Broadband Initiatives Program, 3820-3837 [2010-1099]

Agencies

• DEPARTMENT OF AGRICULTURE
• Rural Utilities Service

[Federal Register Volume 75, Number 14 (Friday, January 22, 2010)]
[Notices]
[Pages 3820-3837]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-1099]


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DEPARTMENT OF AGRICULTURE

Rural Utilities Service

RIN 0572-ZA01


Broadband Initiatives Program

AGENCY: Rural Utilities Service, Department of Agriculture.

ACTION: Notice of Funds Availability (NOFA) and solicitation of 
applications.

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SUMMARY: The Rural Utilities Service (RUS) announces its general policy 
and application procedures for the second round of funding under the 
broadband initiatives (the Second Round NOFA) established pursuant to 
the American Recovery and Reinvestment Act of 2009 (Recovery Act) for 
the Broadband Initiatives Program (BIP) which provides loans, grants, 
and loan/grant combinations to facilitate broadband deployment in rural 
areas. In facilitating the expansion of broadband

[[Page 3821]]

communications services and infrastructure, BIP will advance the 
objectives of the Recovery Act by spurring job creation and the economy 
and by building technological infrastructure that will fuel long-term 
economic growth and opportunity.

DATES: Applications will be accepted for Last Mile and Middle Mile 
projects from February 16, 2010 at 8 a.m. Eastern Time (ET) until March 
15, 2010 at 5 p.m. ET. The application window for Satellite, Technical 
Assistance, and Rural Library Broadband Projects will be announced in a 
separate request for proposal in the Federal Register.
    Application Submission: The application packages for electronic 
submissions will be available at https://www.broadbandusa.gov.
    Electronic submissions: Electronic submissions of applications will 
allow for the expeditious review of an Applicant's proposal, consistent 
with the goals of the Recovery Act. As a result, all Applicants for 
Last Mile, Middle Mile, and Satellite projects must file their 
application electronically. Electronic applications for Last Mile and 
Middle Mile projects must be submitted by 5 p.m. ET on March 15, 2010. 
The government electronic application system will provide a date and 
time stamped confirmation number that will serve as proof of 
submission. Only applications for Technical Assistance and Rural 
Library Broadband grants will be submitted in paper form. Paper 
applications for Technical Assistance and Rural Library Broadband 
grants will be available at https://www.broadbandusa.gov once the 
request for proposals has been published. Applicants filing paper 
copies should submit one original and one copy of the application for 
efficient processing.
    Proof of Mailing. Paper applications for Technical Assistance and 
Rural Library Broadband grants must include proof of mailing consisting 
of one of the following: (i) A legibly dated U.S. Postal Service 
postmark. Please note that the U.S. Postal Service does not uniformly 
provide a dated postmark. Before relying on this method, Applicants 
should check with their local post office; (ii) a legible mail receipt 
with the date of mailing stamped by the U.S. Postal Service; or (iii) a 
dated shipping label, invoice, or receipt from a commercial carrier. 
Neither of the following will be accepted as proof of mailing: a 
private metered postmark; nor a mail receipt that is not dated by the 
U.S. Postal Service.
    Mailing Address. Completed applications must be mailed, shipped, or 
sent overnight express to: Broadband Initiatives Program, Rural 
Utilities Service, U.S. Department of Agriculture, 1400 Independence 
Avenue, SW., Stop 1599, Room 2868, Washington, DC 20250.
    Or hand-delivered to: Broadband Initiatives Program Rural Utilities 
Service, U.S. Department of Agriculture, 1400 Independence Avenue, SW., 
Room 2868 Washington, DC 20250.
    Contact Information: For general inquiries, contact David J. 
Villano, Assistant Administrator Telecommunications Program, Rural 
Utilities Service, U.S. Department of Agriculture (USDA), e-mail: 
BroadbandUSA@usda.gov, telephone:(877) 508-8364. For inquiries 
regarding BIP compliance requirements, including applicable Federal 
rules and regulations protecting against fraud, waste and abuse, 
contact bipcompliance@wdc.usda.gov. You may obtain additional 
information regarding applications for BIP via the Internet at https://www.broadbandusa.gov.

    Authority:  This notice is issued pursuant to the American 
Recovery and Reinvestment Act of 2009, Public Law 111-5, 123 Stat. 
115 (2009) and the Rural Electrification Act of 1936, 7 U.S.C. 901 
et seq.

SUPPLEMENTARY INFORMATION:
    Catalog of Federal Domestic Assistance (CFDA) Number: Broadband 
Initiatives Program (BIP)--10.787.

Additional Items in Supplementary Information

    I. Overview: Describes the purposes of the Recovery Act and the 
changes in BIP from the First Round NOFA.
    II. Definitions: Sets forth the key statutory terms and other 
terms.
    III. Funding Opportunity Description: Describes funding 
categories, requirements, and the amount of funds available for each 
category.
    IV. Eligibility Information: Establishes eligibility criteria, 
eligibility factors, eligible and ineligible costs, and other 
eligibility requirements.
    V. Application and Submission Information: Provides information 
regarding how to apply, application materials, and the application 
process.
    VI. Application Evaluation Criteria: Establishes the evaluation 
criteria for application review.
    VII. Waiver for Grants Capped at (75%) of Award for Last Mile 
and Middle Mile Projects: Establishes waiver procedures for larger 
grant component.
    VIII. Award Administration Information: Provides award notice 
information, administrative and national policy requirements, terms 
and conditions, and other reporting requirements for award 
recipients.
    IX. Other Information: Sets forth guidance on funding, 
compliance with various laws, confidentiality, discretionary awards, 
and authorized signatures.

