Public Telecommunications Facilities Program: Closing Date

SUMMARY: The National Telecommunications and Information Administration

(NTIA), U.S. Department of Commerce, announces the solicitation of

applications for planning and construction grants for public

telecommunications facilities under the Public Telecommunications

Facilities Program (PTFP).

Applicants for matching grants under the PTFP must file their

applications on or before January 14, 1999. NTIA anticipates making

grant awards by September 30, 1999. NTIA shall not be liable for any

proposal preparation costs.

Approximately $21 million is available for FY 1999 for PTFP grants

pursuant to P.L. 105-277, the ``Department of Commerce and Related

Agencies Appropriations Act, 1999.'' The amount of a grant award by

NTIA will vary, depending on the approved project. For fiscal year

1998, NTIA awarded $19.8 million in funds to 115 projects. The awards

ranged from $3,000 to $978,033.

The applicable Rules for the PTFP were published on November 8,

1996. These rules, 15 CFR Part 2301 et seq. will be in effect for FY

1999 PTFP applications. Certain requirements of the PTFP at 15 CFR Part

2301 are modified in this Notice. Copies of the 1996 Rules will be

distributed as part of the PTFP Application Kit and applicants are

cautioned not to use older versions of the PTFP Rules which were

published in 1991.

Parties interested in applying for financial assistance should

refer to these rules and to the authorizing legislation (47 U.S.C.

Secs. 390-393, 397-399b) for additional information on the program's

goals and objectives, eligibility criteria, evaluation criteria, and

other requirements.

DATES: Pursuant to 15 CFR Sec. 2301.8(b), the Administrator of NTIA

hereby establishes the closing date for the filing of applications for

grants under the PTFP. The closing date selected for the submission of

applications for 1999 is January 14, 1999. Applications must be

received prior to 8 p.m. on or before January 14, 1999. Applicants

sending an application should submit an original and five copies to the

place indicated in the Address section below. Applicants sending

applications by the United States Postal Service or commercial delivery

services must ensure that the carrier will be able to guarantee

delivery of the application by the Closing Date and Time. NTIA will not

accept mail delivery of applications posted on the Closing Date or

later and received after the above deadline. However, if an application

is received after the Closing Date due to (1) carrier error, when the

carrier accepted the package with a guarantee for delivery by the

Closing Date, or (2) significant weather delays or natural disasters,

NTIA will, upon receipt of proper documentation, consider the

application as having been received by the deadline. Applicants

submitting applications by hand delivery are notified that, due to

security procedures in the Department of Commerce, all packages must be

cleared by the Department's security office. Entrance to the Department

of Commerce Building for security clearance is on the 15th Street side

of the building. Applicants whose applications are not received by the

deadline are hereby notified that their applications will not be

considered in the current grant cycle and will be returned to the

applicant. See 15 CFR Sec. 2301.8(c); but see also 15 CFR Sec. 2301.26.

NTIA will also return any application which is substantially

incomplete, or when the Agency finds that either the applicant or

project is ineligible for funding under 15 CFR Sec. 2301.3 or

Sec. 2301.4. The Agency will inform the applicant of the reason for the

return of any application.

ADDRESSES: To obtain an application package, submit completed

applications, or send any other correspondence, write to: NTIA/PTFP,

Room H-4625, U.S. Department of Commerce, 14th Street and Constitution

Avenue, N.W., Washington, DC 20230.

FOR FURTHER INFORMATION CONTACT: Dennis R. Connors, Director, Public

Broadcasting Division, telephone: (202) 482-5802; fax: (202) 482-2156.

Information about the PTFP can also be obtained electronically via

Internet (http://www.ntia.doc.gov).

SUPPLEMENTARY INFORMATION:

I. Application Forms and Regulations

To apply for a PTFP grant, an applicant must file an original and

five copies of a timely and complete application on a current form

approved by the Agency. The current application form will be provided

to applicants as part of the application package. This form expires on

November 30, 2000, and no previous versions of the form may be used.

