Rural Health Care

Step 4: Evergreen Contracts

Most applicants to the Rural Health Care Program have contracts. Only those satisfying the program definition of a contract receive evergreen status (see Glossary of Terms: Evergreen Contracts).

Most applicants to the Rural Health Care Program have contracts. For an applicant to be considered under contract, the contract must identify both parties to the contract, be signed and dated by both parties, specify the type and terms of service, have a specific duration, and be reviewed and verified as to these details by USAC.

Applicants that submit contracts meeting these requirements will be considered to have "evergreen status" meaning that for the life of the contract (without any optional extension), they need not re-compete the service or post the Description of Services Requested and Certification Form (Form 465), and may annually apply for support of the contracted service by filing a Funding Request and Certification Form (Form 466) or Internet Service Funding Request and Certification Form (Form 466-A). USAC reviews all submitted contracts, determines if evergreen status applies, and logs the contract end date.

A health care provider that submits a contract that does not meet evergreen requirements is treated as having a month-to-month, tariffed service and may not receive support prior to selection of the most cost-effective service after the required 28-day posting of Form 465 each Funding Year. Support for a month-to-month service cannot start before this selection and the cost of a service termination should not be a consideration in determining the most cost-effective service.

The contract status of an applicant is indicated in the applicant's Funding Commitment Letter, which shows "contract" for applicants with evergreen contract status or "tariff" for applicants not considered to be under contract.

Applicants with evergreen contracts need not post Form 465 during the life of that contract, but must post a Form 465 to add service, make cardinal changes, renew, or extend the contract (including optional extensions).

Applicants whose contracts have evergreen status are reminded to post Form 465 and re-compete and select a service provider before the life of the contract ends. An optional contract renewal counts as a new contract and must be selected through posting Form 465. Evergreen contract applicants that post a Form 465 should advise any bidders of their contract end date and whether it is after the end of the Funding Year. The contract end date also should be indicated on their new Form 465.


Last modified on 1/6/2006