[Federal Register Volume 71, Number 69 (Tuesday, April 11, 2006)]
[Notices]
[Pages 18271-18276]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-5224]


-----------------------------------------------------------------------

DEPARTMENT OF AGRICULTURE

Rural Utilities Service


Announcement of Funding Availability and Solicitation of 
Applications

AGENCY: Rural Utilities Service, USDA.

ACTION: Notice of funding availability and solicitation of 
applications.

-----------------------------------------------------------------------

SUMMARY: USDA Rural Development administers rural utilities programs 
through the Rural Utilities Service. USDA Rural Development announces 
the Distance Learning and Telemedicine (DLT) Program grant application 
window for funding during fiscal year (FY) 2006. FY 2005 funding for 
the DLT grant program was approximately $29.4 million.
    In addition to announcing an application window, the Agency 
announces the available funding, and the minimum and maximum amounts 
for DLT grants applicable for the fiscal year.

DATES: You may submit completed applications for grants on paper or 
electronically according to the following deadlines:
     Paper copies must be postmarked and mailed, shipped, or 
sent overnight no later than June 12, 2006 to be eligible for FY 2006 
grant funding. Late or incomplete applications are not eligible for FY 
2006 grant funding.
     Electronic copies must be received by June 12, 2006 to be 
eligible for FY 2006 grant funding. Late or incomplete applications are 
not eligible for FY 2006 grant funding.

ADDRESSES: You may obtain copies of the FY 2006 application guide and 
materials for the DLT grant program at the DLT Web site: http://www.usda.gov/rus/telecom/dlt/dlt.htm. You may also request the FY 2006 
application guide and materials by contacting the DLT Program at (202) 
720-0413.
    Submit completed paper applications for grants to the 
Telecommunications Program, USDA Rural Development, United State 
Department of Agriculture, 1400 Independence Ave., SW., Room 2845, STOP 
1550, Washington, DC 20250-1550. Applications should be marked 
``Attention: Director, Advanced Services Division.''
    Submit electronic grant applications at http://www.grants.gov 
(Grants.gov), following the instructions you find on that Web site.

FOR FURTHER INFORMATION CONTACT: Orren E. Cameron, III, Director, 
Advanced Services Division, Telecommunications Program, USDA Rural 
Development, United States Department of Agriculture, telephone: (202) 
720-0413, fax: (202) 720-1051.

SUPPLEMENTARY INFORMATION:

Overview

    Federal Agency: Rural Utilities Service (RUS).
    Funding Opportunity Title: Distance Learning and Telemedicine 
Grants.
    Announcement Type: Initial announcement.
    Catalog of Federal Domestic Assistance (CFDA) Number: 10.855.
    Dates: You may submit completed applications for grants on paper or 
electronically according to the following deadlines:
     Paper copies must be postmarked and mailed, shipped, or 
sent overnight no later than June 12, 2006. to be eligible for FY 2006 
grant funding. Late or incomplete applications are not eligible for FY 
2006 grant funding.
     Electronic copies must be received by June 12, 2006 to be 
eligible for FY 2006 grant funding. Late or incomplete applications are 
not eligible for FY 2006 grant funding.

Items in Supplementary Information

I. Funding Opportunity: Brief introduction to the DLT program.
II. Minimum and Maximum Application Amounts: Projected Available 
Funding.
III. Eligibility Information: Who is eligible, what kinds of 
projects are eligible, what criteria determine basic eligibility.
IV. Application and Submission Information: Where to get application 
materials, what constitutes a completed application, how and where 
to submit applications, deadlines, items that are eligible.
V. Application Review Information: considerations and preferences, 
scoring criteria, review standards, selection information.
VI. Award Administration Information: award notice information, 
award recipient reporting requirements.
VII. Agency Contacts: Web, phone, fax, email, contact name.