(In accordance with the Paperwork Reduction Act, the current

application form has been cleared under OMB control no. 0660-0003.)

Applications submitted by facsimile or electronic means are not

acceptable.

All persons and organizations on the PTFP's mailing list will be

sent a copy of the current application form and the Final Rules. Those

not on the mailing list may obtain copies by contacting the PTFP at the

telephone and fax numbers or at the Internet or mailing addresses noted

above. Prospective applicants should read the Final Rules carefully

before submitting applications. Applicants whose applications were

deferred in FY 1998 will be mailed pertinent PTFP materials and

instructions for requesting reactivation of their applications.

Based upon NTIA's experience in implementing the PTFP during the

1998 grant round, NTIA has determined that it is in the best interests

of NTIA and applicants to modify or waive certain requirements

contained in the PTFP regulations at 15 CFR Part 2301. These changes,

which are applicable to the FY 1999 PTFP applications and resulting

awards only, are indicated in italics below. Dependent upon the

effectiveness of these changes, amendments may be made to the PTFP

regulations to implement these changes.

Section 2301.10 Applications Resulting From Catastrophic Damage or

Emergency Situations

Section 2301.10 provides for submission of applications resulting

from catastrophic damage or emergency situations. Section 2301.10(a)

requires that an emergency ``application may be filed with a request

for a waiver of the Closing Date.'' Section 2301.10(f) requires that

emergency ``applications will be subject to the same evaluation and

selection process followed for applications received in the normal

application cycle.'' This section has been revised for FY 1999 PTFP

applicants to clarify that (1) an emergency application may be filed at

any time, (2) an emergency application will be evaluated according the

evaluation criteria set forth on Sec. 2301.17(b) and the degree to

which the application satisfies the purposes of this section, and (3)

the selection process that will be used in determining a grant award.

(a) For FY 1999 PTFP applicants, when an eligible broadcast

applicant

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suffers catastrophic damage to the basic equipment essential to its

continued operation as a result of a natural or manmade disaster, or as

the result of significant equipment failure, and is in dire need of

assistance in funding replacement of the damaged equipment, it may file

an emergency application for PTFP funding at any time. This section is

limited to equipment essential to a station's continued operation such

as transmitters, tower, antennas, STL's or similar equipment which, if

the equipment failed, would result in a complete loss of service to the

community.

(b) The emergency application must set forth the circumstances that

prompt the request and be accompanied by appropriate supporting

documentation.

(c) An application may be granted an award only if it is determined

that (1) the emergency satisfies the requirements of subparagraph (a)

of this section, and (2) the applicant either carried adequate

insurance or had acceptable self-insurance coverage.

(d) Applicants claiming significant failure of equipment must

document the circumstances of the equipment failure and demonstrate

that the equipment has been maintained in accordance with standard

broadcast engineering practices.

(e) Applications filed and accepted pursuant to this section must

contain all of the information required by the Agency application

materials and must be submitted in the number of copies specified by

the Agency.

(f) The application will be subject to the evaluation criteria set

forth in 2301.17(b). The PTFP Director takes into account program staff

evaluations (including the outside reviewers) the availability of

funds, the type of project and broadcast priorities set forth at

2301.4(b), and whether the applicant has any current NTIA grants. The

Director presents recommendations to the OTIA Associate Administrator

for review and approval. Upon approval by the OTIA Associate

Administrator, the Director's recommendation will be presented to the

Selecting Official, the NTIA Administrator. The Administrator makes

final award selections taking into consideration the Director's

recommendation and the degree to which the application satisfies the

program's stated purposes set forth at 2301.1(a) and (c) and this

section.

