FCC Record, Volume 27, No. 20, Pages 16663 to 16919, Supplement (December 2012) Page: 16,703
iii, 16663-16919 p. ; 28 cm.View a full description of this book.
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* Bulk Buying Capability Consortium bulk buying capability, when combined with
competitive bidding and multi-year funding commitments, enabled Pilot projects to obtain
higher bandwidth, lower rates, and better service quality than would otherwise have been
possible."8
55. Commenters generally support a consortium approach and agree that it can provide a number
of benefits, including better pricing and administrative efficiency.'39
56. In light of these benefits, we adopt a number of rules adopted today to encourage HCPs to
work together in consortia to meet their broadband connectivity needs. Immediately below, we conclude
that non-rural HCPs may participate and receive support as part of consortia, with some limitations. We
also adopt a "hybrid" approach that allows consortia to receive support through a single program for
services and, where necessary, self-construction of infrastructure. We adopt a uniform HCP
contribution percentage applicable to all HCPs and to all funded costs to simplify administration.' In
sections V and VI below, we adopt additional measures. We make support for certain costs available
only to consortia - e.g., upfront payments for build-out costs and IRUs, equipment necessary for the
formation of networks, and self-construction charges.42 We also allow consortia to submit a single
application covering all members, and we provide additional guidance based on Pilot Program experience
for consortium applications.'43 Finally, we facilitate group buying arrangements by providing for multi-
year commitments and allowing HCPs to "opt into" competitively bid master service agreements
previously approved by USAC or other federal, state, Tribal, or local government agencies, without
undergoing additional competitive bidding solely for the purposes of receiving Healthcare Connect Fund
support.'"
(Continued from previous page)
connections within the network terminate at an eligible rural entity. USAC Observations Letter at 5. As a technical
and financial matter, this can lead to less efficient network design. For example, it may be more efficient to design
the middle-mile component of a regional or statewide network by using connections between non-rural sites, rather
than routing traffic through a rural site. Id.
'3s See Pilot Evaluation, 27 FCC Rcd at 9436-37, paras. 81-83; see also USAC Observations Letter at 1-2 (use of
centralized contracting and invoicing; use of Master Services Agreements). The Commission's experience with the
Pilot Program shows that consortium applications drive down costs and make it possible for HCPs to purchase
higher capacity services. Service providers bidding on consortium RFPs are more willing to offer larger discounts
because the consortium has multiple sites and presents a more appealing commercial proposition to the service
providers. Consortium applications also encourage vendors to bid on providing broadband to sites where broadband
might not already be available, because a single RFP includes all consortium HCP sites (both those that have
broadband available to them and those that do not). See Pilot Evaluation, 27 FCC Rcd at 9437, para. 82.
39 See. e.g.. Broadband Principals Comments at 10 (the reality is that many small HCPs may prefer to run their
telecommunications through a group which can provide expertise and help them realize economies of scale);
Internet2 Comments at 17; ACS PN Comments at 3; Geisinger PN Comments at 2; NCTN PN Comments at 2; UTN
PN Comments at 1.
14 See infra section IV.C.
141 See infra section IV.D.
142 See infra sections V.A.6, V.B, IV.C.
'43 See generally infra section VI.
'" See infra sections VI.C.4, VI.B.6.16703
Federal Communications Commission
FCC 12-150
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United States. Federal Communications Commission. FCC Record, Volume 27, No. 20, Pages 16663 to 16919, Supplement (December 2012), book, December 2012; Washington D.C.. (https://digital.library.unt.edu/ark:/67531/metadc171156/m1/50/: accessed April 24, 2024), University of North Texas Libraries, UNT Digital Library, https://digital.library.unt.edu; crediting UNT Libraries Government Documents Department.