I. Funding Opportunity

    Distance learning and telemedicine grants are specifically designed 
to provide access to education, training and health care resources for 
people in rural America. The Distance Learning and Telemedicine (DLT) 
Program provides financial assistance to encourage and improve 
telemedicine services and distance learning services in rural areas 
through the use of telecommunications, computer networks, and related 
advanced technologies by students, teachers, medical professionals, and 
rural residents. The grants are awarded through a competitive process.
    As in years past, the FY 2006 grant application guide has been 
changed to reflect recent changes in technology and application trends. 
Details of changes from the FY 2005 application guide are highlighted 
throughout this Notice and described in full in the FY 2006 application 
guide. The Agency strongly encourages all applicants to carefully 
review and exactly follow the FY 2006 application guide and sample 
materials when compiling a DLT grant application.

II. Maximum and Minimum Amount of Grant Applications; Projected 
Available Funding

    Under 7 CFR 1703.124, the Administrator has determined the maximum 
amount of an application for a grant in FY 2006 is $500,000 and the 
minimum amount of a grant is $50,000. The anticipated amount available 
to fund grant awards in FY 2006 is $20 million.
    The USDA Rural Development will make awards and execute documents 
appropriate to the project prior to any advance of funds to successful 
applicants.
    DLT grants cannot be renewed. Award documents specify the term of 
each award. Applications to extend existing projects are welcomed 
(grant applications must be submitted during the application window) 
and will be evaluated as new applications.

III. Eligibility Information

    A. Who is eligible for grants? (See 7 CFR 1703.103.)

[[Page 18272]]

    1. Only entities legally organized as one of the following are 
eligible for DLT grants:
    a. An incorporated organization or partnership,
    b. An Indian tribe or tribal organization, as defined in 25 U.S.C. 
450b(b) and (c),
    c. A state or local unit of government,
    d. A consortium, as defined in 7 CFR 1703.102, or
    e. Other legal entity, including a private corporation organized on 
a for-profit or not-for-profit basis.
    2. Individuals are not eligible for DLT grants directly.
    3. Electric and telecommunications borrowers under the Rural 
Electrification Act of 1936 (7 U.S.C. 950aaa et seq.) are not eligible 
for grants.
    B. What are the basic eligibility requirements for a project?
    1. Required matching contributions: See 7 CFR 1703.125(g) and the 
FY 2006 application guide for information on required matching 
contributions.
    a. Grant applicants must demonstrate matching contributions, in 
cash or in kind (new, non-depreciated items), of at least fifteen (15) 
percent of the total amount of financial assistance requested. Matching 
contributions must be used for eligible purposes of DLT grant 
assistance (see 7 CFR 1703.121, paragraphs IV.G.1.c and V.B.2.d of this 
Notice and the FY 2006 application guide).
    b. Greater amounts of eligible matching contributions may increase 
an applicant's score (see 7 CFR 1703.126(b)(4), paragraph V.B.2.d of 
this notice, and the FY 2006 application guide).
    c. Applications that do not provide evidence of the required 
fifteen percent match which helps determine eligibility will be 
declared ineligible and returned. See paragraphs IV.G.1.c and V.B.2.d 
of this Notice, and the FY 2006 application guide for specific 
information on documentation of matching contributions.
    d. Applications that do not document all matching contributions are 
subject to budgetary adjustment by USDA Rural Development, which may 
culminate in rejection of an application as ineligible due to 
insufficient match.
    2. The DLT grant program is designed to flow the benefits of 
distance learning and telemedicine to residents of rural America (see 7 
CFR 1703.103(a)(2)). Therefore, in order to be eligible, applicants 
must:
    a. Operate a rural community facility; or
    b. Deliver distance learning or telemedicine services to entities 
that operate a rural community facility or to residents of rural areas, 
at rates calculated to ensure that the benefit of the financial 
assistance is passed through to such entities or to residents of rural 
areas.
    3. Rurality.
    a. All projects proposed for DLT grant assistance must meet a 
minimum rurality threshold, to ensure that benefits from the projects 
flow to rural residents. The minimum eligibility score is 20 points. 
Please see Section IV of this notice, 7 CFR 1703.126(a)(2), and the FY 
2006 application guide for an explanation of the rurality scoring and 
eligibility criterion.
    b. Each application must apply the following criteria to each of 
its end-user sites, and hubs that are also proposed as end-user sites, 
in order to determine a rurality score. The rurality score is the 
average of all end-user sites' rurality scores.