Section 2301.11 Service of Applications

Section 2301.11 provides that: ``On or before the closing date, all

new or deferred applicants must serve a summary copy of the application

on the following Agencies:

(a) In the case of an application for a construction grant for

which FCC authorization is necessary, the Secretary, Federal

Communications Commission * * *

(b) The state telecommunications agency(-ies) if any, having

jurisdiction over the development of broadcast and/or non broadcast

telecommunications in the state(s) and community(-ies) to be served by

the proposed project * * *

(c) The state office established to review applications under

Executive Order 12372.

Sec. 2301.11(a)

For the FY 1999 PTFP, applicants are not required to submit copies

of their PTFP applications to the FCC, nor will they be required to

submit copies of the FCC transmittal cover letters as part of their

PTFP applications. NTIA routinely notifies the FCC of applications

submitted for funding which require FCC authorizations.

Sec. 2301.11(b)

For the FY 1999 PTFP, applicants for distance learning projects are

not required to notify every state telecommunications agency in a

potential service area. NTIA has found that state telecommunication

agency input has been useful with regard to broadcast projects, but has

received little input from state agencies with regard to distance

learning projects. Since many distance learning applications propose

projects which are nationwide in nature, NTIA believes that the

requirement to provide a summary copy of the application in every state

telecommunications agency in a potential service area is unduly

burdensome to applicants. NTIA, however, does expect that distance

learning applicants will submit documentation that they have

coordinated their project with appropriate state telecommunications

agencies in their service area.

Section 2301.12 Federal Communications Commission Authorizations

Section 2301.12(a) provides, in part, that ``Each applicant whose

project requires FCC authorization must file an application for that

authorization on or before the closing date. NTIA recommends that its

applicants submit PTFP-related FCC applications to the FCC at least 60

days prior to the PTFP closing date.''

For the FY 1999 PTFP, applicants may submit applications to the FCC

after the closing date, but do so at their own risk. Applicants are

urged to submit their FCC applications with as much time before the

PTFP closing date as possible. No grant will be awarded for a project

requiring FCC authorization until confirmation has been received by

NTIA from the FCC that the necessary authorization will be issued.

Section 2301.12(b) provides that ``In the case of FCC

authorizations where it is not possible or practical to submit the FCC

application with the PTFP application, such as C-band satellite uplinks

* * * a copy of the FCC application as it will be submitted to the FCC,

or the equivalent engineering data, must be included in the PTFP

application.''

For the FY 1999 PTFP applications, since there is no potential for

terrestrial interference with Ku-band satellite uplinks, grant

applicants for Ku-band satellite uplinks may submit FCC applications

after a PTFP award is made. Grant recipients for Ku-band satellite

uplinks will be required to document receipt of FCC authorizations to

operate the uplink prior to the release of Federal funds.

Section 2301.12(d) provides that ``Any FCC authorization required

for the project must be in the name of the applicant for the PTFP

grant.''

For the FY 1999 PTFP applications, NTIA may accept FCC

authorizations that are in the name of an organization other than the

PTFP applicant in certain circumstances. Applicants requiring the use

of FCC authorizations issued to another organization should discuss in

the application Program Narrative why the FCC authorization must be in

the other organization's name. NTIA believes that such circumstances

will be rare and, in our experience, are usually limited to

authorizations such as those for microwave interconnections or

satellite uplinks.

Section 2301.12(g) provides that ``If the applicant fails to file

the required FCC application(s) by the closing date * * * the Agency

may reject or return the application.''

As noted above, for the FY 1999 PTFP applications, NTIA does not

require that the FCC applications must be filed by the closing date.

While NTIA is permitting submission of FCC applications after the

closing date, applicants are reminded that they must continue to

provide copies of FCC applications, as they were filed or will be

filed, or equivalent engineering data, in the PTFP application so NTIA

can properly evaluate the equipment request. These include applications

for permits, construction permits and licenses already received for:

(1) Construction of broadcast station

[[Page 60194]]

(including a digital broadcasting facility), or translator, (2)

microwave facilities, (3) ITFS authorizations, (4) SCA authorizations,

and (5) requests for extensions of time.