I. Overview

A. Background

    On February 17, 2009, President Obama signed the American Recovery 
and Reinvestment Act of 2009 (Recovery Act) into law.\1\ The essential 
goal of the Recovery Act is to provide a ``direct fiscal boost to help 
lift our Nation from the greatest economic crisis in our lifetimes and 
lay the foundation for future growth.'' \2\ Accordingly, the Recovery 
Act identifies five overall purposes: (1) To preserve and create jobs 
and promote economic recovery; (2) to assist those most impacted by the 
recession; (3) to provide investments needed to increase economic 
efficiency by spurring technological advances in science and health; 
(4) to invest in transportation, environmental protection, and other 
infrastructure that will provide long-term economic benefits; and (5) 
to stabilize state and local government budgets.\3\ The Recovery Act 
further instructs the President and the heads of Federal departments 
and agencies to manage and expend Recovery Act funds to achieve these 
five purposes, ``commencing expenditures and activities as quickly as 
possible consistent with prudent management.'' \4\
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    \1\ American Recovery and Reinvestment Act of 2009, Public Law 
111-5, 123 Stat. 115 (2009).
    \2\ President Obama, Statement on Signing the American Recovery 
and Reinvestment Act of 2009 (Feb. 17, 2009).
    \3\ Recovery Act sec. 3(a), 123 Stat. at 115-16.
    \4\ See id. Sec.  3(b), 123 Stat. at 116.
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    Consistent with the purposes described above, the Recovery Act 
provided RUS with $2.5 billion to expand access to broadband services 
in rural America. The Recovery Act expanded RUS' existing authority to 
make loans and provided new authority to make grants for the purpose of 
facilitating broadband deployment in rural communities. The Recovery 
Act specifically made Federal assistance available for grants and loans 
to enhance service in areas which are at least 75 percent rural and 
``without sufficient access to high speed broadband service to 
facilitate rural economic development.''
    On July 9, 2009, RUS and the National Telecommunication Information 
Administration (NTIA) issued a joint Notice of Funds Availability at 74 
FR 33104 governing the first round of Recovery Act broadband funding 
under BIP and NTIA's Broadband Technology Opportunity Program (BTOP). 
Under this first round Notice (the First Round

[[Page 3822]]

NOFA), RUS made approximately $2,400,000,000 in funding available for 
BIP. Approximately 2,200 applications seeking $28 billion in Federal 
financial assistance were submitted in response to the First Round 
NOFA.
    The First Round NOFA opened BIP to a wider range of Applicants and 
projects than the RUS' traditional programs. This enabled RUS to get a 
better understanding of the type of applications available to meet the 
need for broadband services in rural areas. With that experience, RUS, 
working in conjunction with NTIA's BTOP, is focusing the second round 
funding on rural economic development in addition to continuing the 
effort of the First Round NOFA to reach unserved and underserved areas. 
RUS has qualified for funding any rural area that does not have 
broadband service at the rate of 5 Megabits/second (Mbps) (upstream and 
downstream combined) in at least 50 percent of its area. RUS has 
determined that rural areas without service at 5 Mbps (upstream and 
downstream combined) lack high speed broadband service sufficient to 
facilitate rural economic development as required by the Recovery Act.
    In this Second Round NOFA, RUS and NTIA have determined that the 
best use of limited funding is to have RUS and NTIA focus on funding 
different aspects of broadband infrastructure. RUS will concentrate on 
funding Last Mile projects. With decades of experience of financing 
telecommunications infrastructure in rural America, RUS is uniquely 
equipped to focus on Last Mile rural projects. However, it is still 
important for RUS to continue funding certain Middle Mile projects to 
ensure all proposed rural economic development strategies incorporating 
broadband technology are given full consideration by an Agency whose 
mission is rural development. As a result, RUS will still consider 
funding Middle Mile projects, but strongly encourages such projects 
only be undertaken by current RUS loan or grant recipients, given the 
complexity of such projects, the amount of time to close these deals 
with respect to RUS' statutory lien on project assets and any other 
debt or equity holders, and the limited timeframe available before 
Recovery Act funds expire. Additionally, NTIA has proposed in its 
second NOFA a Comprehensive Communities Infrastructure initiative that 
will fund Middle Mile infrastructure projects that include connections 
to community anchor institutions. As a result, RUS highly recommends 
that all other Middle Mile applicants consider applying to BTOP. Based 
on these considerations and in consideration of the multitude of 
comments filed in response to the Request for Information released on 
November 10, 2009, at 74 FR 58940, RUS has determined to make the 
following changes:

B. Application Changes From the First Round NOFA

1. Funding Categories
a. Retained and Eliminated Categories
    In the First Round NOFA, RUS made funds available for three types 
of projects: Last Mile, Middle Mile and Last Mile Remote. This NOFA has 
retained funding for Last Mile projects and Middle Mile Projects, and 
eliminated the funding category for Last Mile Remote projects.
b. New Categories
    It is essential to make every effort in this NOFA to reach unserved 
premises. A separate Satellite Project category has been established to 
reach premises left unserved by other technologies.
    Lastly, two funding purposes, Rural Library Broadband and Technical 
Assistance, have been added to allow Awardees the opportunity to adjust 
projects to include service to rural libraries and participation with 
rural economic development strategies.
2. Modification of Eligible Service Areas
    In this Second Round of funding RUS has focused its efforts on 
rural economic development in addition to continuing to reach unserved 
rural areas. RUS has qualified for funding any rural area in which at 
least 50 percent of the premises in the area do not have access to 
broadband service at the rate of 5 Mbps (upstream and downstream 
combined). RUS has determined that these areas lack high speed 
broadband service sufficient to facilitate rural economic development 
as required by the Recovery Act. Service offerings must still be within 
proposed funded service areas which are at least 75 percent rural as 
required by the Recovery Act.
3. Change in Loan/Grant Award Allocation
    The First Round NOFA provided that all successful applications 
would receive an award comprised of 50 percent loan and 50 percent 
grant (50/50 loan/grant combination), except for rural remote projects 
which could receive up to 100 percent grant funding. Rural remote areas 
were defined as those unserved 100 percent rural areas which were 
located 50 miles or more from non-rural areas. This Second Round NOFA, 
however, combines rural remote and rural non-remote funding and 
therefore has a standard award of 75/25 grant/loan combination. It is 
important to note that applicants requesting a larger loan component 
will be awarded more points in the scoring system and may have a 
greater likelihood of being funded. Applicants may request more than a 
75 percent grant component by submitting a waiver request to the 
Administrator, which demonstrates their need for additional grant 
funding in accordance with the requirements of this Second Round NOFA. 
The waiver request will be addressed at the time any award is offered. 
The Administrator has the authority to award grants up to 100 percent.
4. No Joint RUS/NTIA Application
    Because the Recovery Act prohibits a project from receiving funding 
from NTIA in areas where RUS has funded a project, the first NOFA 
required Applicants to submit infrastructure applications consisting of 
proposed funded service areas which were at least 75 percent rural to 
RUS to be considered under BIP, with the option of additional 
consideration under BTOP. The first NOFA provided that NTIA would not 
fund such an application unless RUS had declined to fund it. In 
response to comments from stakeholders during the initial round of 
funding, the agencies' Request For Information invited public comment 
on whether the agencies should continue to require that these kinds of 
rural infrastructure applications be submitted to RUS first or whether 
the agencies should permit Applicants to file rural applications 
directly to NTIA without also having to submit them to RUS.\5\
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    \5\  See 74 FR at 58941.
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    The majority of commenters agree that rural Applicants should be 
permitted to apply directly to NTIA for BTOP grants without being 
required to first apply to RUS for BIP loans or grants.\6\ The most 
widely cited rationale was the burden imposed on Applicants to provide 
the additional financial analysis required by the RUS loan application 
for rural projects that do not qualify as remote and unserved or are 
not viable with only 50 percent grant funding.\7\ Commenters also cite 
the inefficiency of requiring RUS to review proposals that are not 
viable for BIP.\8\
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    \6\  See, e.g., Massachusetts Executive Office of Housing and 
Economic Development at 3-4; American Library Association at 7.
    \7\  See, e.g., TCA at 1-2 (Nov. 30, 2009).
    \8\  See, e.g., XO Communications at 2 (Nov. 30, 2009); TCA at 
1-2.
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    A majority of commenters favor the continued use of a common BIP-
BTOP