----------------------------------------------------------------------------------------------------------------
                                                                                                           DLT
                Criterion                             Character                      Population           Points
----------------------------------------------------------------------------------------------------------------
Exceptionally Rural Area................  Area not within a city, village   <=5000.....................       45
                                           or borough.
Rural Area..............................  Incorporated or unincorporated    >5000 and <=10,000.........       30
                                           area.
Mid-Rural Area..........................  Incorporated or unincorporated    >10,000 and <=20,000.......       15
                                           area.
Urban Area..............................  Incorporated or unincorporated    >20,000....................        0
                                           area.
----------------------------------------------------------------------------------------------------------------

    c. The rurality score is one of the competitive scoring criteria 
applied to grant applications.
    4. Projects located in areas covered by the Coastal Barrier 
Resources Act (16 U.S.C. 3501 et seq.) are not eligible for grants from 
the DLT Program. Please see 7 CFR 1703.123(a)(11).
    C. See Section IV of this Notice and the FY 2006 application guide 
for a discussion of the items that make up a complete application. You 
may also refer to 7 CFR 1703.125 for complete grant application items. 
The FY 2006 application guide provides specific, detailed instructions 
for each item that constitutes a complete application. The Agency 
strongly emphasizes the importance of including every required item (as 
explained in the FY 2006 application guide) and strongly encourages 
applicants to follow the instructions exactly, using the examples and 
illustrations in the FY 2006 application guide. Applications which do 
not include all items that determine project eligibility and applicant 
eligibility by the application deadline will be returned as ineligible. 
Applications that do not include all items necessary for scoring will 
be scored as is. Please see the FY 2006 application guide for a full 
discussion of each required item and for samples and illustrations.

IV. Application and Submission Information

    A. Where to get application information. FY 2006 application 
guides, copies of necessary forms and samples, and the DLT Program 
regulation are available from these sources:
    1. The Internet: http://www.usda.gov/rus/telecom/dlt/dlt.htm.
    2. The DLT Program for paper copies of these materials: (202) 720-
0413.
    B. What constitutes a completed application?
    1. Detailed information and instructions on each item in the table 
in paragraph IV.B.6 of this Notice can be found in the sections of the 
DLT Program regulation listed in the table, and the FY 2006 DLT grant 
application guide. Applicants are strongly encouraged to read and apply 
both the regulation and the FY 2006 application guide. Applications 
that do not include all items that determine project eligibility and 
applicant eligibility by the application deadline will be returned as 
ineligible. Applications that do not include all items necessary for 
scoring will be scored as is. Please see the FY 2006 application guide 
for a full discussion of each required item and for samples and 
illustrations.
    a. When the table refers to a narrative, it means a written 
statement, description or other written material prepared by the 
applicant, for which no form exists. USDA Rural Development recognizes 
that each project is unique and requests narratives to allow applicants 
to fully explain their request for financial assistance.
    b. When documentation is requested, it means letters, 
certifications, legal documents or other third-party documentation that 
provide evidence that the applicant meets the listed requirement. For 
example, to confirm

[[Page 18273]]