Applicants should note that they must continue to comply with the

provisions of Executive Order 12372, ``Intergovernmental Review of

Federal Programs.'' The Executive Order requires applicants for

financial assistance under this program to file a copy of their

application with the Single Points of Contact (SPOC) of all states

relevant to the project. Applicants are required to provide a copy of

their completed application to the appropriate SPOC on or before

January 14, 1999. Applicants are encouraged to contact the appropriate

SPOC well before the PTFP closing date.

Indirect costs for construction applications are not supported by

this program. The total dollar amount of the indirect costs proposed in

a planning application under this program must not exceed the indirect

cost rate negotiated and approved by a cognizant Federal agency prior

to the proposed effective date of the award or 100 percent of the total

proposed direct costs dollar amount in the application, whichever is

less.

You are not required to respond to a collection of information

sponsored by the Federal government, and the government may not conduct

or sponsor this collection, unless it displays a currently valid OMB

control number or if we fail to provide you with this notice.

All primary applicants must submit a completed Form CD-511,

``Certifications Regarding Debarment, Suspension, and Other

Responsibility Matters; Drug-Free Workplace Requirements and

Lobbying,'' and the following explanations are hereby provided:

(1) Nonprocurement Debarment and Suspension. Prospective

participants (as defined at 15 CFR Part 26, Section 105) are subject to

15 CFR Part 26, ``Nonprocurement Debarment and Suspension'' and the

related section of the certification form prescribed above applies;

(2) Drug Free Workplace. Grantees (as defined at 15 CFR Part 26,

Section 605) are subject to 15 CFR Part 26, Subpart F, ``Government-

wide Requirements for Drug-Free Workplace (Grants)'' and the related

section of the certification form prescribed above applies;

(3) Anti-lobbying. Persons (as defined at 15 CFR Part 28, Section

105) are subject to the lobbying provisions of 31 U.S.C. 1352,

``Limitation on use of appropriated funds to influence certain Federal

contracting and financial transactions,'' and the lobbying section of

the certification form prescribed above applies to applicants/bidders

for grants, cooperative agreements, and contracts for more than

$100,000, and loans and loan guarantees for more than $150,000, or the

single family maximum mortgage limit for affected programs, whichever

is greater; and

(4) Anti-lobbying Disclosures. Any applicant that has paid or will

pay for lobbying using any funds must submit an SF-LLL, ``Disclosure of

Lobbying Activities,'' (OMB Control Number 0348-0046) as required under

15 CFR Part 28, Appendix B.

Recipients shall require applicants/bidders for subgrants,

contracts, subcontracts, or other lower tier covered transactions at

any tier under the grant award to submit, if applicable, a completed

Form CD-512, ``Certifications Regarding Debarment, Suspension,

Ineligibility and Voluntary Exclusion-Lower Tier Covered Transactions

and Lobbying'' and disclosure form, SF-LLL, ``Disclosure of Lobbying

Activities.'' Form CD-512 is intended for the use of recipients and

should not be transmitted to the Department. SF-LLL submitted by any

tier recipient or subrecipient should be submitted to the Department in

accordance with the instructions contained in the award document.

If an application is selected for funding, the Department of

Commerce has no obligation to provide any additional future funding in

connection with that award. Renewal of an award to increase funding or

extend the period of performance is at the total discretion of the

Department.

Recipients and subrecipients are subject to all Federal laws and

Federal and DOC policies, regulations, and procedures applicable to

Federal assistance awards. In addition, unsatisfactory performance by

the applicant under prior Federal awards may result in the application

not being considered for funding.

If applicants incur any costs prior to an award being made, they do

so solely at their own risk of not being reimbursed by the Government.

Notwithstanding any verbal or written assurance that they have

received, there is no obligation on the part of the Department to cover

preaward costs.

No award of Federal funds shall be made to an applicant who has an

outstanding delinquent Federal debt until either: (1) the delinquent

account is paid in full; (2) a negotiated repayment schedule is

established and at least one payment is received, or (3) other

arrangements satisfactory to the Department are made.