[[Page 3823]]

application to avoid the duplicative effort of completing multiple 
applications.\9\ A few of these commenters favor maintaining the 
initial round of funding's BIP-first rule requiring concurrent joint 
applications and reserving to RUS the first option to fund eligible 
proposals.\10\ The chief benefit adduced in support of this position is 
RUS' expertise in evaluating rural applications so as to avoid 
redundant awards to ``active'' RUS borrowers.\11\ Commenters further 
recommend that the agencies implement a ``check box'' by which an 
Applicant may request immediate consideration by NTIA because its rural 
project requires more than a 50 percent grant to be viable or seeks to 
address one of NTIA's broadband objectives.\12\ They also recommend 
allowing Applicants to produce only one financial analysis to 
demonstrate an ability to support either a 50 percent contribution (as 
required for BIP) or a 20 percent contribution (as required for BTOP) 
to a project.\13\
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    \9\  See, e.g., Texas Statewide Telephone Cooperative at 5 (Nov. 
25, 2009).
    \10\  See, e.g., Vantage Point Solutions at 5-7; Rural Community 
Assistance Partnership at 2 (Nov. 19, 2009); RVW Inc. at 2; Mid-
Rivers Communications at 6-7 (Dec. 1, 2009); South Dakota 
Telecommunications Association at 5, 11 (Nov. 30, 2009).
    \11\ See, e.g., Mid-Rivers Communications at 6.
    \12\ See, e.g., National Rural Telecommunications Cooperative 
and DigitalBridge Communications Corp. at 6-7 (Nov. 30, 2009).
    \13\ See, e.g., John Staurulakis, Inc. at 18; TCA at 1-2.
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    RUS and NTIA agree with the majority of commenters who argue that 
the ``BIP-first'' requirement of the initial funding round added an 
additional unnecessary burden for many Applicants. In this funding 
round, RUS and NTIA conclude that Applicants that are eligible for both 
BIP and BTOP funding may elect to apply directly to either NTIA for 
BTOP grants or RUS for BIP loans or loan/grants. However, both agencies 
strongly recommend that current RUS loan or grant recipients apply to 
BIP. Applicants may not apply to both agencies for the same grant 
project or for a substantially similar project.
    RUS believes that the elimination of joint applications will 
significantly streamline RUS' internal review of applications. 
Moreover, the joint application process was burdensome on the 
Applicants. Eliminating this option is critical to ensuring that RUS is 
able to carry out its review in a timely manner, and that applications 
will be funded before the statutory deadline of September 30, 2010.
5. Elimination of Two-Step Application Process
    The first round NOFA provided for a two-step application process. 
Under this process, the bulk of the materials required from the 
Applicant were sought with the application. Once this material was 
evaluated, RUS made an initial determination as to whether the 
application would likely be funded. If so, the application was moved 
into a second review process in which additional information was 
requested from the Applicant. The Applicant was given an additional 30 
days to provide it.
    Although commenters generally had few problems with the two-step 
review process, several commenters argued persuasively that doing away 
with the two-step review process in favor of a simplified one-step 
process would streamline the application process.
    After an evaluation of the first round applications and 
consideration of the comments received, RUS determined that a one-step 
application process will best streamline BIP. Removal of the second 
step simplifies the application process, and adds valuable time to both 
the application window and the Agency review process. This clearly 
promotes the submission of more solid applications.
6. Cost Effectiveness/Reasonableness
    To effectively leverage Recovery Act broadband funds for last mile 
projects, RUS will limit Federal assistance to no more than $10,000 per 
premises passed, unless a waiver is requested from the Administrator. 
The Administrator will consider such requests based on whether the 
application provides assistance to a significant number of critical 
community facilities, supports a recognized rural regional development 
plan, supports public safety projects, enhances broadband service to 
rural libraries, supports persistent poverty counties or substantially 
unserved areas, including Indian country. If the waiver request is 
denied, any award may be made contingent on improving cost 
effectiveness, or the application may be placed in the second review 
process and the Applicant will have an opportunity to revise its 
proposal.
7. Elimination of Census Block Reporting
    The First Round NOFA required that Applicants report their proposed 
funded service territories on a census block basis. It was thought that 
this level of granularity was necessary to evaluate applications; 
however, reporting at the census block level imposed a significant 
burden on Applicants.
    A majority of the commenters advocate abandoning Census blocks in 
favor of other means of specifying proposed funded service areas.\14\ 
Commenting municipalities and cities unanimously express their 
dissatisfaction with the use of Census block data, citing it as a 
cumbersome method of reporting proposed funded service area 
designations.\15\ Multiple commenters offer zip codes, city boundaries, 
or even latitude and longitude coordinates as less burdensome 
alternatives for Applicants.\16\ Several commenters propose using 
Census tract data as a less burdensome alternative to census block 
data, in part because broadband service providers are already required 
to report their subscriber and demographic information according to 
census tracts in order to file FCC Form 477.\17\
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    \14\ See, e.g., NCTH-Cleartalk at 1 (Nov. 21, 2009); 
Commonwealth of Pennsylvania at 4; Satellite Industry Association at 
4 (Nov. 30, 2009); New America Foundation at 21 (Nov. 30, 2009).
    \15\ See, e.g., Montgomery Co. at 2 (Nov. 30, 2009); Oakland Co. 
at 1 (Nov. 30, 2009); City of New York at 2; City of San Francisco 
at 3 (Nov. 30, 2009).
    \16\ See, e.g., Open Range Communications at 4 (Nov. 30, 2009); 
Center of Social Inclusion at 2; Harris Corp at iii (Nov. 30, 2009).
    \17\ See, e.g., John Staurulakis, Inc. at 14 (Nov. 30, 2009); 
Rural Broadband Corp. at 7.
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    For the Second Round NOFA, RUS has eliminated census block 
reporting. This requirement created unnecessary problems in the 
application process. Moreover, the present state of the mapping tool 
already identifies the affected census blocks as the Applicant draws 
its service territory. The elimination of this burden will allow 
Applicants to focus more time on the technical issues and feasibility 
of their application.
8. Elimination of Paper Applications for Last Mile and Middle Mile 
Projects
    The First Round NOFA required that most applications for BIP be 
filed electronically. However, it provided an exception for certain 
Applicants to file their applications on paper.\18\ For the Second 
Round NOFA, RUS has eliminated paper applications for Last Mile and 
Middle Mile projects. RUS did not receive many paper applications in 
round one. Nevertheless, since paper applications have to be manually 
input into the electronic application system, their processing 
considerably slowed