Enterprise Zone (EZ) designations, applicants use various types of 
documents, such as letters from appropriate government bodies and 
copies of appropriate USDA Web pages. Leveraging documentation 
sometimes includes letters of commitment from other funding sources, or 
other documents specifying in-kind donations. Evidence of legal 
existence is sometimes proven by applicants who submit articles of 
incorporation. None of the foregoing examples is intended to limit the 
types of documentation that may be submitted to fulfill a requirement. 
The DLT Program regulations and the FY 2006 application guide provide 
specific guidance on each of the items in the table.
    2. The FY 2006 DLT application guide and ancillary materials 
provide all necessary forms and worksheets.
    3. While the table in paragraph IV.B.6 of this Notice includes all 
items of a complete application, USDA Rural Development may ask for 
additional or clarifying information if the submitted items do not 
fully address a criterion or other provision. USDA Rural Development 
will communicate with applicants if the need for additional information 
arises. Applications which do not include all items that determine 
project eligibility and applicant eligibility by the application 
deadline will be returned as ineligible. Applications that do not 
include all items necessary for scoring will be scored as is. Please 
see the FY 2006 application guide for a full discussion of each 
required item and for samples and illustrations.
    4. Submit the required application items in the order provided in 
the FY 2006 application guide. The FY 2006 application guide specifies 
the format and order of all required items. Applications that are not 
assembled and tabbed in the order specified delay the review process. 
Given the high volume of Program interest, incorrectly assembled 
applications will be returned as ineligible.
    5. DUNS Number. As required by the OMB, all applicants for grants 
must supply a Dun and Bradstreet Data Universal Numbering System (DUNS) 
number when applying. The Standard Form 424 (SF-424) contains a field 
for you to use when supplying your DUNS number. Obtaining a DUNS number 
costs nothing and requires a short telephone call to Dun and 
Bradstreet. Please see http://www.grants.gov/RequestaDUNS for more 
information on how to obtain a DUNS number or how to verify your 
organization's number.
    6. Table of Required Elements of a Completed Grant Application.

------------------------------------------------------------------------
                                              Notes (see the FY 2006
  Application item (7 CFR 1703.125 and      application guide for full
             CFR 1703.126)                        instructions)
------------------------------------------------------------------------
SF-424 (Application for Federal          Completely filled out,
 Assistance form).                        including the required
                                          detailed listing of all
                                          project sites. Application
                                          will be ineligible without
                                          this information.
Executive Summary......................  Narrative.
Rural Calculation Table................  Recommend using the Agency
                                          worksheet. Application will be
                                          ineligible without this
                                          information.
National School Lunch Program            Recommend using the Agency
 Determination.                           worksheet; must include source
                                          documentation.
EZ/EC or Champion Communities            Recommend using the Agency
 designation.                             worksheet; and documentation.
Documented Need for Services/Benefits    Narrative and documentation, if
 Derived from Services.                   necessary.
Innovativeness of the Project..........  Narrative and documentation.
Budget.................................  Table or spreadsheet; recommend
                                          using the Agency format.
                                          Application will be ineligible
                                          without this information.
Leveraging Evidence and Funding          Documentation. Application will
 Commitments from All Sources.            be ineligible without this
                                          information.
Financial Information/Sustainability...  Narrative. Application will be
                                          ineligible without this
                                          information.
System/Project Cost Effectiveness......  Narrative and documentation.
Telecommunications System Plan.........  Narrative and documentation;
                                          maps or diagrams. Application
                                          will be ineligible without
                                          this information.
Proposed Scope of Work.................  Narrative or other appropriate
                                          format. Application will be
                                          ineligible without this
                                          information.
Statement of Experience................  Narrative 3-page, single-spaced
                                          limit.
Consultation with the USDA State         Documentation.
 Director, Rural Development.
Application conforms with State          Documentation.
 Strategic Plan per USDA State
 Director, Rural Development, (if plan
 exists).
Equal Opportunity and Nondiscrimination  Recommend using the Agency
                                          sample form.
Architectural Barriers.................  Recommend using the Agency
                                          sample form.
Flood Hazard Area Precautions..........  Recommend using the Agency
                                          sample form.
Uniform Relocation Assistance and Real   Recommend using the Agency
 Property Acquisition Policies Act of     sample form.
 1970.
Drug-Free Workplace....................  Recommend using the Agency
                                          sample form.
Debarment, Suspension, and Other         Recommend using the Agency
 Responsibility Matters--Primary          sample form.
 Covered Transactions.
Lobbying for Contracts, Grants, Loans,   Recommend using the Agency
 and Cooperative Agreements.              sample form.
Nonduplication of Services.............  Recommend using the Agency
                                          sample form. Application will
                                          be ineligible without this
                                          information.
Environmental Impact/Historic            Recommend using the Agency
 Preservation Certification.              sample form.
Evidence of Legal Authority to Contract  Documentation. Application will
 with the Government.                     be ineligible without this
                                          information.
Evidence of Legal Existence............  Documentation. Application will
                                          be ineligible without this
                                          information.
------------------------------------------------------------------------