Applicants are reminded that a false statement on the application

may be grounds for denial or termination of funds and grounds for

possible punishment by a fine or imprisonment as provided in 18 U.S.C.

1001.

Special Note: NTIA has established a policy which is intended to

encourage stations to increase from 25 percent to 50 percent the

matching percentage for those proposals that call for equipment

replacement, improvement, or augmentation (PTFP Policy Statement, (56

FR 59168 (1991)). The presumption of 50 percent funding will be the

general rule for the replacement, improvement or augmentation of

equipment A showing of extraordinary need (i.e. small community-

licensee stations or a station that is licensed to a large institution

[e.g., a college or university] documenting that it does not receive

direct or in-kind support from the larger institution) or an emergency

situation will be taken into consideration as justification for grants

of up to 75 percent of the total project cost for such projects.

A point of clarification is in order: NTIA expects to continue

funding projects to activate stations or to extend service at up to 75

percent of the total project cost. NTIA will do this because applicants

proposing to provide first service to a geographic area ordinarily

incur considerable costs that are not eligible for NTIA funding. The

applicant must cover the ineligible costs including those for

construction or renovation of buildings and other similar expenses.

Since NTIA has limited funds for the PTFP program, the PTFP Final

Rules published November 8, 1996 modified NTIA's policy regarding the

funding of planning applications. Our policy now includes the general

presumption to fund planning projects at no more than 75 percent of the

project costs. NTIA notes that most of the planning grants awarded by

PTFP in recent years include matching in-kind services and funds

contributed by the grantee. The new NTIA policy therefore codifies what

already has become PTFP practice. NTIA, however, is mindful that

planning grants are sometimes the only resource that emerging community

groups have with which to initiate the planning of new facilities in

unserved areas. We therefore will continue to award up to 100 percent

of total project costs in cases of extraordinary need (e.g. small

community group proposing to initiate new public telecommunication

service).

We wish to take this opportunity to restate the policy published in

the

[[Page 60195]]

November 22, 1991, PTFP Policy Statement (56 FR 59168 (1991)),

regarding applicants' use of funds from the Corporation for Public

Broadcasting (CPB) to meet the local match requirements of the PTFP

grant. NTIA continues to believe that the policies and purposes

underlying the PTFP requirements could be significantly frustrated if

applicants routinely relied upon another Federally supported grant

program for local matching funds. Accordingly, NTIA has limited the use

of CPB funds for the non-Federal share of PTFP projects to

circumstances of ``clear and compelling need'' (15 CFR

Sec. 2301.6(c)(2)). NTIA intends to maintain that standard and to apply

it on a case-by-case basis.

II. Digital Broadcasting

The FCC's adoption of the Fifth Report and Order in April 1997

requires that all public television stations begin the broadcast of a

digital signal by May 1, 2003. NTIA believes that it is critical that

all public television applicants fully consider digital technology in

any request for equipment replacement submitted to PTFP. Any public

television applicant must describe whether it has a plan for digital

conversion to meet the FCC's mandate and whether the requested

equipment is consistent with that plan. If the applicant is developing

a plan for digital conversion, the application should address how the

requested equipment will be consistent with the overall objective of

converting the facility for digital broadcasting.

NTIA recognizes that digital technology will be an important means

for the more efficient creation and distribution of programming in the

future. Consequently, public broadcasters seeking to replace, upgrade,

and buy new equipment that employs digital technology will be

permitted, when appropriate, to use PTFP funds for such purposes.

For fiscal year 1998, NTIA awarded $12.5 million in funds to 50

projects which assisted public television stations in the conversion to

digital technologies. The awards ranged from $36,405 to $967,400. The

use of digital technologies is also appropriate for public radio

facilities. NTIA funded projects for digital STL's and audio production

equipment which will assist public radio stations as they prepare for

conversion to digital technologies. These digital projects are funded

as equipment replacement, improvement or augmentation projects with the

presumption of a 50 percent Federal share as noted earlier, unless a

showing of extraordinary need for a higher percentage has been made

pursuant to Sec. 2301.6(b)(ii) of the PTFP Rules.