[[Page 3824]]

RUS' application review process and diverted limited resources. Since 
Last Mile, Middle Mile, and Satellite projects are anticipated to be 
the most lengthy and complex applications, as well as constituting the 
largest pool of applications, RUS now requires that they be submitted 
in electronic form. A major justification identified in the First Round 
NOFA for allowing the submission of paper applications concerned the 
need to provide an alternative means of submitting applications by 
individuals with disabilities. RUS has determined that the electronic 
application intake system that will be used during the second round of 
funding complies with the requirements of the Rehabilitation Act.
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    \18\ Applicants requesting less than $1 million in assistance 
(in the form of grants, loans, or a combination of grants and loans) 
were allowed to file their applications in a paper format for the 
first round NOFA, if filing electronically would impose a hardship 
on the Applicants. Applicants whose authorized representatives were 
individuals with disabilities were also allowed to file their 
applications in a paper format irrespective of the funding size of 
their request.
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9. Reconsideration of Applications
a. Second Review
    If RUS expects to have excess funding capacity in the Second Round 
NOFA, the RUS Administrator may permit Applicants to adjust 
applications for reconsideration that would otherwise not be funded. 
RUS will reconsider only such applications which can be updated, 
reviewed and awarded funds before the expiration of Recovery Act 
funding, contain specific and limited adjustments, and promote 
significant economic rural development, as determined by the 
Administrator. Those applications that are considered for Second Review 
will not be permitted to redo the application, but only provide the 
supplemental information the Agency has requested. This will require a 
very stringent timeline for the Applicant and RUS. Any application that 
is processed under this procedure will be funded only after all 
properly submitted applications have been funded and will be subject to 
all applicable requirements under this NOFA.
b. Transferability
    Under this NOFA, RUS will accept applications from NTIA that it 
determines it will not fund, but that may be consistent with RUS' BIP 
requirements and priorities. RUS will handle such applications, if 
timely received from NTIA, under its Second Review process outlined in 
this NOFA.
10. Administrator's Discretion
    RUS has determined that in the Second Round NOFA, the Administrator 
will have the opportunity to exercise discretion in the application 
evaluation process in several ways to ensure the best mix of approved 
applications consistent with the purposes of BIP. One of the ways to 
exercise such discretion is for the Administrator to have the ability 
to separately award priority points and larger grant components to 
applications that provide significant assistance to critical community 
facilities (including libraries), promote rural economic development, 
support persistent poverty counties, serve chronically underserved 
areas, demonstrate cost effectiveness, offer low-cost service options, 
and/or provide for geographic diversity.

II. Definitions

    The terms and conditions provided in this NOFA are applicable to 
and for purposes of this NOFA only. Unless otherwise provided in the 
award documents, all financial terms not defined herein shall have the 
meaning as defined by Generally Accepted Accounting Principles.
    Administrator means the RUS Administrator, or the Administrator's 
designee.
    Applicant means an entity requesting an award under this NOFA, and 
where applicable, the First Round NOFA.
    Award documents mean, as applicable, the grant documents, loan 
documents, or loan/grant combination documents.
    Award means a grant, loan, or loan/grant combination made under 
this NOFA.
    Awardee means a grantee, borrower, or borrower/grantee under this 
NOFA.
    BIP means the Broadband Initiatives Program, administered by the 
RUS, under the Recovery Act.
    Broadband means providing two-way data transmission with advertised 
speeds of at least 768 kilobits per second (kbps) downstream and at 
least 200 kbps upstream to end users, or providing sufficient capacity 
in a middle mile project to support the provision of broadband service 
to end users.
    Build-out means the construction or improvement of facilities and 
equipment as specified in an Applicant's application.
    CALEA means the Communications Assistance for Law Enforcement Act, 
47 U.S.C. 1001 et seq.
    Composite economic life means the weighted (by dollar amount of 
each class of facility) average economic life of all classes of 
facilities financed under this NOFA.
    Critical community facilities means public facilities that provide 
community services essential for supporting the safety, health, and 
well-being of residents, including, but not limited to, emergency 
response and other public safety activities, hospitals and clinics, 
libraries and schools.
    Current ratio means the current assets divided by the current 
liabilities.
    Economic life means the estimated useful service life of an asset 
as determined by RUS.
    Forecast period means the time period used by RUS to determine if 
an application is financially feasible. Financial feasibility of an 
application is based on five-year projections.
    GAAP means generally accepted accounting principles.
    Grant agreement means the agreement between RUS and the Awardee for 
grants awarded under this NOFA, including any amendments thereto, 
available for review at https://www.broadbandusa.gov.
    Grant documents mean the grant agreement and security documents 
between the RUS and the Awardee and any associated documents pertaining 
to the grant.
    Grant funds mean Federal funds provided pursuant to a grant made 
under this NOFA.
    High Speed Access means high speed broadband service to facilitate 
rural economic development, or service at the rate of at least 5 Mbps 
(upstream and downstream combined).
    Interconnection Point means the termination point of a Middle Mile 
project.
    Last Mile project means any terrestrial infrastructure project the 
predominant purpose of which is to provide broadband service to end 
users or end-user devices (including households, businesses, public 
safety entities, and critical community facilities).
    Loan means any loan made under this NOFA.
    Loan contract means the loan agreement between RUS and the Awardee, 
including all amendments thereto, available for review at https://www.broadbandusa.gov.
    Loan documents mean the loan contract, note(s), and security 
documents between the Awardee and RUS and any associated documents 
pertaining to the loan.
    Loan/grant means any loan/grant combination made under this NOFA.
    Loan/grant contract means the loan/grant contract between RUS and 
the Awardee, including all amendments thereto available at https://www.broadbandusa.gov.
    Loan/grant documents mean the loan/grant contract, note(s), and 
security documents between the Awardee and RUS and any associated 
documents pertaining to the loan/grant.
    Middle Mile project means any broadband infrastructure project the 
predominant purpose of which is to provide interoffice transport, 
backhaul,