    C. How many copies of an application are required?
    1. Applications submitted on paper.
    a. Submit the original application and two (2) copies to USDA Rural 
Development.
    b. Submit one (1) additional copy to the State government single 
point of contact (SPOC) (if one has been designated) at the same time 
as you submit the application to the Agency. See http://www.whitehouse.gov/omb/grants/spoc.html for an updated listing of State 
government single points of contact.
    2. Electronically submitted applications.

[[Page 18274]]

    a. The additional paper copies specified in 7 CFR 1703.128(c) and 7 
CFR 1703.136(b) are not necessary if you submit the application 
electronically through Grants.gov.
    b. Submit one (1) copy to the State government single point of 
contact (if one has been designated) at the same time as you submit the 
application to the Agency. See http://www.whitehouse.gov/omb/grants/spoc.html for an updated listing of State government single points of 
contact.
    D. How and where to submit an application. Grant applications may 
be submitted on paper or electronically.
    1. Submitting applications on paper.
    a. Address paper applications for grants to the Telecommunications 
Program, USDA Rural Development, United States Department of 
Agriculture, 1400 Independence Ave., SW., Room 2845, STOP 1550, 
Washington, DC 20250-1550. Applications should be marked ``Attention: 
Director, Advanced Services Division.''
    b. Paper applications must show proof of mailing or shipping by the 
deadline consisting of one of the following:
    (i) A legibly dated U.S. Postal Service (USPS) postmark;
    (ii) A legible mail receipt with the date of mailing stamped by the 
USPS; or
    (iii) A dated shipping label, invoice, or receipt from a commercial 
carrier.
    c. Due to screening procedures at the Department of Agriculture, 
packages arriving via regular mail through the USPS are irradiated, 
which can damage the contents and delay delivery to the DLT Program. 
USDA Rural Development encourages applicants to consider the impact of 
this procedure in selecting their application delivery method.
    2. Electronically submitted applications.
    a. Applications will not be accepted via fax or electronic mail.
    b. Electronic applications for grants will be accepted if submitted 
through the Federal government's Grants.gov initiative at http://www.grants.gov.
    c. How to use Grants.gov.
    (i) Grants.gov contains full instructions on all required 
passwords, credentialing and software.
    (ii) Central Contractor Registry. Submitting an application through 
Grants.gov requires that you list your organization in the Central 
Contractor Registry (CCR). Setting up a CCR listing takes up to five 
business days, so the Agency strongly recommends that you obtain your 
organization's DUNS number and CCR listing well in advance of the 
deadline specified in this notice.
    (iii) Credentialing and authorization of applicants. Grants.gov 
will also require some credentialing and online authentication 
procedures. These procedures may take several business days to 
complete, further emphasizing the need for early action by applicants 
to complete the sign-up, credentialing and authorization procedures at 
Grants.gov before you submit an application at that Web site.
    (iv) Some or all of the CCR and Grants.gov registration, 
credentialing and authorizations require updates. If you have 
previously registered at Grants.gov to submit applications 
electronically, please ensure that your registration, credentialing and 
authorizations are up to date well in advance of the grant application 
deadline.
    d. USDA Rural Development encourages applicants who wish to apply 
through Grants.gov to submit their applications in advance of the 
deadlines.
    e. If a system problem occurs or you have technical difficulties 
with an electronic application, please use the customer support 
resources available at the Grants.gov Web site.
    E. Deadlines.
    1. Paper applications must be postmarked and mailed, shipped, or 
sent overnight no later than June 12, 2006 to be eligible for FY 2006 
grant funding. Late or incomplete applications are not eligible for FY 
2006 grant funding.
    2. Electronic grant applications must be received by June 12, 2006 
to be eligible for FY 2006 funding. Late or incomplete applications are 
not eligible for FY 2006 grant funding.
    F. Intergovernmental Review. The DLT grant program is subject to 
Executive Order 12372, ``Intergovernmental Review of Federal 
Programs.'' As stated in paragraph IV.C of this Notice, a copy of a DLT 
grant application must be submitted to the State single point of 
contact if one has been designated. Please see http://www.whitehouse.gov/omb/grants/spoc.html to determine whether your state 
has a single point of contact.
    G. Funding Restrictions.
    1. Eligible purposes.
    a. End-user sites may receive financial assistance; hub sites 
(rural or non-rural) may also receive financial assistance if they are 
necessary to provide DLT services to end-user sites. Please see 7 CFR 
1703.101(h).
    b. To fulfill the policy goals laid out for the DLT Program in 7 
CFR 1703.101, the following table lists purposes for financial 
assistance and whether each purpose is generally considered to be 
eligible for the assistance. Please consult the FY 2006 application 
guide and the regulations (7 CFR 1703.102 for definitions, in 
combination with the portions of the regulation cited in the table) for 
detailed requirements for the items in the table. USDA Rural 
Development strongly recommends that applicants exclude ineligible 
items from the grant and match portions of their project budgets. 
However, some items ineligible for funding or matching contributions 
may be vital to the project. USDA Rural Development encourages 
applicants to document those costs in the application's budget. Please 
see the FY 2006 application guide for a recommended budget format, and 
detailed budget compilation instructions.