III. Distance Learning Projects

The growth of digital technologies provides new opportunities for

distance learning projects using both broadcast (e.g., the multi-

channel capabilities of DTV) or nonbroadcast facilities. Since 1979,

NTIA has funded nonbroadcast distance learning projects through the

``Special Applications'' category as established in Sec. 2301.4(a) of

the PTFP Rules. In 1996, NTIA established a similar category for

broadcast projects, ``Broadcast/other'' in Sec. 2301.4(b)(6). NTIA

encourages applications in either category for innovative or unique

distance learning projects which address demonstrated and substantial

community needs.

For fiscal year 1998, NTIA awarded $3.67 million in funds to 12

grants for distance learning projects. The awards ranged from $55,452

to $594,936.

The November 22, 1991, PTFP Policy Statement (56 FR 59168 (1991))

mentioned in the Application Forms and Regulations section discussed a

number of issues of particular relevance to applicants proposing

nonbroadcast educational and instructional projects and potential

improvement of nonbroadcast facilities. These policies remain in effect

and will be available to all PTFP applicants as part of the Guidelines

for preparing FY 1999 PTFP applications.

IV. Eligible and Ineligible Costs

Eligible equipment for the 1999 grant round includes apparatus

necessary for the production, interconnection, captioning, broadcast,

or other distribution of programming, including but not limited to

studio equipment; audio and video storage, processing, and switching

equipment; terminal equipment; towers; antennas; transmitters; remote

control equipment; transmission line; translators; microwave equipment;

mobile equipment; satellite communications equipment; instructional

television fixed service equipment; subsidiary communications

authorization transmitting and receiving equipment; cable television

equipment; and optical fiber communications equipment.

The following list provides clarification regarding several

equipment and other cost areas that will be helpful in preparing

applications. NTIA also reserves the right to eliminate any costs,

whether specified here or not, that it determines are not appropriate

prior to the awarding of a grant.

A. Equipment and Supplies

(1) Buildings and Modifications to Buildings. (a) Eligible: Small

equipment shelters that are part of satellite earth stations,

translators, microwave interconnection facilities, and similar

facilities. (b) Ineligible: Purchase or lease of buildings and

modifications to buildings, including the renovation of space for

studios intended to house eligible equipment; costs associated with

removing old equipment.

(2) Land and Land Improvements. (a) Eligible: Site preparation

necessary to construct towers and guy anchors for transmission and

interconnection equipment. (b) Ineligible: Purchase or lease of land.

(3) Moving Costs. (a) Eligible: Shipping and delivery charges for

equipment acquired within the award. (b) Ineligible: Moving costs

required by relocation of any facilities.

(4) Reception Equipment. (a) Eligible: Fixed frequency demodulator,

as required by good engineering practice for monitoring the off-air

transmission of signals; subcarrier demodulator; telemetry transmitters

and receivers; satellite receivers; and subcarrier decoders for the

handicapped. (b) Ineligible: Consumer-type TV sets and FM receivers.

(5) Tower Modifications. (a) Eligible: Strengthening or modifying a

commercial entity's tower to accommodate a public broadcasting entity

(structural modifications on towers and/or antenna changes must meet

EIA (Electronic Industries Association) and any required local

standards). (b) Ineligible: Modifying or strengthening the applicant's

tower to accommodate a commercial entity.

(6) Production and Control Room Equipment. (a) Eligible: Standard

production studio and control room equipment for TV or radio program

production. (b) Ineligible: Consumer-type mixers, tape recorders,

turntables, CD players, etc; ancillary production devices such as

stopwatches and stop-clocks, building lights, sound effects, scenery

and props, cycloramas, sound insulation devices and materials,

draperies and related equipment for production use, film and still

photography processing, film sound synchronization editing.