[[Page 3825]]

internet connectivity, or special access (including point-to-point 
projects), which furthers rural economic development, submitted in an 
application or co-application.
    Pre-application expense means any reasonable expense incurred after 
the release of this NOFA to prepare an application or to respond to RUS 
inquiries about the application, including engineering costs and 
accountant/consultant fees.
    Proposed funded service area means, for Last Mile projects, the 
contiguous area (either in all or part of an existing service area or a 
new service area) where the Applicant is requesting funds to provide 
broadband service pursuant to this NOFA. An Applicant may propose to 
serve more than one proposed funded service area. For Middle Mile 
projects, the proposed funded service area shall be the locations of 
the proposed interconnection points.
    RE Act means the ``Rural Electrification Act of 1936,'' as amended 
(7 U.S.C. 901 et seq.).
    Recovery Act means the American Recovery and Reinvestment Act of 
2009, Public Law 111-5, 123 Stat. 115 (2009).
    Rural area means any area, as confirmed by the latest decennial 
census of the Bureau of the Census, which is not located within: (1) a 
city, town, or incorporated area that has a population of greater than 
20,000 inhabitants; or (2) an urbanized area contiguous and adjacent to 
a city or town that has a population of greater than 50,000 
inhabitants. For purposes of the definition of rural area, an urbanized 
area means a densely populated territory as defined in the latest 
decennial census of the Bureau of the Census.
    Rural Library means a library in a rural area.
    RUS Accounting Requirements shall mean compliance with U.S. GAAP, 
acceptable to RUS, as well as compliance with the requirements of the 
applicable regulations: 7 CFR 3015, 3016, or 3019 (for BIP Awardees in 
these CFRs the term grant recipient shall also mean loan recipient and 
loan/grant recipient) or the system of accounting prescribed by RUS 
Bulletin 1770B-1.
    Satellite Project means any project to provide satellite broadband 
service to unserved rural premises (including households, businesses, 
public safety entities, and critical community facilities), either by 
funding customer-premises equipment, terrestrial equipment, and/or 
discounted broadband service for at least one year.
    Security document means any mortgage, deed of trust, security 
agreement, financing statement, or other document that RUS determines 
is necessary to perfect its interest in the security for a loan, grant, 
or loan/grant.
    Service area means the area, including the proposed funded service 
area, where the Applicant offers or intends to offer any service.
    TIER means times interest earned ratio. TIER is the ratio of an 
Applicant's net income (after taxes) plus (adding back) interest 
expense, all divided by interest expense (existing and any new interest 
expense including the interest expense associated with the proposed 
loan).
    Unserved area means a service area with no access to facilities-
based, terrestrial broadband service, either fixed or mobile, at the 
minimum broadband transmission speed (set forth in the definition of 
broadband in this section). A premises has access to broadband service 
if it can readily subscribe to that service upon request.

III. Funding Opportunity Description

A. Funding Categories

1. Last Mile Projects
    Applications for Last Mile projects must predominantly provide 
broadband service directly to the premises or to end users. Only those 
applications whose proposed funded service area contains 75 percent or 
more rural areas, within which not more than 50 percent of the premises 
in the rural areas have High Speed Access will be considered for 
funding. The standard award is a grant/loan combination of 75 percent 
grant and 25 percent loan. Applicants may request a waiver for more 
than 75 percent grant in accordance with Section VII of this NOFA, or 
may request a greater percentage of loan.
2. Middle Mile Projects
    RUS strongly encourages applications for Middle Mile projects from 
current RUS loan and grant recipients. Such projects are complex and 
more difficult to close, especially given the limited timeframe 
available before Recovery Act funds expire.
    Applicants must propose that at least 75 percent of the 
interconnection points be in rural areas with no more than 50 percent 
of the premises having High Speed Access. The communities in which the 
interconnection points terminate shall be used to determine the 
percentage of High Speed Access. For those interconnection points which 
do not terminate in any recognizable community, the nearest Census 
Designated Place shall be used. Middle Mile projects must provide 
interoffice transport, backhaul, internet connectivity, or special 
access (including point-to-point projects). The standard award is a 
grant/loan combination of 75 percent grant and 25 percent loan. 
Applicants may request a waiver for more than 75 percent grant in 
accordance with Section VII of this NOFA, or may request a greater 
percentage of loan.
3. Satellite Projects
    Given the importance of efforts to reach unserved premises, a 
separate Satellite Project category has been established to reach 
premises left unserved by other technologies. Subsequent to the opening 
of the window for Last Mile and Middle Mile projects, the Agency will 
publish a Request for Proposals for Satellite Projects, including the 
announcement of the funding allocation.
    Applicants must propose to serve only unserved rural premises in 
any of the regions listed in Section IX.T of this NOFA. Applicants may 
propose to serve more than one region; however, Applicants must submit 
applications which are broken out for each region. Only one Applicant 
will be selected to serve a region.
    At a minimum, an application must commit to providing broadband 
service, to providing customer-premises equipment (CPE) to subscribers 
at no cost (including no costs for installation, activation, or other 
hidden fees) and to providing to such subscribers at least a 25 percent 
reduction in the Applicant's service rates as of December 1, 2009, for 
a term of at least one year.
    Subsequent to the opening of the window for Last Mile and Middle 
Mile projects, the Agency will publish a Request for Proposals for 
Satellite grants, including the announcement of the funding allocation 
and the requirements of the application. The funding award for 
Satellite Projects is grant funding.
4. Technical Assistance Grants
    Awardees under the First Round NOFA or Applicants under this NOFA 
may submit a request for an additional grant for funding for the 
purpose of developing regional broadband development strategies in 
rural areas. Technical Assistance grants may be used for the 
development of a USDA-recognized regional strategy. Under this program, 
Technical Assistance Awardees will work in public/private partnerships 
to develop a USDA-approved regional plan to provide broadband service 
in rural areas that remain critically unserved. In addition, in order 
to foster cross collaboration with other related Federal programs,

[[Page 3826]]

Technical Assistance plans may be used by Applicants for submission to 
other Federal agencies, including programs of the Department of 
Transportation, Homeland Security, the Federal Communications 
Commission (FCC), and Telemedicine Program of the Indian Health 
Service. By fostering the development of rigorous regional broadband 
strategies, RUS anticipates that Technical Assistance Awardees will 
also be able to submit more focused applications in the future to RUS 
Infrastructure Telecommunications, RUS' Rural Broadband Access, 
Community-Oriented Connectivity Broadband, and Distance Learning and 
Telemedicine grant and loan programs.
    Grants for Technical Assistance will be made in an amount up to 
$200,000. RUS, in its discretion, may decrease the requested award 
amount based on its evaluation of an application and based on the level 
of funding available for this program.
    Subsequent to the opening of the window for Last Mile and Middle 
Mile projects, the Agency will publish a Request for Proposals for 
Technical Assistance grants, including the announcement of the funding 
allocation and the requirements of the application. Applications for 
Technical Assistance grants will be accepted in paper-form only (the 
Easy Grants System will not be used to accept Technical Assistance 
grant applications), as set forth in the Request for Proposals.
5. Rural Library Broadband Grants
    Awardees from the First Round NOFA or Applicants under this NOFA 
may submit a request for a grant to reimburse the associated costs for 
connecting any rural library in their proposed funded service area, 
being constructed, or to be constructed, with funding from an award 
from USDA's Community Facilities program of the Rural Housing Service. 
Such costs need not have been addressed in the original application 
submitted under the First Round NOFA or Second Round NOFA.
    Subsequent to the opening of the window for Last Mile and Middle 
Mile projects, the Agency will publish a Request for Proposals for 
Rural Library Broadband grants, including the announcement of the 
funding allocation and the requirements of the application. 
Applications for Rural Library Broadband grants will be accepted in 
paper-form only, as set forth in the Request for Proposals.