------------------------------------------------------------------------
                                              Eligible? (7 CFR 1703.121
                    Item                         and 7 CFR 1703.123)
------------------------------------------------------------------------
Lease or purchase of eligible DLT equipment  Yes--equipment only.
 and facilities.
Acquire instructional programming..........  Yes.
Technical assistance, develop instructional  Yes, not to exceed 10% of
 programming, engineering or environmental    the grant.
 studies.
Medical or education equipment or            No.
 facilities necessary to the project.
Vehicles using distance learning or          No.
 telemedicine technology to deliver
 services.
Teacher-student links located at the same    No.
 facility.
Links between medical professionals located  No.
 at the same facility.
Site development or building alteration....  No.
Land or building purchase..................  No.
Building construction......................  No.
Acquiring telecommunications transmission    No.
 facilities.
Salaries, wages, benefits for medical or     No.
 educational personnel.
Salaries/administrative expenses of          No.
 applicant or project.

[[Page 18275]]

 
Recurring project costs or operating         No. Equipment leases are
 expenses.                                    eligible.
                                              Telecommunications
                                              connection charges are not
                                              eligible.
Equipment to be owned by the LEC or other    Yes.
 telecommunications service provider, if
 the provider is the applicant.
Duplicate distance learning or telemedicine  No.
 services.
Any project that, for its success, depends   No.
 on additional DLT financial assistance or
 other financial assistance that is not
 assured.
Application preparation costs..............  No.
Other project costs not covered in           No.
 regulation.
Costs for and facilities providing distance  No.
 learning broadcasting.
Reimburse applicant or others for costs      No.
 incurred prior to the Agency's receipt of
 completed application.
------------------------------------------------------------------------