(7) Video Equipment. (a) Eligible: Videotape editing and processing

equipment that conforms to broadcast-standard quality equipment for

field recording and production editing. (b) Ineligible: Consumer level

videotape recording formats not accepted in the industry as broadcast-

standard quality.

(8) Furniture and Office Equipment. (a) Eligible: Consoles required

to mount

[[Page 60196]]

equipment such as audio consoles and video switchers. (b) Ineligible:

Such items as office furniture, office equipment, studio clocks and

systems, blackboards, office intercoms, equipment inventory labels and

label-makers, word processors, telephone systems, and printing and

duplication equipment.

(9) Expendable Items and Spare Parts. (a) Eligible: A transmitter

spare parts kit and one set of final and driver tubes for a transmitter

awarded in the grant; a spare parts kit for video tape recorders

awarded in the grant. (b) Ineligible: Spare lenses, spare circuit

components, spare parts kits for studio equipment, except as noted

above; recording tape, film, reels, cartridge tapes, records, compact

discs, and record or tape cleaning equipment; art and graphics

supplies; maintenance supplies, including replacement final and driver

tubes normally considered in the industry as normal maintenance-budget-

provided items and similar items.

(10) Backup Equipment. (a) Eligible: Hot standby or backup

microwave for the main studio-to-transmitter link only; a backup or

spare exciter for a television transmitter, as required by good

engineering practice. (b) Ineligible: Redundant equipment, such as

spare transmitters, or costs associated with them, as well as backup

microwave equipment (except as noted above).

(11) Electric Power. (a) Eligible: Generally, all primary power

costs from the output of the main power meter panel; regulators and

surge protectors, as required by good engineering practice, to

stabilize transmitter RF output. Where primary power is not available

or is unusable for broadcast, then PTFP may provide funding for those

devices needed to power the facility if the need for that equipment is

fully documented in the application. (b) Ineligible: Costs of

installing primary power to the facility, including transformers, power

lines, gasoline or diesel powered generators, and related equipment.

(12) Test and Maintenance Equipment. (a) Eligible: Required test

equipment, as indicated by good engineering practice for the

maintenance of the project equipment. (b) Ineligible: Maintenance

equipment such as hand and power tools, storage cabinets, and

maintenance services.

(13) Air Conditioning and Ventilation. (a) Eligible: The costs to

provide ventilation of eligible project equipment, such as ducting for

transmitters and transmitter air conditioning, as required by good

engineering practice. (b) Ineligible: Unless exceptionally well-

documented, air conditioning for control rooms, or equipment rooms,

studios, mobile units, and other operational rooms and offices.

(14) Remote Vans. (a) Eligible: Items to equip a remote van for

audio/video production. (b) Ineligible: All vehicles.

B. Other Costs

(1) Construction Applications: NTIA generally will not fund salary

expenses, including staff installation costs, and pre-application legal

and engineering fees. Certain ``pre-operational expenses'' are eligible

for funding. (See 15 CFR Sec. 2301.2.) Despite this provision, NTIA

regards its primary mandate to be funding the acquisition of equipment

and only secondarily funding of salaries. A discussion of this issue

appears in the PTFP Final Rules under the heading Support for Salary

Expenses in the introductory section of the document.

(2) Planning Applications. (a) Eligible: Salaries are eligible

expenses for all planning grant applications, but should be fully

described and justified within the application. Planning grant

applicants may lease office equipment, furniture and space, and may

purchase expendable supplies under the terms of 47 U.S.C. Sec. 392 (c).

(b) Ineligible: Planning grant applications cannot include the cost of

constructing or operating a telecommunications facility.