B. Available Funds

1. General
    Approximately $2,200,000,000 in funding has been set aside for 
funding opportunities under this NOFA.\19\
---------------------------------------------------------------------------

    \19\ This amount may be increased to include unobligated funds 
from the First Round NOFA.
---------------------------------------------------------------------------

2. Funding Limits
    Award amounts under this NOFA will be limited as follows:
a. Last Mile Projects
    Up to $1,700,000,000 is available for loans or loan/grant 
combinations for Last Mile projects.
b. Middle Mile Projects
    Up to $300,000,000 is available for loans or loan/grant 
combinations for Middle Mile projects.
c. Satellite Project, Rural Library Broadband, and Technical Assistance 
Projects
    Up to $100,000,000 is available for grants for Satellite projects, 
as well as any and all funds not obligated for Last Mile and Middle 
Mile projects; and up to $5,000,000 is available for grants for Rural 
Library Broadband and Technical Assistance projects.
d. Reserve
    Up to $95,000,000 is available for a reserve.
3. Repooling
    RUS retains the discretion to divert funds from one category of 
projects to another.
4. Award Period
    All awards must be made and funding obligated by September 30, 
2010. While the completion time will vary depending on the complexity 
of the project, award recipients must substantially complete projects 
supported by this program within two years, and projects must be fully 
completed within three years of the date of issuance of the award.
5. Type of Funding Instrument
    The funding instruments will be grants, loans, and loan/grant 
combinations.

IV. Eligibility Information

A. General

    Applicants must satisfy the following eligibility requirements to 
qualify for funding.

B. Eligible Entities

1. Last Mile and Middle Mile Projects
    The following entities are eligible to apply for assistance:
    a. States, local governments, or any agency, subdivision, 
instrumentality, or political subdivision thereof;
    b. A territory or possession of the United States;
    c. An Indian tribe (as defined in section 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 450b));
    d. A native Hawaiian organization;
    e. A non-profit foundation, a non-profit corporation, a non-profit 
institution, or a non-profit association;
    f. Other non-profit entities;
    g. For-profit corporations;
    h. Limited liability companies; and
    i. Cooperative or mutual organizations.
2. Satellite Projects
    a. A satellite Internet Service Provider (ISP);
    b. A reseller of satellite ISP service;
    c. A distributor or dealer of satellite ISP service; and
    d. A consortium of a, b, or c above.

C. Application Eligibility Factors for Last Mile and Middle Mile 
Projects

    The following eligibility factors establish basic requirements that 
all Applicants must comply with in order to be eligible for an award. 
Applicants failing to comply with these requirements will not have 
their applications considered.
1. Fully Completed Application
    Applicants must submit a complete application and provide all 
supporting documentation required for the application.
2. Timely Completion
    A project is eligible only if the application demonstrates that the 
project can be ``substantially completed'' within two years of the date 
of issuance of the award and fully complete within three years of the 
date of the award. A project is considered ``substantially complete'' 
when an Awardee has received 67 percent of its award funds.
3. Technical Feasibility
    Only projects that RUS determines to be technically feasible will 
be eligible for an award under this NOFA. Applicants will be required 
to submit a system design, network diagram and project timeline, 
certified by a professional engineer, for any application requesting 
funds over $1 million.

[[Page 3827]]

4. Nondiscrimination and Interconnection \20\
---------------------------------------------------------------------------

    \20\ Nothing herein shall be construed to affect the 
jurisdiction of the Federal Communications Commission with respect 
to such matters.
---------------------------------------------------------------------------