    c. Discounts. The DLT Program regulation has long stated that 
manufacturers' and service providers' discounts are not eligible 
matches. The Agency will not consider as eligible any proposed match 
from a vendor, manufacturer, or service provider whose products or 
services will be used in the DLT project as described in the 
application. In recent years, the Agency has noted a trend of vendors, 
manufacturers and other service providers offering their own products 
and services as in-kind matches for a project when their products or 
services will also be purchased with either grant or cash match funds 
for that project. Such activity is a discount and is therefore not an 
eligible match. Similarly, if a vendor, manufacturer or other service 
provider proposes a cash match (or any in-kind match) when their 
products or services will be purchased with grant or match funds, such 
activity is a discount and is not an eligible match. The Agency 
actively discourages such matching proposals and will adjust budgets as 
necessary to remove any such matches, which may reduce an application's 
score or result in the application's ineligibility due to insufficient 
match.
    2. Eligible Equipment and Facilities. Please see 7 CFR 1703.102 for 
definitions of eligible equipment, eligible facilities and 
telecommunications transmission facilities as used in the table above. 
In addition, the FY 2006 application guide supplies a wealth of 
information and examples of eligible and ineligible items.
    3. Apportioning budget items. Many DLT applications propose to use 
items for a blend of specific DLT project purposes and other purposes. 
For the first time, USDA Rural Development asks that applicants 
attribute the proportion (by percentage of use) of the costs of each 
item to the project's DLT purpose or to other purposes. See the FY 2006 
application guide for detailed information on how to apportion use and 
apportioning illustrations.

V. Application Review Information

    A. Special considerations or preferences. American Samoa, Guam, 
Virgin Islands, and Northern Mariana Islands applications are exempt 
from the matching requirement up to a match amount of $200,000 (see 48 
U.S.C. 1469a; 91 Stat. 1164).
    B. Criteria. 1. Grant applications are scored competitively and 
subject to the criteria listed below.
    2. Grant application scoring criteria (total possible points: 235) 
See 7 CFR 1703.125 for the items that will be reviewed during scoring, 
and 7 CFR 1703.126 for scoring criteria.
    a. Need for services proposed in the application, and the benefits 
that will be derived if the application receives a grant (up to 55 
points).
    (i) Up to 45 of the 55 possible points under this criterion are 
available to all applicants. Points are awarded based on the required 
narrative crafted by the applicant. USDA Rural Development encourages 
applicants to carefully read the cited portions of the Program 
regulation and the FY 2006 application guide for full discussions of 
all of the facets of this criterion.
    (ii) Up to 10 of the possible 55 possible points under this 
criterion can be earned only by applications whose overall National 
School Lunch Program (NSLP) eligibility is less than 50%.
    (iii) Applicants whose projects demonstrate an overall NSLP 
eligibility of less than 50% must include an affirmative request for 
consideration of the possible 10 points, and documentation of reasons 
why the NSLP eligibility percentage does not fully demonstrate the 
economic need of the proposed project areas in their applications.
    b. Rurality of the proposed service area (up to 45 points).
    c. Percentage of students eligible for the NSLP in the proposed 
service area (objectively demonstrates economic need of the area) (up 
to 35 points).
    d. Leveraging resources above the required matching level (up to 35 
points). Please see paragraph III.B of this Notice for a brief 
explanation of matching contributions.
    e. Level of innovation demonstrated by the project (up to 15 
points).
    f. System cost-effectiveness (up to 35 points).
    g. Project overlap with Empowerment Zone, Enterprise Communities or 
Champion Communities designations (up to 15 points).
    C. Review standards. 1. In addition to the scoring criteria that 
rank applications against each other, the Agency evaluates grant 
applications for possible awards on the following items, according to 7 
CFR 1703.127:
    a. Financial feasibility.
    b. Technical considerations. If the application contains flaws that 
would prevent the successful implementation, operation or 
sustainability of a project, the Agency will not award a grant.
    c. Other aspects of proposals that contain inadequacies that would 
undermine the ability of the project to comply with the policies of the 
DLT Program.
    2. Applications which do not include all items that determine 
project eligibility and applicant eligibility by the application 
deadline will be returned as ineligible. Applications that do not 
include all items necessary for scoring will be scored as is. Please 
see the FY 2006 application guide for a full discussion of each 
required item and for samples and illustrations.
    3. If an application contains all items necessary to determining 
eligibility, but does not contain all items that affect its score, the 
application will be scored based on the information submitted by the 
deadline. The Agency will not request missing items that affect the 
application's score.
    4. The FY 2006 application guide specifies the format and order of 
all