(3) Audit Costs. Audits shall be performed in accordance with audit

requirements contained in Office of Management and Budget Circular A-

133, Audits of States, Local Governments, and Non-Profit Organizations,

revised June 30, 1997. OMB Circular A-133 requires that non-profit

organizations, government agencies, Indian tribes and educational

institutions expending more than $300,000 in federal funds during a

one-year period conduct a single audit in accordance with guidelines

outlined in the circular. Applicants are reminded that other audits may

be conducted by the Office of Inspector General.

NTIA recognizes that most of its grant recipients are divisions of

state and local governments or are public broadcasting facilities, all

of which routinely conduct annual audits. In order to make the maximum

amount of monies available for equipment purchases and planning

activities, NTIA will therefore only fund audit costs in exceptional

circumstances.

V. Notice of Applications Received

In accordance with 15 CFR Sec. 2301.13, NTIA will publish a notice

in the Federal Register listing all applications received by the

Agency. Listing an application in such a notice merely acknowledges

receipt of an application to compete for funding with other

applications. Publication does not preclude subsequent return of the

application for the reasons discussed under the Dates section above, or

disapproval of the application, nor does it assure that the application

will be funded. The notice will also include a request for comments on

the applications from any interested party.

VI. Evaluation Process

See 15 CFR Sec. 2301.16 for a description of the Technical

Evaluation and 15 CFR Sec. 2301.17 for the Evaluation Criteria.

VII. Selection Process

Based upon the above cited evaluation criteria, the PTFP program

staff prepares summary recommendations for the PTFP Director. These

recommendations incorporate outside reviewers rankings and

recommendations, engineering assessments, and input from the National

Advisory Panel, State Single Point of Contacts and state

telecommunications agencies. Staff recommendations also consider

project impact, the cost/benefit of a project and whether review panels

have consistently applied the evaluation criteria. The PTFP Director

will consider the summary recommendations prepared by program staff,

will recommend the funding order of the applications, and will present

recommendations to the OTIA (Office of Telecommunications and

Information Applications) Associate Administrator for review and

approval. The PTFP Director recommends the funding order for

applications in three categories: ``Recommended for Funding,''

``Recommended for Funding if Funds Available,'' and ``Not Recommended

for Funding.'' See 15 CFR Sec. 2301.18 for a description of the

selection factors retained by the Director, OTIA Associate

Administrator, and the Assistant Secretary for Telecommunications and

Information.

Upon review and approval by the OTIA Associate Administrator, the

Director's recommendations will then be presented to the Selection

Official, the NTIA Administrator. The NTIA Administrator selects the

applications for possible grant award taking into consideration the

Director's recommendations and the degree to which the slate of

applications, taken as a whole, satisfies the program's stated purposes

set forth at 15 CFR Sec. 2301.1(a) and (c). Prior to award,

applications may be negotiated between PTFP staff and the applicant to

resolve whatever differences might exist between the

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original request and what PTFP proposes to fund. Some applications may

be dropped from the proposed slate due to lack of Federal

Communications Commission licensing authority, an applicant's inability

to make adequate assurances or certifications, or other reasons.

Negotiation of an application does not ensure that a final award will

be made. The PTFP Director recommends final selections to the NTIA

Administrator applying the same factors as listed in 15 CFR

Sec. 2301.18. The Administrator then makes the final award selections

taking into consideration the Director's recommendations and the degree

to which the slate of applications, taken as a whole, satisfies the

program's stated purposes in 15 CFR Sec. 2301.1 (a) and (c).

VIII. Project Period

Planning grant award periods customarily do not exceed one year,

whereas construction grant award periods commonly range from one to two

years. Although these time frames are generally applied to the award of

all PTFP grants, variances in project periods may be based on specific

circumstances of an individual proposal.

Authority: The Public Telecommunications Financing Act of 1978,

as amended, 47 U.S.C. Secs. 390-393, 397-399(b).

(Catalog of Federal Domestic Assistance No. 11.550)

Bernadette McGuire-Rivera,

Associate Administrator, Office of Telecommunications and Information

Applications.

[FR Doc. 98-29776 Filed 11-5-98; 8:45 am]

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