    All Applicants must commit to the following Nondiscrimination and 
Interconnection Obligations: (a) Adhere to the principles contained in 
the FCC's Internet Policy Statement (FCC 05-151, adopted August 5, 
2005) or any subsequent ruling or statement; (b) not favor any lawful 
Internet applications and content over others; (c) display any network 
management policies in a prominent location on the service provider's 
Web page and provide notice to customers of changes to these policies 
(Awardees must describe any business practices or technical mechanisms 
they employ, other than standard best efforts Internet delivery, to 
allocate capacity; differentiate among applications, providers, or 
sources; limit usage; and manage illegal or harmful content); (d) 
connect to the public Internet directly or indirectly, such that the 
project is not an entirely private closed network; and (e) offer 
interconnection, where technically feasible without exceeding current 
or reasonably anticipated capacity limitations, on reasonable rates and 
terms to be negotiated with requesting parties. This includes both the 
ability to connect to the public Internet and physical interconnection 
for the exchange of traffic. Applicants must disclose their proposed 
interconnection, nondiscrimination and network management practices 
with the application.
    All these requirements shall be subject to the needs of law 
enforcement and reasonable network management. Thus, Awardees may 
employ generally accepted technical measures to provide acceptable 
service levels to all customers, such as caching (including content 
delivery networks) and application-neutral bandwidth allocation, as 
well as measures to address spam, denial of service attacks, illegal 
content, and other harmful activities.
    In addition to providing the required connection to the Internet, 
Awardees may offer managed services, such as telemedicine, public 
safety communications, distance learning, and virtual private networks 
that use private network connections for enhanced quality of service, 
rather than traversing the public Internet. In evaluating the 
reasonableness of network management techniques, RUS will be guided by 
any applicable rules or findings established by the FCC, whether by 
rulemaking or adjudication.
    An Awardee may satisfy the requirement for interconnection by 
negotiating in good faith with all parties making bona fide requests. 
The Awardee and requesting party may negotiate terms such as business 
arrangements, capacity limits, financial terms, and technical 
conditions for interconnection. If the Awardee and requesting party 
cannot reach agreement, they may voluntarily seek an interpretation by 
the FCC of any FCC rules implicated in the dispute. If an agreement 
cannot be reached within 90 days, the party requesting interconnection 
may notify RUS in writing of the failure to reach satisfactory terms 
with the Awardee. The 90-day limit is to encourage the parties to 
resolve differences through negotiation.
    With respect to non-discrimination, those who believe an Awardee 
has failed to meet the non-discrimination obligations should first seek 
action at the FCC of any FCC rules implicated in the dispute. If the 
FCC chooses to take no action, those seeking recourse may notify RUS in 
writing about the alleged failure to adhere to commitments of the 
award.
    Entities that successfully reach an agreement to interconnect with 
a system funded under BIP may not use that interconnection agreement to 
provide services that duplicate services provided by projects funded by 
outstanding telecommunications loans made under the RE Act. Further, 
interconnection may not result in a BIP-funded facility being used for 
ineligible purposes under the Recovery Act.
    These conditions apply to the Awardee and will remain in effect for 
the life of the Awardee's federally funded facilities and equipment 
used in the project. These conditions will not apply to any existing 
network arrangements or to non-Awardees using the network. Note, 
however, that the Awardee may negotiate contractual covenants with 
other broadband service providers engaged to deploy or operate the 
network facilities and pass these conditions through to such providers. 
Awardees that fail to accept or comply with the terms listed above may 
be considered in default of their loan or grant agreements. RUS may 
exercise all available remedies to cure the default.
 5. Service Areas
a. Eligible Service Areas for Last Mile and Middle Mile Projects
    Applications for Last Mile projects must predominantly provide 
broadband service directly to the premises or to end users in a 
proposed funded service area(s) that is/are 75 percent or more rural, 
within which not more than 50 percent of the premises in the rural 
areas have High Speed Access.
    Applications for Middle Mile projects must provide interoffice 
transport, backhaul, internet connectivity or special access to 
interconnection points. At least 75 percent of the interconnection 
points must be in rural areas with no more than 50 percent of the 
premises having High Speed Access. The communities in which the 
interconnection points terminate shall be used to determine the 
percentage of High Speed Access. For those interconnection points which 
do not terminate in any recognizable community, the nearest Census 
Designated Place shall be used.
b. Ineligible Service Areas for Last Mile and Middle Mile Projects
i. Overlapping Service Areas
    RUS will not fund more than one project to serve any given 
geographic area. If more than one application would serve any 
overlapping geographic area, the application with the highest score 
will be funded; other applications for the same area will be rejected 
in their entirety unless RUS, in its discretion, determines that the 
extent of the overlap is de minimis, or less than 25 percent of each 
application's entire proposed funded service area. Notwithstanding, 
RUS, in its discretion, may readjust the proposed funded service area 
in any offer of funding to eliminate overlapping areas between one or 
more applications in order to promote rural economic development. The 
Agency's proposal for service area readjustment may include a 
requirement that the Applicant will not compete in the excluded service 
area.
    For the purposes of the Agency's determination of overlap, funding 
categories will not be subject to overlap analysis. For example, Last 
Mile projects shall not be considered to overlap with Middle Mile 
projects.
ii. Incumbent Service Areas
    For all applications, the existing service area of RUS borrowers in 
which they provide broadband service shall not be eligible. These areas 
can be found at https://www.broadbandUSA.gov. In addition, the service 
areas of Awardees under the first round BIP/BTOP NOFA shall also be 
ineligible for funding.
6. Fully Funded
    A project is eligible only if, after approval of the award, all 
project costs can be fully funded. To demonstrate this, Applicants must 
include with the application evidence of all funding,

[[Page 3828]]

other than the RUS award, necessary to support the project, such as 
bank account statements or firm letters of commitment from equity 
participants or other lenders documenting the timely availability of 
funds. Equity partners that are not specifically identified by name 
will not be considered in the financial analysis of the application.
7. Financial Feasibility and Sustainability
    Only projects that RUS determines to be financially feasible, and/
or sustainable will be eligible for an award under this NOFA. A project 
is financially feasible when the Applicant is able to generate 
sufficient revenues to cover its expenses, has sufficient cash flow to 
service its debts and obligations as they come due, and meet the 
minimum TIER requirement of one and generate a minimum current ratio of 
one by the end of the forecast period, as determined by RUS. In 
addition, the project must also demonstrate a positive cash balance for 
each year of the forecast period.
8. Leveraging of Recovery Act Funds
    In order to leverage funds to provide Federal assistance cost-
effectively to the maximum number of eligible projects so as to ensure 
that as many households as possible that do not have sufficient access 
to high speed broadband will receive service, RUS has determined to 
limit Federal assistance under this NOFA for Last Mile projects to 
$10,000 per premises passed in the proposed funded service area, unless 
a waiver is requested from the Administrator. The Administrator may 
waive this funding limitation if he determines that the application 
provides assistance to a significant number of critical community 
facilities, supports a recognized rural regional development plan, 
supports public safety projects, enhances broadband service to rural 
libraries, or supports persistent poverty counties or chronically 
unserved areas such as Indian country. If the waiver request is denied, 
any award may be made contingent on improving cost effectiveness, or 
the application may be placed in the second review process and the 
Applicant will have an opportunity to revise its proposal. To calculate 
the cost per premises passed, the Applicant shall divide the total 
award requested in the application by the total number of premises 
passed with facilities funded by an award.
9. Service Requirements
    Projects must provide broadband service proposed in the application 
for the composite economic life of the facilities, as approved by RUS, 
or as provided in the Award Documents for 100 percent grants, starting 
from the date of project completion.

D. Eligible Cost Purposes

1. General
    Award funds must be used only to pay for eligible costs. Eligible 
costs must be consistent with the cost principles identified in the 
applicable OMB circulars.\21\ In addition, costs must be reasonable, 
allocable, necessary to the project, and comply with the Recovery Act 
requirements. Any application that proposes to use any portion of the 
award funds for any ineligible cost will be rejected.
---------------------------------------------------------------------------

    \21\ For example, there is a set of Federal principles for 
determining eligible or allowable costs. Allowability of costs will 
be determined in accordance with the cost principles applicable to 
the entity incurring the costs. Thus, allowability of costs incurred 
by state, local or federally-recognized Indian tribal governments is 
determined in accordance with the provisions of OMB Circular A-87, 
``Cost Principles for State, Local and Indian Tribal Governments.'' 
The allowability of costs incurred by non-profit organizations is 
determined in accordance with the provisions of OMB Circular A-122, 
``Cost Principles for Non-Profit Organizations.'' The allowability 
of costs incurred by institutions of higher education is determined 
in accordance with the provisions of OMB Circular A-21, ``Cost 
Principles for Educational Institutions.'' The allowability of costs 
incurred by hospitals is determined in accordance with the 
provisions of Appendix E of 45 CFR part 74, ``Principles for 
Determining Costs Applicable to Research and Development under 
Grants and Contracts with Hospitals.'' The allowability of costs 
incurred by commercial organizations and those non-profit 
organizations listed in Attachment C to Circular A-122 is determined 
in accordance with the provisions of the Federal Acquisition 
Regulation (FAR) at 48 CFR part 31. See 7 CFR 3015, 3016, or 3019 
(governing the Department of Agriculture's implementation of OMB 
requirements).
---------------------------------------------------------------------------