[[Page 18276]]

required items. Applications that are not assembled and tabbed in the 
order specified delay the review process. Given the high volume of 
Program interest, incorrectly assembled applications will be returned 
as ineligible.
    5. Most DLT projects contain numerous project sites. USDA Rural 
Development requires that site information be consistent throughout an 
application. Sites must be referred to by the same designation 
throughout all parts of an application. USDA Rural Development has 
provided a site worksheet that requests the necessary information, and 
can be used as a guide by applicants. USDA Rural Development strongly 
recommends that applicants complete the site worksheet, listing all 
requested information for each site. Applications without consistent 
site information will be returned as ineligible.
    D. Selection Process. Grant applications are ranked by final score, 
and by application purpose (education or medical). USDA Rural 
Development selects applications based on those rankings, subject to 
the availability of funds. USDA Rural Development may allocate grant 
awards between medical and educational purposes, but is not required to 
do so. In addition, USDA Rural Development has the authority to limit 
the number of applications selected in any one State during a fiscal 
year. See 7 CFR 1703.127.

VI. Award Administration Information

    A. Award Notices. USDA Rural Development generally notifies 
applicants whose projects are selected for awards by faxing an award 
letter. USDA Rural Development follows the award letter with a grant 
agreement that contains all the terms and conditions for the grant. 
USDA Rural Development recognizes that each funded project is unique, 
and therefore may attach conditions to different projects' award 
documents. An applicant must execute and return the grant agreement, 
accompanied by any additional items required by the grant agreement, 
within 120 days of the selection date.
    B. Administrative and National Policy Requirements: The items 
listed in Section IV of this notice, and the DLT Program regulation, FY 
2006 application guide and accompanying materials implement the 
appropriate administrative and national policy requirements.
    C. Reporting. 1. Performance reporting. All recipients of DLT 
financial assistance must provide annual performance activity reports 
to USDA Rural Development until the project is complete and the funds 
are expended. A final performance report is also required; the final 
report may serve as the last annual report. The final report must 
include an evaluation of the success of the project in meeting DLT 
Program objectives. See 7 CFR 1703.107.
    2. Financial reporting. All recipients of DLT financial assistance 
must provide an annual audit, beginning with the first year a portion 
of the financial assistance is expended. Audits are governed by United 
States Department of Agriculture audit regulations. Please see 7 CFR 
1703.108.

VII. Agency Contacts

    A. Web site: http://www.usda.gov/rus/telecom/dlt/dlt.htm. The DLT 
Web site maintains up-to-date resources and contact information for DLT 
programs.
    B. Phone: 202-720-0413.
    C. Fax: 202-720-1051.
    D. E-mail: [email protected].
    E. Main point of contact: Orren E. Cameron, III, Director, Advanced 
Services Division, Telecommunications Program, USDA Rural Development, 
United States Department of Agriculture.

    Dated: March 31, 2006.
James M. Andrew,
Administrator, Rural Utilities Service.
 [FR Doc. E6-5224 Filed 4-10-06; 8:45 am]
BILLING CODE 3410-15-P