applicant's agreement on the loan
characteristics, RUS supplies an approval letter to the applicant. Loan
documents (and a grant agreement, if applicable) are then sent by RUS.
The applicant has 120 days to sign and return the documents, along with
any additional material required by the loan or grant documents.
B. Administrative and National Policy Requirements
The items listed in paragraph IV.B.2.g of this notice, and the DLT
Program regulation, application guides and accompanying materials
implement the appropriate administrative and national policy
requirements.
C. Reporting
1. Performance reporting. All recipients of DLT financial
assistance must provide annual performance activity reports to RUS
until the project is complete and the funds are expended. A final
performance report is also required; the final report may serve as the
last annual report. The final report must include an evaluation of the
success of the project in meeting DLT Program objectives. See 7 CFR
1703.107.
2. Financial reporting. All recipients of DLT financial assistance
must provide an annual audit, beginning with the first year a portion
of the financial assistance is expended. Audits are governed by United
States Department of Agriculture audit regulations. Please see 7 CFR
1703.108.
VII. Agency Contacts
A. Web site: http://www.usda.gov/rus/telecom/dlt/dlt.htm. The RUS'
DLT Web site maintains up-to-date resources and contact information for
DLT programs.
B. Phone: 202-720-0413.
C. Fax: 202-720-1051.
D. E-mail: dltinfo@usda.gov.
E. Main point of contact: Orren E. Cameron, III, Director, Advanced
Services Division, Rural Utilities Service, U.S. Department of
Agriculture.
Dated: February 23, 2004.
Hilda Gay Legg,
Administrator, Rural Utilities Service.
[FR Doc. 04-4322 Filed 2-27-04; 8:45 am]
BILLING CODE 3410-15-P