2. Eligible and Ineligible Costs
a. Last Mile and Middle Mile Projects
i. Eligible Infrastructure Award Expenses
    Award funds may be used to pay for the following expenses:
    AA. To fund the construction or improvement of all facilities 
required to provide broadband service, including facilities required 
for providing other services over the same facilities, and including 
equipment required to comply with CALEA;
    BB. To fund the cost of leasing facilities required to provide 
broadband service if such lease qualifies as a capital lease under 
GAAP. Award funds may be used to fund the cost of a capital lease for 
no longer than the first three years after the date of the Award 
Documents; and
    CC. To fund reasonable pre-application expenses in an amount not to 
exceed five percent of the award. Pre-application expenses may be 
reimbursed if they are incurred after the publication date of this 
NOFA.
ii. Ineligible Infrastructure Award Expenses
    Award funds may not be used for any of the following purposes:
    AA. To fund operating expenses of the Applicant;
    BB. To fund costs incurred prior to the date on which the 
application is submitted, with the exception of eligible pre-
application expenses;
    CC. To fund an acquisition, including the acquisition of the stock 
of an affiliate, or the purchase or acquisition of any facilities or 
equipment of an affiliate. Due to the competitive nature of the 
application process, if affiliated transactions are contemplated in the 
application, approval of the application does not constitute approval 
to enter into affiliated transactions;
    DD. To fund the purchase or lease of any vehicle other than those 
used primarily in construction or system improvements;
    EE. To fund broadband facilities leased under the terms of an 
operating lease;
    FF. To fund merger or consolidation of entities;
    GG. To fund costs incurred in acquiring spectrum as part of an FCC 
auction or in a secondary market acquisition; and
    HH. To fund the costs of a satellite launch, construction, 
purchase, or leasing of transponder space.
b. Eligible Satellite Award Expenses
    An eligible Satellite project award may be used by the Applicant:
    i. To fund customer-premises equipment up to $750 per subscriber 
(inclusive of the CPE, installation, and activation fees);
    ii. To reduce the monthly service cost; and/or
    iii. To fund the construction of terrestrial ground facilities, 
including equipment required to comply with CALEA.
c. Eligible Rural Library Broadband Grants Expenses
    Award funds may be used by the Applicant to pay for the costs of 
the last mile connection to the rural library.
d. Eligible Technical Assistance Grants Expenses
    Award funds may be used by the Applicant to fund the provision of 
technical assistance for the development of a regional broadband plan. 
Such technical assistance must include both planning and economic 
expertise.

[[Page 3829]]

V. Application and Submission Information

A. Request for Application Package

    Complete application packages, including required Federal forms and 
instructions, will be available at https://www.broadbandusa.gov. 
Additional information can be found in the Application Guidelines at 
https://www.broadbandusa.gov. This Web site will be updated regularly.
    Applicants that are eligible for both BIP and BTOP have the option 
to apply to either agency for funding for the same project. However, 
applicants should apply to only one agency for a given project. RUS 
strongly recommends that applications for Middle Mile projects that are 
current RUS loan or grant recipients and applications with Last Mile 
projects that propose funding service areas that are 75 percent or more 
rural should apply to BIP for funding. RUS strongly recommends that 
applicants with Middle Mile projects that are not current RUS loan or 
grant recipients or applicants with Last Mile projects that propose 
service areas that are less than 75 percent rural should apply to BTOP 
for funding. This recommendation is necessary to improve the efficiency 
of both BIP and BTOP and to leverage the core expertise of the 
agencies. The RUS and NTIA will coordinate to identify potential 
service area overlaps, and will resolve such conflicts in the manner 
that best satisfies the statutory objectives of both programs.

B. Registration

1. DUNS Number
    All Applicants must supply a Dun and Bradstreet Data Universal 
Numbering System (DUNS) number. Applicants can receive a DUNS number at 
no cost by calling the dedicated toll-free DUNS number request line at 
1-866-705-5711 or via the Internet at https://www.dunandbradstreet.com.
2. Central Contractor Registration (CCR)
    All Applicants must provide a CCR (CAGE) number evidencing current 
registration in the CCR database. If the Applicant does not have a 
current CCR (CAGE) number, the Applicant must register in the CCR 
system available at https://www.ccr.gov/StartRegistration.aspx. 
Applicants are encouraged to register early due to potential delays in 
registration.

C. Contents of the Application

1. Requirements for Single Applications from Same Entity for Last Mile 
and Middle Mile Projects
    A complete application will include the following:
    a. The identity of the Applicant and general Applicant and project 
information including:
    i. A description of the project that will be made public consistent 
with the requirements of the Recovery Act; and
    ii. The estimated dollar amount of the funding request;
    b. An executive summary of the project as detailed in the 
application;
    c. A description of the proposed funded service area including the 
number of premises passed including the number of critical community 
facilities, and public safety entities to be passed and/or involved in 
the project;
    d. Subscriber projections including the number of subscribers for 
broadband, video and voice services and any other service that may be 
offered;
    e. The number of jobs the project is expected to create or save;
    f. A map, as furnished on https://www.broadbandUSA.gov of the 
proposed funded service areas indentifying the unserved areas and the 
areas without High Speed Access;
    g. The names of the communities, census designated places or other 
areas, including tribal lands, within the proposed funded service area; 
information as to whether the communities and areas identified above 
are rural or non-rural; the methodology for making the above 
classifications; and for Middle Mile projects, identification of the 
locations of the interconnection points.
    h. A description of the proposed service offerings, and the 
associated pricing plan, that the applicant proposes to offer, as well 
as the advertised prices of service offerings by competitors in the 
same area and; an explanation of why the proposed service offerings are 
affordable;
    i. A description of the applicant's nondiscrimination, 
interconnection, and network management plans;
    j. A system design which includes a description of the proposed 
technology used to deliver the broadband service demonstrating that all 
premises in the proposed funded service area will be offered broadband 
service, a network diagram, a timeline including key milestones for 
implementation of the project, and a construction schedule all of which 
must be certified by a professional engineer who is certified in at 
least one of the states where there is project construction, if the 
funding request exceeds $1,000,000, unless the Administrato