Sustainability Plans

From 54.623(a)(6)(iv):

Consortia that seek funding to construct and own their own facilities or obtain indefeasible right of use (IRU) or capital lease interests are required to submit a sustainability plan with their funding requests demonstrating how they intend to maintain and operate the facilities that are supported over the relevant time period. Applicants may include by reference other portions of their applications (e.g., project management plan, budget). The sustainability plan must, at a minimum, address the following points:

• Projected sustainability period – Indicate the sustainability period, which at a minimum is equal to the useful life of the funded facility. The consortium’s budget must show projected income and expenses (i.e., for maintenance) for the project at the aggregate level, for the sustainability period.
• Principal factors – Discuss each of the principal factors that were considered by the participant to demonstrate sustainability. This discussion must include all factors that show that the proposed network will be sustainable for the entire sustainability period. Any factor that will have a monetary impact on the network must be reflected in the applicant’s budget.
• Terms of membership in the network – Describe generally any agreements made (or to be entered into) by network members (e.g., participation agreements, memoranda of understanding, usage agreements, or other similar agreements). The sustainability plan must also describe, as applicable:
  • Financial and time commitments made by proposed members of the network,
  • If the project includes excess bandwidth for growth of the network, describe how such excess bandwidth will be financed, and
  • If the network will include ineligible health care providers and other network members, describe how fees for joining and using the network will be assessed.
• Ownership structure – Explain who will own each material element of the network (e.g., fiber constructed, network equipment, end user equipment). For purposes of this subsection, “ownership” includes an indefeasible right of use interest. Applicants must clearly identify the legal entity that will own each material element. Applicants must also describe any arrangements made to ensure continued use of such elements by the network members for the duration of the sustainability period.
• Sources of future support – Describe other sources of future funding, including fees to be paid by eligible health care providers and/or non-eligible entities.
• Management – Describe the management structure of the network for the duration of the sustainability period. The applicant’s budget must describe how management costs will be funded.

Material change to sustainability plan

A consortium that is required to file a sustainability plan must maintain its accuracy. If there is a material change to a required sustainability plan that would impact projected income or expenses by more than 20 percent or $100,000 from the previous submission, or if the applicant submits a funding request based on a new Request for Funding (i.e., a new competitively bid contract), the consortium is required to re-file its sustainability plan. In the event of a material change, the applicant must provide USAC with the revised sustainability plan no later than the end of the relevant quarter, clearly showing (i.e., by redlining or highlighting) what has changed.